Production subordinate worker shou tate the priChapter: 2 Principles of Managem Manager of ABC Ltd, does not allocate work as per the capability of workers, which principle is violated by them. Production manager of Beta Ltd, took special care of the interest and ability of his subordinates while distributing work among them, He was of the firm opinion that a and again so that he may become expert in it. worker should be given one work aga State the principle of management followed here? (Answers at Page no. 117) (ii) Authority and Responsibility. Authority means power to take decision. Responsibility means obligation to complete the job assigned on time. According to this principle, there must be balance or parity between the authority and responsibility, Excess of authority without matching responsibility may bring negative results and excess of responsibility without matching authority will not allow the worker to complete his job on time. An organisation should build safeguards against misuse or abuse of managerial power. A. manager should have the right to punish the subordinate for wilfully not obeying a legitimate order but only after sufficient opportunity has been given to a subordinate for giving his/her arguments. For example, if person is given responsibility to produce 100 units in one week time but he is not given authority to purchase the raw materials. If there is no raw material available in a. the store-room as a result he could not complete the target of producing 100 units on time. ‘The worker cannot be blamed for not completing on time because he was responsibility and not the matching authority to carry on the work. Excess 0 “sith jess authority results in non-completlon of job”) 000 saa Positive effects of this principle: sag 1. No misuse of authority.for wilfully not obeying > given to his/her Case,@ manufacturing company. Due to | the workers to faster the production, work overtime instead of increasing the nciple “one unit me sation must be direct f this prin pplPrinciples of Management 74 Consequences of violation of this principle 1. Lack of coordination. 2, Wastage of efforts and re: 2, Wastage of efforts and resources by working in different directions 3. Difficulty in achieving organisational goal s Organisational goal Se Principle of Unity of Command a] Principle of Unity of Direction is principle insists on one boss on J fats preipieinslete on onebosson one subordinate. | ‘Thisptincple insite on one unl disor onions plan 2. | Themain purpose of unity of command is to pur | MR estniboraid tees ce The purpose of unity of direction is to direct | sibility on the the efforts of empl f ne efforts of employees of one department in| employee. achieving the main objective of that department. This principle is related to functionin« | of employees | TI of nployees | This princi f Bee 19 of employ is principle is related to functioning, organisation as a whole or as one unit. 4. | This principle results in systematic working and| ‘This principle results in co-ordination of activities | | | improves efficiency by removing confusion and| of different personnels, | |_ chaotic conditions. sce’ I. Unity of Direction (2) One unit one plan (b) Efforts of all the employees must be directed towards one goal (©) Unification of efforts towards one direction (d) Base of coordination concept ase Studyapter: 2 Principles of Management {73 1, Financial capacity of the concern, 2. By keeping in mind the minimum wage act of government The wages and salaries paid by the competitors, For example, if in a particul year the o1 ing extra profit to shareholders a also in the form oft nisation has earned more profit than apart id owners, some part of profit must be given to ronus. This will encourage and motivate to put more efforts the profit of the company, Positive effects of this principle: get motivated. and commitment of employees improves, Consequences of violation of t principle: ease in turnover of employees, tisfaction and demotivation of employees, and adequate wages and salary 5) Pay fair wages so that employees can maintain minimum standard of living. — c) With increase in profit and prosperity of organisation increase employees’ salaries: ages also Sharing of gains with employees e) Match with scientific principle of harmony not discord, () Pay as per financial capacity of your firm, 9) Employees are not working only for happiness in organisation they remuneration. s08d them very less wages over the time with broad vision employees. The business started earning very Pod i Peta Identify the prine principle of ms f74 [Part A Principles and Funct” on of both depending upon the natu, Hised bigt there must be combinati arias oqemeaird A sinall organisation can be well erin 4 a nd manga with centralised technique but in large organisation there is neec oe le a ilisation Secondly, if employees are efficient and competent then th “ps tru : Y having decentralisation but ifemployees are not fully developed and are less in number then they smust be centralisation fayol advised not to have comp ete centralisation or comple decentralisation but a combination of both. Example: Panchayat in our country have been given more power lecid 1 speng of villagers. TH isationg by the government for welfare funds granted to them National level. Positive effects of this principle: 4. Benefits of centralisation as well as decentralisation 2 Fast decisions at operational level and strict control by top leve ‘Consequences of violation of this principle: 1. Complete centralisation will result in delay in decision 2. Complete decentralisation will result in misuse of authority. ation 2 Difference between Central Centralisation ‘trefers to concentration of power or ‘authority at higher level only. ‘Top management retains maximum. The authority is systematically divided at ‘authority. The authority with middle and | every level. : ower management is very low. | Decentralisation Itrefers to every distribution of powers and authority at every level of management jisation ion and decentralisationChapter: 2 Pi Chain, Scalar ch inci ‘ain means line of authority or chain of super from highest to lowest rank: Fayol Insts that this chain must be followed strlety I organisation. Every information must pass through every key of this chain, no skipping any one key should be allowed Fig, explains the principle according to scalar chain prineiple if E wants to contact O he has to move through E~D—CG—B—A—4 M— Nand then O, If this chain is broken then there are chances of communication gap in the organisation but sometimes following scalar chain becomes a long process and if some important information has to be passed, it gets delayed so in case of emergency and urgent information, Fayol permitted a short cut in the chain which is called “Gang-Plank”, Gang-plank permits direct communication between the employees working in different position without following the scalar chain. For example, if E wants to pass some urgent information to O then instead of following the long route of scalar chain, he can directly communicate with O by constructing a gang-plank, generally workers cannot directly communicate with CEO but through gang-plank it is possible. Positive effects of this principle: 1, Systematic flow of information. 2. No communication gap in the organisation, = Consequences of violation of this principles: 1. There may be communication gap. \76 | Paras principles and Functions or mvarrws Shar every Instruction, order or information giv) Ets sca princi! me principal then Head ofthe department snd thy FGA iad vader must be informed by respective teachers only. He never alloy) teachers to directly communicate with him. {i) State the Principle of Henry Fayol followed by the school principal which concept of Scalar Chain can be used by teacher to pay (ii) In case of emergency ‘angent message directly to principal. (&) Principle of Order. In this principle order does ‘not mean command but it refers to orderly ‘arrangement of men and material that is a fixed place for everything and everyone in the sexganisation/Fayol insists that there must be Place to keep every material and thing ‘in the organisation and fixed place or seat jin for every employee of the organisation and energy is wasted in search of any material or any person. ifa worker is in need of a tool he must know in which box or tool-roomi and if he needs guidance from supervisor he must know the fixed cabin ‘xed place is given then worker will waste his time and energy in search principle: in search of men or material, working of organisation, of this principles: in search of men eat the rightox or tool-room: the fixed cabin energy in search © @ © snagement 177. Doks are kept in of i Pt in office, chalks in the library, officer records and files sity refers fo lid ale ployees, Employees ea onk hen the ire treated th i if a manager is biased in d ie v ne ployees will get dissatisfied and equal salary toa peon and supervicor equity means application of same disciplinary o es leave rules in the same eee && ade, position and gender Equity means no discrimination on account of sex, religion, language, caste, belief or nationality. Example: In multinational companies people of various nationalities work together without any discrimination as we find a person of Indian origin Sunder Pichai became CEO of il Sood became the CEO of Vodaphone. Google. Positive effects of this principle: 1. Employees get satisfied. and boost up the morale of the employees. 2. Motivate Consequences of violation of this principle: 1. Dissatisfaction in employees 2. Increase in turnover. 1e employe 3, Unhealthy relation between superior and subordinates Fair, kind and just treatment to employees: No discrimination with employees on the basis of cast, creed or gender. ame polices and rules and regulations fr allthe emplovess No preference to male ora person of special ligion for promotion. Contradicts technique of aifferential piece Wage system. Meaynemearurcgre farted working in a multination) hu has the habit of backbitiy, he boss. All the employe, formance appraisal also Ting, heir boss decided to promo, pleted their MBA and Ee a ‘comp king hard. Ans! it the same level. Both are wor! ? : and. ae reporting about his colleagues to impress ti in the organisation know about it. At the time of pert B hen ti] was rated better than Anshu. Even tl 4 Deaieicating that being a female, Tina will not be able to handle the complication, of higher post. Jdentifyand explain the principle of management 1. Tina and ‘Anshu com] hat was not followed by this compan, (An. t termination and transfy Stability of Tenure of Personnel. It refers to no frequent Teas 0 this principle the management must provide the feeling of job security amoy D because with the feeling of insecurity for the job, the employees canng ene maximum. Frequent turnover of employees is bad for organisation ayj ‘such decision must be taken when they are almost unayoidable. ly turnover but frequent transfer or rotation should also be avoided because it taks time to a person to learn and get settled on a job and by the time he gets settled andiz sfer order then it will be wastage of resources and employee will not be able his best for organisation.and trang Security ame ployees can Sanisation ay >ecause it ta s settled andi | not be abled ap Principles of Management [79 n making and executing a plan. It giv te I" gives immense satisfaction to employees. So managers ce he ae om ‘nd ideas of employees before framing the plan. The disobedience, i., once decisions are taken by management then every employee must follow it whether iti according to employees suggestion or not Employee suggestion system: Encourage initiative among trainee managers. For example, before setting up of plan the manager must welcome the suggestions and ideas of employees to allow their maximum participation, But once the plan is made every employee must follow it and implement it Positive effects of this principle: 1. Develops feeling of belongingness in employees. 2, Employees achieve the target on time if they are set up with their consultation. Consequences of violation of this principle: 1, Employees will not work to the best of their ability. 2. Demotivation among employees. Chalk out the plan and implement. Keep motivation, spirit of employee high Encouraging employees to give suggestions. Match with scientific principle of “cooperation not individualism". Develop feeling of belongingness and motivate employees. e ae . api