Principle of management (ch-6)

→ Meaning of principles of management.

Principle of management are fundamental truth that explain the relationship between 2 or more
variables under given situation. These principle establish relationship between causes and their
effect. Management principles providing guidelines For managerial decision making and action.
These are helpful in predicting the understanding the result of managerial action. However,
management principles are not as expected as the principal of Physical science, because
management is a social science.
Nature (Characteristics) of principle of management.
1. Universality: Principal of management are fundamental statement of truth having universal
validity. These principles can be applied in different types of organization, example, business.
2. Dynamism or flexibility: Principle of management are not rigid but flexible and dynamic in
nature.
3. Influencing human behaviour: Management is a social science and it deals with human
behaviour.
4. Contingent: The principle of management are relative and not absolute. These principles
should be applied carefully.
5. Cause and effect relationships: Principles of management indicate cause and effect
relationship between 2 or more variables.
→ Need for principle of management.
1. To increase efficiency: Principle of management has been developed from experiences of
various experts.
2. to crystallise the true nature of management: Knowledge and understanding of the
principles and concepts of management make it easier to describe and analyse the true
nature of management.
3. To train managers: In the absence of principles, the training of manager depends upon trial
and error method.
4. To improve research: Growing popularity and until of management principles have attended
expert towards their study and analysis, principles of management have held in expanding
the horizon of knowledge in management.
5. To attain social goals: Principles of management enables managers to make optimum use of
human and material resources. The supply of quality goods at responsible price improve
social welfare. Manager coordinate the effort of people so that individual objective to get
translated into special attainment.
→ Taylor's principle of scientific management.
Scientific management is the art of knowing exactly what you want your men to do, and then
seeing that they do it in the best and cheapest way.
The basic principle of scientific management are as follow:
(i) Science, not rule of thumb: each and every job and the method of doing it should be based
on scientific study and analysis rather than on trial and error.
(ii) Harmony, not Discord: They should be healthy corporation between employer and
employees.
(iii) Maximum not restricted output: Conflict between management and workers arises mainly
on division of Surplus. Taylor suggests that the best way to resolve the conflict is to increase
the size of surplus so that East side can have a larger share.
(iv) Division of work and responsibility: Trailer suggests separation of planning from operational
work.
(v) Scientific selection, training and development of work: Workers should be selected and
trained keeping in view the job requirements.
→ Workers’ objection to scientific management.
1. Overburdening treats feeder to machines rather than human beings.
2. High performance Standards.
→ Fayol's Principles of Management.
1. Division of work. Fayol's has Advocate Division of Work. According to him, if work is divided
into small task then this will helping in taking the advantage of specialisation.
2. Authority and responsibility. I thoroughly means the right to give order an Obtain
obedience. On the other hand, responsibility means obligation to complete the assigned task
on time.
3. Discipline. It is the sincerity and obedience towards organisational rule and regulations, as
these are necessary for the smooth functioning of an organization.
4. Unity of command. The principle of unity of command states that each participant in a
formal organization should receive order, and is Responsible to only one superior. In any
case. Employee get orders from 2 superior. At the same time, the principle of unity of
command Is violated.
5. Unity of direction. It implies that there should be one head and one plan for a group of
activities having the same objective. In other words, the related activities should be put
under one group. There should be one plan of action for them and they should be in the
control of one manager.
6. Subordination of individual interest to general interest. The interest of an organization is to
achieve its goal.
7. Order. As per this principle, there should be an orderly arrangement of men and materials
which implies that there is A fixed place for everything and everyone in the organization.
 8. Remuneration of employees. According to Fayol, The quantum and methods of Remuneration
payable to employees should be fair and responsible. It should be satisfactory to both employers
and employees.
9. Centralisation and decentralisation. The concentration of decision making authority is called
centralisation, whereas its despair among more than one person is known as decentralisation.
According to Fayol, an organization should strive to achieve up proper balance between
centralisation and decentralisation.
10. Scalar chain. According to Fayol, scalar chain refer to the chain of authority and
communication that runs from top to bottom and should be followed by manager and their
subordinates.

Principle. Relevance. Modification required.

Division of work. Total task cannot be performed by One person. Degree of division of work differs from one
organization to another.

Authority and responsibility. The two must go together.

Discipline. Essential for smooth functioning of every Type of discipline may be different in different
business firm. firms. Example self discipline or army type of
discipline in some case and employee may be
asked to report to two bosses.

Centralization. From decentralisation found in every form. Degree of decentralisation may differ. From
firm to firm.

Scalar chain. Usually followed in most cases. May be violated to speed up communication.

Order. Ues to avoid chaos. Degree of order may vary.

Distinction between Taylor and Fayol.

Basis of distinction Taylor fayol

Perspective Operative or shop floor level. Top level of management.

Personality Scientists. Practitioner.

Focus Increasing productivity of work. Improving overall efficiency of administration.

Techniques Scientific observation and measurement. General principles of management.

Nature of work done Scientific management. General theory of administration.