Principles of management class 12
- 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
- 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.