Class 12 Business Studies - Chapter Principles of Management NCERT Solutions | Critically analyze Fayol's 14 Princi
Critically analyze Fayol's 14 Principles of Management and their application in contemporary organizations.
Henri Fayol's 14 principles of management laid the foundation for modern-day management practices, and they continue to be influential in today's business world. These principles address both the operational and human aspects of management, aiming for efficiency and harmony within organizations. Here is an analysis of some of the key principles, along with their relevance and application in contemporary organizations:
- Division of Work: Fayol’s principle of division of work suggests that specialization leads to increased efficiency and productivity. When work is divided among employees according to their skills, it not only reduces time wastage but also increases their expertise in particular tasks. In contemporary organizations, this principle is applied through departmentalization, where tasks are grouped, and experts are assigned specific roles. For instance, in large multinational corporations, departments like HR, marketing, finance, and IT have specialists in each field, ensuring a smooth workflow.
- Authority and Responsibility: According to Fayol, there must be a balance between authority (the right to give orders) and responsibility (the obligation to complete tasks). In modern organizations, this principle manifests in role clarity and delegation, ensuring that individuals who hold authority are accountable for their actions. Clear job descriptions, reporting structures, and accountability mechanisms ensure that managers and employees know their responsibilities, which helps in maintaining discipline and achieving organizational objectives.
- Unity of Command: Fayol’s principle of unity of command emphasizes that an employee should receive orders from only one superior to avoid confusion and conflicting instructions. This principle remains highly relevant in hierarchical organizations, where reporting to multiple managers can lead to miscommunication and inefficiency. However, modern matrix structures, often found in tech and consulting firms, challenge this principle by having employees report to multiple managers, which, while efficient in terms of project management, can create complexities in command structures.
- Scalar Chain: The scalar chain refers to a clear line of authority within the organization, moving from top to bottom. Fayol suggested this hierarchy to ensure clear communication. Today, organizations have adopted a more flexible approach, with flatter structures and faster communication channels, including emails, intranets, and digital tools like Slack. The modern concept of “gang plank,” where peers communicate directly in emergencies, aligns with Fayol's idea of breaking the scalar chain when necessary to expedite decision-making.
- Equity: Fayol's equity principle, which emphasizes fairness and equal treatment for all employees, has gained significant importance in modern HR practices. Organizations today are focused on promoting diversity and inclusion, ensuring that employees are treated without discrimination based on gender, race, or other factors. For example, global companies often have policies supporting equal pay for equal work and are actively working toward creating a diverse workforce. Equity is now not just a management principle but also a legal and ethical obligation.
- Esprit de Corps: Fayol advocated for team spirit and unity within the workforce, stressing that management should foster camaraderie and mutual trust among employees. This principle is reflected in contemporary organizations that prioritize team-building activities, employee engagement programs, and collaborative work environments. With the rise of remote work and hybrid teams, fostering “esprit de corps” has become more challenging, yet it remains crucial for organizational success.
- Order: Fayol’s principle of order insists on having the right person in the right job and ensuring that resources are appropriately allocated. This principle underpins modern inventory and human resource management systems, where companies use sophisticated software to optimize inventory levels, staff placement, and workflow efficiency. Today’s lean management practices and just-in-time (JIT) inventory systems reflect the importance of order in minimizing waste and maximizing productivity.
- Subordination of Individual Interest to General Interest: This principle stresses that the organization’s goals should take precedence over personal interests. In today’s corporate culture, this principle is evident in the concept of corporate loyalty and the alignment of individual goals with organizational objectives. Employee performance reviews, goal-setting systems like OKRs (Objectives and Key Results), and incentive programs are used to align personal and organizational goals, ensuring that employees work towards the collective success of the organization.
More Questions From Class 12 Business Studies - Chapter Principles of Management
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Define scientific management. State any three of its principles.
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Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.
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‘Bhasin’ limited was engaged in the business of food processing and selling its products under a popular brand. Lately the business was expanding due to good quality and reasonable prices. Also with more people working the market for processed food was increasing. New players were also coming to cash in on the new trend. In order to keep its market share in the short run the company directed its existing workforce to work overtime. But this resulted in many problems. Due to increased pressure of work the efficiency of the workers declined. Sometimes the subordinates had to work for more than one superior resulting in declining efficiency. The divisions that were previously working on one product were also made to work on two or more products. This resulted in a lot of overlapping and wastage. The workers were becoming indisciplined. The spirit of teamwork, which had characterized the company, previously was beginning to wane. Workers were feeling cheated and initiative was declining. The quality of the products was beginning to decline and market share was on the verge of decrease. Actually the company had implemented changes without creating the required infrastructure.
a. Identify the Principles of Management (out of 14 given by Henry Fayol) that were being violated by the company.
b. Explain these principles in brief.
c. What steps should the company management take in relation to the above principles to restore the company to its past glory? - Q:-
State the main objective of time study.
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Explain the principle of ‘Scalar Chain’ and gang plank.
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Discuss the following techniques of Scientific Work Study:
a. Time Study
b. Motion Study
c. Fatigue Study
d. Method Study
e. Simplification and standardisation of work - Q:-
A production manager at top level in a reputed corporate, Mr. Rathore holds the responsibility for ordering raw material for the firm. While deciding on the supplier for the financial year 2017-18, he gave the order to his cousin at a higher price per unit instead of the firm’s usual supplier who was willing to lower the rates for the order. Which principle of management was violated by Mr. Rathore? What are the positive impacts of following the above identified principle?
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Explain the technique of ‘Functional Foremanship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.
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(Further information related to the above question 6) The management of company Bhasin Limited now realised its folly. In order to rectify the situation it appointed a management consultant -Mukti Consultants - to recommend a restructure plan to bring the company back on the rails. Mukti Consultants undertook a study of the production process at the plant of the company Bhasin Limited and recommended the following changes —
• The company should introduce scientific management with regard to production.
• Production Planning including routing, scheduling, dispatching and feedback should be implemented.
• In order to separate planning from operational management ’Functional foremanship’ should be introduced.
• ‘Work study’ should be undertaken to optimise the use of resources.
• ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
• To motivate the workers ‘Differential Piece Rate System’ should be implemented.
(The above changes should be introduced apart from the steps recommended as an answer to Part c - case problem 6 above.) It was expected that the changes will bring about a radical transformation in the working of the company and it will regain its pristine glory.
a. Do you think that introduction of scientific management as recommended by M consultants will result in intended outcome?
b. What precautions should the company undertake to implement the changes?
c. Give your answer with regard to each technique separately as enunciated in points 1 through 6 in the case problem. - Q:-
SanakLal and Gagan started their career in Wales Limited (a printing press) after going through a rigorous recruitment process. Since they had no prior work experience, the firm decided to give them one year to prove themselves. Name the principle of management followed by Wales Limited.
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