Programme Name: BCS

Course Code: MGMT 1210

Course Name: Organizational Management

Assignment: Second

Date of Submission: 13 December 2021

Submitted By: Submitted To:

Student Name: Achyut Neupane Faculty Name: Durga Prasad Acharya

IUKL ID: Department: PO

Semester: 1st Semester

Intake: September 2021

Q Discuss the contributions made by F.W. Taylor and Henry Fayol in the field of
management and show how today’s organizations can be benefits from their
principles.
A Fredrick Winslow Taylor, an American mechanical engineer and Henry Fayol, French
mining engineer are widely known as their involvement in improving management
techniques.
Þ F.W. Taylor is called the father of scientific management. His contribution,
widely known as Taylorism is a theory of management to analyze the workflows
and improve productivity. The principles of Taylorism and their benefits to
today’s organizations are:
(a). The entire task, after breaking down should be assigned to individuals by
and providing them proper time to complete individually. This makes the
process more efficient and organized.
(b). The superior should co-operate and monitor every task assigned to all the
individuals. This results to increased efficiency and better result.
(c). The task should be performed by gathering, classifying, and tabulating
data. This results to evaluated and improved work.
(d). Dividing the work in 3 level of hierarchy with highest level on the top.
Every level is given exact responsibility and detailed information. This led
to proper working culture in organization.

Þ It is fair to say that Henry Fayol is the father of management, since he also
applied scientific approach in improvement of management techniques. He is well
known for his five elements of management. The five functions of management
introduced by Fayol are planning, organizing, command, coordination, and
control. Henry Fayol also suggested 14 principles of management. His principles
and their benefits to today’s organizations are:
(a). Division of work
® Work properly divided into every individual of an organization results in
more organized task and faster outcome.
(b). Authority and responsibility
® Higher level employees should be given proper authority and divided
responsibility. This results to better communication and management.
(c). Discipline
® The rules and functions of an organization are to be followed by every
employee. This helps in disciplined organization culture.
(d). Unity of command
® According to this principle, each employee should have only one senior.
This helps the ability to sustain communication in a well-managed
approach.
(e). Unity of direction
® This principle makes all employees feel involved because the goal is
shared by all. This increases the quality of work.
(f). Subordination of individual interest to the general interest
® Employees must put the company's interests ahead of their own. The goals
of the concerns must not be sacrificed for the promotion of personal
interests of individuals. This helps the organization's focus on the aims and
objectives it has established.
(g). Remuneration
® Compensation is a bad kind of motivation. But paying employees a fair
compensation encourages them to work efficiently since it motivates them
to provide the best results.
(h). Centralization
® This idea helps in the organization's decision-making process. The fewer
hands involved in the decision-making process, the faster the choice is
made.
(i). Scalar Chain
® A scalar chain is a communication chain that runs from top management to
lower management. The scalar chain produces effective communication as
well as an effective and efficient output.
(j). Order
® Keeping resources in the correct place at the right time, whether they are
human resources or other organizational resources, leads to successful
results.
(k). Equity
® Treating all employees equally maintains employee coordination.
Employees are more likely to use their skills and expertise to their
maximum potential when they have equity.
(l). Stability of tenure of personnel
® Providing employees with a sense of security and certainty about their
positions improves productivity.
(m). Initiative
® Employees should be encouraged to learn and grow. Employees at all
levels should be allowed some freedom so that they may come forward
and show their abilities.
(n). Esprit de Corps (Union is strength)
® Promoting team spirit promotes unity and results in more efficient results.
Q As we know, goals provide the direction for all management decisions and actions
and form the criterion against which actual accomplishments are measured.
Everything organizational members do should be oriented toward achieving goals.
These goals can be set either through a traditional process or by using management
by objectives. Now you are required to discuss and differentiate how goals are set in
these two approaches?
A Goals are generally known for desired outcomes or targets. There are various types of
goals and also different approach for setting the goals. The approaches to setting goals
are:
(a). Traditional goal setting
® In this approach, the high level of management sets the goal and the goals
are passed down to lower levels and broken down to sub-goals. In short,
this approach follow hierarchical system where top-level employee is at
the top of the hierarchy.
® One of the features of traditional goal setting is: a goal must be completed
at one level to open the next goal possibilities. The next goal follows the
outcome of previous goal.

(b). Management by objectives (MBO)

® In this approach, employee of every level jointly identifies the common
goals and define each department’s major responsibility in achieving the
goal. Goal setting and performance evaluation are agreed mutually.
® The basic elements of this approach are:
(i) Performance feedback
(ii) Specificity of goals
(iii) Mutual decision making between higher and lower levels of
management
(iv) Pre-defined and non-negotiable time period
® The essential steps to be followed in goal setting are:
(i) The organization's overall objectives must be clearly stated.
(ii) Division of resources and manpower, as well as separation of goals
according to the concerned department's specific skill set.
(iii) Due to mutual planning, each sub-goal has precise parameters.
(iv) Effective coordination across various departments, as well as
appropriate changes based on their recommendations.
(v) The decision is put into action, and it is reviewed and fed back on a
regular basis. Rewards are given to the most influential workers
based on comparative performance analysis, affecting overall
company performance.

Þ The differences between these two approaches are:

(a). Traditional is top-level management approach whereas MBO is
involvement of all organizational members.
(b). Traditional is top-down approach whereas MBO is both top-down and
bottom-up approach.