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PRINCIPLES OF, MANAGEMENT, 2.1, 2.2, , Principles of Management: Concept and Significance, Scientific Management: Principles and Techniques, , Learning Objectives, After, , going through this UNIT,, , you would be, , Principles of Management, , acquainted, , with:, , Concept, Significance, Principles of Management Developed by Henry Fayol, , Scientific Management, Concept, , Principles of, , Scientific, , Management Developed by F. W. Taylor, Techniques of Scientific Management Developed by F W. Taylor, Comparison of the Contributions of Fayol and Taylor, , 2.1 Principles of, , Management: Concept, and Significance, , Principles of Management: Concept, Meaning, , Principles of management are of, every type of, organisation., -Henry Fayol, universal nature and apply to, , ose 28-03-2n'?, , of Principles of Management, , These days business has assumed wider ZAS Tool Kit-1, as a result of which numerous, Principles of Management?, problems, arise in, day-to-day activities and the manager of the Principles of management are broad and, enterprise has to solve these problems. A manager general guidelines for decision making and, needs guidelines to, grapple with the problems and behaviour of managers., run the, organisation efficiently. The principles of management guide the manager./Before, entering into a detailed discussion about the principles of management,, it is necessary to know, the, of, scholars, Different, have defined 'principle' in the, meaning Principle'., following manner:, , dimensions

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BUsiness Studies, "/rieiple, , is a, , fundamental, , AcxOrding to G.R. Terry,, theught o detion.", "1 prineiple is, tAcording to Edwin B. Flippo,, , or bullh, , stalement, , a fundumental, , ruth and U 1s, , the form of cause and effect relationship., , According, , 3), , proanting, , to t ., , fundamenlal trulh of grue, , these scholars show that, , The detinitions of, which explains the reationship between, , guide, , generally staled, , prineiples a, O'Donnell. "Management, to Koontz and, actuon., result, manageme'nt, of, harve alue in predicting tihe, , vadhdy hich, , u, , cause, , principles, , are m, , the torm ot that, , and ettect and experts play, , an, , basic trt, , important, , rol, , in their preparation., , Features/Nature of Principles of Management, , The following points bring out the nature of, , Tool Kit-2, Principles of, , principles ot management:, , refers, (1) Universal Applicability: ( Universality, in al, t o that truth which is equally applicable The, spheres (both business and non-business)., , principles, , of management, , are, , also universal, , in naturey Al business (industrial units, etc.), , and non-business organisations (educational, Ainstitutions. government oftices, playgrounds,, agricutural farms, army, chubs and other, , Management and Values, The principles of management are in the, , form of basic truth while values are the, , general, , rules of, , an, , individual's, , comm, , conduct. For example, "division of labour i, a principle of management which provide, acvantages of specialisation. On the, , other hand, not making the secrets of the, , company public is a matter of value which, reflects the character of the manager., , social oganisations).jin oder to achieve their, , objectives have to apply more or less the same principles., (2) General Guidelines:The principles of management are not definite like the principles of, physics and chemistry.The principles of physics and chemistry are very clear and definite,, and their outcomes cán be predicted. The principles of management, on the other hand,, are of the nature of general guidelines, and they cannot be applied strictly, , ), , Formed by Practice and Experimentation:(Principles of management are the results, , various problems faced by the professional people. First of all problems appeared and then, through careful research work solutions were found)Thus, we recognise the solutions, , found with the help of practice and experience, as, principles of management., Flexibility: The principles of management as they exist today are not in the form of fina, truths. As and when political, economic and social, changes take place, new kinds of problemste, arise. Old principles are altered and new principles are propounded. Therefore,, , principles of management are dynamic in nature and cannot be called stagnant or hxe, , 5Mainly Behavioural:(The principles of management are directly concerned with, behaviour They, , ensure a, , organisational levelsThey, , hum, better relationship, among the manpower working at, also establish relations between human, and material resou, , in accomplishing organisational purposes., , Relationship between Cause and Effect: (The, of management, relationship between cause and eftect)They specifyprinciples, what the ultimate, outcome estaufit, Will D, particular situation, work is done in a particular manner, (7) Centingent: /T he principles of, management are not fixed or permanent. They are, b y situations)pr, the decision to implement them or not *ae, according to thecircumstances.Therefore,, situations or circumstances., 6), , a, , atfected, , Significance of Principles of Management, The principles of, are m the, form of, managemeint, pre-determined solutions for, the, occurring, problems. They guide, , nmanager., , It, , a, , repe, is very important for every manager, , t, , e, , d, , kno

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Principles of Managerment, , them thoroughly. The importance of the principles of management becomes abundantly clear, , from thefolowing façts:, , 1Provide Useful Insiht to Managers: The principles of management make the manager, , a w a r e about the manner in which he should act in various situations so that he does not, repeat the mistakes of the previous managers. In this way, timely guidance reduces th, wastage of resources and the objectives can be achieved in a less expensive manner., , Optimum Utilisation of Resourcesa nd Effective AdministrationIn every organisation, physical (material, machines, money, etc.) and human (manpower) resources are used. The, function of management is nothing but to put them to optimum use or avoid wastage of, resources. Apd it is, possible only when a manager makes use of the principles of management, , The primary need of every organisation is that its administrative system should be effective., This is made possible with the help of the, principles of management., Scientific Decisions:(A scientific decision means a balanced decision. The principles, , of management provide the necessary training to the managers so that they can take, , scientific/balanced decisions., Meeting Changing Environmental Requirement:In modern times only such a business, unit can remain alive and develop which can keep pace with the rapidly changing, environment.) In every field of business activity (production, marketing, etc.) new, techniques are emerging everyday. A manager who can understand the changing situation, well in time can alone face competition successfully,The principles of management enable, the managers to face this challenge., , (5) Fulfilling Social Responsibility:The principles of management increase the efficiency of, the managers and enable them to fulfil their social responsibility. More efficient managers, , can make good quality products at reasonable prices available all the times.), (Management Training, Education and Research: The advantages of the principles of, management encourage the researchers to bring in more improvement in them. The, attitude of the managers has moulded itself in such a fashion that they are doing,, consciously or unconsciously, something new. The principles of management are actually, , providing education and training to the managers by otiesing their theoretical and, , practical knowledge., , Fundamental Principles of Management, Different management experts have explained different principles on, , the basis of their research. Henry Fayol, a famous industrialist of France,, has described fourteen principles of management in his book General and, Tndustrial Management. Explaining the difference between 'principles, 'elements' he makes it clear that the principles of management are, and, fundamentally true and establish a relationship between cause and effect,, while the 'elements' of management point towards its functions. While, presenting the principles of management Fayol has kept two things, the list of the principles of management should not, , mind. Firstly,, in, be long but should, , be suggestive and only those principles should be, , explained which become applicable in most of the situations. Secondly,, changes, the principles of management should be flexible and not rigidareso asthat, under:, in case of need. The fourteen principles given by Fayol, , them, , Henry Fayol, (1841-1925), can, , be made in, , should be, Division of Work: According to this principle, "as far as possible the whole work, of the work, divided into small parts and each individual should be assigned only one part, benefits of specialisation may be, so, according to his ability and taste repeatedly that the, achieved."

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Business Studies, , Advantages of specialisation are obtained, such as increas, ase in, increase in the speed of production, decrease in the wastage, , Positive Bffect, , the, , Increase in the work efficiency of the workers., , quality, , Violating BffectThe above-mentioned positive effects of specialisation will not h., , available, , The work efficiency of the workers will be reduced., , (2) Authority and Responsibility: According to this principle, authority and, should go hand in hañd. It means that when a particular individual is, resp, giVenonsi, work and he is made responsible for the results, this can be, possible only whePari, sufficient authority to discharge his responsibility., , when he is, , Positive Effect, , Violating Effect, , Helpful in achieving the target, Increase in the confidence of the employees, Wrong use of authority in case more authority is given than is needed, Difficulty in achieving the target in case less authority is given than is, neede, Cannot fix accountability of the subordinates in case the desired, results are not obti, Decline in the confidence of the employees, , (3) Discipline: According.to this principle, "the, rules, agreement should be obeyed by both the superiorsorganisational, and subordinates, for the, , successful, , employme, are, , neces, , A, , disciplined organisation has a better reputation among the, Increase in the efficiency of the, employees, Better labour-management relations, , Violating Effect, , people, , Decline in the, , reputation of the organisation and efficiency of the, employes, Height of disorder, An, , atmosphere of doubt and suspicion, , Decline in the confidence of the, , 4Unity Command: According, employee should receive orders, of, , should be answerable, only, , The, , which, , working of the organisation.", , Positive Effect, , and, , to, , that, , employees, , the principle of, from only one, , to, , unity, , superior, , superior., principle of unity of command has been shown, Right Approach, , in the, , of, at a, , command,, , an, , time and that, , indivi, emp, , following diagram:, , Wrong Approach, , M, , S, , A, , M, , S, , S, , S, M. M, , M2, , Managers, , S, S2. S,Subordinates, , In the first, , diagram, S,.S and>, all the three, orders only from M, and the saine the case subordinates have one, 1s, with S, and S.. Here the, command is being tollowed. Iherelore, it is the, right appr, approach., , manage ity, principie

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Principles of Management, , In the, , second, , diagram,, , all the three, , subordinates S,, S, and S, get their orders from two, managers M, and M. S, gets orders from both M, and M, simultaneously. (Same is the, position of S, and S, also.) He is unable to understand as to which order is to be given, Both the managers would like their orders, be heart burning between the two. Here the, , priority., to, , violated. Therefore, this, Positive Effect, , lo9g-1uade, uate, , is, , There is, *The, , a, , wrong, , approach., , be, , given priority. There is likely, principle of unity of command is being, to, , confused situation for the subordinates, , no, , efficiency of the subordinates increases, of the superiors increases, , *The efficiency, , I t is easy to fix, , responsibility, , An atmosphere of, , 19S, poiolating Effect, , It creates, , coordiality prevails, , confused situation for the subordinates, efficiency of the subordinates, , a, , It reduces the, , I t reduces the, , efficiency of the superiors, injured ego of the superiors, , Conficts due to the, I t is dificult to fix, , accountability, , Height of disorder, , Unity, , of, , Direction: Unity, , of direction, , means, , that there should be one head and one, plan for, a, group of activities having the same objective., For example, suppose an automobile, companY, is, , ., , Tool Kit-3, , Unity of Command & Unity of Direction, In this connection Fayol feels that for the, , manufacturing two products, namely, scoðtérs efficient, , and cars, hence having two divisions. As each, product has its own markets and problems, , therefore each division must have its own heads., Positive Effect, , running, , of, , organisation, , the, while the, unity of command is important to enhance, the efficiency of the, employees., , unity, , of direction is, , an, , important,, , *Advantage of specialisation is obtained due to a manager's association with the, same kind of, activity, *Increase in the efficiency of the organisation, Easy to achieve objectives, I t helps in coordination due to the unity in activities, , Violating Effect 'Advantange of specialisation is not obtained, Decrease in the efficiency of the organisation, Difficulty in achieving the objectives, , Difficulty in achieving coordination in the absence of unity of activities, , Difference between, Basis of Difference, , 1.Meaning, , Unity of Command and Unity of Direction, , Unity of Command, , Unity of Direction, , According this principle, every According to this principle, al, employee should get orders only activities having similar objective, from one manager at a time and should be completed under the, he should be responsible to that |supervision of one person and, manager alone., there should be one plan of action, to, , for such type, , 2. Aim, , It prevents dual subordination., , It, , of activities., , prevents, , various activities., , R3. Implications, , It affects, , an, , individual, , employee., , overlapping, , It affects the entire, , organisation., , of

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Business Studies, , Subordination, , 6, , interests, , of an, , of, , Individual, , organisation, , General, Interest to, , should, , take, , employee.", , purchase, , manager, , of, , Interest:, , priority, , over, , a company, , According to s!, , the interests, , a, , the, , material, , other, , raw, , from, , manager purchases, the manager, will, market rate. This, undesirable., loss. This situation is, , profit, , personally, but, , one indiý, , purchase 100, , has to, , along with, to be a supplier, his, material. His son happens, the firm of, , For example,, , prine, , of, , es, , suppliers in s, , son at a, , the, , he market., rate Lar, , te, company, company, , higher than t, , will, , incur nea, , Observing humanity, , Positive Effect, , Everybody profits in, , the profit of the company, , are, Organisational objectives, , Coordination between the, , obtained, , individual and organisational objectives, , Violating Bfect Humanity violated r, Increase in jealousy, Hindrance in achieving organisational objectives, Lack of coordination between the individual and organisational objectives, , Remuneration to Employees: According to this principle, "the employees should he., , L, , be pa, , air remuneration, which should give them at least a reasonable standard ofliving, Positive Effect, , Increase in the encourgement and satisfaction of the employees, , Development of the spirit of dedication among the employees, Decline in the labour turnover rate, , Violating Efect, , ., , Decline in the encouragement and satisfaction of the, Encouragement to dishonesty, Increase in the labour turnover rate, , employees, , Centralisation and Decentralisation: According to this principle, the, , superiors should ads, effective centralisation instead of complete centralisation and complete, decentralisation, For example, the decisions in, of determining the, respect, and, objectives, of business, etc. should remain in the, policies, expanse, for the purchase of raw, to the subordinates., , Positive Bffect, , hands of the superiors. On the other, hand, authart, , material, granting leave to the, , employees, etc. should be delegd, , Decrease in the workload of, superiors, Better and, quick, , decisions, , Increase in the TERT, encouragement to the subordinates, Violating Effect * Unnecessary increase, in the workload, of the superiors in case of, of the, , subordinates in case of, , ationant, , cetne, , Impatient and wrong decisionsdecentralisation, by the superiors in case of, and weak, decisions by the, complee, subordinates in case of, , ntralisatio, , Decine in the, complete decene, couragement to subordinates in case of complete centra, (9)Scalar Chain: 41 R, i) Meaning of Scalar Chain: It, refers to a formal, which moves irom, ority and commu, line of authority, to the, and, highest, ) Fayol's, lowest, ranks, in, a, Opinion: This, , isation, , lisation, , s, , chain must be, straight, communication, followed, in, must, strict manne, move from top to, The, line., , a, , nanner. It means, , important condition here is, bottom and vice versa in a straig, that no, oked du, be overl oked, step (post) shouldversa, , communication.

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Principles of Management, , (iii) Fayol's Ladder: Fayol has explained this, principle with the help of a ladder or double, chain as shown in the diagram., , Scalar Chain, , For example, in a company the employee F, wants to have contact with the employee P., , B, , M, , C, , According to the principle of scalar chain F', shall have to reach A through the medium, of E, D, C, B and then, having contact with L,, , N, , M, N, O shall reach P'. Thus 'F' shall have, to take the help of all the nine, steps (posts) to, , P, , have business contact with P'., , Gang Plank, , iy Utility: Due to more dear system of, authority and communication, problems, can be solved faster., , (v)Gang Plank: It is the exception of the, , Tool, , Q, , Kit-4, , of scalar chain. This concept, was developed to establish a direct contact, with the employee of equal rank in case of, , Gang Plank: A Special Note, Gang Plank can only be established with, the employees of the equal or same level., Forexample, in the present example no gang, , emergency to avoid delay in communication.?, , plank can be established between F and O., , principle, , For, , example,, , as, , shown in the, , diagram, , employee F can have direct contact with employee P'. But for doing so employees, F and P shall have to seek the prior permission of their immediate bosses "E' and, , O'. The details of their talk also shall have to be given to them., Ladder, is, one oftheexamples of scalar chain. There may be, Fayol', s, and, Gang, Plank, another example ofit. Such as in routine we find that a worker cannot directly contact, the CEO of the company. In case of need he/she has to follow the formal route, i.e.,, Manager, etc. In this way, all the members of, Foreman, Superintendentthis route have to know about the matter. However, in case of emergency it can be, possible that a worker can contact CEO directly ignoring all formalities., Positive Bffect, , Flow of orderly information, , Better relations because of absolute respect for authority, Quick solution of problems, , Violating Bffect Disorderly flow ofinformation, du, , Bitterness in relations because ofignoring the close superiors, , Increase in problems because of non-availability of information in time, , 0 ) Order:(According to the principle oforder, a right person should be placed at the rightjob, and a right thing should be placed at the right place. According to Fayol, every enterprise, should have two different orders--Material Order for Physical Resources and Social Order, for Human Resources. Keeping the physical resources in order means that 'a proper, place for everything and everything in its right place'. Similarly, keeping the human, resources in order means 'a place for everyone and everyone in his appointed place'.), , Positive Bffect, , Complete utilisation of material and human resources, No loss of time in tracing the resources in need of time, , Better discipline, Violating Rffect Misuse of resources, , Increase in the possibility of accidents, , Height ofdisorder

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Business Studies, , heir subordinate, (11) Equity:Accordingto this principle, "the managers should, their, for, work.", dedication, so that they develop a feeling of, treat, , as, , possible, Forexample, alabourer completes 10units of goods in a day. Another labourer who ha., , fanrk, , labourer whohasappens, , to be a relative of the supervisor completes 8 units but both get equal remuneratic, violates the principles of equality. The second labourer should get less remuneratiot, , ration. Thig, , the first one., Positive Effect, , The employees remain satisfied, Increases the sense of devotion to the organisation, , Skilled employees try to improve upon their skill, , 'Unskilled employees try to achieve some skill, , Violating BffectCreates dissatisfaction for the skilled workers, Skilled workers lose confidence in the organisation, cline in the efficiency of the skilled workers, ncrease in the carelessness of the unskilled workers, , (12) Stability of Personnel:According to this principle, "there should be a, stability of tenure o, the, employees so that the work continues efficiently., ently., Positive Effect, , Increase in the confidence of the, Increase in the, , Skilled workers, , employees, , reputation of the company, are, , *Less expenses, , inclined towards the company, , on, training, Violating Effect An-atmosphere of disbeliefforthe employees, , (ack b, , bte, , organisation, , must be, , Decline in the reputation, , of the company, *Goodworkers leave company, Heavy recruitment and training expenses, , (13) Initiative: According to this, principle, "employees, opportunity in making and executing plan.", Positive Effect, , *Increase in the thinking, , in the, , given an, , power of the employees, , Cooperation of the employees in, , implementing decisions, Increase in the sense of attachment, to the, organisation, Violating Effect Decline in the thinking, of the, power, atmosphere of non-cooperation employees, *Decline in the employees' attachment, to the, An, , (14, , company, , Espirit de corpsAs per this principle,, manager should continuously make, develop team spirit among the subordinates., etforts, To do this,, instead of T during the conversation, he/she, should, use, the, word, with, subordinates.), For example, manager should, always say that 'we will, a, , a, , e, , a, , This behaviour of a, manager will, Positive Effect, , keep alive the spirit of, , Motivation to work with, Easy to achieve objective team-spirit, Sweet relationship, , Violating Effect, , Kills team spirit, , Difficulty in achieving objective, Bitterness in relationship, , do this work', , instead of "I will do, , cooperation among the subordiia, , ates.

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Principles of Management, -, , Conclusion, Clarifying, , his, , principles of nmanagement, Fayol has pointed out that since management, is related to human beings nothing can be said with a sense of, finality. What principles are to, be applied at what time, in what situation and to what, degree (or extent)-it all depends on, the experience, etticiency and, decision-making power of the manager. Thus, the principles, advocated by Fayol have an element of flexibility., , CKey concepts, Meaning of Principle of Management: Principles of management are broad and general guidelines for, decision making and behaviour of, , managers., , Features/Nature of Principles of, Management: ) Universal, Formed by Practice and, Experimentation, (iv), , Cause and, , Applicability, (i) General Guidelines, 1ii), Flexibility, (v) Mainly Behavioural, (vi) Relationship between, , Effect, (vii) Contingent., , Significance of Principles of Management: (6) Provides Useful Insight to Managers, (i) Optimum Utilisation, of Resources and Effective, , Administration, (ii) Scientific Decisions, iv) Meeting Changing Environmental, Requirement, (v) Fulfilling Social Responsibility, (vi) Management Training, Education and Research., , Fundamental, , Principles, , of, , Management: Principles, , advocated, , by Henry Fayol: (i) Division, , of, , Work, (i) Authority and Responsibility, (ii) Discipline, (iv), Unity of Command, (v) Unity of Direction,, (vi) Subordination of Individual to General Interest, (vii) Remuneration to, Employees, (vii) Centralisation, and Decentralisation, (ix) Scalar Chain, (x) Order, (xi), Equity, (xi) Stability of Personnel, (xii) Initiative, and, , xiv) Espirit de corps., , 2.2 Scientific Management:, Principles and Techniques, , Scientinc management attempts to, eliminate wastes to ensure maximum, production at minimum cost., , Scientific Management: Concept, Scientific management is, , thinking on management, propounded by Fredrick Winslow Taylor. Taylor was a person who, a, , new, , within a very short duration (1878-1884) rose from the ranks of an, , ordinary labourer i, , the position of a Chief Engineer. In 1878, he, , Joined the Midvale Steel Company in the USA as a labourer and, due, to his hard work, and dedication, he was able to rcach the position of, the Chief, Engineer in the sane company within a short span of six, years. During this period, Taylor conducted a number of experiments, and came to the conclusion, that the amount ol work a labourer w s, was, far less as compared to what he was suposed to be, doing, doing. Fredrick Winslow 'Taylor, He gave a, number of suggestions to solve this pproblem and, in doing, (I85t 191), SO, he gave a scientific outlook to, Taylor, worked, managemen., in Bethlehem Steel Works, upto 1901 and thereafter started provicding servies as a managenment consultant. In 1903,, hepublished a research paper titled "Shop Management' and in 191| his book, , Phinciples, , 5, , of

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Business Studies, , Scientific Management created ripples in the field of management. Taylor, lor died, contribution to management will, , died in 1915,, , always remain immortal., , Meaning of Scientific Management, The, , literary meaning of scientific management, , is performing the work of management in a scientific, manner. In other words, discarding, , 1915, bbur t, , Tool Kit-5, , Scientific Management, the traditional, manag, management which thin, and that by scientifically, approaches management and adopting, be, analysing, possible to find 'one, scientific approaches in their place is called, best Nork, t, to, , to that, , newer, , more, , wa to dowou, has said that before commenCing, Taylor, any work, aa man, manager, first analyse it, thoroughly, and only then take any decision., shod, Definitions of Scientific Management, , scientific management., , Various experts have, , given many, definitions of scientific, ific managemen, important definitions are:, (1) According to E.w., Taylor, "Scientific management is the act, to do and then, seeing to it that they do it in the best and the of knowng exactly what you nvant ma, cheapest way.", (2) According to Peter F., "The core of scientific, Drucker,, work, the analysis of work into the, management is the organised sthoh., elements and the, simplest, performance of each element.", systematic improvement of the zu, , A few of the, , each, , different, , mar, , Based on the above, discussion, it can be said that scientific, activity in detail and in doing so ensure, management involves studvin, that all the activities, in an economic and, of the, effective manner., , accomplished, , the, de-, , organisation a, , Features of Scientific, , Management, Based upon the above, definitions, the following are the main, management:, characteristics of scientit, (1) Systematic, Approach: Scientific management is a, and its use ensures, that all activities are, approach to manageme, (2) Brings, a, completed insystematic, Complete Mental Change: Scientific, systematic and scientific manne, change both in the owners as well as the, management, brings about a complete ment, of the, aiming for more and better production employees, Both the parties, (3) Discards Traditional, targets rather than, stn, discards traditional Management: The approach of merely chasing higher protis, scientific management, It calls for, of new and, the, modernmanagement. with, discarding of old techniques andcompie, This is nothing but techniques,, the aim of, the outcome, the efficiency of adop, (4) Requires Strict, of complete change in, employee, attitude., of Rules:, observance of rules,Observance, little chance of error because the rules are, strd, in, formed onlymanagement, requires, very,, to, after, them., Unless, due, the, is, ven, rules are, analysis and therE ivn, management may fade away, followed, (5), the scientifie, Improves the Eficiency of making it no different fromstrictly, tget, the, the, Workers: "The main, aim of scientific traditional, manag, This is done, time study, of, gement is to increa*, manager, 6) AHennp motion study and, uch», various kinds ot, fatigue, study., stu, of, of Scientific Man, e, elul {60 (ge Ovga, The scientific, , for, bas-, , full, a f, , SIma, this, , organisation., , improving, Scientific, , efficiency workers., through conducting, APrinciples, Principles w e Ntage, Management, following four principles:, management, approach propounded by, EW. Taylor is, Not Rule, basea, with the old, ofThumb:"This, of, principle says that we should, doing, develop new techniques, work,, techniques which make therather we should be not get stuck entingtin, work much, constantly exper, simpler,, , on the, , r, , easier and que, , eac, , pro, foll

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Principles of Managernent, , (2) Harmony, Not Discord: As per this, principle, such an atmosphere should be created in, the organisation that labour (the, major factor of production) and management consider, each other indispensable. 'Taylor has referred to such, a situation as a Mental Revolulion"., Taylor firmly believed that the occurrence of a mental revolution would end all, , conflicts, , between the two parties and would be beneficial to both of them., , (3), , Cooperation,, , Not Individualism:, According to this principle, all the activities done, by, people must be carried on with a spirit of mutual cooperation. Taylor has, suggested that the manager and the workers should jointly determine standards. This, increases involvement and thus, in turn, increases, responsibility., (4) Development of Each and Every Person to His/Her Greatest, and, ditferent, , According to, , of, , right Irom, , Efficiency, , Prosperity:, , this principle, the, efliciency of each and every person should be taken care, his selection. A, proper arrangement of everybody's training should be made., , It should also be taken care that each individual should be alloted work according to his, , ability and interest., , Techniques of Scientific Management, The principles of scientific management only bring out the basice philosophy behind the, theory. The question which now arises is how to implement these principles practically. Taylor has, devised the following techniques for actually, implementing the, , principles of scientific management., , 1, Functional Foremanship, EW Taylor has propounded the functional, foremanship. This form of organisation is totally, , Tool, Kit-6, Functional Foremanship?, , based on the principle of specialisation and makes, full utilisation of the expertise of various experts. In, , a functional organisation, work is divided into many, small parts and each part is assigned to an expert. In, , It refers to that technique of scientific, management which makes possible the full, utilisation of the principle of specialisation., , this manner, all the benefits of specialisation are availed of., , Taylor has suggested the division of the work of factory manager into two subdepartments:, (i) planning department, and (i) production department. Four experts are appointed in, each department. The experts in the planning department do planning and the experts in the, production department help in production. Functional organisation has been clarified in the, , following diagram:, Factory Manager, , Production Offlcer, , Planning Offlcer, , Route Clerk, , Gang Boss, , Instruction Card Clerk, , Speed Boss, , Time and Cost Clerk, , Repair Boss, , Inspector, , Discipline Officer, , Workers

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Business Studies, Functions, , (9Specialists of Planning Department and their, a particular, work, (a) Route Clerk: This clerk specify the sequence of completing, tie also decides, tinalised., the i, there, the stages it shall have to pass before being, job, thereby, done for the day and where it is to be done., , decides, , (6), , tobe, , Instruction Card Clerk: This clerk prepares the instruction cards tor the worke, , contain information about the na, the details about machinery,, , them over to the gang boss. These cards, ands, the work, procedure of doing it, material to be used and, , y., , (c) Time and Cost Clerk: This clerk decides as to when a particular work is to be started, and, finished, meaning thereby as to what time the whole work will take place. It is also decid., at, , the same time at what cost the, , Aed, , product will be produced., , (d), , Discipline Officer: The discipline oftficer ensures that every work is being performedin, disciplined manner., (ii) Specialists of Production, Department and their Functions, (a) Gang Boss: The workers are divided into various, groups from the point of view of control, A group leader is selected, who is known as the gang boss. He is, expected to ensure that, both the workers, , and the machines are fit, enough for production and that the materid, for, their, use has been made available to, required, them., (b) Speed Boss: The main function of the, speed boss is to ensure that all, performing their job at the required or expected speed. If it is not so, the the workers are, to find out the cause of, speed boss trie, slow speed and hence a solution for, it., (c) Repair Boss: The main function of the, repair boss is to keep the machines and ols in, working condition., , (d), , Inspector:, prescribed, , He inspects the, things produced and, for them and' tries to find, out the, , compares their quality with the standard, difference. In case ofunfavourable result he, , initiates corrective action., , 2., , Standardisation of Work, , Standardisation means setting standards for, different activities, after due, deliberation. For, the, , example,, in, , ., , a, , day, , amount of work to be done, , by worker, may be standardised. In other, words, the, a, , worker is expected to do the, standard amount of, work everyday. In the same, manner standards, may, also be set for raw materials,, machines and tools,, , following are the, , Standardisation of Work?, , It, , refers to the, process of setting standaru, for various, business, , activities., , main, , objectives of standardisation:, given, product to fixed types, sizes and, To inuroduce the, manutacturing of identical products suchcharacteristics., changeable with one, that they are, anothe, , i) To reduce, , (ii), , Tool Kit-7, , techniques, conditions of work, etc., , Objectives of Standardisation, The, , S, , (iii) To, (iv) To, , a, , line of, , quality standards., establish standards ol, , ensure, , performance of men and machines., , 3. Simplification, , Simplification, , easily, , neans, , putting, , an, , end, , unnecessary types, qualiucs, Sizes/weights, o the, etc, For, example, it is all righi for shoe manufacturis, company to manutacture shoes ot 0, 1, 2, 3, 4, ing, a, , 5, , It, , Tool Kit-8, Simplification?, refers to, , put, , an, , SIzes,, , that technique which, , is, , us, unnecessary types, qua, weights, etc. of products., end to, , d, itres

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Principles of Management, , sizes but if it starts, manufacturing shoes of 0, 0.5, 1, 1.25, 1.5, 1.75, 2, 2.25, 2.5, 2.75, 3, it, will be simply, wrongThere is nojustificatioh in the difference of such sizes. In such a situation, different types of machines shall have to be, installed, more stock shall have to be maintained, and increased labour costs shall have to be, borne. Therefore, it is advisable to, manufacture, shoes only of the proper sizes. In other, words, simplification of the product is the answer., ..., , Objectives of simplification:, i) Effecting economy in the use of machines., (ii) Bringing down the labour cost with the, , specialisation can be obtained by restricting help, , (ii) Affecting economy, , According, , to, , in the staff., , another, , of, , specialisation. ((The benefits, specialisation only to few products.), , of, , a, , example, paper manufacturing company in the USA started, the work of, simplification of the types of papers, it was, manufacturing and succeeded in, reducing their types from 2,000 to 200 only. The effect, of such an, a, , exercise, , imagined., , can, , simply, , be, , 4. Method Study, , refers, , to identilying the most suitable way to do, a particular activity) To conduct this, study, process chart and operation research, are used. The main, techniques, studyis to find out one best way of doing the job., objective of this, 5. Motion Study, It refers to a, , technique to study the movements those are necessary for, The movie camera is used to, doing a well defined, conduct this study. The main, eliminate the unnecessary motions., objective of this study is to, For example,, during an experiment it was found that while, laying a brick, a mason was, conducting 18 different activities, but after, the, eliminating, of activities could be reduced to, unnecessary activities the number, five, and in certain cases even, down, , job/work., , to two, , 6.Time Study, It, , refers, , to, , deternmining the, , standard time is determined, , activities., , standard ime required to, complete a particular, the basis of average time taken, by the several, , activity., , The, experiences of, study conducted, the help ofa stopwatch. The main objectives, study are (i) to get the estimated figure ofwith, of the, labour costs, (ii) to determine the, workers and (ii) to decide about the suitable, number of required, incentive, , the, , same, , work. This, , is, , on, , plan., , 7.Fatigue Study, t, , refers, , determining the duration and frequency of rest intervals to, The rest refreshes the workers., a, They work again with their full complete, main objective of this, capacity. The, study is to maintain the efticiency level of workers., There may be so, many causes of fatigue, such as long, unhappy relations with the boss, etc.working hours, poor working conditions, unsuitable work,, to, , particular job., , 8. Differential Wage System/Differential Piece Rate, Paylor has advised the adoption of differential, wage systems in order to motivate, the employees. y, According to this system, wages are paid the basis A, on, , he, , of work done and not on the, the basisof, of ti, time spent in, the, doing, work. In this system two different, wage, rates are used: one, is the high wage rate and the other, , lool Kit.o, it-9, , Differential Wage System?, , It, , refers to that technique of scientific, management which differentiates between, efficient and inefficient workers, , 57

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Business Studies, , tandard, , h.., to produce the standard m, number, of, workers who are able, units, is the low wage rate. Those, rae, and those workers who a r e not, the, wage, as, high, are paid, duration, per, fixed, able, within a, same ume a r e paid as per the, the lou, lower wage, number of units within the, to produce the standard, rate., , be 20 units and the two wage rates ho a, For example, let the standard output per day, 20 units in a day and in d, s, 4 per unit respectively. Worker 'A produces, per unit and, Another worker B produces only 18 units in day, x, 5, unit)., F, units, 100, per, (20, heearns, this way, even though 'R, 72 (18 units x 7 4 per unit). In, and hence he will e a r n only, will be R 28 (F 100 -., 72, 2 units less than 'A' the difference in their wages, produced, only, As a result, less efficient workers will be motivated to work more and efficient workers will, , ing, -, , motivated to maintain their eticiency., 9. Mental Revolution, Mental revolution calls for a change in the, mindset of both employers and workers. As per, , Taylor, a revolution in mindset of both the employers, and the workers is required because it will promote, , feeling of cooperation, and will be beneficial to both, the parties. Normally, it is seen that conflict between, employers and workers results in division of profits,, , Tool Kit-10_, 2&, Mental Revolution?, It refers to the change in the attitude c, management and workers towards on, another from competition to cooperation., , with both the parties demanding a larger share of profits. This is the main reason why a mena, , revolution is required. According to Taylor, instead of fighting over division of profits, both th, , parties should make elforts for increasing the profits.Sucha situation will result in an increa, in, production, and as such a high increase in profits that will make any talk of division of profi, meaningless., , Comparative Study of the Contribution of Taylor and Fayol, There are some similarities and dissimilarities in the contribution, in the field of management. They are as follows:, , of both, , these, , speciali, , Similarities, We find the, , following similarities in the thought process of Taylor and Fayol:, (1) Solution to Managerial Problems: Both the, managenent experts have presented solutier, (2), , the, , managerial problems based on their experience and experiments. The soluu", presented by both these experts are present in the shape of principles., Stress, Practical Aspect: Taylor and, Fayol have both been directly connected with, Teality of work. That is why they both have laid stress, upon the practical aspect of woTk, other words, they, gave their suggestions about, improvement where such improvem, were, possible. They did not lay down any principle, wlhich cannot be brought, mo, parameters of practicality., , to, , on, , t, , (3) Stress, , Good, , Industrial Relations: Both the, experts are of the opinion that it, owner and the, workers, are established, the, be casily achieved., organisational am, on, , relations between the, , Dissimilarities, , Following, , are, , the, , dissimilarities, , in the ideas, of, , laylor and, , Fayol:

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Principles of Managerment, , Difference between Taylor, Basis of Difference, , and, , Fayol, , Taylor, , 1. Perspective, , Related to production activities/, related to factory area., , 2. Unity of Command, , Unity of Command is violated.A, , Fayol, Related to higher level of, , managenent., The, , worker works under the, of eight, , supervision, specialists simultaneously., , principle is applied strictly., , 3. Applicability, , It is applied in special situations., , It is, , 4. Basis of Formation, , Established principles of scientific, management by observations and, , Presented personal experiences in, the form of universal truth., , experimentation., Increasing productivity with the, , 5. Focus, , applied universally., , Reforming the entire administration, by following different principles., , help of simplification, the study of, time and speed, etc., 6. Personality, , Scientific, , 7. Expression, , Scientific management., , Professional, General thinking about, , administration., In conclusion, it can be said that these days many changes have crept into the world of, management. It is because of these changes that the principles of Taylor appear to be a little old, ones. On the other hand, principles advocated by Fayol get credence in the modern context., , Even then Taylor's contribution cannot be considered, guide the managers in some way or the other., , insignificant, , as, , his, , principles certainly, , oncepts, , Meaning of Scientific Management: To discard the traditional approaches to management and adopt, , newer and more scientific approaches in their place is called scientific management., Features, , of Scientific Management:, , (i) Systematic approach, (i) Brings complete mental change,, Requires strict observance of rules, (v) Improves the efficiency, , (ii) Discards the traditional management, (iv), of workers., , Principle of Scientific Management: () Science, not rule of thumb, (i) Harmony, not discord, (üi) Cooperation,, not, , individualism, (iv) Development of each and every person to his/her greatest efficiency and prosperity., , Techniques of Scientific Management:, , G) Functional Foremanship: (a) Experts of Planning Department: Route Clerk, Instruction Card Clerk,, Time and Cost Clerk,, , Discipline Officer; (b) Experts, , of Production, , Repair Boss, Inspector., , Department: Gang Boss, Speed Boss,, , i) Standardisation of Work, (ii) Simplification, (iv) Method study, (v) Motion, Study, (vi) Time study,, , vii) Fatigue study, (vii) Differential Wage System, (ix) Mental Revolution., , a Comparative Study of the Contribution of Taylor and Fayol:, (A) Similarities: (i) Solution of, , industrial relations., , Managerial Problems,, , (i) Stress, , on, , practical, , aspect, (ii) Stress, , on, , good, , (B) Dissimilarities: (i) Perspective, (ii) Unity of Command, (iii) Applicability, (iv) Basis of Formation,, (v) Focus, (vi) Personality, (vii) Expression.