Principles of Management

esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola

rsssss.in.in.in.in.in

NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

(29)

Chapter : 2Principles ofManagement

‘Principle’ simply means fundamental guidelines, whereas management indicates “whatthe manager does”. Therefore, in simple words we can say that principles of managementare the fundamental guidelines for the organisational managers that tell them how to performvarious tasks or activities assigned to them. In technical words of management, principles ofmanagement are the guidelines to the process of getting things done from others with theaim of achieving organisational goals efficiently and effectively.

In this chapter, we will learn the principles of management provided by Henry Fayol,“Father of general management” and F.W. Taylor “Father of scientificmanagement”.

For reference only

Henry FayolFayol was born in 1841 in a suburb of Istanbul. His father (anengineer) was in the military at the time and was appointedsuperintendent of works to build Galata Bridge, which bridgedthe Golden Horn. The family returned to France in 1847, whereFayol graduated from the mining academy “École NationaleSupérieure des Mines” in Saint-Étienne in 1860.

In 1860 at the age of nineteen, Fayol started working at themining company named “Compagnie de Commentry-Fourchambault-Decazeville” in Commentry as the mining

engineer. During his time at the mine, he studied the causes of underground fires, howto prevent them, how to fight them, how to reclaim mining areas that had been burned,and developed a knowledge of the structure of the basin. In 1888, he was promoted tomanaging director. During his time as director, he made changes to improve the working

Chandan Poddar escholars.in

30 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

situations in the mines, such as allowing employees to work in teams, and changing thedivision of labor. Later, more mines were added to his duties.

Eventually, the board decided to abandon its iron and steel business and the coal mines.They chose Henri Fayol to oversee this as the new managing director. Upon receivingthe position, Fayol presented the board with a plan to restore the firm. The boardaccepted the proposal. When he retired in 1918, the company was financially strongand one of the largest industrial combines in Europe.

Based largely on his own management experience, he developed his concept ofadministration. In 1916, he published these experiences in the book “AdministrationIndustrielle et Générale”. Fayol’s work became more generally known with the 1949publication of General and Industrial Administration, the English translation of the 1916article “Administration industrielle et générale”. In this work, Fayol presented his theoryof management.

F.W. Taylor

Frederick Winslow Taylor (March 20, 1856 – March 21, 1915)was an American mechanical engineer who sought to improveindustrial efficiency. He was one of the first managementconsultants. Taylor was one of the intellectual leaders of theEfficiency Movement and his ideas broadly conceived, werehighly influential in the Progressive Era (1890s-1920s).

Taylor summed up his efficiency techniques in his 1911 book ThePrinciples of Scientific Management, which in 2001 Fellows ofthe Academy of Management voted the most influential

management book of the twentieth century.

His pioneering work in applying engineering principles to the work done on the factoryfloor was instrumental in the creation and development of the branch of engineeringthat is now known as industrial engineering. Taylor was also an athlete who competednationally in tennis and golf.

(Source- Wikipedia)

Henry Fayol’s Principles of General ManagementFourteen principles provided by Henry Fayol for general management are

discussed below :

1. Division of Work:(a) According to Fayol, “The intent of division of work is to produce more and better

work for the same effort. Specialisation is the most efficient way to use human effort.”

Principles of Management 31


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

(b) This principle implies that the work should be divided among the individualsaccording to their capabilities and abilities. Every employee should be assign onlyone type of work which leads to specialisation among them.

(c) This principle is applicable for both technical and managerial works.

(d) If the employee is not assigned work according to his abilities and capabilities thenit will lead to wastage of resources and delay in work.

(e) If he is assigned many types of work at a time then the individual may get confusedand not able to complete the task with his full potential.

Negative Effects :➢ Duplication of work.

➢ Wasting of time and efforts caused by changing of work.

➢ Overlapping of efforts.

➢ Indiscipline.

Case study : In Grooming Ltd., there are various departments for production, finance,purchase, human resource etc.. All of them have specialised persons. Collectively theyachieve production and sales targets of the company. Identify the principle ofmanagement followed in this case.

Answer : Division of work.

2. Authority and Responsibility(a) Authority means rights and powers to use organisational resources and to take

various managerial decisions. Authorities can be of two types—

• Official authority : Authority to instruct or command. It defines position withinthe organisation.

32 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

• Personal authority : Individual’s authority. It is gained through knowledgeand experience.

(b) Responsibility is the obligation of subordinate to do the task in the best possiblemanner. Responsibility is corollary (outcome) of authority because the extent ofresponsibilities depends on individual’s authorities. As the person moves on higherlevel, level of responsibilities increases along with level of authorities.

(c) According to this principle, there should be proper balance between the bothauthority and responsibility. Authority without responsibility leads to irresponsiblebehaviour while responsibility without authority makes the person ineffective.Superior must punish the subordinate for not completing the orders issued but onlyafter providing the opportunity of being heard.

Negative Effects :➢ Irresponsible behaviour.

➢ Ineffective work.

➢ Indiscipline.

Case study : A marketing manager has to negotiate a deal with the potential buyer.Company has given the power to manager to offer a credit period of only 30 days.However, marketing manager needs the authority to allow credit period of 45 days toachieve required sales targets. Identify the principle violated here. Would the managershall allow the credit period of 45 days to achieve sales target ?

Answer : Authority and responsibility. No, as it will lead to irresponsible behaviour.

3. Discipline(a) It implies respect to authorities of individuals and established rules and regulations.

According to Fayol, discipline requires

• good superiors at all levels



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

Negative Effects :➢ Indiscipline.

➢ Not able to achieve organisational goals.

➢ High labour turnover.

• clear and fair agreements

• judicious application of penalties.

(b) The superior must take necessary actions from time to time to enforce the disciplinewithin the organisation, in the absence of which organisation may not be able toachieve organisational goals and may also lead to high labour turnover.

Case study—I : Labour union and management enters into mutual agreement, accordingto which employees will increase the production level without increment in wages to revivethe company out of loss. In return management promised the labour union to announcecompensatory bonus when company comes into profits. When mission is accomplished,company paid unsatisfactory bonus. Identify the principle violated here.

Answer : Discipline, due to non-compliance of clear and fair agreement.

Case study—II : Mr. Ram never appreciates the work of his subordinates and behavesin a strange manner. Subordinates consider Mr. Ram as egoistic manager due to hisbehaviour. Identify the principle violated here.

Answer : Discipline, due to bad superior.

Case study—III : Mr. Mohan and Sohan both working as sales manager in anorganisation. During the month of April, they both are not able to achieve sales target.According to an agreement, a penalty of 10% as deduction of salary is applicable.However, only Mr. Sohan is penalised by the HR department and not Mr. Mohan becausehe is relative of Managing director of company. Identify the principle violated here.

Answer : Discipline, due to non-judicious application of penalties.

34 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

4. Unity of Command(a) This principle states that subordinate must receive order from one superior only. If

orders are given by more than one superior, individual would divide the loyaltywhich may lead to less discipline, confusion and delay in work. Therefore,organisation must avoid dual subordination.

(b) In short, for better working environment there should be only one boss for everyindividual. According to Fayol, if this principle is violated “authority is undermined,discipline is in jeopardy, order disturbed and stability threatened”. In simple words,authority of superiors has no importance, discipline of organisation is in danger,orders by superiors create confusions and stability of organisation as well as ofemployees is in alarming situation.

(c) The principle resembles military organisation.

Right Approach Wrong Approach

Superior

Subordinate

Negative Effects :➢ Confusion.

➢ Delay in work.

➢ Ineffective work.

➢ Division of loyalty.

➢ Indiscipline.

Case study : Credit manager of bank instructed collection officer to clinch (settle) adeal with debtor by allowing 20% discount. But branch manager tells her/him not tooffer more than 10% discount. Identify the principle violated here.

Answer : Unity of command due to dual subordination.



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

5. Unity of Direction(a) This principle is extension of unity of command. This principle implies that there

should be one head and one plan for a group of persons having the same objective.

(b) In simple words, team formed by the organisation should work on one plan onlyat a point of time. A group with multiple plans and more than one head cannotfunction successfully. This principle supports strong organisational structure.

(c) In organisations, where multiple divisions are operatedthis principle implies separate departments for everydivision for smooth working of organisation. Forexample: HTC is manufacturing mobiles and laptops.For both mobile and laptop divisions, there should beseparate plans, human resources and departments.

Negative Effects :➢ Ineffective work.

➢ Confusion.

➢ Indiscipline.

Case study : A company is manufacturing multiple products of different types. Itappointed Mr. Shyam as incharge for all the divisions. Identify the principle violatedhere.

Answer : Unity of direction.

Difference between unity of command and unity of direction

Basis Unity of command Unity of direction

Meaning Single boss One group + One plan + One head

Objective/Aim Avoid dual subordination Coordination

Implication Individual employee Entire organisation

Scope Narrow Wider

Promotes Span of management* Organisational structure**

* Span of management implies number of subordinates that can effectively workunder one superior.

** Organisational structure implies the framework in which managerial tasks areperformed.

36 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

6. Subordination of individual interest over general interest :(a) Individual interest means the personal objectives of the individuals working in the

organisation. For example : Demand for less working hours, higher pays etc.General interest means the organisational objective with which any organisation issetup. For example : Survival, profits and growth etc. Individuals join with differentmotives but they should work for the achievement of common organisational goals.

(b) According to this principle, in case of conflict between organisational interest andpersonal interest, management must give priority to organisational interest. Theinterest or goals of the organisation must prevail over the personal interest. Interestof stakeholders can’t be sacrificed to satisfy unnecessary demands of individual orsmall group of workers.

(c) For this purpose, managers should set higher ethical standards in workingenvironment like non-usage of organisational resources for personal purposes.Constant supervision is also necessary to prevent the promotion of personal interestat the cost of organisation.

Negative Effects :➢ Leads to labour turnover.

➢ Organisation will suffer in long run.

➢ Would not be able to achieve organisational goals.

Case study—I : Mr. Rohan is the finance manager of a leading soft drink company.He is working from last 20 years. In internal audit, it is found that Mr. Rohan has clearedthe payment of relatives on priority basis even before the expiry of credit tenure allowedby them. General manager ignored this due to his good friendship with Mr. Rohan.Identify the principle violated here.

Answer : Subordination of individual interest over general interest.



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED7. Remuneration of Personnel :

(a) Remuneration indicates the benefits in either monetary or non-monetary termswhich the individual is getting for his performance of his work from the organisation.

(b) The method of remuneration should be fair and reasonable and recovering ofefforts.

(c) This should be a satisfactory for both employees and employers i.e. employershould not feel that employee is getting extra incentives as compared to the valueof work performed by him and at the same time individual should not realise thathis efforts are not properly valued in organisation. The remuneration should bejust and equitable.

Case study—II : Mr. Tony observed that majority of his subordinates are taking hugeprintouts from office for personal use. Due to this printing and stationery cost hasexceeded 10 times of the standard cost. However, Mr. Tony is ignoring these actionsof subordinates because he himself used to take printouts of school projects of his childfrom office and if he will raise the objection on subordinates, they might challenge hisauthority. Identify the principle violated here.

Answer : Subordination of individual interest over general interest.

Negative Effects :➢ Lack of loyalty.

➢ Inefficient work.

➢ Indiscipline.

Case study : Nikita joined as Human resource manager in a leading organisation.She observed that workers are not paid as per laws of state. Workers are not gettingminimum wages which they are entitle to receive. She complained the issue to generalmanager. General manager said, as the organisation is running in huge losses and debtsof the company are considerably high, therefore the wages of workers have beenslashed. Identify the principle of management violated here.

Answer : Remuneration of personnel.

38 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

Negative Effects :➢ Wastage of time and efforts.

➢ Inefficiency of work.

➢ Indiscipline.

8. Centralisation and Decentralisation :(a) Centralisation means concentration of decision making power at top level of

management. Decentralisation means distribution of decision making powers at thevarious levels.

(b) Extent of centralisation or decentralisation is decided by the nature and scale ofbusiness. Generally, as the organisation grows in size it moves towards thedecentralisation.

(c) For example, panchayats in India have been given more powers to decide andspend funds for the welfare of villages. This is decentralisation at the national level.

Case study : Modi, Yogi and Jogi started trading business of medicines. Initially, theytargeted Delhi and NCR for developing business. Their business takes the growth andstart receiving orders in huge quantities. Now, all three partners mutually agreed asthe business level is increasing beyond their personal strengths, appointment ofsubordinates are necessary for various activities like purchases, marketing, finance etc..Identify the principle of management highlighted in the case study.

Answer : Centralisation and decentralisation.

9. Principle of Order :(a) According to this principle there should be a material order as well as social order

in the organisation.

(b) Material order means right place for everything and everything on its right place.For example : If there is no proper place to keep the tools in the organisation thenevery time workers will waste the time in search of tools. However, if the proper placeis available to keep the tools but the tools are not kept at that place then also workerswill waste the time on searching the same, which will make them ineffective.



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

(c) Social order implies right place for every person and every person on right place.For example: Right place for MBA in finance may be finance department withinorganisation but if he is placed in production department he will not be able toshowcase his full potential.

(d) It focuses on orderliness which is very important for the functioning of organisation.In the words of Fayol, “People and materials must be in suitable places atappropriate time for maximum efficiency.”

Negative Effects :➢ Wastage of time and efforts.

➢ Inefficiency of work.

➢ Indiscipline.

➢ High operating cost.

10. Principle of Equity :(a) Equity simply means equal treatment. Management should treat employees with

justice and kindness. There should be equity while dealing with the subordinates.

(b) Equity does not mean equal salary to all individuals working for organisation, itmeans equity in treating them. For instance, there should be no discriminationagainst the employees on the basis of religion, language, caste, nationality, etc..

(c) Lethargic employees should be dealt strictly (sternly) to send a message, thateveryone is important in the eyes of management. This helps in developing loyaltyand devotion in workforce.

(d) In the words of Fayol, “Good sense and experience are needed to ensure fairnessto all employees, who should be treated as fairly as possible.

Case study : In your school, you observe that books are kept in office, chalks in thelibrary and office records in the staffroom. Identify the principle of management violatedhere.

Answer : Principle of order.

40 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

Negative Effects :➢ Lack of interest while performing the task.

➢ Division of loyalty.

➢ Bad image of organisation in society.

➢ Organisation will not be able to recruit individuals with good potential.

11. Stability of Personnel(a) A reasonable security of service should be provided to all the individuals working

in the organisation. It helps in developing attachment on the part of employees.

(b) Any individual can give his best performance when he is ensuring the fact that hisstability in the organisation will not get shaken up if he is performing well.

(c) In the words of Fayol “Labour turnover should be minimised to increaseefficiency”. For this purpose, employees should be selected carefully and to taketheir commitment in the development of organisation they should be reasonablyassured i.e. minimum fixed tenure after which their performance will be evaluated.

(d) If this principle is violated, organisation may suffer huge staffing cost in the formof recruitment, selection and training cost.

Case study : People of various nationalities work together in a discrimination freeenvironment. We find India-born CEOs such as Sunder Pichai who heads MNCs likeGoogle. Identify management principle highlighted in the given statement.

Answer : Principle of equity.

Negative Effects :➢ Division of loyalty.

➢ Increase in labour turnover.

➢ Increase in cost of selection and training.



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

12. Principle of Initiative(a) It means taking first step by motivating himself. It is the main source of strength for

an organisation, therefore subordinate should be motivated to suggest improvementin formulation and implementation of new policies.

(b) For this purpose, organisation should design various incentives which work as amotivator. For example: employee with good suggestions in working practices canbe suitably rewarded and awarded in annual function of the organisation.

(c) In today’s competitive business environment only those organisations can growup where individuals are taking the initiative instead of waiting for the instructionsto come up from superiors. However, the employees should not cross the decidedpolicies for the sake of being different.

(d) In the words of Fayol, “Workers should be encouraged to develop and carryout their plans for improvements”.

Case study : Prabhat, a manager expects his subordinates to adapt to the newenvironments and working conditions without giving them time to settle down. Identifyprinciple of management violated.

Answer : Stability of personnel, minimum fixed tenure should be provided to settledown.

Negative Effects :➢ Increase in time and cost.

➢ De-motivation of employees.

13. Espirit De Corps (Team Spirit)(a) There must be team spirit and coordination among the members working in the

organisation. Good communication skills and leadership qualities in manager canensure team spirit among team members. For example : Manager should replace“I” with “We” while communicating with team members.

42 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

(b) Group efforts are always valued more than the aggregate of individual contribution.Group efforts ensure prosperity for both individuals and organisation.

(c) In the words of Fayol, “Management should promote a team spirit of unity andharmony among employees”. It helps in developing sense of belongingness andminimising the need for using penalties.

14. Scalar Chain :(a) It refers to the unbroken chain of command

ranging from top level of management to thebottom of the organisation. In other words,it is formal line of authority betweenindividuals working from top to bottom. Inthe given diagram, we can observe that thereis two lines of communication shown inhierarchy A-B-C-D-E-F and A-L-M-N-O-P.This represents scalar chain.

Case study : General Manager of XYZ Ltd. gives open invitation to suggest changesfor better working practices and regularly motivates the employees for providingsuggestions. Identify the Fayol’s principle of management followed.

Answer : Espirit De-Corps.

Negative Effects :➢ Reduction in sense of belongingness.

➢ Not able to achieve organisational goals.

QG

F P

OE

D N

MC

B L

A

GANG PLANK

(BRIDGE)



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

(b) However, if P directly wants to communicate F then as per scalar chain he shouldfollow P-O-N-M-L-A-B-C-D-E-F. Following such formal chain of communicationleads to communication delays which would not be suitable in emergency situations.Therefore, to facilitate quick communication between personnels working at samelevel a direct contact (known as Gang plank) may be created by passing a prescribedline of authority.

(c) Gang plank helps in minimising delay and difficulties in communication. Remember,in normal course of action formal chain of communication should not be broken,Gang plank may be used to avoid communication delays in case of emergencysituations only.

(d) In the words of Fayol, “Organisations should have a chain of authority andcommunication that runs from top to bottom and should be followed by managersand the subordinates.”

Negative Effects :➢ Difficult to fix responsibilities.

➢ Indiscipline.

➢ Confusion.

F.W. Taylor’s Principles of Scientific ManagementAccording to F.W. Taylor, scientific management means knowing exactly what you want

men to do and seeing that they do it in the best and cheapest way. Four principles providedby F.W. Taylor for scientific management are discussed below:

1. Science, Not Rule of Thumb :(a) Science represents observations and experiments to achieve some better results

whereas rule of thumb represents traditional methods or practices.

(b) This principle suggests that the new and scientific methods should be investigatedon the behalf of traditional methods and one best way of doing the work shouldbe sorted out. Managers should not get stuck in a set routine with the old techniquesof doing work, rather for better results they should be constantly experimenting todevelop new techniques.

Case study : You are selected for an internship in Jindal Steels and finds that theworkers are not allowed to contact the CEO of the company directly. They need toinform all the formal levels i.e., foreman, superintendent, manager, director etc. aboutthe matter. However, in an emergency situation it is possible that workers can directlycontact the CEO. Identify the principle of management highlighted here.

Answer : Scalar chain.

44 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

(c) In the words of Taylor, “Even a small production activity like loading pigs ofiron into boxcars can be scientifically planned and managed. This can result intremendous saving of human energy as well as wastage of time and materials. Themore sophisticated the processes, greater would be the savings.”

(d) This principle argues “thinking before doing”. It doesn’t favour either traditionalor scientific methods of doing the job, rather this principle suggests scientific solutionof problem by defining the problem, identifying various alternatives, evaluating andthereafter, selecting the best solution with least consequences and it may betraditional method or new method.

(e) Managers’ own personal judgement of solving the problem should be shifted toscientific judgment. In the present scenario, the use of internet has brought drasticimprovement in internal efficiency and customer satisfaction.

Case Study : Due to drastic increase in number of internet users in India, marketingmanager of Rama Ltd. is planning to spend part of marketing budget on onlinemarketing and rest on outdoor marketing. General Manager opposes marketingmanager and instructed to continue with outdoor marketing only. Identify the scientificprinciple of management violated here.

Answer : Science not rule of thumb.

2. Harmony, Not Discord :(a) According to this principle, conflict between workers and managers help none. So,

he emphasised that there should be complete harmony between management andworkers. Both should realise each other’s importance. This is known asmental revolution.

(b) Mental revolution means complete change on the part of management side andworker. They should realise each other importance. Organisation’s prosperity cannotexist for a long time, unless it is accompanied by employees and vice-versa.

(c) Managers should take the work from workers not by using their position ratherfrom leadership qualities. They should focus on developing team spirit amongworkers. Management should share the gains of the business and the workers shouldwork hard for the good of the company.

(d) In the words of Taylor, “Scientific management has for its foundation the firmconviction that the true interests of the two are one and the same; that prosperityfor the employer cannot exist for a long time unless it is accompanied by prosperityfor the employees and vice versa.”

(e) For example : In Japanese companies, there is complete openness between themanagement and workers. If workers go to strike they wear a black symbol andwork more than normal working hours to gain the sympathy of management.



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED3. Cooperation, Not Individualism :

(a) This is the extension of harmony, not discard. According to this principle, thereshould be cooperation among workers and management. Management shouldinvite the workers to participate in management decision making and should rewardfor their suggestions.

(b) Understanding importance of each other is important for successful working oforganisation, however workers’ participation in management decision making canprovide better ideas. This is because workers face realities of production on day today basis and have more experience on machineries than managers.

(c) Management should take the workers in confidence before taking any decision,this will help the management to implement the changes without any résistance.This principle supports open communication system instead of close room decisionswhich are harmful for functioning of organisation. On the other hand, workersshould avoid for going to strikes and making unreasonable demands.

(d) In the words of Taylor, “there should be an almost equal division of work andresponsibility between workers and management. All the day long the managementshould work side by side with the workers helping, encouraging and smoothingthe way for them”.

Case Study : Rama Ltd. received special export order and it is required to be completedwithin 90 days. If the company fails to complete the commitment then it would be liableto pay heavy penalties. After 45 days, managers finds that only 25% work has beencompleted and hence they requested workers to put additional hours for this order.Workers agree to put additional hours without any argument. Now workers work 14 hoursa day instead of 10 hours and also managers personally take care of their foodrequirements. Identify the principle of scientific management highlighted here.

Answer : Harmony, not discard.

Case Study : State Bank of Delhi decided to increase the working hours for providingbetter services to customers. No representative is invited from labour union fordiscussing the matter and a direct notice is issued in this regard. Identify the principleof management violated here.

Answer : Cooperation, not individualism.

4. Development of each and every person to his or her greatest efficiencyand prosperity :

(a) Appointment of right person at right place is necessary to achieve organisationalobjectives. Taylor suggested that every person should be scientifically selected andhe/she should be assign work according to his/her physical and mental capabilities.

46 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

Techniques of Scientific ManagementVarious techniques of scientific management are discussed below :

1. Standardisation and simplification of work :(a) It refers to the process of setting standards for every business activity i.e., standards

for processing raw material, time, machinery method and working conditions. Itrepresents benchmark of the company. For example: Apple is the world famousand most loving brand in smart phones, tablets etc. Why? Because when thecustomer is buying Apple products he/she is assured of quality standards. Takeanother example: You will find taste of Pizzas offered by various branches ofDominos are same. This is just because of standardisation in processing variousingredients, otherwise it would become impossible to satisfy customers at such largescale. Benchmarks and quality standards can be achieved only if all the processesare standardised.

(b) Simplification aims at simplifying the work so that it could be understand bythe workers. Every employee is required to be trained for specific task of well-defined job. Simplification is necessary for standardisation. For example: IfDominos has to produce same quality of pizza at all restaurants, then first of allentire production process will be divided in different parts (simplification) andon the basis of simplification employees need to be trained for every activityseparately.

(c) It aims at eliminating superfluous (not useful) varieties, sizes, dimensions, etc. whichresults in savings of cost, labour etc.

(b) Scientific selection of individual includes matching the working experience, skillsand qualifications from requirement of job. Traditional practice of hiring relatives,less salaried employees etc. must be overlook.

(c) To increase the efficiency and make them confident while working, they should begiven required training. This will ensure prosperity to both the employer and theemployee.

Case Study : Prabhat Limited hires workers after considering their working experiencesof different machineries and provide seven days training. Workers are appointed onlyafter getting green signal from training department. Identify the principle of scientificmanagement followed here.

Answer : Development of each and every person to his or her greatest efficiency andprosperity.



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

2. Method study :(a) Various activities performed in an organisation have several methods to perform.

For example : For inviting quotations various methods are (i) e-tendering(ii) quotations in sealed envelopes (iii) conducting open meeting with allsuppliers. However, to save the time and increasing transparency e-tenderingcan be used.

(b) The aim of method study is to find out one best way of doing the job. Its mainobjective is to minimise the cost of production and maximise the quality andsatisfaction of customers. For example : For handling the consumer grievances,instead of tele calling many companies are providing “android or ios” apps in whichcustomers can file complain in just few seconds.

Another example is ATM services provided by banks. This provides 24 × 7 accessto depositors and also burden on bank branches get reduced.

(c) Right from procurement of raw materials till the final product is delivered to thecustomer every activity is part of method study. For this purpose, many techniqueslike process charts and operation charts are used.

3. Motion study :(a) It refers to the study of movements like lifting, putting objects, sitting and changing

position which are undertaken while doing the job. While performing the job,worker undertakes three types of motion which are—

• Productive motion – Necessary activities related to job performance.

• Unproductive motion – Unnecessary activities related to job performance.

• Incidental motion – Related activities required for discharging job—like takingsign of customer while delivering product.

(b) For example : In a car service station, there are 5 processes to service a car. Lastprocess among them is washing of car and it is done at the last corner of servicestation, due to which after washing the car, parked cars are required to be clearbefore delivering to customer. This results in huge wastage of time.

Process : 2 Process : 3 Process : 4Process : 5(Washing Zone)

Process : 1 Parking Zone(Car to be service)

Main Office

Entry & Exit

48 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

4. Time study :(a) It determines the standard time required to perform the well-define job. Each

element of task is measured and on its basis time is fixed for the whole task.

For example : In a shirt manufacturing company there are three departments,Department - 1 for cutting, Department- 2 for stitching and Department-3 for otheractivities like pressing and packaging. For manufacturing a shirt, 20 minutes arerequired in Department-1 i.e. cutting, 15 minutes are required in Department-2 i.e.stitching, 10 minutes are required in Department-3 i.e. pressing and packaging. Onthe basis of observation, total time required for manufacturing the shirt is 45 minutes.

(b) The main objective behind it is to determine the number of workers to be employed,frame suitable incentive schemes and labour cost.

For example : In Prabhat Limited, it takes 30 minutes to manufacture single unitof product and labour works for 10 hours in a day. It means total number of unitsthat can be produced in single day by one labour are 20 units.

• Suppose labour expects wage rate of ` 500 per day. In this case, we can decide

wage rate of ` 25 per unit

500

20 units

`

for labour.

• Similarly, if the company needs production of 200 units on daily basis, then itshould hire 10 workers (10 workers × 20 units per worker = 200 units).

5. Fatigue study :(a) For human beings, it is impossible to work with the same efficiency without taking

rest. A person feels tired physically and mentally if he does not rest while working.

(b) Fatigue study seeks to determine the time and frequency of rest. This helps to regainthe stamina and work again with same capacity. It is necessary to complete theroutine job in most efficient manner.

One day manager observed the various body movements of labour and decidedto shift the processes which results in huge savings of time and savings in serviceabletime for customers will lead to complete the work efficiently and in less time.

Process : 4 Process : 3 Process : 2Process : 1

Process : 5 Parking Zone(Car to be service)

Main Office

Entry & Exit



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

6. Differential piece wage system :(a) Taylor wanted to differentiate between efficient and the inefficient workers so

he introduced different rates for wage payment. One for those who perform asper standard or above the standard and other for those who perform belowstandards.

For example :

➢ Standard output = 20 units

➢ Standard wage rate = ` 50 per unit

➢ Wage rate for employees producing below standard = ` 40 per unit

➢ Efficient employee producing 25 units will receive `1250 (25 units × ` 50)

➢ Inefficient employee producing 15 units will receive ` 600 (15 units × ` 40).

(b) According to Taylor, the difference of ` 650 would be enough for the inefficientworker to motivate him for performing better. The basic idea behind this is “moneyis not the only answer, but it makes a difference”.

(c) This technique of scientific management ensures proper application of“remuneration of personnel”.

7. Functional foremanship(a) A foreman supervises and coordinates the work of workers. Foremen are primarily

concerned with seeing that the workers under them do their job skillfully andefficiently, and assigned work moves as per schedule. Foreman or supervisor is thelowest ranking manager but highest ranking worker.

(b) Taylor advocated that separation of planning and doing function should notonly be exercised at the higher level only but also at the lower level. For this, heintroduced functional foremanship. Since all qualities of planning and doing functioncould not be found in a single person, so Taylor proposed eight specialists.

(c) Factors affecting time and frequency of rest are

➢ Total working hours

➢ Working conditions

For example : Generally, one lunch break of 30 minutes to 1 hour and two teabreaks are provided in various organisations.

TimeStudy

MethodStudy

MotionStudy

FatigueStudy

WorkStudy+ + + =

50 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

(c) Four supervisors should be engaged in the work of planning i.e., instruction cardclerk, route clerk, time and cost clerk, disciplinarian.

➢ Instruction card clerk - Plan instructions for workers.

➢ Route clerk – Specify directions for production.

➢ Time and cost clerk – Prepare estimated cost sheet and time sheet for completionof various activities.

➢ Disciplinarian – Designs methods for ensuring discipline.

(d) Four supervisors should be engaged in the work of implementing, i.e., speed clerk,gang boss, repair boss and inspector.

➢ Gang boss – Allot jobs to workers.

➢ Speed clerk – Ensures timely completion of job.

➢ Repair boss – Ensures working conditions of machineries and tools.

➢ Inspector – Responsible for quality check.

• This technique of scientific management is an extension of Division of work but againstthe principle of Unity of command because workers are incharge by different superiors.

Factory Manager

Planning In-charge Production In-charge

InstructionCard Clerk

RouteClerk

Time andCost Clerk

Disciplinarian GangBoss

RepairBoss

Inspector SpeedBoss

Worker

Points you should know

Qualities of foremanForemen should have intelligence, education, understanding, determination, judgment,special knowledge, energy, honesty and good health. Foreman with good health andenergy can be appointed for execution work whereas foreman with good education andunderstanding can be appointed for planning work.



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

Lean ManufacturingLean manufacturing is a systematic method for waste minimisation within amanufacturing system without sacrificing productivity. For this robotics and computersare being used in production and other business activities. It is the latest developmentin the field of scientific management.

Nature of Management Principles

Nature of Management Principles

Contingent Cause andeffect

relationship

Mainlybehavioural

Flexible Based onexperiment

andobservation

Generalguidelines

Universalapplicability

1. Universal applicability(a) Management principles are universally applicable because it is applied in all types

of organisations whatever its size (small scale, medium scale or large scale) orpurpose (profit earning or not for profit earning organisations) and in all levels (top,middle and lower level) of organisation.

(b) What the manager does in India, same is done by managers of other countrieslike USA, UK etc. The difference can be seen only in terms of culture. For example :Dual subordination may lead to confusion among employees is universallyapplicable principle.

2. General guidelinesPrinciple of management provides general guidelines for decision making. It does not

provide readymade solution for all managerial problems.

For example : Division of work is necessary to achieve specialisation, but in smallorganisations it may not be possible to hire such number of employees.

3. Formed by experimentation and observationManagement principles are developed on the basis of experimentation and

observation. It helps in developing better working environment for individuals and increasesproductivity by proper utilisation of resources. So, it provides guidance for achieving goalsof organisation.

For example : Principle of unity of command is necessary to achieve overallorganisational objectives.

52 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

4. FlexibleManagement principles are flexible in nature. They are applied according to

situation. Managers use their own experience and creativity while applying principles ofmanagement.

For example : Principle of unity of command is necessary to follow but manager mayopt for functional foremanship to achieve specialisation.

5. Mainly behaviouralManagement principle deals with human behaviour which is unpredictable in nature.

Therefore, it can’t be applied in absolute manner.

For example : Stability of personnel may result in laziness among employees.

6. Cause and effect relationshipManagement principles establishes a cause and effect relationship. It means every

decision of manager impacts the organisation either favorably or in adverse manner.

For example : principle of authority and responsibility. If the manager provides theauthority to individuals without any sense of accountability, then it will lead to the irresponsiblebehaviour on their part which may affect the goodwill of organisation.

7. ContingentApplication of management principle is contingent in nature. As we have discussed,

principle of management deals with human behaviour therefore circumstances prevailing atparticular point of time are necessary to observe.

For example : As per principle of centralisation and decentralisation with the growth oforganisation decentralisation is necessary to opt, but there may be a situation wheresubordinates are not capable for taking responsibilities.

Importance of Management Principles

MeetingchangingenvironmentrequirementsFulfilling social

responsibility

Scientific

decision

Optimum

utilisatio

n of

resources

Managem

ent

training,

educationand

research

Use

ful

Insi

ght



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

1. Providing managers with useful insightManagement principles act as guidelines for managers. This improves the knowledge,

ability and understanding of managers. It enables them to take right decision at the righttime. These principles help them to learn from their mistake.

For example : While providing responsibilities to subordinates, it is necessary forsuperiors to provide suitable authorities to enable them to achieve organisational goals. Thisis principle of authority and responsibility.

2. Optimum utilisation of resources :Principles are designed to get the maximum benefits from the human efforts and other

resources.

For example : Dual subordination should be avoided to increase the productivity ofsubordinates. This is principle of unity of command.

3. Scientific decision :As the principles of management are scientifically developed, so they enable the

managers to approach various problems scientifically and systematically.

For example : In case of emergency, gang plank may be created to facilitate quickcommunication otherwise it may affect critical decision makings. This is scalar chain.

4. Meeting changing environment requirements :The management principles are dynamic in nature. They trained the managers for

implementing the changes in right direction and at right level of the organisation.

For example : Employees should be allowed sufficient time to adapt changes inorganisation. This is principle of stability of personnel.

5. Fulfilling social responsibility :Principle of management helps managers in fulfilling social responsibilities by adopting

ethical practices in working environment.

For example : There should not be any discrimination on account of religion, nationalityetc. among the individuals working in organisation. This is principle of equity.

6. Management training, education and researchBoth general and scientific principles of management work as training tool for managers.

As these principles have been derived on the basis of observation and experiments, managerscan apply these principles with their own creativity for achieving better results.

For example : If the interests of small group of workers or individual employeeare clashing with organisational interest then manager should give priority toorganisational interest. This is principle of subordination of individual interest overgeneral interest.

54 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

Difference between management principle and pure science principles

Management principles

1. They are flexible.

2. These are applied with creativity.

3. They are dynamic in nature.

Pure science principles

1. They are rigid.

2. They are applied in absolute manner.

3. They do not change with time.

Difference between management principles and management techniques

Management principles

1. These are the guidelines formanagerial decision making.

2. They are more flexible.

Management techniques

1. These are methods and procedureswhich involves a series of steps foraccomplishment of goals.

2. They are less flexible.

☞ Previous Years Examination Questions1. Give any one reason why principles of management are not rigid prescriptions.

(CBSE Delhi & Outside 2010)2. State the objective of ‘Method Study’. (CBSE Delhi 2010)3. (i) Name and explain the principle of management which requires judicious application

of penalties by the management.(ii) Name and explain the technique of scientific management which helps in establishing

interchangeability of manufactured parts and products. (CBSE Delhi 2010)4. Give any one reason why principles of management are called “contingent”.

(CBSE Delhi & Outside 2010)5. State the objective of “Time Study”. (CBSE Delhi & Outside 2010)6. State the objective of “Motion Study”. (CBSE Delhi & Outside 2010)7. (i) Name and explain the principle of management which workers should be encouraged

to develop and carry out their plans for improvements in the organisation.(ii) Name and explain the technique of scientific management which helps in eliminating

unnecessary diversity of products and thus results in saving cost. (CBSE Outside 2010)8. Give any one reason why principles of management do not provide a readymade solution

to all managerial problems. (CBSE Outside 2010)9. State the objective of ‘Fatigue Study’. (CBSE Outside 2010)

10. (i) Name and explain the principle of management which requires judicious applicationof penalties by the management.

(ii) Name and explain the technique of scientific management which helps in establishinginterchange ability of manufactured parts and products. (CBSE Outside 2010)



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

11. What is meant by principles of management ? (CBSE Delhi 2011)12. State any one principle of scientific management. (CBSE Delhi 2011)13. Explain any two techniques of Taylor’s Scientific Management.

(CBSE Delhi & Outside 2011)14. What is meant by Fayol’s principle of ‘Esprit de corps’ ? (CBSE Delhi 2011)15. Explain any two principles of Taylor’s Scientific Management. (CBSE Delhi 2011)16. State any one reason why ‘Principles of Management’ are important. (CBSE Outside 2011)17. Give the meaning of ‘Mental Revolution’ as suggested by F.W. Taylor. (CBSE Outside 2011)18. Explain Fayol’s principles of ‘equity’ and ‘order’ with examples. (CBSE Outside 2011)19. Explain how Principles of Management (i) provide useful insights into reality, and (ii) help

in thoughtful decision-making. (CBSE Delhi 2012)20. Explain the technique of scientific management that is the extension of ‘Principle of division

of work and specialisation’. (CBSE Delhi 2012)21. Explain how principles of management :

(i) help in optimum utilisation of resources and effective administration, and(ii) help the managers in meeting changing environment requirements.

(CBSE Outside 2012)22. Explain the technique of scientific management which is the strongest motivator for a worker

to reach standard performance. (CBSE Outside 2012)23. Explain how principles of management :

(i) help the managers in taking scientific decisions, and(ii) provide the managers with useful insights into real world situations.

(CBSE Outside 2012)24. Define ‘Scientific Management’. (CBSE Delhi (Comptt.) 2012)25. Name the following principles of management :

(a) that prevents dual subordination and(b) that prevents overlapping of working of two divisions. (CBSE Delhi (Comptt.) 2012)

26. Explain any five features of Principles of Management. (CBSE Delhi (Comptt.) 2012)27. Explain the following techniques of scientific management :

(a) Motion Study and (b) Time Study. (CBSE Delhi (Comptt.) 2012)28. Distinguish between the principles of ‘Unity of Command’ and ‘Unity of Direction’ on the

basis of implications. (CBSE Outside (Comptt.) 2012)29. Explain the technique of ‘simplification and standardisation of work’ given by Taylor.

(CBSE Outside (Comptt.) 2012)30. Explain the techniques of ‘Method Study’ and ‘Motion Study’ given by Taylor.

(CBSE Outside (Comptt.) 2012)31. Explain with the help of an example ‘Differential Piece Wage System’ given by Taylor.

(CBSE Outside (Comptt.) 2012)32. Name and explain the principle of management according to which a manager should

replace ‘I’ with ‘We’ in all his conversations with workers. (CBSE Delhi 2013)

56 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

33. Explain ‘Harmony, Not Discord’ as a principle of Scientific Management.(CBSE Delhi 2013)

34. Explain ‘Science–not Rule of Thumb’ as a principle of Scientific Management.(CBSE Delhi 2013)

35. Explain ‘Cooperation, Not Individualism’ as a principle of Scientific Management.(CBSE Delhi 2013)

36. Nikita and Salman completed their MBA and started working in a multinational companyat the same level. Both are working hard and are happy with their employer. Salman hadthe habit of backbiting and wrong reporting about his colleagues to impress his boss. Allthe employees in the organisation knew about it. At the time of performance appraisal theperformance of Nikita was judged better than Salman. Even then their boss, MohammedSharif decided to promote Salman stating that being a female Nikita will not be able tohandle the complications of a higher post.(i) Identify and explain the principle of management which was not followed by this

multinational company.(ii) Identify the values which are being ignored quoting the lines from the above para.

(CBSE Outside 2013)37. ‘Accurate cause and effect relationship cannot be established by principles of management’.

Why ? (CBSE Delhi (Comptt.) 2013)38. Ayesha, a manager, decided that there will be separate departments for finance, marketing,

production and sales in her company. By doing so, she is following a principle ofmanagement. Name the principle. (CBSE Delhi (Comptt.) 2013)

39. Explain ‘Science, not Rule of Thumb’ as a principle and ‘Time Study’ as a technique ofscientific management. (CBSE Delhi & Outside (Comptt.) 2013)

40. Explain ‘Cooperation, Not Individualism’ as a principle and ‘Fatigue Study’ as a techniqueof scientific management. (CBSE Delhi (Comptt.) 2013)

41. Explain ‘Harmony, Not Discord’ as a principle and ‘Motion Study’ as a technique of scientificmanagement. (CBSE Delhi (Comptt.) 2013)

42. Why do principles of management try to establish the relationship between cause and effect ?State. (CBSE Outside (Comptt.) 2013)

43. Shreya, a manager feels that employees should get enough time to adapt to a newenvironment to show results. By doing so, she is following a principle of management. Namethe principle. (CBSE Outside (Comptt.) 2013)

44. Explain ‘Harmony, not Discord’ as a principle and ‘Fatigue Study’ as a technique of scientificmanagement. (CBSE Outside (Comptt.) 2013)

45. What is the objective of ‘Method Study’ as a technique of scientific management ?(CBSE Delhi 2014)

46. Principles of Taylor and Fayol are mutually complementary. One believed that managementshould not close its ears to constructive suggestions made by the employees, while the othersuggested that a good company should have an employee suggestion system, wherebysuggestions which result in substantial time or cost reduction should be rewarded.Identify and explain the principles of Taylor and Fayol referred in the above para.

(CBSE Delhi 2014)



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

47. What is determined by ‘Time Study’ ? (CBSE Outside 2014)48. Principles of Taylor and Fayol are mutually complementary. One believed that the

management should share the gains with the workers, while the other suggested thatemployees’ compensation should depend on the earning capacity of the company andshould give them a reasonable standard of living.Identify and explain the principles of Fayol and Taylor referred to in the above para.

(CBSE Outside 2014)49. ABC Ltd. is engaged in producing electricity from domestic garbage. There is almost equal

division of work and responsibility between workers and management. The managementeven takes workers into confidence before taking important decisions. All the workers aresatisfied as the behaviour of the management is very good.(a) State the principle of management described in the above para.(b) Identify any two values which the company wants to communicate to the society.

(CBSE Delhi (Comptt.) 2014)50. Voltech India Ltd. is manufacturing LED bulbs to save electricity and is running under heavy

losses. To revive from the losses, the management thought of shifting the unit to a backwardarea where labour is available at a low cost. The management also asked the workers towork overtime without any additional payment and promised to increase the wages of theworkers after achieving its mission. Within a short period the company started earning profitsbecause both the management and the workers honoured their commitments.(a) State the principle of management described in the above para.(b) Identify any two values which the company wants to communicate to the society.

(CBSE Delhi (Comptt.) 2014)51. Pawan is working as a ‘Production Manager’ in CFL Ltd. engaged in manufacturing of

CFL bulbs. There is no class-conflict between the management and workers. The workingconditions are very good. The company is earning huge profits. As a policy matter,management is sharing the gains with the workers because they believe that prosperity ofthe company cannot exist for a long time without the prosperity of the employees.(a) State the principle of management described in the above para.(b) Identify any two values which the company wants to communicate to the society.

(CBSE Outside (Comptt.) 2014)52. Telco Ltd. is manufacturing files and folders from the old clothes to discourage use of plastic

files and folders. For this they employ people from nearby villages where very less jobopportunities are available. An employee, Harish, designed a plan for the cost reductionbut it was not welcomed by the production manager. Another employee gave somesuggestion for improvement in design, but it was also not appreciated by the productionmanager.(a) State the principle of management described in the above para.(b) Identify any two values which the company wants to communicate to the society.

(CBSE Outside (Comptt.) 2014)

58 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

53. ‘Aapka Vidyalaya’ believes in holistic development of students and encourages team buildingthrough a mix of curricular, co-curricular and sports activities. On its founder’s day a stageperformance had to be put up. A committee of ten prefects was constituted to plan differentaspects of the function. They all decided to use recycled paper for decoration. There wasa spirit of unity and harmony and all members supported each other. With mutual trustand belongingness the programme was systematically planned and executed. Kartik, oneof the perfects realised that unknowingly the group had applied one of the principles ofmanagement while planning and executing the programme. He was so inspired by thesuccess of the function that he asked his father to apply the same principle in his business.His father replied that he was already using this principle.(a) Identify the principle of management applied for the success of the programme.(b) State any two features of management highlighted in the above para.

(CBSE Delhi 2015)54. With the help of a diagram explain ‘Functional Foremanship’ as a technique of scientific

management. (CBSE Delhi 2015)55. What is meant by principles of management ? State any three points of their importance.

(CBSE Delhi 2015)56. Explain the following techniques of scientific management :

i(i) Differential piece wage system; and(ii) Motion study. (CBSE Delhi 2015)

57. State any four features of ‘Principles of Management’. (CBSE Delhi & Outside 2015)58. Explain the following techniques of scientific management :

i(i) Time study; and(ii) Simplification of work.

59. Explain any four points of importance of ‘consumer protection’ from the point of view ofbusiness. (CBSE Outside 2015)

60. Explain the following principles of management :(a) Science, not rule of thumb(b) Discipline. (CBSE Outside 2015)

61. Explain the following principles of management :(a) Scalar chain(b) Harmony, not discord (CBSE Outside 2015)

62. State any four points which highlight the importance of principles of management.(CBSE Outside 2015)

63. Explain the following principles of management :(a) Subordination of Individual Interest to General Interest.(b) Development of Each and Every Person to His or Her Greatest Efficiency.

(CBSE Outside 2015)64. An environmental conscious multinational company “AXN Ltd.” follows certain well defined

business principles that result to minimize the employee turnover. Following are some ofthe important environmental factors followed by ‘AXN Ltd.’ :1. Honour the law of every country in which it operates.



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

2. Respect the culture and customs of all nations.3. Provide clean and safe products to enhance the quality of life throughout the world.4. Develop a culture in the company that enhances individual creativity and team work

while honouring mutual trust and respect between management and labour.From the above :(i) Identify and state any one general principle of management and any one dimension

of business environment.(ii) Also identify any two values which the above guiding principles and environmental

factors are conveying to the society. (CBSE Delhi & Outside (Comptt.) 2015)65. Kamal, Khan and Devid are partners in a firm engaged in the distribution of dairy products

in Madhya Pradesh. Kamal is a holder of Senior Secondary School Certificate from CentralBoard of Secondary Education with Business Studies as one of his elective subjects. Khanhad done his post graduation in Hindi literature and Devid in Dairy Farming. One daythere was a serious discussion between Khan and Devid regarding the nature of‘Management as a Science’. Khan argued that management was not a science whereasDevid was of the opinion that Management is a Science. Kamal intervened and correctedboth Khan and Devid about the nature of Management as a Science with the help of hisknowledge of Business Studies. Comment. (CBSE Outside (Comptt.) 2015)

66. State the role of ‘gang boss’ in functional foremanship. (CBSE Delhi & Outside 2016)67. Explain any four points of importance of principles of management. (CBSE Delhi 2016)68. Explain any four points that highlight the nature of principles of management.

(CBSE Delhi & Outside 2016)69. State the role of ‘route clerk’ in functional foremanship. (CBSE Outside 2016)70. State the role of ‘Inspector’ in functional foremanship. (CBSE Outside 2016)71. Describe the nature of principles of management with the help of any four points.

(CBSE Outside 2016)72. Why is it said that principles of management are contingent ? State.

(CBSE Delhi (Comptt.) 2016)73. ‘Kanpur Leather Ltd.’ is the manufacturer of leather products. It is producing on large scale

and its organisational structure is functional. In the production department various foremenhave been employed. Each foreman has been made responsible for production planning,implementation and control. This has led to a situation of confusion and uncertainty. Suggesta technique of scientific management to Kanpur Leather Ltd. which may help it to effectivelyorganise planning and its execution. (CBSE Delhi (Comptt.) 2016)

74. Why are principles of management mainly ‘behavioural’ ? State.(CBSE Delhi (Comptt.) 2016)

75. Explain any three features of principles of management. (CBSE Delhi (Comptt.) 2016)76. How are principles of management universally applicable ?

(CBSE Outside (Comptt.) 2016)77. ‘Chennai Leather Ltd.’ is the manufacturer of leather products. It is producing on large

scale and its organisational structure is functional. In the production department various

60 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

foremen have been employed. Each foreman has been made responsible for productionplanning, implementation and control. This has lead to a situation of confusion anduncertainty. Suggest a technique of scientific management to Chennai Leather Ltd. whichmay help it to effectively organise planning and its execution.

(CBSE Delhi (Comptt.) 2016)78. Explain ‘unity of command’ and ‘equity’ as principles of general management.

(CBSE Delhi 2017)79. Sanchit, after completing his entrepreneurship course from Sweden returned to India and

started a coffee shop ‘Aroma Coffee Can’ in a famous mall in New Delhi. The speciality ofthe coffee shop was the special aroma of coffee and a wide variety of flavours to choosefrom. Somehow, the business was neither profitable nor popular. Sanchit was keen to findout the reason. He appointed Sandhya, an MBA from a reputed college, as a Manager tofind out the causes for the same.Sandhya took feedback from the clients and found out that though they loved the specialunique aroma of coffee but were not happy with the long waiting time being taken to processthe order. She analysed and found out that there were many unnecessary obstructions inbetween which could be eliminated. She fixed a standard time for processing the order.She also realised that there were some flavours whose demand was not enough. So, shealso decided to stop the sale of such flavours. As a result within a short period Sandhyawas able to attract the customers.Identify and explain any two techniques of scientific management used by Sandhya to solvethe problem. (CBSE Delhi 2017)

80. Explain briefly ‘Discipline’ and ‘Scalar Chain’ as principles of general management.(CBSE Delhi 2017)

81. Explain ‘order’ and ‘initiative’ as principles of general management. (CBSE Delhi 2017)82. Explain briefly ‘Unity of Direction’ and ‘Order’ as principles of general management.

(CBSE Outside 2017)83. Sanket after completing his entrepreneurship course from USA returned to India and started

a coffee shop ‘Fioma Coffee’ in a famous mall in Mumbai. The speciality of the coffeeshop was the special aroma of coffee and a wide variety of flavours to choose from.Somehow, the business was neither profitable nor popular. Sanket was keen to find outthe reason. He appointed Riya, an MBA from a reputed management institute as a managerto find out the causes of the business not doing well.Riya, took a feedback from the clients and found out that though they loved the specialunique aroma of coffee but were not happy with the long waiting time being taken to processthe order. She analysed and found out that there were many unnecessary obstructions whichcould be eliminated. She fixed a standard time for processing the order. She also realisedthat there were many flavours whose demand was not enough. So, she also decided todiscontinue the sale of such flavours. As a result, within a short period Riya was able toattract the customers.Identify and explain any two techniques of scientific management used by Riya to solvethe problem. (CBSE Outside 2017)



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

84. Explain briefly ‘Initiative’ and ‘Espirit de Corps’ as principles of general management.(CBSE Outside 2017)

85. Explain briefly ‘Remuneration of Employees’ and ‘Scalar Chain’ as principles of generalmanagement. (CBSE Outside 2017)

86. How do principles of management help managers in taking decisions scientifically ? State.(CBSE Delhi (Comptt.) 2017)

87. Beena, a student of management, likes to relate what she learnt in class to real life situations.She observed many situations while watching educational programmes on television thatremind her of concepts of Scientific Management. In one such programme, factoriesmanufacturing parts for products like automobiles, computers and mobiles phones werebeing telecast.Name the technique of Scientific Management that should be adhered to, whilemanufacturing parts for such products. (CBSE Delhi (Comptt.) 2017)

88. Apaar Foundation is a Non-Government Organisation (NGO) working to improve the livesof children with medical needs, the homeless and victims of natural disasters. Apart fromdonations in cash, they collect dry ration, old clothes, shoes, toys, books and medicinesfrom donors. At Apaar Foundation’s office in Bhopal the material collected is segregated,classified and put in shelves and boxes that are labelled systematically. There is a specificplace for each of these items and volunteers put everything at their respective places.The volunteer work is divided into specific jobs like fund raising, field visits, social mediaupdates and so on. Each volunteer is part of a particular team, depending on theircompetency and training. Each volunteer becomes specialized in their respective field,leading to efficient utilization of human effort.(i) Identify and explain two principles of management adopted by Apaar Foundation.(ii) State two values that Apaar Foundation is displaying and promoting in society through

their work. (CBSE Delhi (Comptt.) 2017)89. How do principles of management help managers in fulfilling social responsibility ? State.

(CBSE Delhi (Comptt.) 2017)90. How do principles of management help managers in meeting the requirements of the

changing environment ? State. (CBSE Delhi (Comptt.) 2017)91. Seema, a student of management likes to relate what she learnt in class to real life situations.

She observed many situations while watching educational programmes on television thatreminded her the concepts of Scientific Management. In one such programme, factoriesmanufacturing components for products like automobiles, computers and mobile phoneswere shown.Name the concept of Scientific Management that should be adhered to, while manufacturingcomponents for such products. (CBSE Outside (Comptt.) 2017)

92. How do principles of management provide managers with useful insights in real worldsituations ? State. (CBSE Outside (Comptt.) 2017)

93. Reema is one of the most successful managers of her company, Globe Ltd. She knowsthat the principles of management are intended to apply to all types of organisations,

62 : XII


esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

business as well as non-business, small as well as large, public sector as well as privatesector.(i) One of the points related to the nature of management principles is being highlighted

in the above description. Identify the point.(ii) Explain any three other points of the nature of principles of management other than

the one identified above. (CBSE Outside (Comptt.) 2017)94. Sakaar Foundation is an NGO (Non-Government Organisation) working to improve the

lives of children with medical needs, the homeless and victims of natural disasters. Apartfrom donation in cash, they collect dry ration, old clothes, shoes, toys, books, medicinesetc. from donors. At Sakaar Foundation’s office in Lucknow the material collected issegregated, classified and put in shelves and boxes that are labelled systematically. Thereis a specific place for each of these items and volunteers put everything at their respectiveplaces.The volunteer work is divided into specific jobs like fund raising, field visits, social mediaupdates and so on. Each volunteer is part of a particular team, depending on theircompetency and training. Each volunteer becomes specialized in their respective field,leading to efficient utilization of human effort.The management of Sakaar Foundation does not close its ears to any constructivesuggestions made by the volunteers. There is an equal division of works and responsibilitybetween volunteers and management. All day long the management work side by side withthe volunteers helping, encouraging and smoothing the way for them.(i) Identify and explain one principle each of ‘Scientific Management’ and ‘General

Management’ adopted by Sakaar Foundation.(ii) State any two values that Sakaar Foundation is displaying and promoting in society

through their work. (CBSE Outside (Comptt.) 2017)12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345671234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456712345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345671234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456712345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567Quick Test-1

1. How are principles of management helpful for managers in fulfilling their socialresponsibility ?

2. Give reasons, why principles of management are not rigid prescriptions.3. How are management principles derived ?4. The production manager of Bharat Ltd. instructs a salesman to go slow in selling the

products whereas the marketing manager is insisting on fast selling to achieve the target.Which principle of management is being violated in this case. Write one of the consequencesof violation of this principle.

5. Rakesh and Rahim are employed in the same company. They are working at same positionand performing similar functions. But Rakesh is getting more salary than Rahim. Whichprinciple of management is being violated ?

6. In an organisation employees are transferred frequently. Which principle of managementis being over looked.

7. Why did Fayol introduce Gang Plank in the principle of scalar chain ?



esc

esc

esc

esc

esch

olar

hola

r

hola

r

hola

r

hola


NO

NONO

NO

NOT T T T T TTTTTO

BE

PUBLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

O B

E PU

BLI

SHED

8. Which principle of scientific management suggests the introduction of scientific investigationand analysis of management practices ?

9. In a company, the manager appointed only one foreman for the work of production,planning, execution and supervision of workers. However, that foreman is not efficient inplanning and execution.(i) Which technique of scientific management is being violated here ?(ii) Write one consequence of this violation.

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345671234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456712345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345671234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456712345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567Quick Test-2

1. Name the technique of scientific management which helps in establishing interchangeabilityof manufactured parts and products.

2. Which technique of scientific management aims at elimination of superfluous varieties, sizesand dimensions of the product.

3. Name the technique of Taylor which is one of the strongest motivators for a worker to reachstandard performance.

4. Which principle of Henry Fayol does functional foremanship violate ?5. A sales person is asked to finalize a deal with customer. The marketing manager allows

him to give a discount of upto 10% but the finance manager allows him to give discountof upto 25%. Which principle is violated here ?

6. A manager should have the right to punish a subordinate for wilfully not obeying a legitimateorder but only after sufficient opportunity has been given to his/her case. Identify theprinciple of management highlighted here.

7. Fayol insists that good sense and experience are needed to ensure fairness to all employeeswho should be treated as fairly as possible. Identify the principle of management.

8. Name and explain that principle of Fayol which suggest that communication from top tobottom should follow the official lines of command.

9. The production manager of an automobile company asked the foreman to achieve a targetproduction of 200 scooters per day. But he did not give him the authority to requisitiontool and materials from the stores department. Can the production manager blame theforeman if he is not able to achieve the desired target ? Explain briefly the principle relatingto the situation.

❏ ❏

SPACE FOR STUDENT’S NOTES

Principles of Management

Documents

Transcript of Principles of Management