2. Principles of Management Self Notes Principles of Management Principle of management are broad and general guidelines for decision making and behaviour of managers Features of Management Principles 1. General guidelines a 2. Universal applicability 3. Formed by Practice & Experimentation 4, Contingent, ie. based on situation 5, Flexible Importance of Principle of Management 1. Provide Useful Insight to Managers +} 2. Optimum Utilisation of Resources 3. Fulfilling Social Responsibility 4, Scientific Decisions Scientific Management It means knowing exactly what you want men todo and seeing that they do it in the best & cheapest way Features of Scientific Management 1. Systematic Approach a 2. Discards Traditional Management +3. Requires Strict Observance of Rules 4. Improves the Efficiency of Workers Principles of Scientific Management 1, Science, Not Rule of Thumb 5 No. 1 Commerce Classes by Vijay Adarsh 2. Harmony, not Discord 3. Cooperation, not Individualism ‘Accounts | Economics | Mathematics | Business Studies 4, Development of each & every person to Financial Accounts | Business Maths & Statistics | Income Tax his/her greatest efficiency & prosperity Corporate Accounts | Cost Accounting | Financial Management| Stay Learning’ +91-9268373738 | Website: www.StayLearning.com Email:- contact@vijayadarsh.com | Website:- www.StayLearning.com | Click to WhatsApp:- +91 92683737382. Principles of Management Technique of Scientific Management Self Notes A. Functional Foremanship B, Standardisation of work . Simplification of work D. Method Study E, Time Study F. Motion Study G. Fatigue Study H. Differential Wage System/Piece Rate Method Study It refers to identifying the most suitable way todo a particular activity Functional Foremanship HE3+ tis an extension of the principle of ‘Division of work & specialisation’ to ae the shop floor level of a factory a ey It refers to determining the standard time required to complete a particular activity Foreman under Planning Incharge 4 {i)_ Route Clerk Instruction Card Clerk ‘Motion Study i) Time and Cost Clerk Hil It refers to 4 téthnique to study the {iv) Discipline Officer movements those are necessary for doing a well defined job Foreman under Execution Incharge - (i) Speed Boss Fatigue Study (ii) Gang Boss EH It refers to determining the duration and (il) Repair Boss frequency of rest intervals to complete (iv) Inspector a particular job Standardisation of work ap- Differential Ware System It refers to that technique of scientific management which differentiates between efficient and inefficient workers Process of setting standards for every business activity to maximize output ‘Simplification of Work India’s No. 1 Commerce Classes by Vijay Adarsh Itis eliminating unnecessary varieties, sizes of product manufactured ‘Accounts | Economics | Mathematics | Business Studies Financial Accounts | Business Maths & Statistics | Income Tax Corporate Accounts | Cost Accounting | Financial Management| Stay Learning’ +91-9268373738 | Website: www.StayLearning.com Email:- contact@vijayadarsh.com | Website:- www.StayLearning.com | Click to WhatsApp:- +91 92683737382. Principles of Management er N. Fayol's Principles of Management .. Division of Work and Specialisation Unity of Command |. Centralisation and Decentralisation . Principle of Equity M. Initiative Authority and Responsibility ipline Unity of Direction Subordination of Individual interest Remuneration of employees Scalar Chain Order Stability of Tenure of Personnel Espirit de corps go_| Unity of Command ion of Work & Specialisation Every employee should be assigned only one type of work ‘Authority and Responsil | | Authority Right to Give Orders Responsibility Obligation to perform the assigned task Obedience to organisation rules and employment agreement ‘An employee must receive orders from one boss Unity of Direction | 83) All the units of the organisation should aim and move towards achieving the organisational interest Centralisation and Decentralisation Centralisation —tm—| concentration of decision making powers with top management Decentralisation Dispersal of decision making power among ‘more than one person ‘Scalar Chain EF order of communication should pass from top to bottom and follow the official line of. command Order 1} People and material must be at suitable places at appropriate time for maximum, efficiency Principle of Equity -——_&— rave ars in the behaviour of manager tolvards workers Stability of Tenure Il There should be reasonable security of jobs, and personnel should get a reasonable time to show results Initiative 7A employees to be encouraged to develop and carry out their improvement plans Espirit de corps It means unity is strength. Management should promote unity and harmony among employees over individual interest Subordination of Individual Interest The organisation interest to be prioritised Remuneration of employees Pay should be fair and satisfying to both employees and the organisation Email:- contact@vijayadarsh.com | Website:- www.StayLearning.com | Click to WhatsApp:- +91 9268373738 India’s No. 1 Commerce Classes by Vijay Adarsh for lass XI, XIl, .com(Hons/Prog), BBA, MBA, CA, CS, ‘Accounts | Economics | Mathematics | Business Studies Financial Accounts | Business Maths & Statistics | Income Tax. Corporate Accounts | Cost Accounting | Financial Management| Stay Learning’ +91-9268373738 | Website: www.StayLearning.com