1. Meaning and nature of principles of management
A principle of management is a broad, general guideline for decision-making and behaviour. It differs from a technique (a method for doing a task) and from a value (a moral belief).
Nature (seven features):
- Universal applicability: all organisations, business and non-business, large and small.
- General guidelines: not ready-made solutions; applied with judgement.
- Formed by practice and experimentation.
- Flexible: adapted to the situation.
- Mainly behavioural: aim to influence how people behave.
- Cause and effect relationship: link actions to likely results.
- Contingent: their use depends on the situation.
| Feature | What it means | Imagined example |
|---|---|---|
| Universal applicability | Applies to every kind of organisation | A temple trust and a car maker both divide work |
| General guidelines | Guide action; not ready-made answers | Two managers apply equity differently |
| Formed by practice and experimentation | Grew from managers' experience and tests | A bakery learns from trial batches |
| Flexible | Adapted to the situation | Strict rules in a big plant, looser in a small one |
| Mainly behavioural | Aim to influence people's behaviour | Team spirit in a call centre |
| Cause and effect | Link actions to likely results | Fair pay leads to lower turnover |
| Contingent | Use depends on the situation | More delegation as a firm grows |
Key terms
- Principle of management
A broad, general guideline for decisions and behaviour of managers.
- Contingent
Depending on the situation in which a principle is applied.
2. Significance of principles of management
- Useful insights into reality: managers understand situations better and foresee problems.
- Optimum use of resources and effective administration: less trial and error; impersonal, fair administration.
- Scientific decisions: based on objective reasoning, not bias.
- Meeting a changing environment: flexible principles help firms adapt to new technology and competition.
- Fulfilling social responsibility: for example, fair pay and fair treatment.
- Management training, education and research: principles are the base of management studies.
Key terms
- Impersonal administration
Decisions based on rules and reasoning rather than personal likes and dislikes.
3. Fayol's principles of management
Henri Fayol (French mining engineer and manager; father of general management) gave fourteen principles from the point of view of top management, based on his experience.
- Division of work — specialisation. 2. Authority and responsibility — balance. 3. Discipline — obedience to rules and agreements by both sides; needs good superiors, clear agreements, judicious penalties. 4. Unity of command — one boss per employee. 5. Unity of direction — one head, one plan for activities with one objective. 6. Subordination of individual interest to general interest. 7. Remuneration of employees — fair, within paying capacity. 8. Centralisation and decentralisation — balance. 9. Scalar chain — formal line of authority; gang plank for emergencies, superiors informed. 10. Order — a place for everything and everyone. 11. Equity — kindliness and justice, no discrimination. 12. Stability of tenure of personnel. 13. Initiative — suggestions encouraged. 14. Esprit de corps — team spirit.
| Principle | In one line |
|---|---|
| Division of work | Split work into small tasks; specialisation raises efficiency |
| Authority and responsibility | Keep the two in balance |
| Discipline | Obey rules and agreements; both sides keep them |
| Unity of command | One boss for each employee |
| Unity of direction | One head, one plan for activities with one objective |
| Subordination of individual interest | The organisation's interest comes first |
| Remuneration of employees | Fair pay within the firm's capacity |
| Principle | In one line |
|---|---|
| Centralisation and decentralisation | Find the right balance for the firm |
| Scalar chain | Formal line of authority, top to bottom; gang plank in emergencies |
| Order | A place for everything and everyone, and each in its place |
| Equity | Kindliness and justice; no discrimination |
| Stability of tenure of personnel | Do not move or remove employees too often |
| Initiative | Encourage employees to suggest and carry out improvements |
| Esprit de corps | Team spirit: we, not I |
Key terms
- Dual subordination
An employee receiving orders from two superiors, against unity of command.
- Gang plank
A direct link between two employees at the same level for quick communication in an emergency.
- Esprit de corps
Team spirit and unity among employees.
4. Unity of command and unity of direction
| Basis | Unity of command | Unity of direction |
|---|---|---|
| Meaning | One superior for each employee | One head and one plan for a group of activities with the same objective |
| Aim | Prevent dual subordination | Prevent overlapping; coordination |
| Concerns | Individual employee | Organisation or division |
A firm can follow one and violate the other (see the Patna snack maker in the deck).
| Basis | Unity of command | Unity of direction |
|---|---|---|
| Meaning | One boss for each employee | One head and one plan for a group of activities with one objective |
| Aim | Prevent dual subordination | Prevent overlapping; secure coordination |
| Concerns | The individual employee | The organisation or a division as a whole |
5. Taylor's principles of scientific management
F. W. Taylor (American engineer; father of scientific management) worked through observation and experiments on the shop floor.
- Science, not rule of thumb: study each job to find the one best way.
- Harmony, not discord: end class conflict through a mental revolution; both sides share the gains.
- Cooperation, not individualism: management welcomes workers' suggestions; workers do not strike without reason.
- Development of each and every person to his or her greatest efficiency and prosperity: scientific selection, placement and training.
| Principle of scientific management | Meaning |
|---|---|
| Science, not rule of thumb | Study each job to find the one best way |
| Harmony, not discord | End conflict through a mental revolution; share gains |
| Cooperation, not individualism | Managers and workers work together; workers' suggestions welcomed |
| Development of each and every person | Scientific selection, placement and training for greatest efficiency |
Key terms
- Rule of thumb
Deciding by habit, guesswork or personal judgement instead of study.
- Mental revolution
A change of attitude by management and workers from conflict to cooperation.
6. Techniques of scientific management
- Functional foremanship: planning separated from execution; eight specialists. Planning in-charge: route clerk, instruction card clerk, time and cost clerk, disciplinarian. Production in-charge: speed boss, gang boss, repair boss, inspector.
- Standardisation and simplification of work: fixed standards; removal of unnecessary varieties.
- Method study: the one best way of doing the job.
- Motion study: eliminating needless movements.
- Time study: standard time for a well-defined job.
- Fatigue study: frequency and length of rest intervals.
- Differential piece wage system: a higher rate per piece at or above the standard output, a lower rate below it.
Worked figures (imagined): standard 20 pieces, ₹12 / ₹9 a piece: 24 pieces earn ₹288; 16 pieces earn ₹144; difference ₹144.
| Technique | Question it answers | Imagined example |
|---|---|---|
| Method study | What is the one best way to do the whole job? | Choosing a packing sequence at a dairy |
| Motion study | Which movements can be removed? | Cutting needless hand movements in stitching |
| Time study | What is the standard time for the job? | Four minutes to fit a phone screen |
| Fatigue study | How much rest, and how often? | A break every 90 minutes at a kiln |
| Standardisation | Simplification | |
|---|---|---|
| Meaning | Fixed standards for process, materials, tools, time and quality | Removing unnecessary varieties, sizes and grades |
| Aim | Uniform output, interchangeable parts | Lower cost, fuller use of machines |
| Imagined example | One recipe and weight for every biscuit packet | Cutting tin sizes from fourteen to five |
| Worker | Pieces | Rate applied (₹) | Earnings (₹) |
|---|---|---|---|
| Meena | 33 | 15 (at or above 30) | 495 |
| Tarun | 27 | 12 (below 30) | 324 |
| Tarun, if he made 30 | 30 | 15 | 450 |
Key terms
- Functional foremanship
Supervision by eight specialist foremen, separating planning from production.
- Differential piece wage system
Two piece rates: higher for output at or above the standard, lower below it.
7. Fayol and Taylor compared
Perspective: top management (Fayol) vs shop floor (Taylor). Unity of command: followed (Fayol) vs violated by functional foremanship (Taylor). Applicability: universal vs specialised situations. Basis: personal experience vs observation and experiments. Focus: overall administration vs productivity. Their contributions complement each other.
| Basis | Fayol | Taylor |
|---|---|---|
| Perspective | Top management | Shop floor (supervisory level) |
| Unity of command | Followed strictly | Broken by functional foremanship |
| Applicability | Universal | Specialised situations |
| Basis of ideas | Personal experience | Observation and experiments |
| Focus | Improving overall administration | Raising productivity |
| Known as | Father of general management | Father of scientific management |
Exam tips
Common mistakes
- Writing a short name ("subordination") instead of the full name of a principle.
- Confusing unity of command (one boss) with unity of direction (one head, one plan).
- Saying equity means equal pay.
- Mixing up motion study and time study, or standardisation and simplification.
- Placing the eight foremen under the wrong in-charge.
- In wage sums, applying the higher rate below the standard.
How marks are usually awarded
- 1 mark: the name of the principle, feature or technique.
- 3 marks: three explained points, or principle + quoted line + explanation.
- 4 marks (case): each part asks for an identification and an explanation from the case.
- 5 marks: five points or five bases, each explained.
Cases in SOYL practice are imagined; your board paper will give its own situation. Always quote the line you rely on.