VISHWAAS
For 12TH COMMERCE
PRINCIPLES OF
MANAGEMENT
DISHA MA’AM
Principles of Management
▪ A managerial principle is a broad and
general guideline for decision making and
behaviour.
▪ Management principles are not as rigid as
principles of pure science.
Whom to give
Promotion?
Nature of Principles of Management
1. Universal applicability:
2. General guidelines:
3. Formed by practice and experimentation:
4. Flexible:
5. Mainly behavioural:
6. Cause and effect relationships:
7. Contingent:
Significance of Principles of Management
1. Providing managers with useful insights into reality:
2. Optimum utilisation of resources and effective
administration:
3. Scientific decisions:
4. Meeting changing environment requirements:
5. Effective Administration:
6. Fulfilling social responsibility:
7. Management Training, Education and Research:
Fayol’s Principles of Management
• Henri Fayol (1841-1925) was a French
management theorist whose theories concerning
scientific organisation of labour were widely
influential in the beginning of twentieth century.
• For his contribution he is also known as the
‘Father of General Management’
14 Principles of Management
1. Division of Work
14 Principles of Management
2. Authority and Responsibility:
14 Principles of Management
3. Discipline:
Fayol insists that discipline is required at superior as well as
subordinate level
14 Principles of Management
4. Unity of Command:
14 Principles of Management
Slow down the production, we need to Increase the production, we need to
maintain the quality increase the supply in the market
14 Principles of Management
5. Unity of Direction:
14 Principles of Management
6. Subordination of Individual Interest to General Interest:
14 Principles of Management
7. Remuneration of Employees:
14 Principles of Management
8. Centralisation and Decentralisation:
14 Principles of Management
9. Scalar Chain:
• The formal lines of authority from highest to lowest ranks are known as scalar
chain.
14 Principles of Management
Fayol’s Scalar Chain
14 Principles of Management
10. Order:
14 Principles of Management
11. Equity:
14 Principles of Management
12. Stability of Personnel:
14 Principles of Management
13. Initiative:
14 Principles of Management
14. Esprit De Corps:
Taylor’s Scientific Management
• Fredrick Winslow Taylor (March 20,1856 – March 21, 1915)
was an American mechanical engineer who sought to improve
industrial efficiency
• Taylor thought that by scientifically analysing work, it would
be possible to find ‘one best way’ to do it
• He is known for coinage of the term ‘Scientific Management’
in his article ‘The Principles of Scientific Management’
published in 1911.
Principles of Scientific Management
1. Science Not Rule of Thumb:
Principles of Scientific Management
2. Harmony, Not Discord:
Principles of Scientific Management
3. Cooperation, Not Individualism:
Principles of Scientific Management
4. Development of Each and Every Person to His or Her Greatest Efficiency and
Prosperity:
Functional Foremanship
• Functional foremanship is an extension of the principle of
division of work and specialisation to the shop floor take orders
from these eight foremen in the related process or function of
production
Functional Foremanship
Standardisation and Simplification of Work
Method Study
• The objective of method study is to find out
one best way of doing the job
• For this purpose many techniques like process
charts and operations research etc are used.
Motion Study
Motions
Productive Incidental Unproductive
Motion Study
• For example, Taylor and his associate Frank
Gilberth were able to reduce motions in brick
layering from 18 to just 5.
• Taylor demonstrated that productivity
increased to about four times by this process
Time Study
Fatigue Study
Differential Piece Wage System
Case Study
Vijay works as a Plant Superintendent in a shoe manufacturing
company. Due to increase in demand the sales manager
insisted the workers to faster the production, the production
manager asked the workers to work overtime instead of
increasing the speed to maintain the quality of production.
Whereas the finance manager is strictly against this practice of
overtime. Because it will increase the cost of production.
Identify and explain the principle of management violated
in the above case
THANK- YOU
