MANAGERIAL PRINCIPLES & PRACTICES

Section A

Ques 1 Attempt all 10 Ques. All Ques carry 1 mark each. (Ans in max 05 lines)

Define the following:-

(a) Management
According to Harold Koontz, ―”Management is an art of getting things done through
and with the people in formally organized groups. It is an art of creating an environment in
which people can perform and individuals and can co-operate towards attainment of group
goals”.

(b) Administration
According to Simon, “Administration can be defined as the activities of groups
cooperating to accomplish common goals”. It involves the efficient organisation of people,
information, and other resources to achieve organisational objectives. It refers to the group
of individuals who are in charge of creating and enforcing rules and regulations, or those in
leadership positions who complete important tasks.

(c) Job Analysis 

Job analysis is the process of studying and collecting information relating to the
operations and responsibilities of a specific job. The immediate products of this analysis are
job descriptions and job specifications. It is used to define the duties, responsibilities and
accountabilities of a job. The ultimate purpose of job analysis is to improve organisational
performance and productivity.

(d) Planning
According to KOONTZ, - “Planning is deciding in advance – what to do, when to do &
how to do. It bridges the gap from where we are & where we want to be”. It is the basic
function of management to evolve systematically ways & means for accomplishment of pre-
determined goals by ensuring utilization of human & non-human resources. It is an exercise
in problem solving & decision making.

(e) Controlling
Controlling is the basic managerial function to ensure that right things are done in
the right manner at right time. Controlling is defined as a measurement of actual
performance and expected performance and taking corrective action. Its purpose is to make
sure that actual performance is consistent with plans. It helps managers to monitor the
effectiveness of their planning, their organizing and their directing activities. Controlling has
following steps:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out deviation if any.
d. Corrective action.

(f) Staffing
The main purpose of staffing is to put right man on right job. According to Koontz &
O’Donnell, ― “Managerial function of staffing involves manning the organization structure
through proper and effective selection; appraisal & development of personnel to fill the
roles designed the structure”. Staffing involves: Manpower Planning, Recruitment, selection
& placement, Training & development, Remuneration, Performance appraisal, Promotions &
transfer.

(g) Directing
It is that part of managerial function which actuates the organizational methods to
work efficiently for achievement of organizational purposes. Direction is that inert-
personnel aspect of management which deals directly with influencing, guiding, supervising,
motivating sub-ordinate for the achievement of organizational goals. The elements of
Direction are: Supervision, Motivation, Leadership and Communication.

(h) Organizing
It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational goals.
To organize a business involves determining & providing human and non-human resources
to the organizational structure. Organizing as a process involves:
1. Identification of activities.
2. Classification of grouping of activities.
3. Assignment of duties.
4. Delegation of authority and creation of responsibility.
5. Coordinating authority and responsibility relationships.

(j) Decision Making

Decision Making is the cognitive processes - memory, thinking, evaluation, etc of
mapping the likely consequences of decisions, working out the importance of individual
factors, and choosing the best course of action to take. The thought process of selecting a
logical choice from among the available options. For effective decision making, a person
must be able to forecast the outcome of each option as well, and based on all these items,
determine which option is the best for that particular situation.

(k) Decentralization of Authority

According to Allen ―Decentralization refers to the systematic effort to delegate to
the lowest level of authority except that which can be controlled and exercised at central
points. Decentralization is not the same as delegation but extension of delegation. In
decentralization concern, authority is retained by the top management for taking major
decisions and framing policies concerning the whole concern. Rest of the authority may be
delegated to the middle level and lower level of management.
Ques 2 Attempt any 5 Ques. All Ques carry 2 marks each. (Ans in max 10 lines)
Write short notes.

(a) Concepts of Management

Concept is the idea or image or understanding about things, activity or a person that
emerges in the mind of a person. There are several different concepts about management.
The new concept of management is to build a long term relationship based on
professionalism, communication, integrity and trust. There are the following three basic
concepts of Management:-
(i) Management as a Discipline
Discipline refers to a field of study having well-defined concepts and principles.
When we refer to management as a discipline, we include in it the various relevant
concepts and principles, the knowledge of which aids in managing.

(ii) Management as a Group of People

We refer to management as a group of people in which we include all those
personnel who perform managerial functions in organizations. We refer to two
distinct classes or groups of personnel in the organization. In the first category, we
include all those persons who are responsible for managerial functions and in the
second category, we include non-managerial personnel.

(iii) Management as a process

Management is generally referred to as a process. A process can simply be defined
as systematic method of handling activates. However, the management process can
be treated as a complex one which can be referred to as an identifiable flow of
information through interrelated stages of analysis directed towards the
achievement of an objective or set of objective. Thus, management as a process
includes various activities and sub activities.

(b) SCOPE OF MANAGEMENT

The field of management is very wide. The operational areas of business
management may be classified into the following categories:
(i) Production Management: Production management implies planning, organising,
directing and controlling the production function so as to produce the right goods, in
right quantity, at the right time and at the right cost. It includes the following
activities:
(a) designing the product
(b) location and layout of plant and building
(c) planning and control of factory operations
(d) operation of purchase and storage of materials
(e) repairs and maintenance
(f) inventory cost and quality control
(g) research and development etc.
 (ii) Marketing Management: Marketing management refers to the identification of
consumers needs and supplying them the goods and services which can satisfy these
wants. It involves the following activities:
(a) marketing research to determine the needs and expectation of consumers
(b) planning and developing suitable products
(c) setting appropriate prices
(d) selecting the right channel of distribution, and
(e) promotional activities like advertising and salesmanship to communicate with the
customers
(iii) Financial Management: Financial management seeks to ensure the right amount
and type of funds to business at the right time and at reasonable cost. It comprises
the following activities:
(a) estimating the volume of funds required for both long-term and short-term needs
of business
(b) selecting the appropriate source of funds
(c) raising the required funds at the right time
(d) ensuring proper utilisation and allocation of raised funds so as to maintain safety
and liquidity of funds and the creditworthiness and profitability of business, and
(e) administration of earnings
Thus, financial management involves the planning, organising and controlling of the
financial resources.
(iv) Personnel Management: Personnel management involves planning, organising
and controlling the procurement, development, compensation, maintenance and
integration of human resources of an organisation. It consists of the following
activities:
(a) manpower planning
(b) recruitments,
(c) selection,
(d) training
(e) appraisal,
(f) promotions and transfers,
(g) compensation,
(h) employee welfare services, and
(i) personnel records and research, etc

(c) Administration vs Management

According to Theo Haimann, ―Administration means overall determination of

policies, setting of major objectives, the identification of general purposes and laying down
of broad programmes and projects. It refers to the activities of higher level. It lays down
basic principles of the enterprise.
Whereas, management involves conceiving, initiating and bringing together the various
elements; coordinating, actuating, integrating the diverse organizational components while
sustaining the viability of the organization towards some predetermined goals. In other
words, it is an art of getting things done through & with the people in formally organized
groups
The difference between Management and Administration can be summarized
under 2 categories: -
1. Functions
2. Usage / Applicability
On the Basis of Functions: -

Basis Management Administration

Meaning Management is an art of It is concerned with

getting things formulation
done through others by of broad objectives, plans &
directing their policies.
efforts towards
achievement of
predetermined
goals.

Nature Management is an Administration is a

executing function decisionmaking
function.
Process Management decides who Administration decides
should do it & what is
how should he do it. to be done & when it is to
be
done.
Function Management is a doing Administration is a thinking
function because function because plans &
managers get work done policies are determined
under their under it.
supervision.

On the Basis of Usage: -

Basis Management Administration

Applicability It is applicable to business It is applicable to non-

concerns i.e. profit-making business
organization. concerns i.e. clubs, schools,
hospitals etc.

Influence The management decisions The administration is

are influenced by
influenced by the values, public opinion, govt.
opinions, beliefs & decisions policies,
 of religious organizations,
the managers. customs
etc.

Status Management constitutes Administration represents

the owners
employees of the of the enterprise who earn
organization return on
who are paid remuneration their capital invested &
(in profits in
the form of salaries & the form of dividend.
wages).

Practically, there is no difference between management & administration. Every

manager is concerned with both – administrative management function and operative
management function as shown in the figure. However, the managers who are higher up in
the hierarchy denote more time on administrative function & the lower level denote more
time on directing and controlling worker‘s performance i.e. management.

(d) Financial Incentives

Incentive is an act or promise for greater action. It is also called as a stimulus to
greater action. Incentives are something which are given in addition to wages to accomplish
the goals of a concern. Financial incentives are those incentives which satisfy the
subordinates by providing them rewards in terms of rupees. Money has been recognized as
a chief source of satisfying the needs of people. Money is also helpful to satisfy the social
needs by possessing various material items. Therefore, money not only satisfies
psychological needs but also the security and social needs. Therefore, in many factories,
various wage plans and bonus schemes are introduced to motivate and stimulate the people
to work. Financial incentives may be given for the following reasons:-
1. To increase productivity,
2. To drive or arouse a stimulus work,
3. To enhance commitment in work performance,
4. To psychologically satisfy a person which leads to job satisfaction,
5. To shape the behavior or outlook of subordinate towards work,
6. To inculcate zeal and enthusiasm towards work,
7. To get the maximum of their capabilities so that they are exploited and utilized
maximally.

(e) Functional Foremanship

It is an extension of principle of division of labour, resulting in specialisation.
According to Taylor, a single worker or supervisor cannot be expected to be an expert in all
aspects. Thus, he advocated the appointment of eight foremen to guide workers, under
planning and production departments. Under the planning in charge, there are four
personnel:
(i) Route clerk He is responsible to specify the route of production.
{ii) Instruction card clerk He is responsible to give instructions to the workers.
{iii) Time and cost clerk He is responsible to prepare time and cost sheets.
(iv) Disciplinarian He is responsible to maintain discipline among workers.

Under the production in charge, there are four personnel:

(i)Speed boss He is responsible for timely completion of job.
{ii) Gang-boss He is responsible for keeping machines and tools ready for work.
{iii) Repair boss He is responsible to keep machines and tools in proper working condition.
{iv) Inspector He is responsible to maintain quality of work.

(f) MANAGEMENT AS PROFESSION

That management is an art, science and profession is not merely an academic
question but raises certain issues which are concerned with future development of this
branch of knowledge. Management still remains a developing field, changes are taking place
regularly in its nature, significance and scope. In a modern society, it is occupying an
important position which has brought in new dimensions.
Management fulfils several essentials of profession. But like other professions,
management does not restrict the entry into managerial jobs to people with a special
academic degree. No minimum qualifications have been prescribed for managerial
personnel. Thus, management is, not strictly speaking, a full-fledged profession like
medicine, law or chartered accountancy.
According to Peter F. Drucker, “Management is a practice rather than a science or
profession through containing elements of both. No greater damage could be done to
economy and society than to attempt to professionalise management by licensing managers
or by limiting access to management to people with special academic degree”

(g) Universality of Management

Management is the organizational process that aids us in creating a service or
product from the raw materials we have at hand. Simply stated, the manager’s job is to help
all these processes run smoothly, and to address the roadblocks to successful output.
The principles and concepts of management have universal application. It means
that managerial knowledge may be transferred from one country to another and from one
firm to another within the same country. It means that management is generic in content
and is applicable to all types of organisations. The concept of universality of management is,
therefore, subject to the following two connotations: (a) Management principles can be
successfully applied to different kinds of organisations such as business enterprises, clubs,
hospitals, and so on, (b) Management principles are applicable to, different economic
systems of the world. They have worldwide utility.

(h) Importance of Management

 (i) It helps in Achieving Group Goals – It arranges the factors of production,
assembles and organizes the resources, integrates the resources in effective manner
and directs group efforts towards achievement of predetermined goals.
(ii) Optimum Utilization of Resources – Management utilizes all the physical &
human resources productively. This leads to efficacy in management. Management
provides maximum utilization of scarce resources by selecting its best possible
alternate use in industry from out of various uses.
(iii) Reduces Costs –Management by proper planning and by using physical,
human and financial resources gets maximum output through minimum input. This
helps in cost reduction.
(iv) Establishes Sound Organization – Management fills up various positions with
right persons, having right skills, training and qualification to establish sound
organizational structure for fulfillment of objective of organization.
(v) Establishes Equilibrium – It enables the organization to survive in changing
environment by adapting and coordinating the organization to changing demand. It
is responsible for growth and survival of organization.
(vi) Essentials for Prosperity of Society – Efficient management leads to better
economical production which helps in turn to increase the welfare of people.
Good management increases the profit which is beneficial to business and society
will get maximum output at minimum cost by creating employment opportunities
which generate income in hands.

Section B
Ques 3 Attempt any 3 Ques. All Ques carry 10 marks each. (Ans in max 02
pages)

(a) Nature of Management and How it contributes in Effective

Management The salient features which highlight the nature of management are as
follows:
(i) Management is goal-oriented: Management is not an end in itself. It is a means to
achieve certain goals. Management goals are called group goals or organisational
goals. The basic goal of management is to ensure efficiency and economy in the
utilisation of human, physical and financial resources. The success of management is
measured by the extent to which the established goals one achieved. Thus,
management is purposeful.

(ii) Management is universal: Management is an essential element of every

organised activity irrespective of the size or type of activity. All types of
organisations, e.g., family, club, university, government, army, cricket team or
business, require management. Thus, management is a pervasive activity. The
fundamental principles of management are applicable in all areas of organised effort.
Managers at all levels perform the same basic functions.
 (iii) Management is an Integrative Force: The essence of management lies in the
coordination of individual efforts in to a team. Management reconciles the individual
goals with organisational goals. As unifying force, management creates a whole that
is more than the sum of individual parts. It integrates human and other resources.

(iv) Management is a Social Process: Management is done by people, through

people and for people. It is a social process because it is concerned with
interpersonal relations. Human factor is the most important element in
management.

(v) Management is multidisciplinary: Management has to deal with human

behaviour under dynamic conditions. Therefore, it depends upon wide knowledge
derived from several disciplines like engineering, sociology, psychology, economics,
anthropology, etc. The vast body of knowledge in management draws heavily upon
other fields of study.

(vi) Management is a continuous Process: Management is a dynamic and an on-

going process. The cycle of management continues to operate so long as there is
organised action for the achievement of group goals.

(vii) Management is Intangible: Management is an unseen or invisible force. It

cannot be seen but its presence can be felt everywhere in the form of results.
However, the managers who perform the functions of management are very much
tangible and visible.

(viii) Management is an Art as well as Science: It contains a systematic body of

theoretical knowledge and it also involves the practical application of such
knowledge. Management is also a discipline involving specialised training and an
ethical code arising out of
its social obligations.

On the basis of these characteristics, management may be defined as a continuous

social process involving the coordination of human and material resources in order to
accomplish desired objectives. It involves both the determination and the accomplishment
of organisational goals.

Role of Management Principles in Effective Management

i) To increase Management efficiency: The principles of management have been

developed from experiences of various professional people. These principles provide
guidelines as to how mangers should function in different situations which in turn
increase their efficiency.
 ii) To develop the Science of Management: The principles of management make use
of scientific methods for observation. They have helped to develop the science of
management. In absence of principles of management it would be not have been
possible to develop the organized body of knowledge by management practitioners,
thinker and philosophers.

iii) To train mangers: Management of principles is also needed to train managers. In

the absence of principles the training of mangers depends upon trial and error
methods. Formalized methods of acquiring training are possible only when there
exists a systemized body of specialized knowledge, techniques or principles.

iv) To co-ordinate material and human resources: The principles of management

help to coordinate the material and human resources in order to achieve the desired
goals or common objectives. Without principles of management there would be a lot
of wastage of resources. The principles of management make optimum utilization of
natural resources possible.
v) To improve researches: The principles of management have helped in inverse of
knowledge and carrying out of further research in the field of management. These
have provided new ideas imagination and visions to the organization.

vi) To attain social objectives: Development of management principles have helped

to attain the social goals by increasing efficiency in the use of scarce resources
providing good quality products and services at the lowest

(b) Management as a Science and as an Art and as a Both

Management as a Science
Science is a systematic body of knowledge pertaining to a specific field of study that
contains general facts which explains a phenomenon. It establishes cause and effect
relationship between two or more variables and underlines the principles governing their
relationship. These principles are developed through scientific method of observation and
verification through testing.

Science is characterized by following main features:

1. Universally acceptance principles – Scientific principles represents basic truth

about a particular field of enquiry. These principles may be applied in all situations,
at all time & at all places. Management also contains some fundamental principles
which can be applied universally like the Principle of Unity of Command i.e. one man,
one boss. This principle is applicable to all type of organization – business or non-
business.

2. Experimentation & Observation – Scientific principles are derived through

scientific investigation & researching i.e. they are based on logic. Management
principles are also based on scientific enquiry & observation and not only on the
opinion of Henry Fayol. They have been developed through experiments & practical
experiences of large no. of managers.

3. Cause & Effect Relationship – Principles of science lay down cause and effect
relationship between various variables. Management establishes cause and effect
relationship. E.g. lack of parity (balance) between authority & responsibility will lead
to ineffectiveness. If you know the cause i.e. lack of balance, the effect can be
ascertained easily i.e. in effectiveness.

4. Test of Validity & Predictability – Validity of scientific principles can be tested at

any time or any number of times i.e. they stand the test of time. Management has a
systematic body of knowledge but is inexact since it deals with human beings and it
is very difficult to predict their behaviour accurately. Being a social process, it falls in
the area of social sciences. It is a flexible science & its theories and principles may
produce different results at different times and therefore it is a behaviour science.
Ernest Dale has called it as a Soft Science.

Management as an Art
Art implies application of knowledge & skill to trying about desired results. An art
may be defined as personalized application of general theoretical principles for
achieving best possible results. Art has the following characters –

Practical Knowledge: Every art requires practical knowledge therefore learning of

theory is not sufficient. It is very important to know practical application of
theoretical principles. A manager to be successful must know how to apply various
principles in real situations.

Personal Skill: Management as an art is personalized. Every manager has his own
way of managing things based on his knowledge, experience and personality, that is
why some managers are known as good managers whereas others as bad.

Creativity: Management is creative in nature like any other art. It combines human
and non-human resources in useful way so as to achieve desired results. It tries to
produce sweet music by combining chords in an efficient manner.

Perfection through practice: Managers learn through an art of trial and error initially
but application of management principles over the years makes them perfect in the
job of managing.

Goal-Oriented: Management is directed towards accomplishment of predetermined

goals. Thus, we can say that management is an art therefore it requires application
of certain principles rather it is an art of highest order because it deals with moulding
the attitude and behaviour of people at work towards desired goals.
 Management as both Science and Art
Management is both an art and a science. The above mentioned points clearly reveal
that management combines features of both science as well as art. It is considered
as a science because it has an organized body of knowledge which contains certain
universal truth. It is called an art because managing requires certain skills which are
personal possessions of managers. Science provides the knowledge & art deals with
the application of knowledge and skills.

A manager to be successful in his profession must acquire the knowledge of

science & the art of applying it. Therefore management is a judicious blend of
science as well as an art because it proves the principles and the way these principles
are applied is a matter of art. Science teaches to ‘know ‘and art teaches to ‘do‘. It is
not sufficient for manager to first know the principles but he must also apply them in
solving various managerial problems that is why, science and art are not mutually
exclusive but they are complementary to each other. The old saying that ―
“Manager are Born” has been rejected in favour of – “Managers are made”. It has
been aptly remarked that management is the oldest of art and youngest of science.
To conclude, we can say that science is the root and art is the fruit.

(c) Concept of Management and its Importance in Present Day Context

According to Harold Koontz, ―”Management is an art of getting things done through

and with the people in formally organized groups. It is an art of creating an environment in
which people can perform and individuals and can co-operate towards attainment of group
goals”.
Management is indispensable for the successful functioning of every organisation. It
is all the more important in business enterprises. No business runs in itself, even on
momentum. Every business needs repeated stimulus which can only be provided by
management.

The importance of management has been highlighted clearly in the following points:
(i) Achievement of group goals: Management creates team-work and coordination in the
group. He reconciles the objectives of the group with those of its members so that each one
of them is motivated to make his best contribution towards the accomplishment of group
goals. Managers provide inspiring leadership to keep the members of the group working
hard.

(ii) Optimum utilisation of resources: Managers forecast the need for materials, machinery,
money and manpower. They ensure that the organisation has adequate resources and at
the same time does not have idle resources. They create and maintain an environment
conducive to highest productivity. Managers make sure that workers know their jobs well
and use the most efficient methods of work. They provide training and guidance to
employer’s so that they can make the best use of the available resources.
(iii) Minimisation of cost: Management directs day-to-day operations in such a manner that
all wastage and extravagance are avoided. By reducing costs and improving efficiency,
managers enable an enterprise to be competent to face competitors and earn profits.

(iv) Survival and growth: Management keeps in touch with the existing business
environment and draws its predictions about the trends in future. It takes steps in advance
to meet the challenges of changing environment. Changes in business environment create
risks as well as opportunities. Managers enable the enterprise to minimise the risks and
maximise the benefits of opportunities. In this way, managers facilitate the continuity and
prosperity of business.

(v) Generation of employment: Managers also create such an environment that people
working in enterprise can get job satisfaction and happiness. In this way managers help to
satisfy the economic and social needs of the employees.

(vi) Development of the nation: Efficient management is equally important at the national
level. Management is the most crucial factor in economic and social development. The
development of a country largely depends on the quality of the management of its
resources. Capital investment and import of technical knowhow cannot lead to economic
growth unless wealth producing resources are managed efficiently. By producing wealth,
management increases the national income and the living standards of people. That is why
management is regarded as a key to the economic growth of a country.

(d) Bureaucracy and Principles of Bureaucracy.

Bureaucracy is an administrative system designed to accomplish large-scale

administrative tasks by systematically coordinating the work of many individuals.
Bureaucratic management was promoted by Max Webber (1864-1920), a German
sociologist. According to Webber, bureaucratic management is the most appropriate
administration. It was Weber‘s contention that there are there types of legitimate authority
which run as follows:
Rational legal authority- Obedience is owed to a legally established position or rank within
the hierarchy of a business, military unit, government, and so on.
Traditional authority- People obey a person because he belongs to certain class or occupies
a position traditionally recognized as possessing authority, such as a royal family.
Charismatic authority- Obedience is based on the followers ‘belief that a person has some
special power or appeal.
Weber has given a number of features of bureaucracy. Accordingly, following features
suggest the characteristics of bureaucratic organisations.
1. Administrative Class
2. Hierarchy
3. Division of Work
4. Official Rules
5. Impersonal Relationships
6. Official Record
Principles of Bureaucracy There are the following Principles of Bureaucracy:-
(i) In a bureaucracy, a manager’s formal authority derives from the position he
or she holds in the organization. Authority is the power to hold people accountable
for their actions and to make decisions concerning the use of organizational
resources. Authority gives managers the right to direct and control their
subordinates’ behaviour to achieve organizational goals. In a bureaucracy system of
administration, obedience is owed to a manager because the manager occupies a
position that is associated with a certain level of authority and responsibility.

(ii) In a bureaucracy, people should occupy positions because of their

performance, not because of their social standing or personal contacts.
This principle was not always followed in Weber’s time and is often ignored today.

(iii) The extent of each position’s formal authority and task responsibilities, and
its relationship to other positions in an organization, should be clearly specified.
It ensures managers and workers know what is expected of them and what to
expect from each other. Moreover, an organization can hold all its employees strictly
accountable for their actions when they know their exact responsibilities.

(iv) Authority can be exercised effectively in an organization when positions are

arranged hierarchically, so employees know whom to report to and who reports to
them. Managers must create an organizational hierarchy of authority that makes it
clear who reports to whom and to whom managers and workers should go if
conflicts or problem arise. It is vital that managers at high levels of the hierarchy be
able to hold subordinates accountable for their actions.

(v) Managers must create a well-defined system of rules, standard operating

procedures, and norms so they can effectively control behaviour within an
organization. Rules are formal written instructions that specify actions to be taken
under different circumstances to achieve specific goals.

If bureaucracies are not managed well, however, many problems can result.
Sometimes managers allow rules and SOPs, “bureaucracy red tapes,” to become so
cumbersome that decision making is slow and inefficient and organizations cannot change.
When managers rely too much on rules to solve problems and not enough on their own
skills and judgment, their behaviours becomes inflexible. A key challenge for managers is to
use bureaucracy principles to benefits, rather than harm, an organization.

(e) Scientific Management.

Fredrick Winslow Taylor commonly known as ‟Father of Scientific Management‟
conducted various experiments which forms the basis of scientific management. It implies
application of scientific principles for studying & identifying management problems.
According to Taylor, ―Scientific Management is an art of knowing exactly what you want
your men to do and seeing that they do it in the best and cheapest way‖. In Taylors view, if a
work is analysed scientifically it will be possible to find one best way to do it.

Hence scientific management is a thoughtful, organized, dual approach towards the job of
management against hit or miss or Rule of Thumb.

Principles of Scientific Management.

1. Development of Science for each part of men’s job (replacement of rule of
thumb)
a. This principle suggests that work assigned to any employee should be observed, analysed
with respect to each and every element and part and time involved in it.
b. This means replacement of odd rule of thumb by the use of method of enquiry,
investigation, data collection, analysis and framing of rules.
c. Under scientific management, decisions are made on the basis of facts and by the
application of scientific decisions.

2. Scientific Selection, Training & Development of Workers

a. There should be scientifically designed procedure for the selection of workers.

b. Physical, mental & other requirement should be specified for each and every job.
c. Workers should be selected & trained to make them fit for the job.
d. The management has to provide opportunities for development of workers having better
capabilities.

3. Co-operation between Management & workers or Harmony not discord

a. It is only through co-operation that the goals of the enterprise can be achieved efficiently.
b. managers & workers, employer & employees should be fully harmonized so as to secure
mutually understanding relations between them.

4. Division of Responsibility
a. This principle determines the concrete nature of roles to be played by different level of
managers & workers.
b. The management should assume the responsibility of planning the work whereas workers
should be concerned with execution of task.
c. Thus planning is to be separated from execution.

5. Mental Revolution
a. The workers and managers should have a complete change of outlook towards their
mutual relation and work effort.
b. It requires that management should create suitable working condition and solve all
problems scientifically.
c. Similarly workers should attend their jobs with utmost attention, devotion and
carefulness. They should not waste the resources of enterprise.
6. Maximum Prosperity for Employer & Employees
a. The aim of scientific management is to see maximum prosperity for employer and
employees.
b. It is important only when there is opportunity for each worker to attain his highest
efficiency.
c. Maximum output & optimum utilization of resources will bring higher profits for the
employer & better wages for the workers.
d. There should be maximum output in place of restricted output.
e. Both managers & workers should be paid handsomely.