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UNIT

2

PRINCIPLES OF MANAGEMENT
Concept of Principle of Management :
Principle of Management are the broad and general guidelines for managerial
decision making
...
They are different from techniques of management as
techniques are method whereas principles are guidelines to action and decision
making
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Nature of Principles of Management
The nature of principles of management can be described in the following
points :
(1) Universal applicability i
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they can be applied in all types of
organizations, business as well as non-business, small as well as large
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(3) Formed by practice and experimentation : They are developed after
thorough research work on the basis of experiences of managers
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(5) Mainly Behavioural : Since the principles aim at influencing human
behaviour they are behavioural in nature
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(7) Contingent : Their applicability depends upon the prevailing situation at
a particular point of time
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(2) Optimum utilization of resource and effective administration
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(4) Meeting the changing environmental requirements
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(6) Management training, education and research
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W
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His book Principles of Scientific Management was published in 1911
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(2) Harmony, Not discord : which implies that there sould be mental
revolution on part of managers, workers and owners to respect each
other s role and eliminate any class conflict to realize organizational
objectives
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Infact there
should be complete cooperation between the labour and the management
instead of individualism
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Techniques of Scientific Management
(1) Functional Foremanship : Functional foremanship is a technique in which
planning and execution are saparated
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(2) Standardisation and Simplification of work : Standardization refers to
developing standards for every business activity whereas Simplification
refers to eliminating superfluous varieties of product or service
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It leads to fuller
utilization of equipment and increase in turnover
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(4) Motion Study : Motion study seeks to eliminate unnecessary motions in
the execution of a job to enable it to be completed in less time efficienty
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The objective of time study is to determine the number of
workers to be employed, frame suitable incentive schemes & determine
labour costs
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(7) Differential Piece Wage system : Differential Piece Wage system seeks to
reward a more efficient worker by giving him/her more wages for more
quantity of standard production achieved
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Foyol s Principles of Management : Henri Fayol (1841-1925) was a French
Mechanical engineer who gave 14 general principles of Management which are
as under :
(1) Division of Work : Work is divided into small tasks / jobs and each one
is done by a trained specialist which leads to greater efficiency
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(3) Discipline : it is the obedience to organizational rules and employment
agreement which are necessary for working of the organization
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If an employee gets orders from two superiors at the save time the
principle of unity of command is voilated
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This ensures unity of action and
coordination
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(7) Remuneration of Employees : The overall pay and compensation should
be fair to both employees and the organization
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Both should be
balanced
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This chain should not be voilated but in emergency employees at
same level can contact through Gang Plank
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People & materials must be in suitable places at oppropriate time
for maximum efficiency
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(12) Stability of Personnel : After being selected and appointed after due and
rigorous procedure the selected person should be kept at the post for a
minimum period decided to show result
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Initiative means taking the first step with self
motivation It is thinking out and executing the plan
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Management should promote a team work
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Each group of activities
having save objectives
must have one head and
one plan

(2) Aim

Prevents dual
subordination

Prevents overlapping of
activities

(3) Implications

Affects an individual
employee

Affects the entire
organisation
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IMPORTANT QUESTIONS
1 Mark Questions (To be answered in 1 word or 1 sentence)
1
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Write anyone difference
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Why is it said that the management principles are universal?

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XII –  Business Studies 

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3
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One of them was 'Fatigue study'
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List any two principles of "Scientific Management" formulated by Taylor
for managing an organization scientifically?

5
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State anyone principle of scientific management
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State any one reason why Principles of Management are important
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Give the meaning of mental revolution as suggested by Taylor
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Explain the following principles of management:a)
b)

2
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Remuneration of Employees
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How will that affect the
achievement of school objectives? Which aspect of management is lacking
and why? As a manager, what steps will you take to rectify the
shortcomings?

5/6 Marks Question (to be answered in about 150 words)
1
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2
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a)

Unity of Command

b)

Unity of Direction

c)

Order

d)

Espirit De Corps

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