Class 12 Business Studies - Chapter Principles of Management NCERT Solutions | Explain the following Principles of mana
Explain the following Principles of management given by Fayol with examples:
a. Unity of direction
b. Equity
c. Espirit de corps
d. Order
e. Centralisation and decentralisation
f. Initiative
(a) Unity of direction: Unity of direction means all the units of an organization should be moving towards the same objectives with coordination. According to this principle each group of activities having the same objective must have one head and one plan. And the organization and its members must be directed towards the achievement of the same goal. For example, if my company is manufacturing both mobile and laptop then it should have two different divisions for both of them and each division should have their own incharge, plans and executive resources.
(b) Equity: This principle emphasizes kindness and justice in the behaviour of the manager toward workers. There should be no discrimination against anyone on account of sex, religion, language, caste, belief or nationality etc. there must be given equal opportunity to everyone in the organization without any discrimination and then the employee give their best in the betterment of the organization.
(c) Esprit de Corps: This means that the management should promote a team spirit of unity and harmony among employees. And the manager should replace ‘I’ with ‘WE’ in all his conversation with the workers. This will give rise to a spirit of mutual trust and belongingness between team members. And this will also minimize the need for using penalties.
(d) Order: Order doesn’t mean command it actually means orderliness. According to this principle the right person should be at the right place and the right thing should be placed at the right place. If everything will be at the right place then there will be no hindrance in the activities of business. And this will increase efficiency and productivity. And If the men and material are not placed in an organized manner then not be able to contact the right person at the right time or when required and this will delay work.
(e) Centralization and Decentralization: Centralization means concentration of decision making authority. Here decision making power is given to one or very few people and that is top level management. And decentralization means dispersal of decision making authority among more than one person. According to Fayol there should be a proper balance between centralization and decentralization in the organization. The involvement of the employees with higher authority should be balanced by decentralizing the authority to the managers. Any organization must not be completely centralized or decentralized. There should be a blend of both and this is decided on the basis of size, nature and location.
(f) Initiative: Initiative refers to taking the first step with self motivation. It means thinking out and executing the plans. According to Fayol in this principle workers should be encouraged to develop and carry out their plans for improvement. Initiative should be encouraged but it doesn’t mean going against the established practices and rules. A good company should have an employee suggestion system and any good suggestion should be rewarded.
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Define scientific management. State any three of its principles.
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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.
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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.
- Q:-
(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.
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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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