PRINCIPLES OF MANAGEMENT

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.Mr.CharakRay.
ASST.PROFESSOR(FINANCE)
MBA(BHU),ASSOCIATE((III),PGDHI(III)
BCM(BHSE),SENIOR(ST.JA)

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.Mr.CharakRay.

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.Mr.CharakRay.

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.Mr.CharakRay.

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.Mr.CharakRay.

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.Mr.CharakRay.

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.Mr.CharakRay.
Broad and general guideline for decision-
making and behavior developed
on the basis of
Observation and experimentation
As well as
personal experiences of the managers

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.Mr.CharakRay.
Management
Thinkers
Fredrick Winslow Taylor Henri Fayol

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.Mr.CharakRay.
Fredrick Winslow Taylor

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.Mr.CharakRay.
Fredrick Winslow Taylor

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.Mr.CharakRay.
Discarding the traditional approaches to management and
adopting newer and more scientific approaches.
Taylor
contribution
Scientific
principle
Scientific
technique

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.Mr.CharakRay.

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.Mr.CharakRay.
Science not Rule of Thumb
Harmony Not Discord
Cooperation Not Individualism
Development of Each and Every Person to
their Greatest Efficiency and Prosperity

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.Mr.CharakRay.
Thumb rule Scientific management
Seniority basis Performance based

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.Mr.CharakRay.
It involved investigation of traditional methods
through
•Work-study,
and
•Experiments
and develop one best method to maximize
efficiency.
Hit and trial method should be avoided
Sending information by e-mail instead of post
has make the has make the process of
communication fast

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.Mr.CharakRay.
Only one best method to maximize efficiency.
Developed through scientific study and analysis of each
element of a job and should substitute ‘rule of thumb’.
Followed throughout the organisation. Involved
investigation of traditional methods through work-study,
and develop one best method to maximize efficiency
Adopt the best practices to save human energy , wastage
of time and materials
Example :- Sending information by e-mail instead of
post if more effective

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.Mr.CharakRay.
Management
expectations
Workers
expectations
Higher profits
Higher sales
Expansion /growth
Higher salary
Higher promotion
Job security

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.Mr.CharakRay.

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.Mr.CharakRay.
There should be absolute understanding
and harmony between workers and
management.
Management should share the gains of
the company, if any, with the workers
In return workers should work hard

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Absolute understanding and agreement between
workers and management.
Both should realize that each one is important
Management should share the gains of the company
with the workers.
In return workers should work hard with discipline
and loyalty
Prosperity for the employer cannot exist for a long
time unless it is accompanied by prosperity for the
employees and vice versa’

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.Mr.CharakRay.
•Extension of principle of ‘Harmony not
discord.
•Competition should be replaced by
cooperation.
•Management should award workers for
giving valuable suggestion and involves in
decision making
•Workers should avoid making
unreasonable demand and strikes

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Extension of principle of ‘Harmony not discord.
Competition should be replaced by cooperation.
Management should award workers for giving
valuable suggestion and involves in decision making
Workers should avoid making unreasonable demand
and strikes
Employer takes care of the needs of employees, would
prevail as in the case of Japanese companies.

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.Mr.CharakRay.

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.Mr.CharakRay.
•Industrial efficiency depends upon the
efficiency of workers.
•therefore
•Employees with required qualification and
experience should be selected.
•Provide training to the selected employees and
Assign work according to their
physical, mental and intellectual ability
Efficient employees would produce more and earn
more

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.Mr.CharakRay.
Industrial efficiency depends upon the efficiency of workers.
Workers efficiency depends upon proper training and their
selection
Employees with required qualification and experience should
be selected.
Provide training to the selected employees to make them fit and
confident in doing their duties.
Assign work suit her/his physical, mental and intellectual
ability
Efficient employees would produce more and earn more. This
will ensure their greatest efficiency and prosperity for both
company and workers

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.Mr.CharakRay.
Techniques
Functional
Foremanship
Differential Wage
System
Standardization
And Simplification
Work Study
Time Study
Motion Study
Method Study
Fatigue Study

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.Mr.CharakRay.
Technique in which company establishes a standard such
as product dimensions, size, quality and then produces
product on the basis of that standard
1. To establish standards of excellence and quality in
materials.
2. To establish standards of performance of men and
machines

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Standardization refers to the process of setting standards for
every business activity.
Company establishes a standard such as product dimensions,
size, quality and then company produces product on the basis of
that standard
Process of setting standards for every business activity; it can be
standardization of process, raw material, time, product,
machinery, methods or working conditions.
The objectives
Establish standards of quality in materials.
Establish standards of performance of men and machines.
To reduce a given line or product to fixed types, sizes and
characteristics.

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.Mr.CharakRay.
•Aims at removing unnecessary varieties, sizes and
dimensions
1. It results in savings of cost of labor, machines and tools.
2. It implies reduced inventories, fuller utilization of equipment
and increasing turnover

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.Mr.CharakRay.
Aims at removing unnecessary varieties, sizes and
dimensions
Simplification aims at eliminating unnecessary
diversity of products.
It results in savings of cost of labor, machines and
tools.
It implies reduced inventories, fuller utilization of
equipment and increasing turnover.

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.Mr.CharakRay.
Separation of planning and execution functions
which is extended to the lowest level of the shop
floor
1. Promotes division of work at floor level
bring specialization
2. Improving the performance of the foreman

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.Mr.CharakRay.
In planning officer
there are four
foremen exist
In production officer
there are four specialist
bosses exist
Route clerk-: Specify the
route of production
Time and cost clerk: Fix the
time for starting and
completion of job
Disciplinarian: Maintains
discipline
Card and instruction clerk
Issue various instruction to
workers to carry on the job
Gang boss: makes
arrangement of machinery,
material, tools etc.
Speed boss: check the cause
for delay and remove them.
Repair boss: maintains the
machinery and other
equipment.
Inspector: checks the quality
of work

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.Mr.CharakRay.

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.Mr.CharakRay.
Efficient workers are Paid More
at a higher rate when production
rises above the standard.
Less efficient workers are to be
Paid Less when the production
falls below the standard.

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.Mr.CharakRay.
Standard time is fixed for standard amount of
work
Lower rates for those who produce less than
the standard quantity
Minimum wages is not guaranteed

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.Mr.CharakRay.
Work Study
Time Study
Motion
Study
Method
Study
Fatigue
Study

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.Mr.CharakRay.
Improving worker productivity
Calculate wage rate
Finding one best way of doing
the things
Redcuinng wastage
Standard time taken to
perform the task

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.Mr.CharakRay.
•Aimed at standardizing the job
•Minimize the cost of production and maximize the quality
and satisfaction of the customer.
•Process charts and operations research etc are used
•Find out one best way of doing the job out of various
methods

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.Mr.CharakRay.
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 to be eliminated so that it takes less time to
complete the job efficiently
•Possible to find out motions which are productive and
which are unproductive
•Unnecessary movements are can be remove so to
complete the job efficiently
Stopwatches and various symbols and colors

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.Mr.CharakRay.
•Analysis the time taken by each worker to finish a standard
•Determine number of workers to be employed, cost of labor,
make suitable incentive schemes
•Improving the efficiency of workers by creating time
awareness
•Stopwatches

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.Mr.CharakRay.
There should be the proper rest intervals
between two work span
•A person will feel tired physically and
mentally if she/he does not rest while
working
•Help workers to regain stamina and work
again with the same capacity to maximize
production

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.Mr.CharakRay.
Henri Fayol

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.Mr.CharakRay.
Authority And Responsibility
Centralization and decentralization
Discipline
Division Of Work
Equity
Esprit De Cops
Fair Remuneration
Initiative
Order
Scalar Chain
Stability Of Tenure
Subordination Of Individual Interest To Group/General Interest
Unity Of Command
Unity Of Direction
Fayols 14 principals

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.Mr.CharakRay.
Refers to the right of an individual
to command his subordinates.
Is the obligation of a subordinate
to perform the assigned duty

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.Mr.CharakRay.
Authority refers to the right of an individual to
command his subordinates.
Responsibility is the obligation of a subordinate to
perform the assigned duty
Both should go side by side and should be well
balanced.
A manager should have the right to punish a
subordinate for willfully not obeying a legitimate
order but only after sufficient opportunity has been
given to a subordinate for presenting her/his case

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.Mr.CharakRay.
•Decision-making authority is retained by
higher management levels
•Generally exists in smaller organization
•Process of giving authority at lowest level of
management to take decision within their
powers
•Suitable for large organization and complex
organizaiton

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.Mr.CharakRay.
Decision-making authority is retained by higher management
levels
Generally exists in smaller organization
Process of giving authority at lowest level of management to
take decision within their powers
Suitable for large organization and complex organization

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.Mr.CharakRay.
Basis Centralization decentralization
Meaning
Suitable
Autonomy
Decision making power
at higher level
Distributing of power
at the lowest level
Smaller firms Large firm
Managers have less
freedom of action
Managers enjoys more
freedom of action

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Means obedience, respect and performance
of the established rules and standards
Workers and management both honor their
commitments without any injustice towards
one another mention in agreements

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Discipline is the obedience to organizational rules and
employment agreement which are necessary for the working of
the organisation.
Discipline requires good superiors at all levels, clear and fair
agreements and careful application of penalties
That the workers and management both honor their
commitments without any injustice towards one another

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Every task should be divided into small task and assigned
to the right person who is capable of doing that job.
A person doing the same job will over time specialize in
that job.
Sales
purchase
Production

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.Mr.CharakRay.
Every task should be divided into small task and assigned to the
right person who is capable of doing that job.
A person doing the same job will over time specialize in that job
In business work can be performed more efficiently if it is
divided into specialized tasks; each performed by a specialist or
trained employee. This results in efficient and effective output

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.Mr.CharakRay.
Management should always kind, fair, unbiased in its dealing
with its subordinates.
For example: there should be no discrimination with regards
to position, sex, age etc while granting medical leave to the
employees

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.Mr.CharakRay.
Management should be kind, fair and impartial in its
dealing with its subordinates.
Fayol does not rule out use of force sometimes.
For example: there should be no discrimination with
regards to position, sex, age etc while granting medical leave
to the employees

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Esprit de cops” means the spirit of loyalty
and devotion to the group to which one
belongs.
There should be cooperation and teamwork
among the members of an organization.
The manager must always make a regular
effort to maintain harmony and loyalty to
the organization among his subordinates.

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.Mr.CharakRay.
There should be cooperation and teamwork among the
members of an organization.
Management should promote teamwork especially in large
organizations because otherwise Objectives would be difficult
to realize.
A manager should replace ‘I’ with ‘We’ in all his
conversations with workers to encourage team spirit. This
will give rise to a spirit of mutual trust and belongingness
among team members. It will also minimize the need for
using penalties.

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) The employees should be paid fair wages, which
should give them at least a reasonable standard
of living.
It should be within the paying capacity of the
company and capability of the employee.
Decide the most reasonable method of calculating
wages

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.Mr.CharakRay.
The employees should be paid fair wages, which should give
them at least a reasonable standard of living.
It should be within the paying capacity of the company and
capability of the employee.
Organization Decide the most reasonable method of
calculating wages

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.Mr.CharakRay.
Freedom to think and execute a plan.
Powerful motivator of human behavior and a
source of strength for the organisation
Encouraging initiative is likely to motivate
employees to work better and harder.

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.Mr.CharakRay.
Workers should be encouraged to develop and carry out their
plans for improvements
Freedom to think and execute a plan is known as initiative.
But it does not mean going against the established practices of
the company for the sake of being different.
A good company should have an employee suggestion system
whereby initiative/suggestions which result in substantial
cost/time reduction should be rewarded

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.Mr.CharakRay.
Right man to the right job and right
material in the right place.
Employee should occupy that place wherein
he or she can render the best possible
service
.
This would ensure effective utilization of
the available resources in an organization

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.Mr.CharakRay.
People and materials must be in suitable places at
appropriate
Implies right man to the right job and right material in
the right place.
If there is a fixed place for everything and it is present
there, then there will be no hindrance in the activities of
business/ factory

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.Mr.CharakRay.
Chain of superiors ranging from top
management to the lowest rank
There should be a clear line of authority
from top to bottom linking all managers at
all levels

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.Mr.CharakRay.
•Subordinate may contact a superior or his
superior in case of an emergency, disregard the
hierarchy of control.
•However the immediate superiors must be
informed about the matter

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.Mr.CharakRay.

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) • Employees should not be shifted from
their position frequently.
• The period of service should be fixed.
• It takes time for an employee to get
used to his work

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.Mr.CharakRay.
• Goals of the firms are always supreme.
• Employee must put away personal interest and
put company objectives first.

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) •Employee should receive orders from only one
superior.
•If he gets orders from more than one superior at
a time then
• he will be confused as to
•Which superior’s orders should be carried out
first.

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.Mr.CharakRay.
Employee should receive orders from only one superior.
If he gets orders from more than one superior at a time then he
will be confused as to which superior’s orders should be carried
out first.
Dual subordination should be avoided. This is to prevent
confusion regarding tasks to be done

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.Mr.CharakRay.
•There should be “one head and one plan”
for a group of activities.”
•An organization or group having different
plans but
•there should be one common objectives

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.Mr.CharakRay.
There should be “one head and one plan for a group of
activities having the same objective to pursue.”
An organization or group having different plans and more than
one head cannot achieve the desired results.

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.Mr.CharakRay.
Basis Unity of command Unity of direction
Meaning
Nature
Necessity
Advantage
Sub-ordinate should
receive orders &
instructions from only
one boss
One head, one plan for a
group of activities having
similar objectives
Related to the
functioning of
personnel’s.
Related to
organization as a
whole.
Necessary for fixing
responsibility of
each subordinate.
Necessary for sound
organization.
It prevents dual
subordination.
It prevents
overlapping of
activities

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.Mr.CharakRay.
Fredrick Winslow Taylor Henri FayolFocus
To ensure
better
management.

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.Mr.CharakRay.
Fredrick Winslow Taylor Henri FayolEmphasis
At general
management
level

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.Mr.CharakRay.
Unity of
command
Strictly
followed

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.Mr.CharakRay.
Basis of
formation
Personal
experience

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.Mr.CharakRay.
Fredrick Winslow Taylor Henri FayolApplicability
Universal
applicable

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.Mr.CharakRay.
Fredrick Winslow Taylor Henri FayolPersonality
Practitioner

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.Mr.CharakRay.
Fredrick Winslow Taylor Henri FayolExpression
General
theory of
administration

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.Mr.CharakRay.
Basis Taylor Fayol
Focus:
Improve productivity of
workers and reduces all
kinds of wastes.
To ensure better
management
Emphasis:
At shop level with
emphasis on tasks of
workers and supervisors
General management
level with emphasis
on efficiency of
managers and
administration
Expression:
“Scientific
management”
“General theory of
administration
Unity of
command
Worker can take
order from eight
specialized foreman
Strictly followed

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.Mr.CharakRay.
Basis Taylor Fayol
Basis of
formation
Observation and
experimentation
Personal experience
Applicability Specialized condition
Universal applicable
Personality Scientist Practitioner

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.Mr.CharakRay.
Cause and effect relationships
Universal applicability
Based by Human behavior
Involves Flexibility
Contingent
Applicable by Practice and experimentation
Lay General guidelines

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.Mr.CharakRay.
Form a cause and effect relationship and
indicates the effect of certain action.
If Wages are paid on piece-rate system, the
quantity of work will increase, but the quality
will suffer

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Applied to all types of organizations and levels,
business as well as non-business, public sector as
well as private sector, manufacturing as well as
the services sectors.
Top level requires more
planning than middle level

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) •More emphasis is laid on human behavior
•Also the understanding between human and
material resources

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Flexible and can be modified by the
manager when the situation so demands.

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Contingent or dependent upon the prevailing
situation at a particular point of time.

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Formed by experience and collective
knowledge of managers as well as
experimentation.

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Guidelines to decision making but do not provide
readymade solutions to all managerial problems.

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.Mr.CharakRay.
Adapted changing environment requirements
Scientific decisions:
Social responsibility
Administration becomes effective
Managerial growth
Management training, education and research

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.Mr.CharakRay.
General guidelines but they can be modified
and as such help managers to meet changing
requirements of the environment.
Now some companies are outsourcing their
non-core activities to reduce cost
Airtel has started its non-core business
activity like call centre , advertisement
has reduced its cost many times

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.Mr.CharakRay.
Principals are based on logic rather than
blind faith and free from personal bias.
example
Differential wage system
Differentiate between efficient and
inefficient worker has increased the
efficiency or workers

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.Mr.CharakRay.
Has increase the role of business community
towards greater social responsibility
Includes customer satisfaction, care for the
environment, and social welfare
T he Lifebuoy Swasthya
Chetna programme was
started in 2002 as a rural
health and hygiene initiative
in India

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) Resources both human and material available are
limited.
Reduces the chances of trial-and-error method
and their effective utilization
It also Value to the customer, care for
the environment, and dealings with
business associates

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.Mr.CharakRay.
BCM(BHSE),SENIOR(ST.JA) It Increases the knowledge, ability and
understanding of managers in handling
difficult situations
Example
By giving work to
subordinates they can
reduce their burden

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.Mr.CharakRay.
Basis for management training,
education and research.
Example
Professional courses such as MBA
BBA teach these principles as
part of their curriculum

PRINCIPLES OF MANAGEMENT

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