Chapter - 02 Principles of Management

Principles of Management
Unit – 02
Learning Objectives
After studying this chapter, the reader will be able to
 Understand the concept of management principles

 Know the basic nature or feature or characteristics of management principles
 Learn Fayol’s Principles about management
 Know concepts of scientific management developed by F.W. Taylor
 Make a comparison between Principles laid down by Fayol and Taylor.
Introduction
The word “Principle” represents a concept or statement or a basic truth about a subject. It helps
in framing guidelines for taking actions towards achieving desired goals. Management is also
based on some fundamental principles. On the basis of these principles, managerial action plans
are prepared and implemented from time to time.
Concept of Principles of Management
Management principles may be defined as broad and genuine guidelines works as a basis for
taking various managerial decisions and behaviours in a business enterprise. These principles
help and guide the managers to operate and control the business smoothly, economically,
effectively and efficiently. It works as a tool of guidance for the managerial personnel to improve
their skills and competence level.
Principles of Management Vs Principles of Pure Science
(a) Principles of Management are flexible in nature in comparison with pure science. Principles
laid down in pure science are rigid.
(b) Application of management principles are done creatively as it deals with behaviour of
human beings. On the other hand, principles of science are applied in static manner along
with universal acceptance.
(c) Principles followed in case of management are required to be changed and updated from time
to time with the changes in business environment. No such changes take place in case of
scientific principle.
Principles of Management Vs Techniques of Management

(a) Principles followed in management are considered as the fundamental truth or ideas
providing guidelines to managers for taking various decisions or actions related with business
where as Techniques adopted in the management are regarded as the process or techniques
adopted for the purpose of achieving organizational goals or objectives.
(b) Management principles are more flexible than that of techniques followed in management
procedure.
Principles Vs Values of Management
(a) Management principles are regarded as the basic guidelines followed to take various
managerial decisions and actions where as values refer to the general rules framed for the
behaviour of an individual in a society.
(b) Principles of management are technical in nature where as values are of ethical.
(c) Principles are based on the output of research and experimentation where as values are based
on quality preaching and existing practices.
Derivation of Management Principles
Principles of management are manmade. These principles are developed over a period of time.
There are two basic steps followed in the process of developing management principles. These
are:
On the basis of Observation
Under this method, researchers and Practionners are deeply observing various practical aspects
related to business to draw conclusions. On the basis of their recommendation, management
principles are developed.
For Example, it was observed that efficiency of the employees at different levels of management
can be improved significantly by dividing the entire work or task in to various units. It leads to
development of a new management principle termed as ‘Division of Labour’.
On the basis of Experimentation
Under this method, management principles are derived out of the conclusions drawn on the basis
of experimentation. Validity and authenticity of the decisions or statements can be tested or
verified by following rigorous experiments.
For Example, in a company, it was decided to experiment with two different units of the
production department of a concern. One unit is operated under the leadership of one Manager
whereas the other unit is worked under the control of three different managers. After a given
period of time, it was observed that the first unit performs better than the second unit because
employees are performing better under the leadership of one superior in a business organization.
This principle was termed as “Unity of Command”.
Nature or Features or Characteristics of Management Principles
Management principles play a crucial role in each and every business organization especially in
decision making. These principles work as guidelines for the mangers in taking various business
decisions to attain the organizational objectives. The basic nature or characteristics of
management principles are as follows:
Universal
Application
Depening
Basic
upon
Guidelines
condition
Nature of
Management Rigorous
Cause and
Effect Principles practice and
Relationship
experiments
Human
Flexibility
Behaviour
1. Universal Application
Management principles are applicable to all types of organizations such as business concern,
government institutions and individuals irrespective of their nature and size. It is also applied at
every levels of management viz. Top, Middle and Supervisory Level. It is not always providing
uniform result and may vary from concern to concern but can be applied as a whole.
For Example, principle of division of work, labour, unity of command can be applied in all types
of business organization. But the result may vary depending upon the nature and size of the
enterprise and affecting factors.
2. Basic Guidelines
The principles of management act as guideline for decision making and taking necessary action
in a business concern. These principles work as a base for decision making in the business but
does not provide any type of readymade solutions to the problems of business.
For Example, Bhateja Co. Ltd. is a renowned book seller in the state of Punjab. Company is
adopting the principle of fair remuneration to its employees as per the nature of their work.
Minimum salary paid by the company to its employees is Rs 18,000 per month. On the other
hand, L & T Co. Ltd. is a Multi National Company operated in India and abroad. The company
provides Rs 30,000 to its workers as minimum base salary. From the above, it is clear that
principles can be used as a guide to the management but varies from concern to concern
depending on their nature and size.
3. Framed or Designed on the basis of rigorous practice and experiments
Managerial principles have been designed or framed and developed on the basis of rigorous
practice and experiments undertaken in a business from time to time. It is not emerged or
evolved within a fort-night. It is the end result derived from continuous practice,
experimentation, deeper thoughts and foresights of the management people.
For Example, Principle of unity of command is not framed or developed at a glance. It was
marked or identified from the difference in the efficiency level of people at work. It was
experimented that if a department or a group of people or an individual performs better than that
of others controlled and regulated by more than one superior. So, this principle is evolved over a
period of time on the basis of practice and experimentation.
4. Flexibility
Management principles are flexible in nature. Hence, these can be used differently at different
places as per the demand of situation. These principles can be suitable modified by the mangers
to use them effectively.
For Example, Principle of centralization refers to assignment of authority and responsibility to

the top level but it may vary as per the requirements. In certain situations, it is required to
delegate powers and authorities to the employee of middle level management by following the
principles of decentralization.
5. Affecting or influencing human behaviour
The principles of management influence the behaviours of human beings generally people
associated with the business. It helps in developing relationship between superiors and
subordinates belonging to all the levels of management in a business organization. It also
improves the relation between physical and human resources for attainment of the organizational
objectives.
For Example, Principle of Order can be effectively used in an organization to ensure smooth
flow of materials and employees which ultimately leads to attainment of the organizational
objectives.
6. Cause & Effect Relationship
Management principles are based on cause and effect relationship. It refers to the application of
the principles of management in different situation and their post effects. The results of the
applications of these principles are not necessarily give uniform and absolute results as it deals
with human behaviour and may get vary at times.
For Example, as per the principles of division of work, all the workers or employees of a
business organization should be assigned work on the basis of their skill, caliber and capabilities.
This will create specialization among the employees. In this case, division of work may be
regarded as the ‘cause’ and specialization of employees as ‘effect’.
7. Depending upon condition
The application of management principles is dependent or contingent upon the prevailing

condition or situation at a given period of time. It gets largely affected by the nature and size of
the organization. It may not provide absolute or uniform result all the time. It can be used with
necessary modification as per situation.
For Example, Principle of team spirit can be used in those organizations where people are
working in a group while it is absolutely of no use in case of those concerns where works are
undertaken or performed by individuals and not by a group of members.
Significance or Importance of Management Principles
Management principles are of prime importance in the field of business especially for the
managers. These principles are followed as guidelines by the managers in the process of taking
various decisions and making necessary changes in their plan of action. They can even amend
their previous decisions as per these principles.
Meeting the
changing need
of business
environment
Performing
Scientific
Social
Decisions
Responsibilities
Significance of
Management
Principles
Facilitates
Optimum
Research and
utilization of
development in
available
management
resources
studies
Helps in taking
managerial
decisions
(a) Helps in taking managerial decisions
The principles of management are very much useful in the process of taking managerial
decisions. These principles work as guidelines for the managers and improve their knowledge,
ability, skill and efficiency. Managers have an option to learn from their mistakes and can make
necessary changes as per the need or situation.
For Example, principle of decentralization can be followed by a manager to distribute authority

along with responsibility among the employees and playing the role of a leader by controlling
and monitoring their performance.
(b) Optimum utilization of available resources
Managers generally deal with operation and administration of various activities undertaken in
business. They are utilizing all available resources of business optimally. Resources may be
available in the form of man and material. It is the duty of the managers to utilize both human
resources and material resources optimally. In this process, management principles play an
important role. These principles help in reducing wastages, developing effective administration,
utilizing the skill and capabilities of the workers etc. in the organization.
For Example, principle of unity of command can be followed to avoid chows, confusions and
conflicts among workers in a business enterprise.
(c) Scientific Decisions

There are number of decisions taken by manager in a business to control and operate the business
activities. All these decisions taken by the managers should be based on meticulous assessment,
continuous observation, due analysis of prevailing situation, free from personal bias and
conventions. Principles of management help the manager in solving complex business related
issues systematically and scientifically and taking right decisions at the right time.
For Example, Principle of Time Study suggested by F.W. Taylor to establish or set up the
standard time required for completing a given job or task rather than depending exclusively on
the discretion of the manager.
(d) Meeting the changing need of business environment
Each business organization has to make some necessary changes in its approach due to the
changing nature of business environment. Management principles help the managers to meet the
changing environmental requirements. These principles work as a guide to the manager in the
process of implementing the right changes in the right direction in the business organization.
For Example, Principle of division of work has used in a differently by some of the business
enterprises to face the growing competition. Some of the big business organizations have
restructured their business and concentrating exclusively on their core business and outsourced
their non-core business activities. This is an extension and modified use of the principle of
division of work that has crossed departmental boundaries to the outsourced institutions.
(e) Performing Social Responsibilities
Every business enterprise has some social obligations to perform. Management principles help
the managers to perform their social obligations.
For Example, the principle of fair remuneration concentrates on distribution of salary or

remuneration to the employees and taking due care of their personal interests in a business
organization.
(f) Facilitates Research and development in management studies
Management principles play the role of sheet anchor in the process of research and development
of the management studies. These principles facilitate research and generation of employment in
the management field. Management principles can be used as a guideline for management
training and education. These principles are used in the educational institutions and universities
providing management education as a part of their academia.
Fayol’s Principles of Management

About Henri Fayol (1841 -1925)
 Henri Fayol was born on 29th July, 1841 at Istanbul, Turkey

 He completed his graduation in engineering in the year 1860 from Mining Academy,
“Ecole Nationale Superieure des Mines” in St. Entinee.
 He started working as engineer in a Coal Mining Company.
 In the year 1888, he was promoted as the managing director in the mining company
“Campaigned de commentary-Fourchambeau-Decazevilles”.
 Under his leadership, the company reached high level of success.
 He was authored a book known as Administration industrielle etc generate.
Major Contribution of Henri Fayol
Henri Fayol is regarded as the Father of Management studies and thoughts due to his following
contributions:
(a) He defined the possible differences in between technical and managerial skill.
(b) He explored the major functions of management such as Planning, Organizing, Staffing,
Directing and Controlling.
(c) He had developed and framed 14 different principles of management which acts as a
framework or guidelines for managers to perform several managerial activities.
There are 14 principles of management developed by Henri Fayol. These are:

1) Division of Work
As per this principle, the entire work or tasks are to be divided into small units and to be
performed by the experts or trained workers. The entire work should not be entrusted on one
person. The tasks or jobs should be divided into small parts and assigned to the employees as per
their skill, caliber, capabilities, specialization and experience. This process of division of work
will enhance the level of efficiency of individuals due to division of work. On the basis of this
principle, there are different departments formed in a business organization such as Production,
Finance, Marketing, Human Resource etc. This principle can be applied in all types of
organizations, be it private and public sector.
For Example, State Bank of India, the largest public sector bank in the country follows the
principle of division of work. Bank assigns one employee for one specific work like one person
for deposits, one for withdrawal, one is dealing with issue of loans, one is responsible for
redressing consumer grievances etc.
Positive effects of Division of Work
(i) It leads to specialization in the organization.

(ii) It enhances the efficiency and expertise of the employees.
(iii) It increases productivity of a concern.
(iv) It leads to reduction of work pressure or burden of the workers.
Adverse impacts in case of violation
(i) There may be short fall in overall efficiency and productivity

(ii) Specialization or expertise may be missing
(iii) Wastage of time due to conflicts among employees
2) Parity in between Authority and Responsibility
Fayol defines authority as the right to give orders and responsibility is the corollary of authority.
Authority refers to the power of taking various decisions. Responsibility stands for the
obligations to carry out a given job assigned. According to the Fayol, there should be a proper
balance required to be maintained in between authority and responsibility. Employees are to be
given authority along with responsibility. Grant of excess authority without matching
responsibility may generate adverse results. If an employee is given excess responsibility without
sufficient authority, he or she may not be able to give proper justice to the tasks assigned to
him/her in time. Hence, it is required to maintain parity between authority and responsibility.
For Example, Mr. Rakesh Menon is working as a finance manager in a multi-national company
based at Mumbai. Company has bagged offer of two different projects worth Rs 20 crore each.
Company has to decide upon one out of the two projects. Rakesh is a highly qualified individual
capable of analyzing the profitability and other aspects related with projects. But he is not
authorized to take any decisions related with the projects. In this case, company may not take an
effective decision regarding the selection of projects.
Positive Impacts of Parity in between Authority and Responsibility
(i) Reduction in the misuse of authority

(ii) Helps in completing the work within time
Adverse Effects in case of violation
(i) There may be delay in completion of work due to lack of authority

(ii) Authority can be misused
3) Discipline
Discipline refers to the basic rules, regulations, terms, conditions and the process of working in
an organization. It motivates employees to work systematically and meticulously towards
attainment of organizational objectives. According to Fayol, discipline must be maintained at all
levels of management. It should be followed by both the superiors and subordinates.
For Example, as per this principle, superior should take due care of the subordinate staff
members in the form of grievances redressal, annual increment, fair remuneration, working
environment, promotional facilities whereas subordinates have to perform their duty effectively
and efficiently.
Positive Effects
 It ensures systematic work in an organization

 It increases the efficiency level of both superiors and subordinates
Adverse Impacts in case of violation
 It creates chaos and confusions among workers due to supervision at all levels of
management.
 Completion of work may get delayed due to disobedience of rules and regulations
4) Unity of Command
According to Fayol, One person should receive orders from one superior or boss. He suggested
that an individual should work and perform under the supervision and guidance of one boss and
held accountable and answerable to him. In case an employee receives orders from more than
one superior or boss at a time, it may create conflicts, chaos and confusions. So, Principle of
unity of command is used to ensure smooth flow of work and to avoid confusions and conflicts
of the workers.
For Example, Mr. Hritik is working in Surat Trade Mills Ltd. as a sales executive. He gets order
from his sales manager Mr. Vikas Singh to increase the volume of sales to reach the target in
time. On the other hand, Mr. Raman Bhat, Production Manager of the company instructs Mr.
Hritik to adopt a slow marketing policy or strategy due to slowdown in production level. In such
a situation, conflicts and confusions arises in the mind of Mr. Hritik. He remains in a dilemma
about what to do and who to listen. So, Principle of unity of command must be used in a business
to avoid such issues.
Positive Effects
 It helps in minimizing or reducing conflicts and confusions of the employees related to

work.
 It develops a better relationship between staff members of an organization
 It increases efficiency level
 It is helpful in fixing responsibility
 It may result in creation of chaos, confusions and conflicts in the mind of employees.
 It opens a way for the subordinates to avoid taking responsibility and onus of work
 It becomes difficult to maintain discipline in the organization
5) Unity of Direction
Unity of Direction is the principle suggested for ‘One Plan for One Unit’. In other words, there
are different activities undertaken in an organization but activities containing the common goal
or target must have one boss and one plan. This principle helps in developing unity of action and
proper coordination in the business enterprise.
For Example, Hindustan Unilever Ltd. is one of the biggest industries of India producing
different types of Fast Moving consumer goods or products. Company has divided separate
departments for production of different products. Each division or departments should have their
own plans, policies, resources and managers to attain their departmental targets.
Positive Effects
 It helps in attainment of the organizational objectives.

 It ensures unity of action and concentrated efforts by all the employees.
 It develops coordination among all the departments and levels in an organization.
 In the absence of proper coordination among departments, conflicts and inefficiency may
arise;
 Duplication of work may become possible;
 Wastage of resources including man, materials and time may happen;
6) Subordination of Individuals interest to General Interest
According to this principle suggested by Fayol, group interest or organizational interest should
be given priority over that of individual ones. Each and every organization possesses some
objectives and targets to be achieved. This is also applicable in case of individuals or employees
working in an organization. Ideally, the interest of the employees should not be contradictory to
that of the general interest of the business firm. In case of difference, managers should take
necessary steps to reconcile the personal interests of individuals with organizational goal. In
certain cases, individual interests are to be sacrificed for a better cause of attuning the
organizational objectives.
For Example, It is a general perception that employees are looking for a high remuneration,
posts, and authority in their workplace. But when company is going through a rough patch and
trying to recover from the financial issues, it may not be possible to fulfill all the needs of the
employees. Expenses may be curtailed down up to an extent to face the monetary challenge. In
this process, individual interests are to be sacrificed for a better organizational interest.
Positive Effects
 Helps in achieving organizational objectives

 Ensures effective coordination between individual and general interests of business
organization
 Organizational goals may not be achieved due to vested personal interests of individuals
 Leads to conflicts among employees due to over ambitious nature and personal interests
7) Fair Remuneration to employees
This principle gives emphasis on payment of fair remuneration to the employees in an

organization. If the right man gets right and deserving salary or remuneration, it is reflected in
his or her work positively. A good package of salary or remuneration payable to the workers
helps the employees in maintaining a health and standard life in the society. If the people in an
organization are not paid fair salary or wages, it may lead to employee turnover or absenteeism.
In order to get maximum productivity from the employees, fair remuneration should be paid to
the workers.
For Example, JPR Co. Ltd. is following a strategy of paying healthy financial packages to its
employees. Besides remuneration, employees are also getting some fringe or nonfinancial
benefits like free lunch, breakfast, education to the children etc. This helps in increasing the
efficiency of the employees at work and reduces labour turnover.
Positive Effects
 It helps in extracting the best from the employees by paying good packages.
 It may lead to develop the commitment and dedication of workers in the organization.
 It increases the chances of high labour turnover

 It may demoralize or discourage the workers for putting their best efforts in work.
8) Centralization and Decentralization
Centralization may be defined as a process of concentrating or assigning of all the authorities and
power of decision making in a single hand. As per this principle, one man has bestowed all the
powers and authorities to take all the decisions of the organization as per his/her own discretion
or will. On the other hand, decentralization refers to the distribution of power and authority
evenly in between number of responsible persons in an organization to ensure smooth
management and operation. As per this principle, management should be free from personal bias
or conventions.
For Example, in a corporate sector, all the policy decisions related to determination of
organizational goals or targets, plans, strategies etc. are to be centralized. These decisions should
be taken by the top level management consisting of experts and specialized personnel. But, the
operational routine nature works in an organization like purchase of raw material, selection of
suppliers, recruitment of staffs etc. can be de decentralized and perfumed by respective
departments.
Positive Effects
 Helps in making quick managerial decisions.

 Performance of the employees are controlled and regulated by the top level managers.
Negative Effects in case of violation
 In case of fully centralized system, decisions making may be delayed.

 Misuse of authority may become possible in case of complete decentralization.
9) Scalar Chain
Scalar chain refers to a formal structure or lines of authority or chain of superiors ranging from
the top most rank to the lowest rank. Henri Fayol strongly recommended this principle to be
adopted and followed by all type of organizations. Scalar chain works as a channel of
communication through which instructions or orders issued by the top level authorities are
communicated to the lower levels.
For Example, a lower level worker cannot have a direct access to the CEO or COO. He has to
convene his grievances to the Top Level officials through the formal levels i.e. Foreman,
Superintendent, Manager, Director etc.
The principle of scalar chain is generally used in all the organizations during the normal course
of action. But this process takes lot of time. This principle is not applicable in case of emergency.
For that purpose, Fayol suggested a short cut chain system to avoid delay in time termed as
“Gang Plank”. Gang Plank permits direct interaction or communication between the employees
belonging to different levels and positions without following the principle of scalar chain. This
principle of gang plank should be used in case of emergency to avoid delay in time and to
expedite coordination.
Positive Effects
 It helps in maintaining unity of command in the organization.

 It decrease or reduces the chances of confusions of dual order.
Adverse Effects in case of violation of principles
 It may generate a huge gap in communication between superior and subordinates.

 There will be no clarity on the relationship in between authority and responsibility.
10) Principle of Order
As per this principle, the word ‘Order’ does not represent command. It refers to systematic
arrangement of different resources including men and materials in a business unit. This principle
advocated for a suitable place for everything and everyone in the organization. According to
Fayol, “People and material must be in suitable places at appropriate time for maximum
efficiency”. Order may be of two different types namely Material Order and Social Order.
Material Order represents the systematic arrangement of materials where as Social order denotes
the arrangement of people in an organization.
For Example, A manager working in a company is assigned a cabin for performing its official
work. Workers working in that same company have provided tools or equipments for their work
and a tool box to keep their belongings. They can go and meet the manager at his or her cabin to
convey their grievances. If there is no fixed place allotted to the managers and no places to keep
the tools or equipments to workers, then all these people keep on wasting their time in search of
their requirements.
Positive Effects
 It eliminates wastage of time in searching of men or materials.

 It ensures smooth and uninterrupted flow of work in an organization.
 It may result in wastage of time and energy in search of men and materials.
 Timely Communication and proper coordination among employees may not become
possible.
11) Principle of Equity
In this principle, Fayol suggested to treat the employees in the organization as fairly as possible.
Equity refers to be kind and fair towards employees and providing them proper justice at the
work place. All workers should be treated equally and measures under a uniform parameter
without any type of discrimination on the basis of sex, religion, caste, belief etc.
For Example, Reliance Industries Ltd. is a multinational company where people belonging to
different country, caste, religion are working at different positions. Company is to treat them all
as employees without any discrimination. Equal opportunities must be provided to them for their
career growth and development without any personal favoritism or biasness.
Positive Effects
 It increases the level of employee satisfaction in the concern.

 It helps in boosting the morale of employees.
 It leads to high level of dissatisfaction in the employees.

 It may result in high labour turnover.
12) Stability of Employee or Personnel
Fayol believed in the concept of reduction of employee turnover to maintain organizational

efficiency. According to him, it is highly essential to retain the skilled and efficient employees
selected and recruited in the organization. These people are getting trained and developed over a
period of time and became well versed with the company style of working. It is not always easy
and cost effective to replace such personnel. According to this principle, workers should be given
a reasonable period of stay at a specific job. There should not be continuous transfer or
termination. Management should create an environment of providing absolute job security to the
workers. It motivates the employees to perform better than before due to a free working
atmosphere with a secured feeling. In the absence of this principle, wastage of money and time
will be made due to high labour turnover, increased rate of termination and fresh recruitment in
an organization.
Positive Effects
 It reduces the rate of labour or employee turnover.

 It avoids wastage of money and resources in the form of fresh recruitment and training.
 It is helpful in maintaining organizational efficiency.
 It generates the fear of job insecurity among the employees.

 It enhanced the expenditures due to fresh recruitment procedure.
 It increases the chances of high rate of employee turnover.
13) Initiative
Initiative refers to the initial steps taken by the employees towards accomplishment of their
individual targets through motivating themselves. As per this principle, employees should
provide freedom up to certain extent to express themselves in a better way. It helps them in
executing their plans to reach targets. Mangers may consider the suggestions of employees at
times. But the common practices adopted by the organization get affected with the adoption and
application of this principle.
Positive Effects
 It brings employee close to the business and develops attachment for the enterprise.
 It enhances the level of employee satisfaction.
 Employees may not their best efforts due to lack of consideration

 It may put down the morale of the employees.
14) Espirit De Corps
In the words of Henri Fayol, “Management should promote a team spirit of unity and harmony
among the workers or employees”. Principle of Espirit De Corps refers to the team spirit, unity
and harmony in a business firm. Management should work as a team with proper coordination. It
becomes essential for a manager to move forward with the team rather going single handedly.
For Example, A company is fixing a target of selling 10,000 units in the month of July. Sales
manager divides the whole target in to small units of 2,500 units among the team of sales
executives consisting of four members. All of these members of sales team are asked to sale
2,500 units each by the end of July. Principle of Esprit De Corps suggested that sales executives
should not only concentrate on their individual goals. They have to work as a team to achieve the
organizational goals in time.
Positive Effects
 Improves Team spirit among employees

 Helps in achieving goals in time
 May not achieve the group targets

 Team spirit, unit and harmony will be missing
Scientific Management developed by F.W. Taylor

About F.W.Taylor
The full name of F.W.Taylor is Fredrick Winslow Taylor. He was born on March 20, 1856 in
U.S.A. He was a Mechanical Engineer started his career in the year 1874 as an Apprentice
Machinist. Later, in the year 1878, he joined Midville Steel Company. He joined Tuck School of
Business as a Professor in the year 1900. During 1900-1907, he was elected as the President of
‘American Society of Mechanical Engineers’. He used his knowledge of engineering effectively
and creatively in developing management studies and thoughts. He contributed to the field of
management a lot from his continuous research, observations and experimentations. He was
defining and developing new principles related to efficiency of the workers and optimum
utilization of resources. He developed a new school of thought based on scientific techniques
termed as scientific management. Taylor’s principles and techniques are used in all organizations
as an effective tool of management. F.W.Taylor is regarded as the father of Scientific
Management.
Major Contributions of Taylor
The major contributions of F W Taylor towards management studies are described below.
 He published number of books and research papers in his long career on industrial
revolution and management.
 He authored books titled “Shop Management”, “Piece Rate System”, and “Principles of
Scientific Management”.
 He developed different techniques to deal with management related problems.
Meaning of Scientific Management
Scientific management can be defined as use of scientific principles in each and every aspects of
management. In simple words, scientific management refers to application of scientific
techniques or methods and specialized personnel for increasing the industrial production and
efficiency. This management principle advocates for taking managerial decisions on the basis of
scientific studies undertaken by using scientific tools and techniques rather by the manager at
his/her own will.
Definitions of Scientific Management
“Scientific management means knowing exactly what you want your men to do and seeing that
they do it in the best and cheapest way.” F.W. Taylor
“Scientific management focuses on the work. Its core is this organized study of work, the
analysis of work into its simplest elements and the systematic improvement of the workers
performance of each of these elements. Scientific Management has both concepts and easily
applicable tools and techniques”. Peter F Drucker, (P.N. 280)
Scientific management is a conscious orderly human approach to the performance of

management responsibilities as contrasted with the day in and day out rule of thumb, hit or miss
approach. Lawrence A. Appley
From the above definitions, it can be concluded that scientific management is based on
continuous observation, objective analysis and innovations. It may be regarded as an art of
knowing exactly what is to be done and the best possible way of doing it.
Principles of Scientific Management by Taylor
The basic principles laid down in scientific management are as follows:

Development
of all the
employees in
an
organization
Cooperation Principles of Based on

Science, not
and not Scientific merely rule of
individualism
Management thumb
Harmony, not
discord
(a) Based on Science, not merely rule of thumb
According to this principles suggested by Taylor, management decisions should be made on the
basis of scientific studies and observations. It should not be taken by the manger himself on his
personal experience, intuition and trial and error method. This rule of thumb method should be
replaced with scientifically proven techniques in order to increase the organizational efficiency.
As per this principle, one should think before doing. It is essential to adopt and applied scientific
techniques in the field of management in the decision making procedure. This principle is
focused on selecting the best possible way of completing a given task by using scientific
techniques or tools.
For Example, Rahul, production manager of AB Co. Ltd. has set a target for completing a given
task within 10 days. He took the decisions on the basis of his past experiences. According to the
Taylor’s principle, the time set for production must be made on the basis of scientific studies and
not on the basis of rule of thumb.
(b) Harmony, not discord

According to F.W.Taylor, there should be complete harmony in between the workers and the
management. There should not have any type of conflicts in between management and
employees of an organization. They all should work on the basis of utmost trust and good faith.
Taylor pioneered for a complete mental revolution of the people working in the organization to
maintain harmony between management and workers. It refers to change in the attitude and view
point of people and management towards each other. They must try to avoid discord in between
themselves to attain the organizational objectives.
For Example, the primary objective of the employees is to earn more and more remuneration
whereas management is focused on the maximization of production. Workers or employees must
forget the discord with management and should work together for increasing production of the
organization. This will result in maximizing profits of the concern. Management should share the
profits with the workers in the form of attractive remuneration and other benefits.
(c) Cooperation and not individualism
This principle is considered as the extension of principle of ‘Harmony, not discord’. This
principle emphasizes on completion of work or task with mutual cooperation and utmost trust
among workers and managers of an organization. Managers are to involve employees at the time
of setting up target. The main objective of doing so is to motivate the workers for putting their
best and to achieve their targets. Suggestions received from various corners of workers are to be
considered and applied in the decision making process if deemed fit.
For Example, workers are to assign work or task which best suits their skills and capabilities. In
case of assigning tasks forcefully may lead to reduction in the efficiency level of the workers or
employees.
(d) Development of all the employees in an organization

Employees are the back bone of any of the business organization. Efficiency of the workers in an
organization helps in enhancing the productivity of an organization. It is required to develop the
skill and efficiency level of employees in an organization by providing the required level of
training. According to Taylor, an efficient system must be followed for selecting the best
employees and assigning them jobs best suited to their qualifications and experiences. After
recruitment, proper training must be provided to develop the workers from time to time. This
will help in increasing efficiency of the workers which helps in achieving organizational
objectives.
Techniques of Scientific Management suggested by Taylor
Taylor suggested the following techniques of scientific management to be applied in taking

various managerial decisions.
(1) Functional Foremanship
Foreman is a person working at the highest rank among the workers belongs to operational sector
of management in a business unit. He deals with the entire production planning, execution or
implementation of plans and takes necessary steps for control. His performance has a direct
impact on the production efficiency of the business concern. Functional Foremanship is defined
as an extension of the principle of specialization. As per this technique, planning and execution
of planning functions are to be separated. Taylor suggested that one person may not be capable
of dealing with all the managerial aspects despite of his skills, qualifications and capabilities. He
advocated for appointing two specialized persons under the factory manager viz. planning in
charge and production in charge. Under planning in charge, there should be four employees
engaged in various posts i.e. instruction card clerk, route clerk, time and cost clerk and
disciplinarian under planning in charge. On the other hand, there are four numbers of personnel
to be posted as speed boss, gang boss, repairs boss and inspector. Functional foremanship has
developed for the purpose of improving the quality of the supervision of workers in the
organization.
A. Planning In charge
Planning in Charge is responsible for preparing plans related to different aspects of a job or tasks
in an organization. It contains four posts or positions. These are:
(a) Instruction Card Clerk
Instruction Card Clerk is providing instructions to the workers required to complete their tasks or
job in time and in a prescribed manner.
(b) Route Clerk
Route Clerk is a person set up the sequence or chronological steps to be taken for completion of
the jobs performed manually or mechanically. He also decides the date and time schedule for the
production.
(c) Time and Cost Clerk
Time and Cost Clerk is responsible for fixing the time of commencement and completion of jobs
of the workers in a business concern.
(d) Disciplinarian
Disciplinarian is a person responsible for maintenance of discipline in the work place. He has to
coordinate with all the workers to execute the managerial plans effectively for attaining
organizational objectives.
B. Production in Charge
Production in charge is liable for execution of work as per the predetermined plans. It consists of
four posts or positions. These are:
(a) Speed Boss
Speed Boss is regarded as a person responsible for completing the jobs or tasks assigned
accurately within the time frame. He supervises the progress of work from time to time.
(b) Gang Boss
Gang Boss is a foreman liable for handling and taking due care of machines and equipments in a
business unit. He makes all the necessary arrangements as regards to machines, tools and other
resources needed in the process of completion of the work to avoid delay.
(c) Repairs Boss
He is a person responsible to maintain the tools or equipments and machineries in a working

condition.
(d) Inspector
Inspector is a foreman entrusts the work of quality control in the organization. He has to check
whether the work is done as per the prescribed standard or not, fixed by the planning department.
(2) Standardization and Simplification of Work
Taylor pioneered for choosing the best possible option of production and tried to fine-tune the
other techniques of production to make them effective for application in the business. There are
different scientific techniques and methods adopted and applied in the organization namely time
study, motion study, fatigue study and method study.
Standardization
Standardization is regarded as the process of setting up standards for different factors in a

business concern. Standards may be determined for different factors like raw materials, time,
product, methods or techniques of production etc. Standardization of production will become
possible through proper selection of tools, equipments and machines. This process is basically
focused on production of quality product and setting up standards for size, types, weights,
measures and quality of products.
For Example, Hindustan Unilever Limited has adopted different scientific techniques or methods
to achieve its organizational objectives. As a result of which, it became a market leader from a
long period of time in this competitive environment.
Objectives of Standardization
The main objectives of setting standards are:
(a) To manufacture a specific line of product belonging to same types, sizes and features.
(b) To use manufactured components or accessory parts and the finished product among all the
departments in the organization.
(c) To ensure maintenance of quality in materials through setting up specific standard.
(d) To set up standard for the performance of men and machines
Simplification
Simplification refers to avoid or eliminate unnecessary diversification of products, their sizes and
types. In simple words, simplification means utilization of available resources in an organization
to ensure an uninterrupted flow of production and operation. It concentrates mostly on reducing
unwanted diversity of products. Manufacturing of different types of goods require more
resources in the form of men, materials and machines in an organization. The process of
simplification helps in avoiding all the unnecessary wastage of resources and curtailing
expenditures.
For Example, Multi-National Companies like Apple, Microsoft has followed the procedure of
standardization and simplification in their business operation. These companies are concentrating
on their limited products rather introducing large variety of products.
Work Study
Work Study is a technique or method of assessing the performance of workers in an

organization. There are different dimensions of work study viz. Method Study, Motion Study,
Time Study and Fatigue Study.
Method Study
Method Study is a technique of scientific management adopted and applied for exploring the best
suitable method for performing several tasks or jobs in an organization. It helps in reducing cost
of production, improving quality of products and optimum utilization of resources. Taylor
developed a concept of assembly line by using the method study technique.
For Example, a manufacturing company should search for the best possible methods of
production. The main objective of these companies are to adopt a labour and machine intensive
method for reducing cost, minimizing wastage and improving quality of the end product. This
may lead to high level of consumer satisfaction.
Motion Study
Motion Study is a technique suggested by Taylor as a means of scientific management to study

or observe the movements of employees at work like sitting, standing, holding, turning, changing
positions etc. during performing their tasks. The main purpose of this study is to find out the
productive and unproductive moments and taking remedial measures for reducing the
unproductive movements of the workers at the work place. This method involves minute and
meticulous observations of the motion of the workers while working. It increases the efficiency
of employees by decreasing the chances of wastage in time due to unnecessary movements on
job.
Time Study
Time Study is defined as a scientific method conducted to determine the standard time taken by
workmen to complete a given task. Standard time to perform a task or a job must be made on
rigorous study and continuous observations. Taylor suggested observing the performance of a
normal worker at the work place. It involves the time taken by the worker for completing his job.
According to Taylor, this process of recording time should be continued for a period of time to
determine the average time spent by the worker for completing a job assigned in his favor. On
the basis of the average time so determined, management should set the standard time limit in the
business organization. The efficiency of the worker will be determined on the basis of time taken
against the standard time fixed.
The main objectives of the time study are as follows:
 To determine the standard time required for a given job.

 To set up the target work for the employees
 To help in ascertaining the requirement of workers to perform a given job
 To Classify the workers on the basis of their efficiency level
Difference between Time Study and Motion Study
Sl. Basis Time Study Motion Study

No.
01 Meaning Time Study is a technique used Motion Study is meant for observing
to set up or determine standard and recording the movements of the
time for completion of a given workers at the place during performing
task. various tasks.
02 Objective The primary objective of time The purpose of motion study is to
study is to set up the standard reduce wastage of time during the
to determine per day wage rate movements of the workers during work
of workers. for increasing their efficiency.
03 Methodology Time Study is made by taking Motion study can be undertaken with
the help of a stop watch to the help of stop watch, colors, cameras
record the time spent by and signs or symbols etc.
workers.
Fatigue Study
Human being is having some physical limitations and one can’t work like that of a machine. A
person will get both mentally and physically exhausted after working for a specific period of
time. He requires a break or rest period to regain strengths to complete the task in time. Taylor
suggested studying the time spent by the worker in an organization. This process is termed as
Fatigue Study. The main objective of the fatigue study is to identify the number and frequency of
rest or break intervals given to the workers for completing the task. Taylor suggested for
adoption of a scientific approach for fatigue study in a business organization instead of using rule
of thumb.
For Example, in case of a manufacturing company, workers are to work in number of shifts.
Each and every worker is to perform in all the shifts. In this process, they require breaks from
time to time during the work in order to ensure smooth flow of work. This time gap in between
work is to be recorded effectively in the management.
Differential Piece Wage Rate System
It is a scientific technique used to determine piece rate wage for both efficient and inefficient
workers in an organization. This technique also helps in rewarding the efficient employees in the
form of extra remuneration. This extra wages work as a strong motivational factor for the
workers. It attracts inefficient workers to work more for getting extra money. A high level of
compensation package boosts the moral of the employee which ultimately affects the production
efficiency of the business firm. Taylor suggested implementing a fair piece wage rate system to
for the employees to produce more and achieve the organizational objectives.
For Example, in a company, the standard output fixed to be produced per day of 08 hours is 100
units and minimum standard rate is Rs 60 per unit. There is a provision of paying Rs 70 per unit
for the workers who is producing 100 or more than 100 units in a day. A and B are working in
the company as workers. A produces 120 units per day whereas B produces 90 units.
So, A will receive = 120 units x Rs 60 = Rs 7,200/-
B will receive = 90 units x Rs 70 = Rs 6,300/-
From the above, it will be clear that the efficient workers will get more wages than that of
inefficient employees in the same organization. It motivates the inefficient workers to work more
to get that extra wages.
Modern Scientific Techniques
At present, there are different types of scientific techniques developed for applied in the business
houses. Some of these techniques are as follows:
Just in Time Manufacturing
Just in time management refers as management of inventory related with reduction of stock of
work in progress in a business firm. This technique also deals with cost control and developing
investment pattern. In this process different types of visual signals are utilized to implement
business strategies and polices for meeting various needs of production.
Lean Manufacturing
Lean Manufacturing is regarded as a concept basically deals with reduction of wastages of

different types in a business concern. It helps in eliminating or decreases the wastage of time,
transportation, processing, motion, inventory, scrap and other production process.
Kaizen
The word ‘Kaizen’ means improvement or change for better and this technique is focused on
improvement of productivity. The primary purpose of Kaizen is to reduce waste, providing
delivery of the products in time as specified.
Six Sigma
It is a tool used for enhancing the efficiency level in an organization by reducing quality
variations.
Operations Research
It is a technique of inventory management adopted to improve earnings and reducing cost.
Comparison between Taylor and Fayol
F.W.Taylor and Henri Fayol both have contributed significantly in the field of management.
Principles developed by Taylor and Fayol are complimentary to each other. An attempt is made
to differentiate in between their contributions.
Sl. Basis F.W. Taylor Henri Fayol

No.
01 Focus Principles of Taylor are mostly Fayol pioneered for the
focused on improving the efficiency development of management
of workers. efficiency level.
02 Perspective Taylor emphasized on developing Fayol was
the efficiency of Lower or
Supervisory Level Management.
03 Unity of Taylor did not follow the principles Fayol followed and suggested the
Command of unity of command. principle of unity of command to
be followed strictly in every
business firm.
04 Applicability Principles suggested by Taylor are Principles suggested by Fayol are
applied in some of the specialized universally applicable.
situations like production in a
business.
05 Contribution The major contributions of Taylor There are 14 principles developed
are development of scientific and suggested by Henri Fayol to
techniques and principles to be be used and applied in
applied in the field of management. management field.
06 Personality Taylor was a scientist and regarded Fayol was a researcher and
as Father of Scientific Management. Practionner and considered as
Principles of General
Management.
07 Expression He has developed and authored He has formed the General
scientific management. Theory of Administration.
Summary
Meaning
Management principles may be defined as broad and genuine guidelines works as a basis for
taking various managerial decisions and behaviours in a business enterprise.
Nature
1. Universal Application
2. Basic Guidelines
3. Framed or Designed on the basis of rigorous practice and experiments
4. Flexibility
5. Affecting or influencing human behaviour
6. Cause & Effect Relationship
7. Depending upon condition
Significance
(a) Helps in taking managerial decisions

(b) Optimum utilization of available resources
(c) Scientific Decisions
(d) Meeting the changing need of business environment
(e) Performing Social Responsibilities
(f) Facilitates Research and development in management studies
1) Division of Work: It refers to dividing the entire work in to small units to develop
specialization.
2) Parity in between Authority and Responsibility: Making balance between authority and
responsibility
3) Discipline: It refers to the basic rules, regulations, terms, conditions and the process of
working in an organization.
4) Unity of Command: Receiving orders or instructions from a single authority
5) Unity of Direction: Unity of Direction is the principle suggested for ‘One Plan for One
Unit’.
6) Subordination of Individuals interest to General Interest: group interest or organizational
interest should be given priority over that of individual ones.
7) Fair Remuneration to employees: Payment of wages or remunerations should be fair.
8) Centralization and Decentralization: Utilization of both centralization and decentralization
at different levels of management.
9) Scalar Chain: Line of authority to be maintained in a business concern
10) Principle of Order: It refers to orderly use of resources of an organization like men and
materials.
11) Principle of Equity: Kind, fair and just treatment to the employees in the business.
12) Initiative: Accepting suggestions from the employees at time.
13) Espirit de Corps: working in the organization as a Team.
Scientific Management (F.W. Taylor)
F.W.Taylor is regarded as the father of Scientific Management. He developed a new school of

thought based on scientific techniques termed as scientific management.
Principles of Scientific Management
(a) Based on Science, not merely rule of thumb: Management decisions should be made on
the basis of scientific techniques and should free from personal bias of managers.
(b) Harmony, not discord: Team work with utmost trust, good faith and proper coordination.
(c) Cooperation and not individualism: Workers and management have to work with mutual
understanding and cooperation with each other.
(d) Development of all the employees in an organization: Work towards overall development
of the workers in the business.
Techniques of Scientific Management
i) Functional Foremanship: It refers to the process of recruiting eight numbers of different

experts to instruct, guide and minutely observe the performance of the workers.
ii) Standardization & Simplification of Work: It ensures maintenance of standard and
quality and reducing unwanted dimensions and varieties in product line.
iii) Method Study: It is a technique of scientific management adopted and applied for
exploring the best suitable method for performing several tasks or jobs in an organization.
iv) Motion Study: It is intended to eliminate the unnecessary movements of workers at job.
v) Time Study: It is defined as a scientific method conducted to determine the standard time
taken by workmen to complete a given task.
vi) Fatigue Study: Techniques used to set up the frequency and time taken for break or rest.
vii) Differential Piece wage system: Making payment to the workers as per their efficiency.
Difference between Taylor and Fayol
Management principles developed by Taylor and Fayol can be differentiated on the basis of
various points i.e. perspective, focus, contribution, personality, unity of command, unity of
direction, expression and applicability.
Objective Type Questions/MCQs
Multiple Choice Questions (MCQs)
Multiple Choice Questions
1. Principle of Management are not [NCERT]

a. Universal
b. Flexible
c. Absolute
d. Behavioral
2. How are principles of management formed? [NCERT]
a. In a laboratory
b. by experience of a manager
c. by experience of customers
d. adaptation of changing technology
3. The principles of management are significant because of [NCERT]
a. Increase in efficiency
b. Initiative
c. Optimum utilization of resources
d. Adaptation to changing technology
4. Henry Fayol was a [NCERT]
a. Social Scientist
b. Mining Engineer
c. Accountant
d. Production Engineer
5. Which of the following statements best described the principle of ‘Division of Work’?
[NCERT]
a. Work should be divided into small tasks
b. Labour should be divided
c. Resources should b divided among jobs
d. It leads to specialization
6. She/he keeps machines, materials, tools etc. ready for operations by different workers
whose work is described by this sentence under functional foremanship? [NCERT]
a. Instruction card clerk
b. Repair Boss
c. Gang Boss
d. Route Clerk
7. Which of the following is NOT a principle of Management given by Taylor? [NCERT]
a. Science, not Rule of Thumb
b. Functional Foremanship
c. Maximum not restricted output
d. Harmony, not discord
8. Management should and ‘one best way’ to perform. Which technique of scientific
management is defined in this sentence? [NCERT]
a. Time Study
b. Motion Study
c. Fatigue Study
d. Method Study
9. Which of the following statements best describes ‘Mental Revolution’? [NCERT]
a. It implies change of attitude
b. The management and workers should not play the game of one upmanship.
c. Both management and workers require each other
d. Workers should be paid more wages
10. Which of the following statements is false about Taylor and Fayol? [NCERT]
a. Fayol was a mining whereas Taylor was a mechanical engineer
b. Fayol’s principles are applicable in specialized situation whereas Taylor’s principles
have universal application
c. Fayol’s principles were formed through personal experience whereas Taylor’s
principles were formed through experimentations.
d. Fayol’s principles are applicable at the Top Level Management whereas Taylor’s
principles are applicable at the shop floor.
11. Which of the following does not follow the scalar chain?
a. Functional Structure
b. Divisional Structure
c. Formal Organization
d. Informal Organization
12. Management principles are derived on the basis of

a. Past Experience
b. Lab Experiments
c. Continuous Observation
d. Random Thoughts
13. Who is regarded as the Father of Management?
a. Henri Fayol
b. Robert Anthony
c. F.W. Taylor
d. Karl Pearson
14. The number of management principles suggested by Henri Fayol were
a. 15
b. 16
c. 12
d. 14
15. Name the management principle that suggested for division of entire work or tasks into
small units and to be performed by the experts or trained workers.
a. Unity of Command
b. Division of Work
c. Espirit De Corps
d. Scalar Chain
16. State Bank of India, the largest public sector bank in the country follows different
management principle at its workforce. This renowned bank assigns one employee for
one specific work like one person for deposits, one for withdrawal, one is dealing with
issue of loans, one is responsible for redressing consumer grievances etc. Name the
management principle followed by State Bank of India with reference to the above
mentioned situation.
a. Unity of Command
b. Unity of Direction
c. Scalar Chain
d. Division of Work
17. Fayol defines authority as the tight to give orders and obtain obedience and
responsibility is the corollary of authority. Authority refers to the power of taking
various decisions. Responsibility stands for the obligations to carry out a given job
assigned. According to the Fayol, there should be a proper balance maintained in
between authority and responsibility. Which principle of management is referred by
Fayol in the above lines?
a. Division of Work
b. Parity between authority and responsibility
c. Unity of Direction
d. Centralization of Authority and responsibility
18. Name the concept that represents the basic rules, regulations, terms, conditions and the
process of working in an organization.
a. Management
b. Centralization
c. Discipline
d. Unity of Direction
19. Name the process of concentrating or assigning of all the authorities and power of
decision making in a single hand in an organization.
a. Delegation
b. Centralization
c. Decentralization
d. Discipline
20. Name the management principle which refers to the formal structure or lines of
authority or chain of superiors ranging from the top most rank to the lowest rank.
a. Unity of Command
c. Centralization
d. Scalar Chain
21. A lower level worker cannot have a direct access to the CEO or COO. He has to
convene his grievances to the Top Level officials through the formal levels i.e. Foreman,
Superintendent, Manager, Director etc. Identify the management principle used in the
above mentioned situation.
a. Espirit de Corps
c. Scalar Chain
d. Division of Work
22. A manager working in a company is assigned a cabin for performing its official work.
Workers working in that same company have provided tools or equipments for their
work and a tool box to keep their belongings. They can go and meet the manager at his
or her cabin to convey their grievances. If there is no fixed place allotted to the
managers and no places to keep the tools or equipments to workers, then all these
people keep on wasting their time in search of their requirements. Suggest the
management principles referred in the above case developed by Henri Fayol.
a. Principle of Order
c. Scalar Chain
d. Division of Work
23. In the words of Henri Fayol, “Management should promote a team spirit of unity and
harmony among the workers or employees”. Identify the name of management
principle suggested by Fayol in this above line.
a. Espirit de Corps
c. Order
d. Initiative
24. Who is regarded as the Father of Scientific Management?
a. Henri Fayol
b. Robert Anthony
c. F.W. Taylor
d. Karl Pearson
25. Scientific management is based on
a. Continuous Observation
b. Objective Analysis
c. Innovation
d. All of the above
26. Rahul, production manager of AB Co. Ltd. has set a target for completing a given task
within 10 days. He took the decisions on the basis of his past experiences. Name the
principle of scientific management ignored by Mr. Rahul in the above case.
a. Harmony, not discord
b. Based on Science, not merely rule of thumb
c. Cooperation and not individualism
d. None of the above
27. Name the person set up the sequence or chronological steps to be taken for completion
of the jobs performed manually or mechanically.
a. Instruction Card Clerk
b. Route Clerk
c. Time and Cost Clerk
d. Disciplinarian
28. Name the foreman liable for handling and taking due care of machines and equipments
in a business unit.
a. Gang Boss
b. Repair Boss
c. Inspector
d. Disciplinarian
29. Which of the following is NOT a principle of Management given by Taylor?
management is defined in this sentence?
a. Time Study
b. Motion Study
c. Fatigue Study
d. Method Study
31. Management has now been recognized as a separate discipline, because it is
a. Different departments
b. Management and workers
c. Systematized body knowledge
32. The application of management principles shows create and ………..
a. Constructive results in the production
b. Sales and profit
c. Both (a) and (b)
33. Principles are based upon
a. Enquiry
b. Analysis
c. Scientific study
d. All of the above
34. The deriving principles of observation and study of the problem refers to …….
a. Consequence and solutions
b. Identifying area, where leaking of management
c. Both (a) and (b)
35. The principles of management help the management ………
a. Measuring efficiency
b. To achieving social objectives
c. In understanding and solving complex problems
d. In decision making
36. The process of improvement and modification of management principles refers to
………
a. General statements
b. Flexibility
c. Influence human behaviors
d. Equal importance
37. Management principles are the best possible utilization of available
a. Resources
b. Funds
c. Both (a) and (b)
38. The principles are guidelines to ………
a. Industry
b. Production
c. Management
d. All of the above
39. The significance and need of management principles …..
a. The efficiency of the management is increased
b. It generates sound understanding of complex problems
c. It impacts requisite training wherever necessary
d. All of the above
40. The father of Administrative Management is:
a. Nilson
b. Fayol
c. Terry
d. Taylor
41. Henry Fayol was born in …………..
a. 1841
b. 1851
c. 1861
d. 1831
42. Fayol’s general principles of management
a. Specialization of job
b. Authority and responsibility are co-existing
c. Direct contact
d. All of the above
43. The name of the original classic book
a. Administration Industriella General in 1916
b. General and Industrial Administration in 1929
c. General and Industrial Management in 1949
44. Fayol classified business activities or theories of management in to
a. Eight categories
b. Seven categories
c. Six categories
d. Five categories
45. Recognition and importance of member for their valuable attribution can be achieved:
a. Systematic and orderly management
b. Espirit de corps
c. Principle of equality
d. The idea of gang park
46. Fayol’s universal principle of management are
a. Division of work and specialization
b. Scalar chain
c. Unity of direction
d. All of the above
47. The origin of scientific management studied out bare around
a. 1870
b. 1860
c. 1850
d. 1840
48. The propounds of scientific management
a. Charles Babbage
b. Taylor
c. Henry Fayol
d. Owen
49. Fredrick Winslow Taylor was born in:
a. 1854
b. 1855
c. 1856
50. Logical application towards the solution of management problems by
a. General and industrial management
b. Social management
c. Scientific management
d. All of the above
51. The basic characteristics of scientific management are
a. Scientific analysis of plans
b. Fixing of responsibility
c. Effective control
d. All of the above
52. Match the following:
List – I List – II
a. Traditional Management 1. F.W.Taylor
b. Unity of Direction 2. Scientific Management Principle
c. Harmony, not discord 3. Henri Fayol
d. Scientific Management 4. Management Principle
Code:
(a) (b) (c) (d)
(A) 1 2 3 4
(B) 3 1 4 2
(C) 4 1 2 3
(D) 3 4 1 2
a. Instruction Card Clerk 1. Set up the sequence for completion of the jobs
b. Route Clerk 2. Fixing the time of start and completion of jobs
c. Time and Cost Clerk 3. Maintains discipline
d. Disciplinarian 4. Providing instructions to the workers
Code:
(a) (b) (c) (d)
(A) 2 3 4 1
(B) 3 1 4 2
(C) 4 1 2 3
(D) 3 4 2 1
a. Speed Boss 1. Handling Machines in Factory
b. Gang Boss 2. Responsible for quality control
c. Repair Boss 3. Responsible for Job Completion within time
d. Inspector 4. Repair & maintenance of machines
Code:
(a) (b) (c) (d)
(A) 2 3 4 1
(B) 3 1 4 2
(C) 2 1 4 3
(D) 4 3 2 1
a. Time Study 1. Identify the number and frequency of break during work
b. Motion Study 2. Determine standard time
c. Fatigue Study 3. Exploring the suitable method for performing several tasks
d. Method Study 4. Recording the movements of the workers
Code:
(a) (b) (c) (d)
(A) 2 4 1 3
(B) 1 2 3 4
(C) 4 2 3 1
(D) 1 3 4 2
a. Division of Work 1. One Plan for One Unit
b. Unity of Command 2. Kind, fair and just treatment to the employees
c. Unity of Direction 3. Receiving orders from a single authority
d. Principle of Equity 4. Dividing the entire work in to small units
Code:
(a) (b) (c) (d)
(A) 3 1 4 2
(B) 1 2 3 4
(C) 4 2 3 1
(D) 4 3 1 2
Answers: 1. (c) Absolute, 2. (d) Adaptation to changing technology, 3. (a) Increase in

efficiency, 4. (b) Mining Engineer, 5. (d) It leads to specialization, 6. (c) Gang Boss, 7. (b)
Functional Foremanship, 8. (d) Method Study, 9. (a) It implies change of attitude, 10. (b)
Fayol’s principles are applicable in specialized situation whereas Taylor’s principles have
universal application, 11. (d) Informal Organization, 12. (c) Continuous Observation, 13.
Henri Fayol, 14. (d) 14, 15. (b) Division of Work, 16. (d) Division of Work, 17. (b) Parity
between Authority and Responsibility, 18. (c) Discipline, 19. (b) Centralization, 20. (d)
Scalar Chain, 21. (c) Scalar Chain, 22. (a) Principle of Order, 23. (a) Espirit De Corps, 24.
(c) F.W.Taylor, 25. (d) All of the above, 26. (b) Based on Science, not merely rule of thumb,
27. (b) Route Clerk, 28. (a) Gang Boss, 29. (b) Functional Foremanship, 30. (d) Method
Study, 31. (c) Systematized body knowledge, 32. (c) Both (a) and (b), 33. (d) All of the above
34. (a) Consequence and solutions, 35. (c) In understanding and solving complex problems,
36. (b) Flexibility, 37. (a) Resources, 38. (c) Management, 39. (d) All of the above, 40. (b)
Henri Fayol, 41. (d) 1831, 42. (d) All of the above, 43. (a) Administration Industrielle
General in 1916, 44. (c) Six categories, 45. (b) Espirit De Corps, 46. (d) All of the above, 47.
(c) 1850, 48. (b) Taylor, 49. (c) 1856, 50. (c) Scientific Management, 51. (d) All of the above,
52. (d) 53. (c), 54. (b), 55. (a), 56. (d).
State whether the following statements are TRUE or FALSE

1. Management principles are universally applicable.
2. Management principles are not based on cause and effect relationship.
3. Robert Owen was born on 29th July, 1841 at Istanbul, Turkey
4. Adam Smith is regarded as the Father of Scientific Management.
5. Functional Foremanship is considered as a technique of scientific management suggested by
F.W. Taylor.
6. Henri Fayol was authored a book known as Administration industrielle etc generate.
7. Unity of command refers to the basic rules, regulations, terms, conditions and the process of
8. As per the management principle Unity of Direction, One person should receive orders from
one superior or boss rather number of persons.
9. Division of Work is the principle suggested for ‘One Plan for One Unit’.
10. Centralization may be defined as the process of concentrating or assigning of all the
authorities and power of decision making in a single hand.
11. Decentralization refers to the formal structure or lines of authority or chain of superiors
ranging from the top most rank to the lowest rank.
12. Material Order represents the systematic arrangement of materials where as Social order
denotes the arrangement of people in an organization.
13. The full name of F.W.Taylor is Fredman Winger Taylor.
14. Simplification is regarded as the process of setting up standards for different factors in a
business concern.
15. Method Study is defined as a scientific method conducted to determine the standard time
taken by workmen to complete a given task.
Answer:
1. True, 2. False, 3. False, 4. False, 5. True, 6. True, 7. False, 8. False, 9. False, 10. True, 11.
False, 12. True, 13. False, 14. False, 15. False.
Fill in the blanks

1. Management principles are derived on the basis of observation and ……….
2. …………..is regarded as the Father of Management.
3. According to the Fayol, there should be a proper balance maintained in between ………and
responsibility.
4. ………….refers to the basic rules, regulations, terms, conditions and the process of working
in an organization.
5. Unity of Direction is the principle suggested for ……………..
6. ………….may be defined as the process of concentrating or assigning of all the authorities
and power of decision making in a single hand.
7. …………….refers to the distribution of power and authority evenly in between number of
responsible persons in an organization to ensure smooth management and operation.
8. ……………works as a channel of communication through which instructions or orders
issued by the top level authorities are communicated to the lower levels.
9. Fayol suggested a short cut chain system to avoid delay in time termed as …………….
10. …………..refers to be kind and fair towards employees and providing them proper justice at
the work place.
11. ………….refers to the initial steps taken by the employees towards accomplishment of their
individual targets through motivating themselves.
12. Principle of Espirit De Corps refers to the team spirit, unity and …………..in a business
firm. Management should work as a team with proper coordination.
13. F.W.Taylor is regarded as the father of ……………management.
14. ………….is a person working at the highest rank among the workers belongs to operational
sector of management in a business unit.
15. There are different dimensions of work study viz. Method Study, Motion Study, ……….. and
Fatigue Study.
Answers:
1. Experimentation, 2. Henri Fayol, 3. Authority, 4. Discipline, 5. One Plan for One Unit, 6.
Centralization, 7. Decentralization, 8. Scalar Chain, 9. Gang Plank, 10. Equity, 11.
Initiative, 12. Harmony, 13. Scientific, 14. Foreman, 15. Time Study.
Answer the following Questions in One Word

1. Which principle of management concentrates on dividing the work among workers?
2. State the name of the principle of management which suggested for proper arrangement of
resources of an organization viz. men and materials.
3. Which principle suggested by Henry Fayol refers as ‘One Plan for One Unit’?
4. Name the foreman who provides instructions to the workers required to complete their tasks
or job in time and in a prescribed manner.
5. Name the person who set up the sequence or chronological steps to be taken for completion
of the jobs performed manually or mechanically.
6. Name the person responsible for completing the jobs or tasks assigned accurately within the
time frame.
7. Name the foreman liable for handling and taking due care of machines and equipments in a
business unit.
8. Name the person responsible to maintain the tools or equipments and machineries in a
working condition.
9. Name the technique of inventory management adopted to improve earnings and reducing
cost.
10. Who is regarded as the Father of Scientific Management?
11. Who authored a book known as Administration industrielle etc generate?
12. Name the principle suggested by Fayol, as per which, the entire work or tasks are to be
divided into small units and to be performed by the experts or trained workers.
13. Fayol suggested a principle that refers to the basic rules, regulations, terms, conditions and
the process of working in an organization. Name that principle.
14. According to Fayol, One person should receive orders from one superior or boss rather
number of persons. Name the principle.
15. Which principle refers to ‘One Plan for One Unit’ in business management?
16. Which principle of Taylor is defined as the process of concentrating or assigning of all the
authorities and power of decision making in a single hand?
17. Identify the principle of Fayol which advocates for a formal structure or lines of authority or
chain of superiors ranging from the top most rank to the lowest rank.
18. Which principle of Fayol refers to systematic arrangement of different resources including
men and materials in a business unit?
19. Name the person working at the highest rank among the workers belongs to operational
sector of management in a business unit.
20. Which principle of scientific management is defined as an extension of the principle of
specialization?
21. Name the tool used for enhancing the efficiency level in an organization by reducing quality
variations.
22. What does the word mean ‘Kaizen’?
23. Which modern technique or principle of management deals with reduction of wastages of
different types in a business concern?
Answer: 1. Principle of Division of Work, 2. Principle of Order, 3. Unity of Direction, 4.

Instruction Card Clerk, 5. Route Clerk, 6. Speed Boss, 7. Gang Boss, 8. Repairs Boss, 9.
Operations Research, 10. F.W.Taylor, 11. Henri Fayol, 12. Division of Work, 13. Principle
of Discipline, 14. Unity of Command, 15. Unity of Direction, 16. Centralization, 17. Scalar
Chain, 18. Principle of Order, 19. Foreman, 20. Functional Foremanship, 21. Six Sigma, 22.
Improvement or change for better, 23. Lean Manufacturing
Answer the questions in One Sentence each

1. What do you mean by Scientific Management?
Scientific Management implies the application of science to the management of a business

concern.
2. What is meant by Division of Labour?
Division of labour refers to dividing the work or job into tasks and sub-tasks and allotting each
sub- task to an individual worker and each individual worker has the narrow task and does the
same work again and again.
3. Define the concept of The Span of Management.
Span of control or management refers to the number of subordinates a supervisor can supervise
or manage or control the subordinates effectively and if the span is narrow, there would be a
large number of supervisors, and a large number of hierarchies.
4. What is Division of Work?
Division of work refers that work should be divided among individuals and groups to ensure that
effort and attention are focused on special portions of the task.
5. Define the principle of Discipline.
Discipline refers to obedience, respect of authority and observance of the established rules which
is in essence obedience, application, energy, behavior and outward marks respect observed in
accordance with the standing agreements between the firm and its employees.
6. Define the principle Unity of Command.
This principle of delegation suggests that everyone should have only one boss.
7. Define the principle Unity of Direction.
This principle suggests that there should be one head and one plan for a group of activities
having the same objective.
8. Define the principle of Order:-
The principle of order implies man in the right job and right material in the right place.
9. Define the principle of Equity:-

Equity means justice and kindliness which stands for the process of encouraging employees to
complete their work with due responsibility, devotion and loyalty.
10. Define the principle of Initiative:-
Initiative implies the power of thinking out a plan and ensuring its successful implementation
and a powerful motivation of human behavior and a source of strength for the organization.
11. Define the principle of Espirit de Corps:-
This principle of management implies that there should be cooperation and team work among the
members of the organization which refers to spirit of loyalty and devotion to the group to which
one belongs.
12. What is meant by Centralization?
Centralization means concentration of authority in the hands of management.
13. Define the concept of Scalar chain.
Scalar chain refers to the superior ranging of the ultimate authority to the lowest ranks.
14. What is meant by Initiative?
It implies the power of thinking out a plan and ensuring its successful implementation.
15. Define the concept of Motion study.
The study of the movement of operations of a worker is known as the motion study.
16. Who is a Gang Boss?
Gang boss is to assemble and set up various equipments and tools to enable the workers to begin
their work immediately after entering the shop.
17. Who is a Speed Boss?
Speed boss is to ensure regular cleaning, servicing and repair of machines to keep them in
efficient working paper.
18. Define the concept of Repair Boss.
Repair boss is to ensure that machines are run at their optimum desired speed.
19. Who is an Inspector?
Inspector is to ensure that the workmen do the work of the quality and the jobs are executed as
per specifications.
20. Define the concept of Standardization.
Standardization means setting standards for different factors like performance of workers, raw
materials, machines, tools, conditions of work, techniques, weights, measures, quality etc.
21. What is Fatigue Study?
Fatigue study is the study made in order to decide about the frequency, duration and number of
rest pauses in an organization during the working hours.
22. What is Work study?
Work study is the detailed analysis of an activity with an objective to remake inefficiency and
find out best way of performing it.
Guidelines to NCERT Questions
Multiple Choice Questions
1. Principle of Management are not

a. Universal
b. Flexible
c. Absolute
d. Behavioral
2. How are principles of management formed?
a. In a laboratory
b. by experience of a manager
c. by experience of customers
d. adaptation of changing technology
3. The principles of management are significant because of
a. Increase in efficiency
b. Initiative
c. Optimum utilization of resources
d. Adaptation to changing technology
4. Henry Fayol was a
a. Social Scientist
b. Mining Engineer
c. Accountant
d. Production Engineer
5. Which of the following statements best described the principle of ‘Division of Work’?
a. Work should be divided into small tasks
b. Labour should be divided
c. Resources should b divided among jobs
d. It leads to specialization
6. She/he keeps machines, materials, tools etc. ready for operations by different workers
whose work is described by this sentence under functional foremanship?
a. Instruction card clerk
b. Repair Boss
c. Gang Boss
d. Route Clerk
7. Which of the following is NOT a principle of Management given by Taylor?
management is defined in this sentence?
a. Time Study
b. Motion Study
c. Fatigue Study
d. Method Study
9. Which of the following statements best describes ‘Mental Revolution’?
a. It implies change of attitude
b. The management and workers should not play the game of one upmanship.
c. Both management and workers require each other
d. Workers should be paid more wages
10. Which of the following statements is false about Taylor and Fayol?
a. Fayol was a mining whereas Taylor was a mechanical engineer
b. Fayol’s principles are applicable in specialized situation whereas Taylor’s principles
have universal application
c. Fayol’s principles were formed through personal experience whereas Taylor’s
principles were formed through experimentations.
d. Fayol’s principles are applicable at the Top Level Management whereas Taylor’s
principles are applicable at the shop floor.
Answers: 1. (c) Absolute, 2. (d) Adaptation to changing technology, 3. (a) Increase in

efficiency, 4. (b) Mining Engineer, 5. (d) It leads to specialization, 6. (c) Gang Boss, 7. (b)
Functional Foremanship, 8. (d) Method Study, 9. (a) It implies change of attitude, 10. (b)
Fayol’s principles are applicable in specialized situation whereas Taylor’s principles have
universal application.
Short Answer Type Questions

1. How is the principle of ‘Unity of Command’ useful management? Explain briefly.
2. Define scientific management. State any three of its principles.
3. If an organization does not provide the right place for physical and human resources in an
organization, which principle is violated? What are the consequences of it?
4. Explain any four points regarding significance of Principles of Management.
5. Explain the principle of ‘Scalar Chain’ and Gang Plank.
Long Answer Type Questions
1. Explain the principles of Scientific Management given by Taylor.

2. Explain the following Principle of Management by Fayol with examples.
a. Unity of Direction
b. Equity
c. Esprit De Corps
d. Order
e. Centralization and Decentralization
f. Initiative
3. Explain the technique of ‘Functional Foremanship’ and the concept of ‘Mental
Revolution’ as enunciated by Taylor.
4. Discuss the following techniques of Scientific work study:
a. Time Study
b. Motion Study
c. Fatigue Study
d. Method Study
e. Standardization and Simplification of work
5. Discuss the relevance of Taylor and Fayol’ contribution in the contemporary business
environment.
NCERT Case Problems
Case Problem – 01
‘F’ Limited was engaged in the business of food processing and selling its products under a
popular brand. Lately the business was expanding due to good quantity and reasonable
prices. Also with more people working the market for processed food was increasing. New
players were also coming to cash in on the new trend. In order to keep its market share in
the short run in the company directed its existing workforce to work overtime.
But this resulted in many problems. Due to increased pressure of work the efficiency of the
workers declined. Sometimes the subordinates had to work for more than one superior
resulting in declining efficiency. The divisions that were previously working on one product
were also made to work on two or more products. This resulted in a lot of overlapping and
wastage. The workers were becoming undisciplined. The spirit of teamwork, which had
characterized the company, previously was beginning to wane. Workers were feeling
cheated and imitative was declining. The quality of the products was beginning to decline
and market share was on the verge of decrease.
Actually the company had implemented changes without creating the required
infrastructure.
Questions
1. Identify the Principles of Management (out of 14 given by Henry Fayol) that were being
violated by the company.
2. Explain these principles in brief.
3. What steps should the company management take in relation to the above principles to
restore the company to its past glory?
Suggested Answer
1. The following principles of management suggested by the Henry Fayol have been violated.
i) Division of work
ii) Unity of Command
iii) Unity of Direction
iv) Discipline
v) Team Spirit or Espirit De Corps
vi) Initiative
vii) Remuneration of Employees
2. The principles of management suggested by Fayol are described in brief below:
i) Division of Work: It refers to dividing the entire work in to small units to develop
specialization.
ii) Discipline: It refers to the basic rules, regulations, terms, conditions and the process of
iii) Unity of Command: Receiving orders or instructions from a single authority
iv) Unity of Direction: Unity of Direction is the principle suggested for ‘One Plan for One
Unit’.
v) Fair Remuneration to employees: Payment of wages or remunerations should be fair.
vi) Initiative: Accepting suggestions from the employees at time.
vii) Espirit de Corps: working in the organization as a Team.
3. The following steps should have been taken by the management to restore its past glory:
a. Regular supervision of product quality and price level

b. Develop cooperation and coordination among the employees in the concern.
c. Provide proper and adequate level of training to the workers.
d. Maintaining effective communication system in between superiors and
subordinates.
e. Providing fair remuneration and other benefits to the workers.
f. Adopting the principle of unity of command in to practice.
g. Distributing work among all the workers uniformly and equally
Review Exercises
Very Short Answer Type Questions
1. What do you understand by principles of management? [CBSE (A.I.) 1994]

2. What does scientific management mean? [CBSE (D) 1994]
3. State any two characteristics of the principles of management. [CBSE (A.I.) 1992, 2003]
4. What do you mean by universality of management principles? [CBSE (D) 2003C]
5. What is meant by flexibility of management principles? [CBSE (D) 2003C]
6. What are the aims of time and motion study? [CBSE (A.I.) 1998, 2001]
7. Distinguish between principle of unity of command and unity of direction on the basis of
manning and aim. [CBSE (A.I.) 2000]
8. Illustrate the following principles with suitable examples: (a) Principle of Stability of
tenure and (b) Principle of Initiative. [CBSE (A.I.) 2001C]
9. “Fayol’s principle of equity and order can be applied in actual work situation”. Do you
agree? [CBSE (D) 2003]
10. How does the principle of scalar chain help in solving the problems faster? [CBSE (A.I.)
1999]
11. What is the basic difference between unity of command and functional foremanship?
[CBSE (D) 1995]
12. State any three principle of Taylor. [CBSE (A.I.) 1994(D), 2000C]
13. Describe the principle of cooperation between workers and management. [CBSE (D)
1998]
14. What do you mean by the principle of division of work?
15. “Management principles are evolutionary”. Explain.
16. What do you mean by standardization of work?
17. What is meant by Principle of Order?
18. What is meant by Espirit De Corps?
19. Who is Gang Boss?
20. What do you mean by Gang Plank?
Short Answer Type Questions
1. Briefly explain the principles of scientific management. [CBSE (D) 1992]

2. Explain any five techniques which facilitate the application of scientific principles.
[CBSE (A.I.) 2003C]
3. Explain with suitable example of the technique of differential piece rate system. [CBSE
(A.I.) 1994]
4. What do you mean by functional foremanship? Explain.
5. Do you think that scientific management techniques are improving productivity of
workers in a business firm? Justify.
6. Explain the nature of management principles. [CBSE (D) 1992, 2000C]
7. Bring out the importance of management principles. [CBSE (D & A.I.) 2012]
8. What are the techniques or methods of scientific management developed by Taylor?
9. What are the basic difference in between the principles suggested by Taylor and Fayol?
10. Make a differentiation between Time Study and Motion Study.
Long Answer Type Questions
1. What are the features of management principles? Discuss.

2. What are the various principles of management developed by Henry Fayol? Discuss.
3. What are the basic difference in between the principles suggested by Taylor and Fayol?
4. Make a differentiation between Time Study and Motion Study.
5. Do you agree on the fact that Taylor’s techniques are universally applicable?
6. Write a note on various techniques followed under scientific management suggested by
Taylor.
7. Explain any five techniques of “Scientific Management”. [CBSE (D) 2006]
8. If an organization does not provide the right place for physical and human resources in an
organization then which principle of violated? What are the consequences of it? [CBSE
(D) 2007]
9. Mohan, a manager expects his subordinates to adopt to the new environment and working
conditions without giving them time to settle down. Which principles of management are
being overlooked and why? [CBSE (D) 2007]
10. Mohan, a manager expects his subordinates to work only for the happiness and pleasure
of being in the organization. Which principle is being overlooked in this? [CBSE (D)
2007]
Previous Years’ Examination Questions
One Mark Questions

1. What is the main objective of ‘Fatigue Study’? [CBSE (D) 2008, (A.I.) 2010]
2. What is the main objective of Time Study? [CBSE (D) 2008, (F) 2008, (A.I.) 2010]
3. What is the main objective of simplification in scientific management? [CBSE (D) 2008]
4. State how the management principles are flexible. [CBSE (D) 2008, 2009, 2011C]
5. “The principles of management are different from those of pure sciences”. State any one
difference. [CBSE (D) 2008, (A.I.) 2008]
6. Why is it said that management principles are universal in application? [CBSE (D) 2008,
2008C, 2011]
7. What is the main objective of ‘Method Study’? [CBSE (A.I.) 2008, (F) 2008, (D) 2009]
8. What is the main objective of ‘Motion Study’? [CBSE (A.I.) 2008, 2010]
9. How have the management principles been derived? [CBSE (A.I.) 2008]
10. What is meant by ‘Principles of Management’? [CBSE (A.I.) 2008, (D) 2011]
11. State any two points which highlight the nature of principles of management. [CBSE (D)
2008C]
12. Which principle of management is violated if a subordinate is asked to receive orders from
two or more superiors? [CBSE (D) 2008C, 2010C]
13. Why may Taylor’s techniques of scientific management not be applicable to all types of
organizations? [CBSE (D) 2008C]
14. Give any one reason why principles of management do not provide readymade solution to all
managerial problems. [CBSE (D) 2009, (A.I.) 2010]
15. What did Taylor want to communicate through ‘Mental Revolution’? [CBSE (D) 2008,
2009C]
16. Which technique of Taylor separates ‘Planning’ and ‘Execution’ functions? [CBSE (D) 2008,
2009C]
17. Why did Taylor develop the technique of differential piece-wage functions? [CBSE (D)
2009C]
18. Which technique of Taylor is the extension of the principle of ‘division of work’ and
‘specialization’? [CBSE (D) 2008, (A.I.) 2010]
19. Give any one reason why principles of management are called contingent. [CBSE (D) 2010,
2012C, (A.I.) 2010, 2011, 2011C]
20. Give any reason why principles of management are not rigid prescriptions. [CBSE (D) 2010]
21. Which revolution involves a change in the attitude of workers and management towards one
another from competition to cooperation/ [CBSE (D) 2010C]
22. Which principle of management implies that there should be ‘ONE HEAD AND ONE
PLAN’? [CBSE (D) 2010C]
23. Which technique of Taylor differentiates between an efficient worker and an inefficient
worker? [CBSE (D) 2010C]
24. What is meant by Fayol’s principles of ‘Espirit De Corps’? [CBSE (D) 2011]
25. State any one principle of scientific management. [CBSE (D) 2011]
26. Give the meaning of ‘Mental revolution’ as suggested by F.W.Taylor. [CBSE (A.I.) 2011]
27. Name the principles of Scientific Management which suggests the introduction of scientific
investigation and analysis. [CBSE (D) 2011C]
28. How are ‘Principles of Management’ formed? State. [CBSE (A.I.) 2012]
29. Why have the ‘Principles of Management’ gained importances these days? [CBSE (A.I.)
2012]
30. Name the following principle of management: [CBSE (D) 2012C]
a. that prevents dual subordination
b. that prevents overlapping of working of two divisions
31. Distinguish between the principles of ‘Unity of Command’ and ‘Unity of Direction’ on the
basis of implications. [CBSE (D) 2012C]
32. Explain what is meant by ‘Principle of Management’. [CBSE (A.I.) 2013]
33. Distinguish between ‘Unity of Command and Unity of Direction’ principles of management
on the basis of ‘Aim’. [CBSE (F) 2013]
34. What is determined by ‘Time Study’? [CBSE 2014]
Three Marks Questions
1. Name the principle of scientific management which emphasizes on study and analysis of
methods rather than estimation. [CBSE (D) 2011C]
2. Explain how principles of management: [CBSE (A.I.) 2012]
a. help in optimum utilization of resources and effective administration, and
b. help the managers in meeting changing environment requirements.
3. Explain how principles of management: [CBSE (D) 2012]
a. provide useful insight into reality and
b. help in thoughtful decision making
4. Explain how principles of management: [CBSE (F) 2012]
a. help in optimum utilization of resources and effective administration, and
b. help in thoughtful decision making.
5. Name and explain the principle of management according to which a manager should replace
‘I’ with ‘We’ in all this conversation with the workers. [CBSE (D) 2013]
6. Explain ‘Harmony not Discord’ on a Principle of Scientific Management. [CBSE (D) 2013]
7. Explain ‘Science Not Rule of Thumb’ as a principle of scientific management. [CBSE (D)
2013]
8. Explain ‘Co-operation, Not Individualism’ as a principle of scientific management. [CBSE
(D) 2013]
Four Marks Questions
1. Explain that technique of scientific management which is he strongest motivator for a worker
to reach standard performance. [CBSE (A.I.) 2012]
2. Explain the technique of scientific management that is the extension of “Principle of Division
of Work and Specialization”. [CBSE (D) 2012]
3. Explain the technique of scientific management which separates the planning and execution
work. [CBSE (F) 2012]
4. Explain the technique of “Simplification and Standardization of Work” given by Taylor.
[CBSE (D) 2012C]
5. State any four features of ‘Principles of Management’. [CBSE 2015]
6. What is meant by principles of management? State any three points of their importance.
[CBSE 2015]
Five/Six Marks Questions
1. Explain how principles of management provide

a. useful insight into reality
b. thoughtful decision making [CBSE (D) 2009C]
2. Explain the following principles of management:
(a) Scalar chain, (b) Science, Not Rule of Thumb [CBSE (D) 2008]
(a) Discipline, (b) Harmony, not Discord [CBSE (A.I.) 2005]
(a) Cooperation, not Individualism, (b) Order [CBSE (F) 2005]
5. Explain the concept of ‘fictional foremanship’ and ‘mental revolution’ in scientific

management as enunciated by Taylor. [CBSE (D) 2008]
6. Explain any two of the following Fayol’s principles of management with examples:
(i) Unity of Direction, (ii) Equity, (iii) Espirit De Corps, (iv) Initiative [CBSE (D) 2008C, 2009]
7. Explain ‘Differential Piece Rate’ and ‘Functional Foremanship’ as techniques of scientific

management. [CBSE (D) 2009]
8. Explain how principles of management help in (a) meeting changing environment

requirements and (b) making scientific decisions. [CBSE (D) 2009C]
9. (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 (D) 2010]
10.
i) Name and explain the principle of management in which workers should be encouraged
to develop and carry out their plans for improvements in the organization.
ii) Name and explain the technique of scientific management which helps in eliminating
unnecessary diversity of products and thus results in saving cost. [CBSE (D) 2010]
11. Explain any five characteristics which reflect the nature of Principles of Management.
[CBSE (D) 2010C]
12. Explain by giving any five reasons why Principles of Management. [CBSE (D) 2010C]
13. Explain “Fayol’s principles of ‘equity’ and ‘order’ with examples. [CBSE (A.I.) 2011]
14. Explain the following principles of Fayol with the help of one example for each:
a. Discipline
b. Unity of Command [CBSE (D) 2011C]
15. Explain the following principles of Fayol with the help of one example for each:
a. Scalar Chain
b. Stability of tenure of personnel [CBSE (D) 2011C]
16. Explain any five features of Principles of Management. [CBSE (D) 2012C]
a. Motion Study
b. Time Study
17. Nikita and Salman completed their MBA and started working in a multi-national company at
the same level. Both are working hard and are happy with their employer. Salman had the
habit of backbiting and wrong reporting about his colleagues to impress his boss. All the
employees in the organization knew about it. At the time of performance appraisal the
performance of Nikita was judged better than Salman. Even then their boss Mohammed
Sharif decided to promote Salman stating that being a female Nikita will not be able to
handle the complications of a higher post.
i) Identify and explain the principle of management which was not followed by the multi-
national company.
ii) Identify the values which are being ignored quoting the lines from the above para.
[CBSE 2013, Set I, II, III (Outside Delhi)]
18. Namita and Aslam completed their MBA and started working in a multi-national company at
the same level. Both are working hard and are happy with their employer. Aslam had the
habit of backbiting and wrong reporting about his colleagues to impress his boss. all the
employees in the organization knew about it. At the time of performance appraisal the
performance of Namita was judged better than Aslam. Even then their boss, Saleem Khan
decided to promote Aslam stating that being a female Namita will not be able to handle 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 2013, Set I, II, III (Foreign)]

19. Which technique of Taylor acts as the strongest motivator for a worker to reach standard
performance? [CBSE (D) 2009C]
20. With the help of a diagram explain ‘Functional Foremanship’ as a technique of scientific
management. [CBSE 2015]
21. Explain the following principle of management:
a. Scalar Chain
b. Harmony, not Discord [CBSE 2015]
22. ‘Aapka Vidyalay’ believes in holistic development of students and encourages team building
through a mix of curricular, co-curricular and sports activities. On its founders day a stage
performance had to be put up. A committee of ten perfects was constituted to plan different
aspects of the function. They all decided to use recycled paper for decoration. There was a
spirit of unity and harmony and all members supported each other. With mutual trust and
belongingness the programme was systematically planned and executed. Kartik, one of the
perfects realized that unknowingly the group had applied one of the principles of
management while planning and executing the programme. He was so inspired by the
success 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.
(c) Identify any two values which ‘Aapka Vidyalay’ communicated to the society. [CBSE
2015]

Chapter - 02 Principles of Management

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Chapter - 02 Principles of Management

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Principles of Management

After studying this chapter, the reader will be able to

 Understand the concept of management principles

Concept of Principles of Management

Principles of Management Vs Principles of Pure Science

Principles of Management Vs Techniques of Management

Principles Vs Values of Management

Derivation of Management Principles

On the basis of Observation

On the basis of Experimentation

Nature or Features or Characteristics of Management Principles

3. Framed or Designed on the basis of rigorous practice and experiments

For Example, Principle of centralization refers to assignment of authority and responsibility to

6. Cause & Effect Relationship

7. Depending upon condition

The application of management principles is dependent or contingent upon the prevailing

Significance or Importance of Management Principles

(a) Helps in taking managerial decisions

For Example, principle of decentralization can be followed by a manager to distribute authority

(b) Optimum utilization of available resources

(c) Scientific Decisions

(d) Meeting the changing need of business environment

(e) Performing Social Responsibilities

For Example, the principle of fair remuneration concentrates on distribution of salary or

(f) Facilitates Research and development in management studies

Fayol’s Principles of Management

 Henri Fayol was born on 29th July, 1841 at Istanbul, Turkey

Major Contribution of Henri Fayol

Fayol’s Principles of Management

There are 14 principles of management developed by Henri Fayol. These are:

Positive effects of Division of Work

(i) It leads to specialization in the organization.

Adverse impacts in case of violation

(i) There may be short fall in overall efficiency and productivity

2) Parity in between Authority and Responsibility

Positive Impacts of Parity in between Authority and Responsibility

(i) Reduction in the misuse of authority

Adverse Effects in case of violation

(i) There may be delay in completion of work due to lack of authority

 It ensures systematic work in an organization

Adverse Impacts in case of violation

 It helps in minimizing or reducing conflicts and confusions of the employees related to

Adverse Impacts in case of violation

 It helps in attainment of the organizational objectives.

Adverse Impacts in case of violation

6) Subordination of Individuals interest to General Interest

 Helps in achieving organizational objectives

Adverse Effects in case of violation

7) Fair Remuneration to employees

This principle gives emphasis on payment of fair remuneration to the employees in an

Adverse Effects in case of violation

 It increases the chances of high labour turnover

8) Centralization and Decentralization

 Helps in making quick managerial decisions.

Negative Effects in case of violation

 In case of fully centralized system, decisions making may be delayed.

 It helps in maintaining unity of command in the organization.

Adverse Effects in case of violation of principles

 It may generate a huge gap in communication between superior and subordinates.

10) Principle of Order

 It eliminates wastage of time in searching of men or materials.

Adverse Impacts in case of violation

11) Principle of Equity

 It increases the level of employee satisfaction in the concern.