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Chapter 2 Notes
Chapter 2 Notes
MANAGEMENT
PRINCIPLES OF
Principles are the fundamental truth about some process based on cause and effect
relationship.
Management principles are general guideline formulated by keeping in mind the standard
human behavior , for taking managerial decisions but applied creatively according to the given
situation.
MANAGEMENT PRINCIPLES
v/s science principles
Management principles are not rigid , they are flexible as the can be modified according to
change in business demand and change in demand , they are also not developed in any
laboratory and the management principles can give differ effect in differ situation but in same
direction as they deal with human behavior they have to be used creatively .
v/s management techniques
management techniques are generally some procedure which is performed to complete a given
task inn a systematic manner , which is not flexible but management principles are general guide
line provide to managers for taking various managerial decisions.
Management principles are not developed over night a complete procedure is undertaken to
develop a management principle. A management principle is developed in two ways :DEEP OBSERVATION : researchers usually observe the workers while working and note down
there reaction on various managerial decisions ,
REPEATED EXPERIMENTS : A decision which observed repeatedly is being test in different types
of organization , and if result came in same direction of all organization, then the particular
statement is derived as a MANAGEMENT PRINCIPLE.
UNIVERSALLY APPLICATION
Principles of management are developed universally and were used in every types of
organization, application of these principles may be vary as the situation for these
principles Is changed in different types of organization.
GENERAL GUIDELINE.
Principles of management provide a manager some basic idea to solve the problems of a
business, these principles doesnt gave a ready-made solution of every problems, the
manager have to use these general guideline as a base .. applied in creative manner to
solve problems even he can modify these principles according to different situations.
FORMED BY PRACTICE AND EXPERIMENTS.
The principles of management are not developed over night a complete procedure is
undertaken to develop these principles. These principles are derived after a deep
observation and repeated research work. These principles are the expression of deep
experiences of leaders of management and thoughts.
FLEXIBILITY
The principles of management can be used differently in different situation, managers
can modify these principles depending upon the need of situation. They are not rigid as
science principles.
BEHAVIOURAL IN NATURE
Are formed to provide a better understanding of human and material resources, insist on
the behavior of superior , subordinate and other individual of an organization for
improvement among them .
BASED ON CAUSE AAND EFFECT RELATIONSHIP
Are mainly applied to human behavior which is not identical in even the similar situation,
so when any principle of management is applied to an organization , it not possible for
manager to know the full effect of the principles principles of management can give a
direction about their effect but not the full effect.
CONTINGENT
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Enables the manager to foresee the effect of decisions and actions taken by him,
through which the manager can only use limited human and material resources.
Even these principles are insist on systematic working, which directly effect the
optimum utilization of resources.
Effective Administration
Management principles not only act as a guideline for taking decisions but also
guide managers to fulfill social responsibilities . principles also include values like ,
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providing equal wage to every working, a safe and secure working environment
etc.
Management Training , education and research
Taylor believed that there is one best method to maximize efficiency which could
be developed through work study and analysis of situations.
Work must be carried on in co operation with each other, with mutual confidence
(concerning each other with freedom form doubt) and understanding.
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Management must take suggestion from workers before setting up standards task,
so that workers can give their best. And employee must also make all efforts for
betterment of the company and doesnt make unreasonable demand.
There will be equal division of work and responsibility .
Business must follow scientific approach while selecting the work force and they
should be assigned tasks according to there capability & qualification.
They should be provided proper training to update their knowledge
This will ensure greatest efficiency
and prosperity for both workers and organizations.
WORK STUDY
It includes
i.
ii.
iii.
iv.
v.
Method study
Motion study
Time study
Fatigue study
Differential piece wage System
METHOD STUDY
MOTION STUDY
It refers to study of all physical moments which are undertaken while performing a
job.
Unnecessary movement are eliminated by classifying the movement of a a
average worker while doing a job in (i) Productive moments & (ii) unproductive
moments .
Suitable equipment should be designed to eliminate unnecessary movements.
TIME STUDY
It Involves,
FATIGUE STUDY
Objectives
The frequency of rest intervals
The duration of rest intervals
The number of rest intervals.
Method To Conduct
Observe an worker while he is working , and note down the time when his
efficiency level start decreasing then give him a break
this time can be noticed to decide there frequency of their rest intereval &
how much time he is taking to refresh and join work can be the time of rest
intervals
First, Company have to fix a standard rate of wage for worker for producing
standard target.
Then, workers who produce more then there standard target must be paid a
higher rate of wage
And those workers who produce less then there standard target should be
paid less.
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Insist on ,
Paying different rate of age to efficient employee
Extra wages to efficient employee will motivate them to remain efficient and
less wage to inefficient employee will motivate them to be efficient.
Production will be maximized when payment is given according to number of
units produce, every employee try to produce more and more ..
The whole work must be divided into small task and units
Each task is assigned according to the qualification, experience and capability of
workers.
POSITIVE EFFECTS
POSITIVE EFFECT
DISCIPLINE
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There should be rules and regulation for systematic working at every level of
organization.
Superior and subordination must follow their commitments towards each other and
organization.
There should be judicious (Good Judgment) application penalties.
Positive effect
POSITIVE EFFECT
UNITY OF COMMAND
POSITIVE EFFECTS
When an individual receive order from one boss, there is no confusion in his mind .
There would be no ego clashes between two superiors, as the individual working
for them will complete their assigned task because no other task is given to him by
another superior
An employee could concentrate on the task more efficiently , when he doesn,t
have other task to complete given by other superiors.
UNITY OF DIRECTION
POSITIVE EFFECT
Interest of group and organization must take place the interest of individual.
When the interest of an individual in another direction, manager must need to
make that compatible with interest of group.
Interest of group cannot be sacrifices for individual interest
POSITIVE EFFECT
There should be a coordination between organizational goal and individual goal.
REMUNERATION OF PERSONS
Wages and salaries paid to an individual must be fair and ensure a reasonable standard
of living
Fair Wage Is Determined By :
POSITIVE EFFECT
The authority to take essential and core decision must be at top level.
The authority to take routine decision must be in the hands of middle level and
lower level management.
POSITIVE EFFECTS
No delay in decisions
No misuse of authority
Fast decisions at operational level and strict control by top level
POSITIVE EFFECT
PRINCIPLE OF ORDER
There should be a place assigned for all physical resources and all human resources
should be at their place.
POSITIVE EFFECT
PRINCIPLE OF EQUITY
POSITIVE EFFECT
Time period for working of an individual must be fixed for a minimum period to
provide job security to him/her.
Frequent transfer should be also be avoided because employee cannot become
efficient in one job in short time, employee need time to settle and learn the job.
POSITIVE EFFECTS
INITIATIVE
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POSITIVE EFFECTS
Every employee should be treated and consider as the part of the organization,
and try to achieve group goal.
Employee must feel themselves as members of organization and contribute their
maximum to achieve team goal
POSITIVE EFFECT
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