Business Studies I Chapter 2 Principles Of Management

This statement is wrong. Although management can be called science but not as an exact or pure science like Physics or Chemistry.
It is important to apply the characteristics of science to management in order to find out whether management is a science or not. Following are the main points:

(i) Systematised Body of Knowledge: It is necessary for science to be a systematised body of knowledge. Management is also a systematised body of knowledge because it has its own theory and principle which are developed by the management experts after years of research.

(ii) Principles Based on Experiments: After applying this characteristic of science to management, we find that development of management took years for the collection offacts, their analysis and experiments. 

(iii) Universal Validity: Scientific principles are based on truth and they can be applied atevery time and in every situation. Thus, its universal application is possible. In the field of management too, managerial knowledge and principles of management are considered to be based on truth and they, too, can be applied anywhere and in every situation. 

Conclusion: The subject matter of management is 'Human Being' who is an intelligent and sensitive being and whose behaviour or conduct changes according to the changing situations. Therefore, no permanent principles like the principles of physics and chemistry can be enunciated in relation to his conduct or behaviour. Clearly the science of management cannot be called a natural or pure science but it should be described as an Applied Science or  Inexact Science.

(i) Systematised Body of Knowledge: It is necessary for science to be a systematised bodyof knowledge. Management is also a systematised body of knowledge because it has its owntheory and principles which are developed by the management experts after years ofresearch.

(ii) Principles Based on Experimentation: After applying this characteristic of science tomanagement, we find that development of management took years for the collection offacts, their analysis and experiments. In other words, management came into existencebecause of the continuous and encouraging labour of the theorists and various peopleconcerned.

(iii) Universal Validity: Scientific principles are based on truth and they can be applied atevery time and in every situation. Thus, its universal application is possible. In the field of management too, managerial knowledge and principles of management are considered to be based on truth and they, too, can be applied anywhere and in every situation. But the principles of management are not as exact as the principles of science as their application may not yield the desired results always.

Conclusion: The subject matter of management is 'Human Being' who is an intelligent and sensitive being and whose behaviour or conduct changes according to the changing situations. Therefore, no permanent principles like the principles of physics and chemistry can be enunciated in relation to his conduct or behaviour. Clearly the science of management cannot be called a natural or pure science but it should be described as an Applied Science or InexactScience.

Gender biasness.

(i) Gender biasness

(ii) Conservatism

(iii) Effect of male dominating society

(iv) Inequality of rights for same work.

(i) Save electricity

(ii) Reduction in cost

(iii) Protection of environment.

(i) Safety from water and air pollution

(ii) Protection of Environment

(iii) Fulfilling the Social responsibility.

(i) Deprivation of environment from deforestation

(ii) Availability of goods at low cost

(iii) Development of backward areas

(iv) Employment opportunities increase in backward area.

The objective of method study is to find out one best way of doing the job. There are various methods of doing the job. To determine the best way there are several parameters. Right from procurement of raw materials till the final product is delivered to the customer every activity is part of method study.

Taylors principle of management which says, management should not close its ears to any constructive suggestions made by the employees, is Cooperation. There should be complete cooperation between the labour and the management instead of individualism. They should be part of management and, if any important decisions are taken, workers should be taken into confidence.
According to Fayol’s principle of management, Workers should be encouraged to develop and carry out their plans for improvements. It is based upon the principle of initiative. Initiative means taking the first step with self-motivation. It is thinking out and executing the plan. Initiative should be encouraged. A good company should have an employee suggestion system whereby initiative/ suggestions which result in substantial cost/time reduction should be rewarded.

In this case, Fayol’s principle of ‘Espirit de Corps’ can be applied. According to Fayol’s principle of ‘Espirit De Corps’, A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster team spirit. This will give rise to a spirit of mutual trust and belongingness among team members. It will also minimise the need for using penalties. 

In an organisation, there is always a chance for conflict between employer and employee due to class difference. Taylor recognised this and emphasised that there should be complete harmony between the management and workers. To achieve this state, Taylor called for complete mental revolution on the part of both management and workers. It means that management and workers should transform their thinking. Management should share the gains of the company, with the workers and at the same time, workers should work hard and be willing to embrace change for the good of the company.

Taylors principle of management which says, management should not close its ears to any constructive suggestions made by the employees, is Cooperation. There should be complete cooperation between the labour and the management instead of individualism. They should be part of management and, if any important decisions are taken, workers should be taken into confidence.
According to Fayol’s principle of management, Workers should be encouraged to develop and carry out their plans for improvements. It is based upon the principle of initiative. Initiative means taking the first step with self-motivation. It is thinking out and executing the plan. Initiative should be encouraged. A good company should have an employee suggestion system whereby initiative/ suggestions which result in substantial cost/time reduction should be rewarded.

a. The principles of management provide the managers with useful insights into real life situations. The principles add manager’s knowledge, ability and understanding of managerial situations and circumstances which helps them to solve problems quickly and increase managerial efficiency.

b. Management principles help in thoughtful decision-making. They are based on logic rather than blind faith. Management decisions taken on the basis of principles are free from bias and prejudice. They are based on the objective assessment of the situation.

The technique of scientific management that is the extension of ‘principle of division of work and specialisation’ is ‘Functional Foremanship’. Like Fayols ‘Principle of management and specialisation’, F.W.Taylor felt that it was not possible  to get in one man ‘the combination of brain, education, technical skill and other qualities necessary to handle all the requirements of an operating job’. He advocated functional foremanship to supervise workers. Under this system eight persons are involved to direct the activities of the workers. Out of these four people are concerned with planning and they are:
1) Route clerk
2) Instruction card clerk
3) Time and cost clerk
4) Disciplinarian

Other four persons are concerned with doing work, they are:
1) Speed boss
2) Inspector
3) Maintenance foreman and 
4) Gang boss.

Management Principles are guidelines to take decisions or actions while practicing managerial techniques. They are basic truths or guidelines for behavior.

According to F W Taylor, “Scientific Management means setting exactly what you want men to do and seeing that they do it in the best and the cheapest way”. Techniques of scientific management includes:
Method study: The objective of method study is to find out one best way of doing the job. There are various methods of doing the job. To determine the best way there are several parameters. Right from procurement of raw materials till the final product is delivered to the customer every activity is part of method study. Taylor devised the concept of assembly line by using method study.
Motion study: Motion study refers to the study of movements like lifting, putting objects, sitting and changing positions etc., which are undertaken while doing a typical job. Unnecessary movements are sought to be eliminated so that it takes less time to complete the job efficiently.
On close examination of motions, it is possible to find out:
(i) Motions which are productive
(ii) Motions which are incidental
(iii) Motions which are unproductive.
Taylor used stopwatches and various symbols and colours to identify different motions. Through motion studies, Taylor was able to design suitable equipment and tools to educate workers on their use. It helps in saving in time and cost apart from reducing fatigue.

Financial management means efficiently acquiring, allocating and using funds. It is concerned with the investment, financing and dividend distribution decisions. 

(i) Ashutosh Goenka was working on top-level management in the organisation.

(ii) Other three functions performed by Ashutosh Goenka would be:

• formulating all the policies and framing strategies and guidelines for the correct working of such policies.
• coordinating and organising all the departments for smooth working in the organisation.
• setting up common major objectives and goals of organisation for the achievement of such goals. 

Principle of initiative.

By eliminating unnecessary and wasteful movements on the job.

To increase the efficiency of workers.

According to Taylor, mental revolution means a complete transformation in the attitude between management and workers. Both should realize that they need each other.

Unity of Direction

Because these can be modified by the manager when the situation so demands.

Functional Foremanship

To find out ‘one best way’ of doing job.

To determine the standard time required to perform a certain job so as to fix a fair day’s work for the workman.

No, the sales manager is not responsible because he has no authority either to increase the sales expenses or appoint new salesmen.In this case, the principle of ‘Parity of Authority and Responsibility is violated’.
Authority means the right to orders & obtain obedience. There are two types of authority (a) Official authority i.e. authority to command & (b) Personal authority which is the authority of the individual manager. ‘Responsibility’ means an obligation to perform the job assigned on time. Fayol suggested that there must be a balance between authority and responsibility. Giving authority without responsibility may lead to the irresponsible use of authority. So an organization should build safeguards against abuse of managerial power.

Principle of Equity:
The principle of ‘Equity’ emphasizes kindliness and justice in the behaviour of managers towards works. According to Fayol, employees can be made to put in their best only when they are given kind, fair and just treatment.

Unity of Command is being violated in this case.
Consequences of Violation: If an employee gets orders from two superiors at the same time i.e., principle of unity of command is violated.

1. Authority is undermined.
2. Discipline and order is disturbed.
3. Stability is threatened.
4. Conflict among superiors.
5. Loyalty of employee is divided.
6. Employees will remain in confusion regarding whose tasks to be done. He will have option for excuses.

Principle of order is being violated here.

Consequences:

1. Violation of material order leads to wasteful movement of materials & tools.
2. If social order is violated, it may not be easy to contact the needed employee.

1. The principle violated is equity. It advocates that there should be no discrimination against anyone on account of sex, religion, language, caste, belief, and nationality etc. it emphasizes kindliness and justice in the behavior of manager towards their workers to ensure loyalty and devotion.
2. The values which are being ignored are:
   1. Good human behavior because ‘Salman had the habit of backbiting and     wrong reporting about his colleagues to impress his boss.’
   2. Gender equality because ‘their boss decided to promote Salman stating that being a female Nikita will not be able to handle the complication of higher
      post.’

Unity of Command:

1. There should be one and only one boss for every individual employee.
2. If an employee gets order from two superior at the same time, the principle is violated.
3. Consequences of violation: authority is undermined, discipline is in jeopardy, order is disturbed, and stability is threatened.

Order:

1. People and material must be in suitable places at an appropriate time for maximum efficiency.
2. It means ‘a place for everything (everyone) and everything (everyone) in its (his/her) place' i.e. orderliness.

Benefits of the principle: no hindrance in the activities of business, increased productivity and efficiency.

The principle is authority and responsibility. No, the production manager cannot blame the foreman because he did not give him the authority to requisition tools and material from the stores department since he has no authority, he cannot fulfil his responsibility.

1. The principle of Taylor described in the above para is cooperation, not individualism. It states that there should be complete cooperation between workers and the management. Competition should be replaced by cooperation.
2. Values which the company wants to communicate with society; (a) Good behavior in human interaction, (b) Concern for the environment.

Nature of management principles is described as follows:

1. Universal Applicability: The principles of management are applicable to all types of organizations irrespective of their size and nature.
2. General Guidelines: They are only guidelines for action and don’t provide direct or readymade solution for a managerial problem.
3. Formed by practice and experimentation: The principles of management have been developed through experimentation as well as experience and wisdom of managers.
4. Flexible: The principles of management are not rigid prescriptions, which have to be followed absolutely. They are flexible and can be modified by the manager when the situation so demands.
5. Mainly behavioral: They are mainly behavioral in nature since they are devised to influence human behaviour.
6. Cause and effect relationship: The principles of management establishes relationship between cause and effect. They guide us as to what would be the effect if a particular principle were to be applied in a given situation.
7. Contingent: The use of principles of management is contingent or dependent upon
   the prevailing conditions at a particular point of time.

The importance of management principles can be understood by considering the following
points:

1. Provide useful insights to manage: Principles of management help in increasing
   managerial efficiency by adding to their knowledge and ability to understand the
   various situations more objectively.
2. Optimum Utilization of Resources and effective administration: Management principles help in organizing various activities in such a way that results in an elimination of unwanted activities and consequent wastage. Management principles help in managing organizations effectively. For example, Unity of Command helps to avoid confusion and conflicts Unity of direction ensures unity of actions to facilitate coordination.
3. Scientific decisions: They help the managers in taking the decisions based on the objective assessment of a situation. Thus decisions taken are logical and free from any bias and prejudice.
4. Meeting changing environment requirements: Though the principles are only guidelines for action yet they can be modified according to the need of changing situations. Thus principles of management help in meeting changing requirements of the environment.
5. Fulfilling social responsibilities: Principles of management have been devised in such a way that they help in fulfilling social responsibilities.
6. Management training, education and research: Principles of management are the fulcrum of management theory so that they are used as a basis for management
   training, education and research.

The technique of scientific management has helped in improving the productivity of the workers in the following manners.

1. It establishes better relations between labour and management.
2. Profit is increased many times due to effective integration of right men, materials,
   money and method.
3. The use of standardized raw materials, equipments, machines and method produce standard article at minimum possible price.
4. It enables the management to reduce the cost of production.
5. It helps in providing better working condition and higher standard of living.

1. The company is lacking ‘coordination’. Its different department like production, marketing, etc. do not coordinate this wok in absence of coordination; these will be overlapping and chaos instead of harmony and integration of activities. The company will fail to achieve its objectives.
2. Subordinate of individual interest to general interest.
3. Values - Mutual cooperation, unity of action, optimum utilization of resources.