Santosh Naiker-Mo.

8155079728 XII-GSEB-BA-CH-2
CHAPTER-2
PRINCIPLES OF MANAGEMENT
Topics:
2.1 Principle of management
2.1.1 Meaning
2.1.2 Concept
2.1.3 Nature
2.1.4 Importance
2.2 Thoughts of Management
2.2.1 Classical thoughts
2.2.2 Neo Classical thoughts
2.2.2.1 Behaviour related thoughts
2.2.3 Modern thoughts
2.3 Fredrick Taylor’s Principles of Scientific Management
2.3.1 Meaning
2.3.2 Definition
2.3.3 Principle of Scientific Management
2.3.4 Techniques of Principles of scientific management
2.3.4.1 Time Study
2.3.4.2 Motion Study
2.3.4.3 Different Wage Rate study
2.4 Henry Fayol’s Management Principles
2.5 Contribution of Peter F. Drucker in the field of Management.

(1) What is principle of Management ?

(a) Result of Experience (b) Management decide it
(c) Decided by experiments (d) Managers decided it.

(2) Why need arises to make changes in principle of management.

(a) Changes in Assets (b) Changes in Capital
(c) Changes in technology (d) Changes in Managers

(3) Who is the promoter of scientific management.

(a) Luther Gulick (b) Fredrick Taylor (c) Henry Fayol (d) Peter F Drucker

(4) Which thoughts were presented till the end of 19th century?
(a) Neo-Classical (b) Pre-Classical (c) Classical (d) Modern

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(5) Who was the promoter of Neo Classical thoughts
(a) Harzbug (b)Henry Fayol (c) Fredrick Taylor (d) Elton Mayo

(6) Who said that “You save you employees your employees will save yours”
everything.
(a) C.K. Prahlad (b) Prof. Urvik (c) Aargris (d) Peter F. Drucker

(7) Which management gurus given below have contributed in modern

thought .
(a) C.K. Prahlad (b) Elton Mayo (c) Max Webor (d) Henry Gentt

(8) Who had given general principles of Management.

(a) Fredrick Taylor (b) Peter F Drucker (c) Henry Fayol (d) Chester Bernard

(9) Method of removing Waste generated from unnecessary movement

done in wrong directions from any work ?
(a) Time Study (b) Motion Study
(c) Different Wage rates (d) Employees observations

(10) Who was the founder of principle of management by objectives ?

(a) Peter F Drucker (b) Fredrick Taylor (c) Henry Fayol (d) Max Webor

(11) Which activity from the following is possible by implementing labour

division.
(a) Aggregation (b) Specialization (c) Simplification (d) Integration

(12) If employee does not get appropriate compensation then what rises?
(a) Labour turnover (b) Promotion of labour
(c) Absence of labour (d) Decline of labour

(1) What is principle of Management?

Ans. Some rules , principle are required for making comfortable man behavior in
business unit. These principle are called Management Principles.

(2) What is time study?

Ans. Time study means scientific study being done for the time required for completion
of certain part of task.

(3) What is Unity of Command ?

Ans. Management is getting things done through others, for which orders are to be
issued. Unity of command is an assurance of discipline. According to this principle,

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workers should get orders from only one individual and should be accountable also
only to one individual. This avoids confusion in the minds of the workers.

(4) What is managements thoughts ?

Ans. Management thought is a presentation of unique thought presented time to time.
Many management gurus’ have provided different principles by expressing
different views in this thoughts, which is called management thoughts.

(5) Which concept are included in behavior related thoughts?

Ans. Behavior related thoughts included inter human relations, inducements ,
leadership, disposal of industrial disputes, information, communication etc.

(6) In modern thoughts which other subjects are related with management?
Ans. The subjects like psychology , social studies, mathematics, statistics and computer
information technology are related with management in modern thoughts.

(1) What is Scientific Management ?

Ans. Scientific management involves a complete mental revolution on the part of
workers of a particular establishment or industry – a complete mental revolution
with respect to duties towards work, towards fellow workers and towards their
employer in a particular industry or establishment.

(2) What does the principle of equality?

Ans. Employees are a part of production. To get things done, a practical approach
should be adopted. Formal attitude may not be that effective. With changing
situations, one has to be informal also to create harmony between the owners and
the employees. The employee’s attitude, loyalty and behavior towards management
and work depend on equality and justice.

(3) ‘Principles of management are flexible ‘ Suggest.

Ans. Yes, It is flexible. As per situation when manager requires there is a scope for
flexibility. When these principle do not seem to match in some situation, the
manager is allowed to effect change . e.g. in large units the principle of division of
work may be applied uniformly, but in small units the principle of division work
may not be applied in same proportion.

(4) Into which six parts, Henry Fayol divided his entrepreneur activities-
explain.
Ans. Six parts of Henry Fayol’s entrepreneur activities:-
1. Technical, (Relating to production)

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2. Commercial (Buying, selling and exchange)
3. Financial (Search for capital and its optimum use)
4. Security (Protection of property and person)
5. Accounting (Including statistics)
6. Managerial (Planning, organization, command, co-operation and control).

(5) What is ‘Rule of Thumb’.

Ans. Taylor Challenges the traditional method which gave importance to rule of thumb.
According to this workers had to blindly follow the instructions of the line
authority even for the smallest details. The organization was rigid and military type
& the authority of the departmental head was final and unlimited. The workers did
not have any voice since the owners were autocratic and dominated.

(6) Explain Principle of Unity of Command?

Ans. The Principle of Unity of Command shows that employee should get order from
only one superior for any job or activity. It means that employee should
responsible to only one superior for particular job. Due to this confusion never
arises amongst employees in regard to orders. If more than one orders are given,
that creates confusion amongst employees and industrial discipline cannot be
maintain due to that.

(7) Explain Taylor’s Differential wage rate study.

Ans. Taylor’s Differential wage rate study means wage given through wage related
motivation based on time of work to workers. Frederick Taylor favored these
motivational wage method. As each worker work in factory have different
efficiency. Due to this fact , efficient worker should get more wages , and worker
having less efficiency should get less wages. Considering to this , Taylor given
different wage rates.

(1) Discuss about importance of principles of management.

Ans. The Principle of Management are as follows :
(A) Increase in Managerial efficiency: Principle of Management is providing
guidelines to managers to perform task in different situations. Due to which
managerial efficiency and improvement in business is seen.
(B) Maximum usage and effective administration of resources:
Due to availability of human and physical resource are limited in business. It is
necessary to make maximum usage . It means make usage of resources through
principle of management , where they get maximum benefit with minimum cost.

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(C) Helpful for scientific and logical Decisions: Decisions should be always based on
facts, thoughtfulness, objective and justifiable. Using Management principles,
decisions can be made appropriately , timely without partiality and unbiased.
(D) To cope up with the Changing business environment: Management principle are
normal guide, but management principle are necessary to meet business
environment in changing circumstances.
(E) To fulfill Social Responsibilities : Not only profit but the progress of society is
also the aim of business unit. By effective implementation of management
principles, business unit can easily achieve social responsibility.
(F) Useful for research, training and development: Only by using management
principle, task of training, education, development is possible. Aptitude test are
taken for appointments in various business units. These aptitude test are prepare
by research and helpful to appointment of appropriate employee.

(2) Write a short note on modern thoughts .

Ans. After 1960, the change is occurred in industry and business units. As a result a
need of special approach of management was rise. As management is not confining
to only business unit, special professional class of manager is started. Advocacy in
this thoughts psychology, social studies, mathematics, statistics and computer
technology were made. Management Gurus like Koontz O’Donnell, George R Terry,
Peter F. Drucker, William Ouchi and C K Prahlad have also contributed in this
thoughts.

(3) ‘Principles of Management are based on human behavior ‘ Explain the

Statement .
Ans. As human is at the centre of the management , principle of management may seem
to have a big effect on human behavior . Principle of Management has direct
relationship with human behavior and as a human behavior is a psychological
phenomenon, it is necessary to consider while implementing principles of
management.
(A ) Human nature is at the base of these principles.
(B) Human nature affects human behavior.
(C) This psychological phenomenon should be taken into consideration while
practicing these principles.

(4) Explain behavior related thoughts.

Ans. As Prof Urvik said, “ you manage your men your men will manage all “ likewise
employee or a person is having an important place. Since, management is done by
person management study becomes study of human relation. Hence behavior
related thoughts emphasize on job satisfaction and increasing efficiency of
employee by psychological observations. Behavior related thoughts are inter
human relation, motivation, leadership, information communication process,
disposal of industrial disputes. This approach is psychological , it seems
economical parameter is neglected. Hence, some writers said that human relation
cannot be maintained at the cost of productivity, these is the limitation of this
approach.

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(5) Discuss about Peter F. Drucker’s contribution in management field.
Ans. Peter F. Drucker is called the father of Management.
Peter F . Drucker (1909-2005) as a well known managerial leader was also a
famous writer, philosopher and an educator. Due to the change in global business
arrangement because of globalization. Need of development of new methods
management was arisen . Peter F. Drucker favoured for more importance of human
asset in business unit. Peter F Drucker’s important contribution was Management
by Objective(MBO) and principle of ‘Self regulations ‘ are main. About
management by objective he says, that there should be uniformity in aim of
employees and managers for achievement for aim. Management by objective is too
much effective for different business formatted units. Their contribution lies in
human resources management, marketing management and stress management.

(1) Describe the principles of scientific management.

Ans. Principle of Scientific management are :-
(a) Scientific Method : To do work , Scientific method to be adopted, abandoning
traditional method and thinking how best work can be done by scientifically.
(b) Planning and implementation : Experts should make Planning and workers
should implement it.
(c) Job analysis : Job analysis is the best way to work done by speedily and at lower
cost.
(d) Standardisation : With the help of Equipment, time, situation of works , etc
standardization of scientific process should be done in advance.
(e) Scientific Selection and Training : Selection of workers should be done with
appropriate and scientific method. The Scientific Selection is a benchmark is set
according to education, skills, guts, physical strength, training etc.
(f) Financial Motivation : Skilled workers should be given financial and other kind
of motivation. Different kind of motivated wage schemes have been recommended.
This wage system is according to the individual productivity of employee.
(g) Economical : During the implementation of scientific management, scientific and
technical base are not only considered , but are emphasize on low production cost
also. Cost estimated and cost control should be adopted, deviation should be found
and correct action should be taken.
(h) Mental Revolution : There should be mental revolution for achievement
between owners and workers . Mental revolution reduces stress between owners
and workers and achievement of goals becomes easy.

(2) Describe in detail about classical thoughts.

Ans. The thoughts which was presented till 19th century is known as the Classical
thought theory. Main promoter of these theory are Fredrick Taylor, Max Weber,
Gilbreath , Henry Gantt and Henry Fayol. Taylor contribution is the most in

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Classical thoughts , Scientific Management principles presented by Taylor which
was still implemented in Classical thoughts theory. Contribution of Henry Fayol in
Classical thought is also very significant. He contributed thoughts of management
by presenting general principle of management. He decided different level of tasks
in business unit and try to decide limit of tasks. He prepared universal level of
guideline for the manager to perform duty at different level . Till the end of 19 th
century contribution of Max Weber into Classical thoughts theory is also there.
Format and size started to change due to industrial revolution, need of changes
arise due to some limitation of classical thoughts like importance of financial
motivation , less important to human approach and informal relations.

(3) Describe Henry Fayol’s Principle of Management.

Ans. Fayol’s Principles of Management:
 Principle of Division of Work.
 Principle of Authority and Responsibility.
 Principle of Discipline.
 Principle of Unity of command.
 Principle of Unity of direction’
 Principle of Subordination of individual interest to general interest.
 principle of Remuneration of personnel
 Principle of Centralization
 Principle of Scalar chain
 Principle of Order
 Principle of Equality
 Principle of Stability of personnel tenure
 Principle of Initiative
 Principle of Esprit de corps or Feeling of oneness.
The success of the principles depends on the sharp intelligence and
analytical mind of the manager.

(i) Principle of Division of Work :

 Division of Work is the basis for the success of large business.
 The work can be distributed amongst various individuals on the basis of their
qualification.
 The expert may be assigned responsibility relating to his area and benefit of
specialization can be obtained.
 Division of Work makes the accomplishment of objectives easy, co-
ordination becomes easy.
(ii) Principles of Authority and Responsibility:
 Authority and responsibility are two sides of the same coin. Both must be
balanced.
 The right to give order, the right to command is called authority.
 Just as responsibility is given for the accomplishment of work in time,
authority has also to be assigned.

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 While assigning authority, the position, knowledge, qualification,
experience, leadership skill maturity and other factors should be considered.
(iii) Principle of Discipline:
 Large enterprises form a code of conduct for enforcing discipline which
enables them maintain regularity in enterprises.
 If every worker observes this code, discipline is established.
 Discipline acts as a force and it makes co-ordination easy.
 When there are a large number of workers, controlling becomes easy for
management to get things done.
 Thus, discipline is a key to successful leadership.
(iv) Principle of Unity of Command:
 Management is getting things done through others, for which orders are to
be issued.
 By giving orders the task of management becomes easy because it knows
that orders will be obeyed.
 Obeying orders is indicative of discipline.
 If there is any deviation, directing and controlling take over.
 Unity of command is an assurance of discipline.
 According to this principle, workers should get orders from only one
individual and should be accountable also only to one individual.
 This avoids confusion in the minds of the workers.
(v) Principle of Unity of Direction:
 Planning is an image for the future.
 If there are any deviations, in implementation of the plan, direction has to
be provided, which helps in timely implementation.
 Thus, direction assures the success of the plan and makes control easy.
 Thus, managers are assured about achievement of the goal.
 According to this principle of unity of direction, every employee-group must
have only one superior, should work for one plan and for the success of one
single objective.
(vi) Principle of Subordination of Individual Interest to General Interest:
 Desire for the accomplishment of objectives is a matter of general interest.
 However, at times, feelings of competition, narrow mindedness, laziness,
ambition etc. might create problems.
 So, this principle of management gives importance to the group and general
interest and ignores that of the individual interest.
(vii) Principle of Remuneration Personnel:
 Employees and workers get salary and wages for services rendered.
 Such payments should be according to the rules which strengthen the
relationship between the owners and employees.
 Business enterprise has efficient workers also.
 They produce more then the specified quota.
 If they are not compensated for their efficiency, labour turnover rate would
increase.
 Schemes like bonus and profit sharing for efficient workers for a stable
turnover rate are necessary.
(viii) Principle of Centralization:

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 For the optimum utilization of employee’s skill, it is necessary to adopt the
principle of centralization.
 In decentralization, authority is delegated in an organized manner, which is
necessary in large enterprises.
 The degree of centralization thus, depends on the size of enterprise.
(ix) Principle of Scalar-chain:
 Unity of command is important for an enterprise.
 For this, there should be a scalar - chain of authority from the top to the
bottom.
 The employees working in an organization should have an idea as to whom
he is responsible to and who is responsible to him.
 This creates a scalar chain from top to bottom and reporting is made from
bottom to top.
(x) Principle of Order:
 Principle of order emphasizes two things, order of material and social order.
 In material, there should be a place for everything and everything should in
its place.
 This applies to the employees also and there should be the right man in the
right place.
(xi) Principle of Equality:
 Employees are a part of production.
 To get things done, a practical approach should be adopted.
 Formal attitude may not be that effective.
 With changing situations, one has to be informal also to create harmony
between the owners and the employees.
 The employee’s attitude, loyalty and behavior towards management and
work depend on equality and justice.
(xii) Principle of Stability of Tenure:
 Permanent and stable personnel are the capital of a business enterprise.
 A long tenure develops the personnel to learn new work and do the work
effectively.
 Labour turnover is reduced.
 For getting personnel for a long tenure, there must be arrangement for
promotion, training etc.
(xiii) Principle of Initiative:
 Employees always wish to do something new.
 They take interest in work assigned to them and develop new methods for
the same.
 The enterprise should give proper opportunity and training for the same so
that the employees develop with zeal and their loyalty towards the
enterprises increases.
(xiv) Principle of esprit de corps or feeling of oneness :
 The success of any business depends on the mutual relationship between the
owners and employees.
 So there must always be harmony between them.
 This would increase productivity and profitability and enterprise would
develop as a term.

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 The function of a manager is to provide the employees good leadership and
increase a sense of trusteeship.
 For this, management has to develop a spirit of co-operation and increase
harmony.

(4) Describe in detail about Nature of Management.

Ans. Nature of Management :
Principle of Management are not rigid but practical conclusion. These principle are
the guidelines to perform the task. This relates to task and reason. At the time of
implementation of different task of management such as planning, organization
and direction, it provide guideline to manager. As per export most of these
principles are truth but not very truth. As per above conclusion we have some
points to describe Nature of Principle of management.
(A) Universal Acceptance :
These principles are universal in the sense that these can be applied to all
managerial situations irrespective of the size and nature (business, govt. or social
organization)
(B) Flexible :
This is because with the change in time and research, certain principles do not
remain practicable. New principles have to be adopted. This does not mean that
principles are wrong. It only means that new principles are better e.g.
computerization in LIC and bank in place of manual efforts.
(C) General Guidelines :
Principle of Management are the result of experience gained by different experts in
different situation. At the time of Managing a business unit disparate and complex
problem arising. The form of these issues may be different as per unit, which could
not give similar result for each unit in all situations. Thus ,the principle of
management could not be strictly applied for each unit, but can get desired results
by accepting the principles as only guidelines and by using it in favorable situation.
(D) Based on Human Behavior :
Human nature is at the base of these principles. Human nature affects human
behavior. This psychological phenomenon should be taken into consideration while
practicing these principles.
(E) Contingency :
Contingency is the one of the element to apply the principles of management.
Achievement of goals can be made easier by unit with taking required decision
through usage of these principles in certain unavoidable situation. Such as to pay
appropriate and reasonable wages to the employee. This criteria of being fair and
reasonable depends upon the concern regarding necessity and contingency of the
affecting factors.

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