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1. Chapter 2
Q.1. Explain the concept of management principles and also explain the nature
of management principles.
Ans. A principle means a fundamental statement of basic truth which
establishes a relationship between cause and effect. Principles of
management are general guidelines for decision making and behaviour.
These principles are derived on the basics of observations, so these
principles solue the problem of management in a very systematic manner.
Nature/Feature of Management Principles:
1. General guideline: Principles of management do not provide readymade
solutions of all managerial problems but these principles provide general
guidelines for the decision making
2. Universal Applicability: The management principles are applicable to all
types of organisations and at all the levels. So, these principles are
applicable on business enterprise, non-business enterprise, public sector or
private sector.
3. Formed by Practice and Experimentation: The management principles are
developed only after the deep study and research work. They are not
developed over a night.
4. Flexible: Principles of management are flexible in nature. They can be
adjusted according to the requirement of business.
5. Behavioural in Nature: A management is an art of managing people, it does
not apply on non-living things. So, it influences the complex behaviour of
human beings.
6. Cause and effect Relationship: Management principles establish a
relationship between cause and effect. They tell the managers if a
particular principle is applied in a particular situation. What will be the
effect.
Principle of Division of work shows that if there will be division of work
there will be greater efficiency.
Q2. Discuss the need and importance of management principles.
Ans. 1. Providing useful insight to the managers: Management Principles act a
guideline to the managers. These principles improve knowledge, ability and
understanding of managers.

2. 2. Optimum Utilisation of Resources: Principles of management helps in
the optimum utilisation of resources like man, machine and material.
These principles cut down the wasteful monument and provide safety
of time and energy.
3. Scientific Decision: With the help of principles, logical decisions are
taken by the managers.
4. Accepting changing environment: Principle of management helps the
managers to adopt new changes due be change in political, social and
technological environment.
5. Fulfilling social responsibilities: Management is itself a part of society
and it uses the resources of society. So this is the reason that the
business is responsible to fulfil social responsibilities.
6. Management training, education and research: In the professional
colleges, management principles are taught. So, in this way these
principles act as management training, education and research.
Q3. Discuss the various principles formed by Henry Fayol (Father of
Management).
Ans. Introduction: Henry Fayol was worn in France in 1841. He gets the degree
in Mining Engineering in a coal Mining Company. He formulated 14
principles of management.
1. Division of work: It means specialisation. Each job or work should be
assigned to the specialists of that job. Division of work promotes efficiency.
Fayol suggested the division of work not only at factory but at
management levels as well.
Example: If one person is skilled in computer programming and that person
continues to do that over a period of time, this continuity of computerised
work specialises him in that job and consequently improves his
performance. The aim of this principle is division of whole work into small
segments to get the specialisation.
Positive Effects of principle of Division of Work:
I. Advantages of specialisation are obtained, such as, better quality of work,
increase in the speed of production and less wastage of resources.
II. Increase in the work efficiency of the workers.
III. It results in increase in production and better work.
IV. It reduces work load.
Violating Effects of this Principle:

3. I. The above-mentioned positive effects of specialization will not be
obtained.
II. The work efficiency of workers will be decreased.
III. Chances of duplication of work and that there will be no specialization
2. Principle of Authority and Responsibility: Authority and responsibility go
together. Fayol stressed that rights and power to give orders should be
balanced by the responsibility for performing necessary functions. Authority
without responsibility is meaningless and responsibility without authority
makes the person ineffective
Positive Effects of the Principle of Authority and Responsibility:
I. This principle will help in achieving the target.
II. This principle will help in meeting responsibilities on time without any
delay.
III. This Principle will increase the confidence level of the employees.
IV. No misuse of authority.
Violating Effects of this Principle:
a. Misuse of authority in case more authority is given than required.
b. Difficulty in achieving the target in case less authority is given
than required.
c. Decline in the confidence level of the employees in case authority
is given.
d. In case the desired results are not obtained, the accountability of
the employees cannot be fixed.
Principle of Discipline: According to the principle, discipline is the essence of
obedience, Respect for given authority. It means sincerity about the work. It can
be maintained by reward and punishment.
Positive Effects of the Principle of Discipline:
a. A discipline organization has a better reputation.
b. Systematic working in the organization.
c. increase the efficiency of the employees.
d. help in maintaining better labor management relations.
e. Clear and written rules eliminate causes of suspicion or
misunderstanding.
Violating Effects of this Principle:

4. a. Decline in the reputation of the organization and efficiency of the
employees.
b. An atmosphere of doubt and suspicion will prevail in the
organization.
c. A height of disorder will also prevail in the organization.
d. Delay in work due to the absence of rules and regulations.
4. Unity of Command: According to this principle, every subordinate should get
orders and instructions only from one boss and he should be responsible to the
only boss. If the sub-ordinate gets orders from more than one boss then he will
be confused about where rules and orders he should follow.
Positive effects:
a. No confusion in the minds of subordinates.
b. No disturbance and no chance of conflicts.
Adverse effects of violation:
a. Lock of discipline.
b. Conflicts among superiors
5. Unity of Direction: According to this principle, there should be one head
and one plan for all activities. All the employers and employees working in one
group should have a target. Unity of direction implies that efforts of a group
directed towards common goals.
Positive effects:
a. It brings coordination.
b. Avoid confusion and brings unity of action.
Adverse effects of violation:
a. Wastage of resources
b. Unnecessary duplication of work.
6. Remuneration of employees: According to this principle, remuneration of
employees should be just and fair the rate of wages must be fixed, keeping
in view the nature of work, cost of being, and financial position of the
enterprise.
Positive effects:
a. Good relations between workers and management.
b. Employees get motivated
Adverse effects of violation:
a. Unhealthy relation.

5. b. Increase in labour turnover.
7. Centralisation and decentralization: When all the powers remain in the
hands of top management, then it is called centralization. On the other
hand, if these powers are distributed at different levels, then it is called
decentralisation. According to this principle, there should be a proper
balance between centralisation and decentralisation.
Positive effects:
a. Good control by top-level management.
b. Fast decision.
Adverse effects of violation:
a. Complete centralization, denominate the employees.
b. Complete decentralization, increases carelessness.
8.Scalar Chain: This is a chain of supervisors from the highest to the lowest
rank. At times, it can be short circuited. It says that between every
communication should follow the prescribed route. This is also what the
principle of unity of command implies. But, at times, Fayol felt that
departure from the chain is necessary to make communication fast and
effective. Communication should be short-circuited as far as possible.
For example, if there are A, B, C, D, E, five people and the massage from A
to E is to be communicated, it will move from A to B, then from B to C then
from C to D and finally from D to E. The important condition is that no step
should be overlooked.
Scalar chain
A
B L
C M
D N
E O
F P
G Gang Plank Q

6. Another aspect of this principle is that in case the strict observance of the
scalar chain results in some loss to the organisation, it can be made brief under
special circumstances (or the process can be shortened). In the diagram
employee ‘F’ can have direct contact with employee ‘P’ keeping in view the
importance of the message or conversation and eliminating unnecessary delay
(as indicated by the arrow marks in the diagram). But for doing so employees
‘F’ and ‘P’ shall overstepeek the prior permission of their immediate boss’s ‘E’
and ‘O’. Moreover, the details of their talk also shall have to be given to these
officers. Such type of contact has been explained as Gang Plank by Fayol. Gang
Plank is the shorter route provide to subordinates to communicate with each
other in case of emergency. This eliminates delays in communication. In case,
the prior permission of the immediate bosses has not been obtained the scalar
chain shall have to be followed in accordance with this principle. The aim of this
principle is line of authority to be followed in the organisation.
Positive Effects of Principle Scalar Chain:
a. Systematic flow of information.
b. No communication gap prevails in the organisation.
c. Quick solution of the problem.
d. No confusion of dual order.
e. Unity of command is there.
Violating Effects of this Principle:
a) Unsystematic flow of information.
b) Bitterness in relations on account of ignoring the close superiors.
c) Increase in problem on account of non-availability of desired
information in time.
d) There may communication gap and that no clarity in authority-
responsibility relationship
9. Principle of order (Sequence): According to this principle, right person
should be on the right job and the right thing should be kept on the right place.
In other words, there must be a fix place to keep every material and fix seat for
every employee so no time and energy should be wasted in the search of person
and material.

7. Positive effects:
a. No wastage of time search of men and material.
b. Smooth and systematic working.
Adverse effects of violation
a. Wasteful movements of material and tools.
b. Decreases productivity and efficiency
10. Principle of equity: According to this principle, management should treat all
the sub-ordinates Equally. A manager should not give motive favour to
some to some and neglect the others. He should be fair and impartial and
he should not be partial on the basis of cost and religion.
Positive effects:
a. Good relations between employers and employees.
b. Full satisfaction on the job.
Adverse effects of violation:
a. Employees will not be loyal and devoted.
b. Unhealthy relations.
11. Stability of Tenure (Job security): According to this principle, employees
should not be transferred from their jobs frequently. They should be given
reasonable time to show talent because every person takes some time to
learn and get settled on the job.
Positive effects:
a. Provide a feeling of job security.
b. It increases the efficiency of the employees.
Adverse effects of violation:
a. Increases the cost of recruitment, selection and training.
b. dissatisfaction among employees.
12. Principle of Initiative: According to this principle, sub-ordinates should get
an opportunity to take initiative to carry out the plans of the organisation
because workers and employees have more good ideas for any problem.
Moreover, they feel proud and happy.
Positive effects:
a. Develops feeling of motivation.
b. Achievement of target in time.
Adverse effects of violation:
a. Demonization among employees.
b. Less utilisation of their abilities.

8. 13. Sub-Ordination of Individual Interest to General Interest: According to this
principle, interest of an organisation is bigger than the individual interest
sometimes employees ignore the interest of organisation due to their
personal benefits. This attitude is very harmful for the organisation.
Positive effects:
a. Achievement of goods easily.
b. Feeling of Honesty.
Adverse effects of violation:
I. Disturbance in work
II. Wrong proactive in the organisation.
14. Principle of esprit de Corps (Unity is Strength): This principle states the
importance of team work. It means unity is strength. In this principle,
Henry Fayol suggested that every employees must be considered as an
important part of the team. This principle also develops the feeling of
mutual trust.
Positive effects:
a. Develops team spirit
b. Helpful in achievement of goals.
Adverse effects of violation:
a. Difficult to achieve the objectives
b. Lack of co-operation
Q4. Find out the difference between unity of command and unity of direction.
Ans.
Basis Unity of command Unity of Direction
1.
MEANING
Every employee should
get orders and
instructions only from
one boss.
All the activities having similar
objectives must be completed
under the supervision of one
person
2. AIM Its aim is to avoid
confusion and fix up the
responsibilities
It aims is to direct the effects of
the employees in the same
direction.
3. AFFECTS It is affecting only an It is affecting the entire

9. individual employs organisation
Q5. What do you mean by scientific management and discuss the important
principles of scientific management?
Ans. Scientific management was originated by E.W. Taylor. He was born in
U.S.A. and known as “Father of Scientific Management”
Manning: It means logical approach in place of traditional approach. In other
words, application of new techniques and methods of doing the work in place
of old one is called scientific management. According to F.W. Taylor,
scientific, management means knowing exactly what you want the man to
do and seeing that they do it in the lest and the cheapest way.
Principles: F.W. Taylor has developed the following principles:
1. Science, Not rule of Thumb: According to the principle, Taylor insisted
that each job performed in the organisation should be based on
scientific enquiry and not on the basis of ‘trial and error’ method.
Taylor advocated that traditional rule of Thumb methods should be
replaced by scientific methods.
2. Harmony, Not Discord (Mental Revolution): According to this principle,
Taylor insisted that there should be complete change in the minds of
workers and management workers should realise that they cannot
service without the management and management should realise that
they cannot survive without the help of workers. So, both the groups
should think that their benefit is in the benefit of organisation. This
principle is also known as the ‘Mental Revolution’
3. Co-operation, not-Individualism: According to this principle, work must
be carried on by the co-operation of each other. There must be
mutual trust and understanding between management and workers.
Management should take the workers in full confidence before setting
up any plan.
4. Development of each worker to his greatest efficiency: Industrial
efficiency depends upon the efficiency of workers while workers
depend upon fair selection and proper training. So, Taylor suggested
that workers and employees should be selected with due care and
after selection the work should the given to them according to their
knowledge for maximum efficiency.
Q6. Explain briefly the techniques/elements of scientific management.
Ans. Following are the important techniques of scientific management:

10. 1. Functional Foremanship: According to these techniques, the organisation
should be divided into two departments:
1. Planning Development
2. Production Development.
In this technique, Taylor felt that workers must before from the
burden of mental work and they must concentrate on the production
work. In this technique, the total work is divided into small part and
each part is supervised by an expert. So, this technique is extension of
principle of Division of Labour. Taylor said that a Forman must be
intelligent, educated, energetic and expert but all these qualities
cannot be found in one person. So, he stressed on having minimum 8
experts -4 under planning department and 4 under production
department.
(i) Under Planning Department:
(a) Route Clerk: This foreman fixes up the sequence of steps performing
mechanical job, and tells the route of production.
(b) Instruction card clerk: This Forman is responsible for fiving general
instructions to carry on the job in a specified manner.
(c) Time and cost Clerk: This foreman is responsible to fix up the time
starting and completion of job. He also prepares the cost sheet for
every job.
(d) Disciplinarian: This foreman is responsible for performance of job in
orderly and systematic way.
(ii) Under Production Department:
(a) Gang Boss: He arranges all machines, tools, and other resources for the
job so that there is no delay.
(b) Speed Boss: this foreman assures timely completion of job
(c) Repair Boss: This boss ensures that machines and tools are kept in
working conditions.
(d) Inspector: this boss keeps a check on quality control of the output.
2. Standardisation of work: Taylor suggested that every factor of
production should be standardised either it is raw material or labour or
machine or method of doing work, etc., Standardisation always helps to
reduce the wastage of material and improve quality of work.
3. Simplification of work: Simplification means elimination of unnecessary
variety of products because more various of product require more
machinery, more labour and more cost.

11. For example: Most of the large companies produce one or two special
products like Mercedes, Toyota, Microsoft, etc. are successful in the
market.
4. Methods Study: The objective of method study is to find out the one
best of doing the job. Its main aim, to minimise the cost of production
and maximise the efficiency of manpower.
5. Motion Study: It is a study of movement of workers and machines like
lifting, sitting, holding, turning, changing position, etc. The purpose of
motion study is to avoid wasteful and unnecessary motion at the time
of doing job. In recent time videography can be used to find out wrong
motions of workers.
6. Time Study: This study determinants the standard time taken to
perform a job. In this study a worker of every skill is selected and
another person watches him with the help of stop watch and notes the
time spend on different activities. So, this study decides that how
must time is required to do a particular job.
7. Fatigue Study: It this true that man is an active factor of production
but it is also true that if they do the work continuously, they feel
tired. So, Taylor suggested that there must be rest intervals to regain
the stamina and energy.
8. Differential Piece wage system: Taylor believed that wages paid to the
workers should be according to their efficiency. Less wages should be
paid to inefficient workers and more wages to efficient workers. In this
technique, if a worker produces more than the standard units, he
should be given higher wages but if his output is below the standard,
he should be given lower wages.
Advantages:
a. It motivates the employees.
b. It rewards the efficient employees.
Disadvantages:
a. Quality of work goes down
b. Harmful for the health of workers.