This document discusses several key principles of management. It begins by explaining the meaning and nature of principles of management, noting that they are general guidelines derived from experimentation and observation that can guide managerial decisions. It then outlines several principles, including their universal application, flexibility, role in optimal resource utilization, and ability to adapt to changing environments. The document also summarizes Taylor's scientific management approach and its emphasis on standards, harmony, and worker efficiency. It discusses Fayol's 14 principles of management and the importance of mental revolution among managers and workers for successful implementation of scientific principles.

1. CHAPTER 2
PRINCIPLES OF MANAGEMENT

2. Meaning of POM
• Moral Rules
• Standards of good behavior
• Principles of management are general
guidelines which can be used under certain
situations.
• The principles are broad statement of
fundamental truth which provide guide lines
for management decision and action. These
guidelines are derived through
experimentation and observation

3. NATURE/FEATURES OF POM
(8MARKS)
1. Universal application - can be applied to
all kind of organisations, irrespective of their size and nature.
2. General guidelines – rules & instructions as per situations
3. Formed by practice and experimentation – obtained through
experimentation and Observation.
4. Flexible - principles are not rigid like science but are modified
according to the business environment needs.
5. Provides managers with useful insights into reality -through
improved knowledge, ability, understanding and improved guidance to
the managers.
6.Optimum utilisation of resources - and effective administration
through coordinated use of physical, financial and human resources.
7.Scientific decision - they lend to be more realistic, thoughtful,
justifiable and free from personal bias.
8. Meet the changing environmental requirements -by providing
effective and dynamic leadership in implementing changes.

4. SIGNIFICANCE / IMPORTANCE OF POM
• Provides managers with useful insights into reality -through
improved knowledge, ability, understanding and improved guidance to
the managers.
• Optimum utilisation of resources - and effective administration
through coordinated use of physical, financial and human resources.
• Scientific decision - they lend to be more realistic, thoughtful,
justifiable and free from personal bias.
• Meet the changing environmental requirements -by providing
effective and dynamic leadership in implementing changes.
• Meeting changing environment requirements: Although the
principles are in the nature of general guidelines but they are modified
and as such help managers to meet changing requirements of the
environment.
• Fulfilling social responsibility:
• Management training, education and research- Principles of
management are at the core of management theory. As such these are
used as a basis for management training, education and research

5. Fw taylor’s scientific manAGEment
• (March 20, 1856 – March 21, 1915) was an
American mechanical engineer.
• Published – Principles of Management in
1911
• He introduced PIECE RATE WAGE SYSTEM.
• He is called – “FATHER OF SCIENTIFIC
MANAGEMENT”

6. Principles of Scientific Management
1.Science not rule of thumb -
There should be scientific study and analysis instead
of Hit & Miss approach Encourage “thinking before doing”.
2. Harmony not discord -
There should be complete harmony and proper
understanding between management and workers
3. Cooperation not individualism -
cooperative group effort between the management
and workers in
achieving the organization's goals and not
individualism.
4. Development of workers to their greatest
efficiency and prosperity:
The management should scientifically select the
workers; assign job as per their physical, mental and
intellectual capability and potential; and train them as
per the job requirement.

7. Meaning of scientific management
• Meaning: Conduct of business activities
according to standardized tools, methods
and trained personal so as to have increased
output through effective and optimum
utilization of resources. Hence it stresses
that there is always one best way of doing
things

8. Techniques of scientific management
I. FUNCTIONAL FOREMANSHIP
II. STANDARDIZATION & SIMPLIFICATION OF
WORK
III. WORK STUDY
IV. DIFFERENTIAL PIECE WAGE SYSTEM

9. Techniques of scientific management
I. Functional Foremanship
Taylor says the performance of Supervisor
should be improved.
A good supervisor should have 8 qualities
Intelligence, Education, Tact, Judgment,
Energy, Honesty, & Good Health
• A Single worker cant be an expert in all
aspects, Each worker will have to take orders
from eight foremen
• Taylor says planning function & execution
function should be separated
Foreman- Skilled & experienced person in
charge & Observes and work with gang.

10. I.FUNCTIONAL
FOREMANSHIP
PLANNING INCHARGE PRODUCTION INCHARGE – to get the
work done as per the plan
Instruction card clerk- to Prepare set
of instructions for workers.
Speed Boss – to ensure work is
completed on time and without error.
Route Clerk- he prepares route for the
job, today’s job and where it is done.
Gang Boss- to keep the machines &
tools ready for operations
Time & Cost Clerk- to prepare a time
table & cost of production
Repair Boss- to ensure all machines &
tools are in good conditions
Disciplinarian- job is to ensure
discipline among workers
Inspector- ensures work is done as per
quality

11. Functional foremanship

12. ii. Standardisation and simplification of work
• •Process of setting standards for every
business activity to maximise output.
• •Simplification is eliminating unnecessary
varieties, sizes and grades of product
manufactured in the organisation.
• To produce product in same size, features,
quantity.
• To maintain quality & excellence
• To set up standard in men
• & machinery

13. III.WORK STUDY
• Tool of management to analyze & study a job
• Types-
Method
study
Finding one best way of doing a job.
Stages of production- Consumption
Motion
Study
Making a analysis of various motions being
performed by a worker while doing a
particular task. Ex- lifting, sitting, changing
objects
•Eliminate the unproductive movements and
equipments
Time
Study
It is the technique used to determine the standard
time taken by the workman with reasonable skill
and
ability to perform a particular task.
Fatigue
Study
The amount of rest taken by a worker while
completing a task

14. IV. DIFFERENTIAL PIECE WAGE SYSTEM
• efficient and inefficient workers are paid at
different rates
• Taylor suggested two types of wages-
Higher Wages- If standard is met (efficient
workers)
Lower Wages- If standard is not met (in-
efficient workers)

15. HENRY FAYOL
• 1841-1925
• Mining Engineer & Management Theorist
• French National
• Book – General & Industrial Management in
1917- published in 1949
• FATHER OF GENERAL MANAGEMENT
• He identified 4 functions – Planning,
Organizing, Directing & Controlling
• He defined the 14 Principles Of
Management

16. FAYOL’S PRINCIPLES OF MANAGEMENT
1. Division of labour - work could be divided
into small specialised task and performed by a
trained specialist
2. Authority and responsibility - there must be a
right balance between both
• authority-(right to give orders) and
• responsibility -(duty to perform the assigned
task).
3. Discipline –following the rules & regulations
of the business
4. Unity of command - receive orders from one
boss.
5. Unity of Direction - all the units of the
organisation should aim and move towards
achieving the organisational goal.

17. POM – Continued (14)
6. Subordination of individual interest to general interest
the organisation interest is more important than individual
interest.
7. Remuneration – salary & pay should be fair and satisfying
to both employee and the organisation
8. Centralisation and decentralisation –
there should be a balance between both
centralisation –power in hands of one.
decentralisation –power in hands of many.
9. Scalar chain – orders or communication
should pass from top to bottom and follow
official line of command.
GANG PLANK- shorter route for
communicating with same level
of employees

18. POM continued (14)
10. Orders - A place for everything/ everyone and every
one in its place
11. Equality - kindness, empathy and justice in the
behaviour of manager towards workers.
12. Tenure stability - frequent displacement of
employee from their position should be avoided. They
should be given sufficient time to show their results
13. Initiative - Employees to be encouraged to
develop and carry out their improvement plans
14. Espirit de corps - need for team work, spirit and
harmony.

20. MENTAL REVOLUTION
• Mental Revolution is a change in thinking
both on the part of management and
workers. Success of implementation of
scientific management depends on
the mental revolution of management and
workers both as to their duty to cooperate
in producing the largest possible surplus
and to the necesssity.