Chapter2: PRINCIPLES OF MANAGEMENT.

This chapter contains following topics:

1. Introduction and Concept.
2. Nature of Principles of Management.
3. Significance of Principles of Management.
4. Taylor’s Scientific Management.
5. Techniques of Scientific Management.
6. Fayol's Principles of Management.
7. Fayol vs Taylor.
INTRODUCTION:
Principles serve as a broad guidelines and/ or general framework for stating the vision as well the
ways and means to achieve it (mission). There is a long history of management thought. The
principles of management have evolved over a period of time and are still in the process of
evolution.
Heer in this chapter we are concerned with the contributions of F W Taylor who was an
American mechanical engineer and gave the Principles of Scientific Management while Henri
Fayol was a French mining engineer who gave General/Administrative Principles of
Management.
CONCEPT:
Managerial principles are broad guidelines or general framework for decision making and
behaviour, for example, in promotion either merit or seniority may be the criterion. These
principles of management are not as rigid as the principles of science mainly due to the fact it
deals with human beings who come from varied backgrounds with different expectations. And as
such these need to be applied creatively given the demand of the situation.
Human behaviour and technology are never static and both affect business. Hence all principles
need to keep pace with the changing times , for example IT has increased the span of
management, i.e., the number of subordinates a manager can effectively handle.
Here it’s pertinent to note that there is lot of difference between principles, techniques, and
values. While by now we know what is meant by principles of management, its techniques are
procedures or methods to complete a work whereas values are general rules of behavior of
individuals which have moral connotations.
EVOLUTION OF MANAGEMENT PRINCIPLES.

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The various schools of management thought may be divided into six distinctive categories
namely,
1. Early Perspective.
2. Classical Management Theory.
3. Neo- Classical Management Theory – Human Relations Approach.
4. Behavioural Science Approach – Organisational Humanism.
5. Management Science/ Operation Research Approach.
6. Modern Management.
You are required to go through the details in the book to grasp these points in their entirety.

NATIRE OF PRINCIPLES OF MANAGEMENT:

Nature means qualities/ features/ characteristics of anything. Derivations of management
principles may be said to be a matter of science and their creative applications may be regarded
as an art. Management principles have gained importance with increasing professionalization of
management.
These management principles are guidelines to actions. These denote a cause and effect
relationship. While the functions of management are actions to be taken when practicing
management the principles of management help managers to take decisions when performing
these functions.
These principles of management have following characteristics:
A. Universal Applicability.
B. General Guidelines/ Broad Framework.
C. Formed by Practice and Implementation.
D. Flexible.
E. Mainly Behavioral.
F. Cause and Effect Relationship.
G. Contingent.
You are required to go through the book to grasp these points in their entirety.
These principles of management have to be changed as per the given situations/requirements.
They are contingent or dependent upon the prevailing/emerging situation at a given point of time.

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The cause and effect relationships help establish principles so that they can be applied in similar
situations on a larger scale.
SIGNIFICANCE OF PRINCIPLES OF MANAGEMENT:
The principles of management are significant due to the following reasons:
A. Providing managers with useful insights into reality.
B. Optimum utilization of resources and effective implementation.
C. Scientific decisions.
D. Meeting changing environment requirements.
E. Fulfilling social responsibility.
You are required to go through the book to grasp these points in their entirety.
TAYLOR’S SCIENTIFIC MANAGEMENT:
F W Taylor was one of the intellectual leaders of “Efficiency Movement” and was highly
influential in reshaping the factory system of production through many study that he conducted
on the shop floor. He thought that by scientifically analysing work, it would be possible to find
“one best way” to do it.
Taylor broke a job into its component parts and measured each to the second and is most
remembered for his Time and Motion Study.
Principles of Scientific Management.
In absence of principles, the managers relied on personal judgement in attending to the problems
they confronted/ faced in the course of managing their work. This is called “the rule of thumb”.
Taylor emerges as the “Father of Scientific Management” as opposed to the rule of thumb. It
meant knowing exactly what you want to do and seeing that it is done in the best and cheapest
way. The principles of Scientific Management are as follows:
A. Science, not Rule of Thumb.
B. Harmony, not Discord.
C. Cooperation, not Individualism.
D. Development of each and every person to his/her greatest efficiency and prosperity.
Go through the contents of the book to grasp these in their entirety.
TECHNIQUES OF S IENTIFIC MANAGEMENT:

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The techniques of Scientific Management are based on various experiments Taylor conducted
during his career. All of them are to act as a tool for increasing output or productivity. The
following techniques of the Scientific Management deal with different aspects:
A. Functional Foremanship.
B. Standardisation and Simplification.
C. Method Study.
D. Motion Study.
E. Time Study.
F. Differential Piece Wage Rate System.
G. Fatigue Study.
H. Mental Revolution.
You are required to go through the book to grasp these in their entirety.
FAYOL'S PRINCIPLES OF MANAGEMENT:
Henri Fayol explained what amounts to a manager's work and what principles should be
followed while performing his/her functions. In the factory system the workers' efficiency was
important but so was the managerial efficiency .
His principles deal with the organisation of production in the context of a competitive enterprise
which needs to control its production cost. Fayol was the first who identified four functions of
management, namely planning, organising, directing and controlling. However, his version was
different—plan, organise, command, coordinate and control.
Fayol divided activities of an industrial undertaking in the following manner – technical,
commercial, financial, security, accounting and managerial. Fayol also suggested the qualities of
a good manager – physical, moral, education, knowledge and experience. For his contribution
Fayol is also known as the “Father of General Management”.
The fourteen principles given by him are as follows:
A. Division of Work.
B. Authority and Responsibility.
C. Discipline.
D. Unity of Command.
E. Unity of Direction.

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F. Subordination of Individual Interest to Group Interest.
G. Remuneration of Employees.
H. Centralization and Decentralization.
I. Scalar Chain.
J. Order.
K. Equity.
L. Stability of Personnel.
M. Initiative.
N. Espirit de corps.
FAYOL & TAYLOR: A COMPARISON.
S. No. Base Fayol Taylor
1. Perspective: Top level of management. Shop floor of factory.
2. Unity of command Staunch proponent Functional foremanship.
3. Applicability Applicable universally. Applicable in specialised situation.
4. Basis of formation. Personal experience. Observation and experimentation.
5. Focus Improving overall administration. Increasing productivity.
6. Personality Practitioner. Scientist
7. Expression General theory of administration. Scientific management.

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