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Management

A traditional non-budgetary control system relies on tools other than budgets to monitor organizational performance. Examples include statistical data, break-even analysis, operational audits, and personal observation by managers. A management audit evaluates management effectiveness and efficiency through reviews of structure, policies, skills, and more. An accounting audit examines financial records and statements to ensure accuracy and compliance.

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0% found this document useful (0 votes)
23 views18 pages

Management

A traditional non-budgetary control system relies on tools other than budgets to monitor organizational performance. Examples include statistical data, break-even analysis, operational audits, and personal observation by managers. A management audit evaluates management effectiveness and efficiency through reviews of structure, policies, skills, and more. An accounting audit examines financial records and statements to ensure accuracy and compliance.

Uploaded by

tanjidrahman5544
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Traditional non-budgetary control system

A traditional non-budgetary control system is a way of managing and monitoring the


activities of an organization without using budgets. It relies on other tools and
techniques to ensure that the organizational goals are achieved. Some examples of
traditional non-budgetary control devices are:

 Statistical data: This involves collecting and analyzing numerical data related to various
aspects of the business operation, such as sales, production, quality, costs, etc. Statistical
data can be presented in tables, charts, graphs, or other visual forms to help managers
understand the performance and trends of the organization. Statistical data can also be
used to compare the actual results with the standards or benchmarks and identify the
areas of improvement or deviation1
 Break-even point analysis: This is a method of determining the level of sales or output
at which the total revenue equals the total cost. It shows the relationship between sales,
fixed costs, variable costs, and profit. Break-even point analysis can help managers to
plan the optimal level of production, pricing, and sales mix. It can also help to evaluate
the profitability and feasibility of new projects or products 1
 Operational audit: This is a process of evaluating the efficiency and effectiveness of the
internal operations of the organization by a team of internal auditors. Operational audit
covers the accounting, financial, and other aspects of the business, such as production,
marketing, human resources, etc. It aims to identify the strengths and weaknesses of the
organization, suggest improvements, and ensure compliance with the policies and
procedures1
 Personal observation: This is a simple and direct way of controlling the activities of the
organization by the managers themselves. Personal observation involves visiting the
work sites, inspecting the facilities, meeting the employees, customers, and suppliers,
and getting feedback and information from them. Personal observation can help
managers to gain first-hand knowledge of the actual situation, problems, and
opportunities of the organization. It can also help to motivate and communicate with
the staff and stakeholders1

These are some of the traditional non-budgetary control devices that can help
managers to plan, coordinate, and control the activities of the organization. However,
these devices also have some limitations, such as being time-consuming, subjective,
outdated, or inaccurate. Therefore, managers should also use modern non-budgetary
control devices, such as benchmarking, statistical process control, quality control, etc., to
complement the traditional ones2
Management audit

Overall managerial control and audit is a process of evaluating and improving the
effectiveness and efficiency of the management team in achieving the organizational
goals and objectives. It involves the use of various tools and techniques to assess the
performance, structure, policies, procedures, and systems of the management team and
to provide recommendations for improvement. Some of the benefits of conducting a
management audit are:

 It improves the utilization of resources by identifying and eliminating wastage,


duplication, and inefficiency.
 It increases the management team efficiency by enhancing the communication,
coordination, and collaboration among the managers and staff.
 It enables the company leaders to make more effective decisions by providing them
with accurate and relevant information and feedback.
 It provides expert-level recommendations by using external consultants who have
specific knowledge and experience in the field.

A management audit is usually conducted by an independent third-party consultant


who visits the company and reviews various reports and documents related to the
management activities. The consultant also interviews the managers and employees and
observes the work processes and environment. The consultant then analyzes the data
and information collected and prepares a detailed report that contains the findings,
conclusions, and suggestions for improvement. The report is then presented to the
board of directors or the top management who are responsible for implementing the
changes.
Some of the common items that a management audit covers are:

 Organizational structure: This refers to the way the company is organized and divided
into different units, departments, or divisions. The consultant evaluates the clarity,
appropriateness, and effectiveness of the organizational structure and suggests any
changes or modifications that can improve the workflow and performance.
 Management policies and procedures: These are the rules and guidelines that govern
the management activities and operations. The consultant checks the compliance,
consistency, and suitability of the management policies and procedures and
recommends any revisions or updates that can enhance the quality and efficiency.
 Management systems and controls: These are the methods and tools that the
management uses to plan, monitor, and evaluate the performance and results of the
company. The consultant examines the reliability, accuracy, and timeliness of the
management systems and controls and advises any improvements or innovations that
can increase the productivity and profitability.
 Management skills and competencies: These are the abilities and qualities that the
management team possesses and demonstrates in carrying out the company objectives.
The consultant assesses the strengths and weaknesses of the management skills and
competencies and proposes any training or development programs that can boost the
management capacity and capability.

These are some of the aspects of overall managerial control and audit that can help a
company to identify and resolve the issues and challenges that the management team
faces and to achieve the desired outcomes and goals. For more information, you can
refer to the following sources:

 Management Audit: Definition, How It Works, and What It Addresses


 What is a Management Audit? (With Uses and Benefits)
 Management auditing

Accounting audit

An accounting audit is a process of examining and verifying a company’s financial


records and statements to ensure that they are fair, accurate, and compliant with the
relevant accounting standards and regulations. An accounting audit can be performed
by internal or external auditors, depending on the purpose and scope of the audit 1
An internal audit is conducted by the employees of the company or an independent firm
hired by the company. The main objective of an internal audit is to evaluate the
effectiveness and efficiency of the company’s internal controls, processes, and
operations. An internal audit can also help the management to identify and mitigate the
risks, improve the performance, and ensure the compliance with the laws and
policies. An internal audit report is usually not distributed outside the company, but only
to the management and other internal stakeholders 2
An external audit is conducted by an independent third-party firm, such as a certified
public accountant (CPA) firm. The main objective of an external audit is to provide an
unbiased opinion on the fairness and reliability of the company’s financial statements.
An external audit can also help the shareholders, creditors, regulators, and other
external users to assess the financial position and performance of the company. An
external audit report is usually distributed to the public and contains the auditor’s
opinion, which can be unqualified, qualified, adverse, or disclaimer, depending on the
findings and conclusions of the audi
Operating , quality and quantity control

Operational control involves control over intermediate-term operations and


processes but not business strategies. Operational control systems ensure
that activities are consistent with established plans. Mid-level management
uses operational controls for intermediate-term decisions, typically over one
to two years

Quantity and quality control are two important aspects of managing and
improving the products or services of an organization. Quantity control
refers to the process of ensuring that the output meets the desired quantity
or volume. Quality control refers to the process of ensuring that the output
meets the desired quality or standard1
Quantity and quality control are interrelated, as they both affect the
customer satisfaction, profitability, and reputation of the organization.
However, they also have some differences, such as:

 Quantity control focuses on the amount or number of units produced or


delivered, while quality control focuses on the characteristics or features of
the units, such as performance, functionality, reliability, etc.
 Quantity control is usually measured by simple counting or weighing
methods, while quality control is usually measured by various tests and
inspections that assess the compliance with the specifications or
requirements.
 Quantity control is often easier and cheaper to implement, as it does not
require sophisticated equipment or techniques, while quality control may
require more complex and costly methods, such as statistical process
control, sampling, or auditing.
 Quantity control is mainly concerned with meeting the customer demand
and avoiding overproduction or underproduction, while quality control is
mainly concerned with meeting the customer expectations and avoiding
defects or errors.

Both quantity and quality control are essential for the success of any
organization, as they help to optimize the use of resources, reduce waste,
increase efficiency, and enhance customer loyalty. Therefore, organizations
should implement effective quantity and quality control systems that are
aligned with their goals and objectives.
Times and budgetary control

Budgetary and timing control are two aspects of managing and monitoring the
performance of an organization in relation to its planned objectives and goals.
Budgetary control involves comparing the actual results of income and expenditure with
the budgeted figures and taking corrective actions when necessary. Timing control
involves ensuring that the activities and tasks are completed within the scheduled time
frame and adjusting the plans accordingly 1
Some of the steps involved in budgetary and timing control are:

 Preparing and approving the budgets for different departments, projects, or activities
based on the expected outcomes and resources available.
 Communicating the budgets and the timelines to the relevant stakeholders and
ensuring their understanding and commitment.
 Collecting and analyzing the data and information related to the actual income and
expenditure, as well as the progress and completion of the activities and tasks.
 Comparing the actual results with the budgeted figures and the planned schedules and
identifying the variances and the reasons for them.
 Evaluating the performance and the efficiency of the organization and the individuals
involved in the budgetary and timing control process.
 Taking corrective actions to address the variances and the problems, such as revising
the budgets or the timelines, reallocating the resources, or providing feedback and
guidance.
 Reporting and reviewing the results and the actions taken and learning from the
experience and the feedback.

Budgetary and timing control are important for the success of any organization, as they
help to:

 Optimize the use of resources and reduce wastage and inefficiency.


 Enhance the accountability and transparency of the financial and operational activities.
 Improve the decision-making and planning processes based on accurate and timely
information and feedback.
 Align the activities and tasks with the strategic objectives and goals of the organization.
 Motivate and empower the employees and the managers to achieve the desired results
and standards.
Staps of planning

1. Clarify the planning


2. Obtain complete information about the activities
3. Analyze and classify the information
4. Establish planning premises and constrains
5. Determine alternate plan
6. Choose propose plan
7. Arrange detailed sequence and timing for the proposed plan
8. Provide progress plan

Fiedler’s contingency theory of leadership proposes that there is no single “best”


leadership style. Instead, the ideal approach depends on the specific situation 1. Fiedler
identified leaders as either relationship-oriented or task-oriented, asserting that success
in leadership depended on how favorable the situation was 2. In your case, since your
subordinates are highly supportive and their jobs are well-defined, you can assume that
the situation is favorable. Therefore, a relationship-oriented leadership style would be
most recommended 2. This style focuses on building strong interpersonal relationships
with subordinates and creating a positive work environment 2.

Efficiency and effectiveness are two concepts that are often used interchangeably, but
they have different meanings. Efficiency refers to how quickly a task is done, while
effectiveness refers to how well it is done 1. Here are some examples of each:

 Effective but not efficient: An organization that produces high-quality products but
takes a long time to do so. For example, a company that makes handmade furniture that
is of exceptional quality but takes several months to complete an order 2.
 Efficient but not effective: An organization that produces goods or services quickly but
with poor quality. For example, a company that mass-produces cheap products that
break easily 2.
 Efficient and effective: An organization that produces high-quality goods or services
quickly. For example, a company that uses automation to produce high-quality products
at a low cost 2.
 Neither efficient nor effective: An organization that produces low-quality goods or
services slowly. For example, a company that produces outdated technology that is not
in demand

Standing plans are designed to address the functioning of recurring plans over a period
of time, and they enhance efficiency as they are carried out on a regular basis 1
However, they may inhibit experimentation and organizational learning. Organizations
should ignore their standing plans when they are no longer effective or when they
hinder the organization’s ability to achieve its goals 1. For example, if a company has a
policy of using a particular software program, but the program is no longer effective, the
company should consider abandoning the policy and adopting a new one 2. Similarly, if
a company has a standing plan that is not achieving the desired results, it should be
reevaluated and modified or replaced as needed 3.
Organizations should also ignore their standing plans when they need to adapt to
changes in the environment or when they need to respond to new opportunities 4. For
example, if a company’s market changes, it may need to modify its standing plans to
remain competitive 5.
Organizations may consider deviating from standing plans when facing dynamic
environments or rapid changes where flexibility and adaptability are crucial. Ignoring
standing plans can be warranted to encourage experimentation, foster organizational
learning, and facilitate timely adjustments in response to unforeseen challenges. In
situations where innovation and agility are paramount, a temporary departure from
established plans allows organizations to explore new approaches and stay responsive
to evolving conditions.
In summary, organizations should ignore their standing plans when they are no longer
effective, when they hinder the organization’s ability to achieve its goals, when they
need to adapt to changes in the environment, or when they need to respond to new
opportunities.

Managemnt is a continuous process

Management is a continuous process that involves planning, organizing, leading, and


controlling resources to achieve organizational goals 1. It is an ongoing activity that
requires constant monitoring, evaluation, and adjustments to ensure that the
organization is functioning efficiently and effectively 1. The process of management is
never-ending and requires continuous improvement to ensure that the organization
remains competitive and achieves long-term success 1

Management level

The skills required for effective management vary depending on the level of the
organization. According to Robert Katz, there are three basic types of management
skills: technical, conceptual, and human or interpersonal skills 1.
At the top level of an organization, managers need strong conceptual skills to develop
long-term strategies and plans for the organization. They also need strong human or
interpersonal skills to communicate effectively with stakeholders and to build
relationships with other organizations 2.
At the middle level of an organization, managers need a mix of technical, conceptual,
and human or interpersonal skills. They need technical skills to understand the work of
their subordinates and to provide guidance and support. They need conceptual skills to
develop plans and strategies that align with the organization’s goals. They also need
human or interpersonal skills to communicate effectively with their subordinates and to
build relationships with other managers 3.
At the lower level of an organization, managers need strong technical skills to perform
their jobs effectively. They also need human or interpersonal skills to communicate
effectively with their colleagues and to build relationships with their supervisors 3.
In summary, the management skill mixes at different organizational levels are as follows:

 Top-level management: Strong conceptual and human or interpersonal skills.


 Middle-level management: A mix of technical, conceptual, and human or interpersonal
skills.
 Lower-level management: Strong technical and human or interpersonal skills.

Evaluation of management thougt

The evaluation of management thought is a complex and ongoing process that involves
analyzing the various theories and approaches to management that have been
developed over time 1. The evaluation of management thought is important because it
helps us to understand the evolution of management theory and practice, and to
identify the strengths and weaknesses of different approaches 2.
There are several criteria that can be used to evaluate management thought, including
its relevance, validity, and practicality 3. Relevance refers to the extent to which a
particular theory or approach is applicable to contemporary management issues and
challenges 4. Validity refers to the extent to which a theory or approach is supported by
empirical evidence and logical reasoning . Practicality refers to the extent to which a
theory or approach can be applied in real-world situations and produce positive
outcomes .
In summary, the evaluation of management thought is an ongoing process that involves
analyzing the various theories and approaches to management based on their
relevance, validity, and practicality.

Relationship between planning and controling


Planning and controlling are two separate functions of management, yet they are closely
related 1. Planning is the process of setting goals and determining a course of action for
achieving those objectives 2. It involves analyzing the current situation, forecasting
future conditions, and developing strategies to achieve the desired outcomes 2. Planning
is a forward-looking process that helps organizations prepare for the future 2.
Controlling, on the other hand, is the process of measuring and correcting deviations
from the established standards 3. It involves monitoring the performance of the
organization, comparing it with the established standards, and taking corrective action
when necessary 3. Controlling is a backward-looking process that helps organizations
learn from their past experiences and improve their future performance 3.
In summary, planning is looking ahead and controlling is looking back. Planning helps
organizations prepare for the future, while controlling helps them learn from their past
experiences and improve their future performance
Performance apprisal
Performance appraisal is a crucial process for evaluating an employee’s job performance
and providing feedback to help them improve 1. It is an essential tool for managers to
assess the strengths and weaknesses of their employees, identify areas for improvement,
and provide guidance and support 2. Here are some of the benefits of performance
appraisal:

 Improvement in performance: Performance appraisal can lead to the improvement in


utilization of resources, development of employees, and motivation 1.
 Identification of training needs: Performance appraisal helps to determine the
employees’ need for training and development 1.
 Establishment of merit-based system: Performance appraisal establishes a merit-
based system that motivates employees to put their best foot forward and promotes
employees based on their performances 2.
 Evaluation of staff training and development needs: Performance appraisal helps
supervisors evaluate their subordinates’ work performance and evaluate staff training
and development needs 2.
 Basis for correcting mistakes: Performance appraisal provides a basis for correcting
mistakes and proper guidance and criticism for employee development 2.
 Critical information basis for further talent management decisions: Performance
appraisal is a critical information basis for further talent management decisions, such as
compensation or succession planning 2.

In summary, performance appraisal is important because it helps organizations to


improve employee performance, identify training needs, establish a merit-based system,
evaluate staff training and development needs, provide a basis for correcting mistakes,
and provide a critical information basis for further talent management decisions.

Decision making

The decision-making process is a method of gathering information, assessing


alternatives, and making a final choice with the goal of making the best decision
possible 1. Here are the seven steps of the decision-making process:
1. Identify the decision that needs to be made: Define the problem that needs to be
solved and the goal you plan to achieve by implementing this decision.
2. Gather relevant information: Gather information related to the decision being made
from many different sources, including external resources.
3. Identify alternative solutions: Look for many different solutions for the problem at
hand.
4. Evaluate alternatives: Evaluate the pros and cons of each alternative solution.
5. Choose the best alternative: Choose the alternative that best meets the criteria
established in step 1.
6. Take action: Implement the chosen alternative.
7. Evaluate the decision: Evaluate the effectiveness of the decision and the decision-
making process itself.

Real time information

According to Answers.com, real-time information may be good enough possibly in


the simplest and most unusual cases but in more complex cases which is the rule than
the exception in today’s world, for example, in the case of quality control it may take
considerable time to discover what is causing factory rejects and more lime to put
corrective measures into effect. In the more complex case of inventory control
particularly in a manufacturing company, which has many items - raw materials,
component parts, goods in process, and finished goods - the correction time maybe
very long. Once it is known that an inventory is too high, the steps involved in getting
it back to the desired level may take a number of months. But this does not mean that
prompt measurement of performance is unimportant. The sooner managers know that
activities for which they are responsible are not proceeding in accordance with plans,
the faster they can take action to make corrections. Even so, the question of whether
the cost of gathering real-time data is worth the few days saved. Sometimes it is: In
the case of an airline, ready information on seat availability is likely to be crucial to
serving customers and filling seats. But in a major defense company producing one of
the highest priority defense equipment items, there was little real-time information in
an otherwise highly sophisticated information control system. But it was thought that
the benefit of gathering real-time data was not worth the expense because the
correction process took too long1.

I hope this helps

Performance and satisfaction

According to Academia.edu, the major components that determine group


performance and satisfaction are: the external conditions imposed on the group, group
member resources, group structure, group processes, and group tasks1. People play
different roles in groups. These roles tend to either be task-oriented or member-
oriented.
External conditions refer to the rules, regulations, selection procedure of the
organization, etc. that highly affect group performance. Group member resources refer
to the skills and personality characteristics of the members. Group structure refers to
the shape of the behavior of its members and makes it possible to predict and explain
the individual behavior within the group as well as the performance of the group as a
whole. Group processes refer to the way in which the group interacts and
communicates with each other. Group tasks refer to the goals and objectives of the
group2.

I hope this helps!

Challenges of created effective team

According to Transtutors, the challenges faced by the team manager include the
following: the team to be created consists of independent contractors who are not
performing tasks collectively for the firm, lack of motivation for teamwork,
independent contractors work for different sectors and the work may differ, and lack
of communication between the contractors will prevent them from discussing the
collective duties for promoting the growth of the organization1.

The major components that determine group performance and satisfaction are: the
external conditions imposed on the group, group member resources, group structure,
group processes, and group tasks2.

I hope this helps!

Leadership of 21st century

In the 21st century, leadership issues are complex and multifaceted. Leaders are
expected to be inspirational, motivational, and adaptive to change. They should also
be able to develop others and groom them for leadership roles. In addition, they
should be able to handle different perspectives and manage diversity, and deal with
imposter syndrome and self-doubt.

In my opinion, a good leader should also be able to communicate effectively and


collaborate with their team members. They should be able to listen actively to their
team members and provide constructive feedback. A good leader should also be able
to delegate tasks effectively and empower their team members to take ownership of
their work.

Furthermore, a good leader should be able to empathize with their team members and
understand their needs and concerns. They should be able to create a positive work
environment that fosters creativity, innovation, and growth. A good leader should
also be able to lead by example and demonstrate the values and behaviors that they
expect from their team members.

Finally, a good leader should be able to adapt to the changing needs of their team and
organization. They should be able to embrace new technologies and innovations and
use them to improve their work processes and outcomes. They should also be able to
manage uncertainty and ambiguity and make decisions that are in the best interest
of their team and organization.

I hope this helps!

performance appraisal methods for universities

According to a study by Moi University, the commonly used methods for conducting
performance appraisal process in universities are: management by objectives (MBO),
360 degree appraisal, behavioral observation scale and behaviorally anchored rating
scale1.

As for why these methods are used, it is because they are considered to be objective,
reliable, and valid1. MBO is a goal-oriented approach that focuses on setting specific
objectives and evaluating the extent to which they are achieved. 360 degree appraisal
is a multi-source feedback approach that involves collecting feedback from multiple
sources such as peers, subordinates, and supervisors. Behavioral observation scale is a
method that involves observing and recording specific behaviors that are relevant to
the job. Behaviorally anchored rating scale is a method that combines the benefits of
both graphic rating scales and critical incident techniques1.

Regarding your second question, leadership issues in the 21st century are complex
and multifaceted. According to PitchGrade, the top 5 leadership challenges of the
21st century are: providing inspiration and motivation to their team, developing others
and grooming them for leadership, leading change and adapting to uncertainty,
handling different perspectives and managing diversity, and dealing with imposter
syndrome and self-doubt.

I’m not sure what you mean by “estate hiring” in your third question. Could you
please clarify?

Regarding your fourth question, according to Transtutors, the challenges faced by


the team manager include the following: the team to be created consists of
independent contractors who are not performing tasks collectively for the firm, lack of
motivation for teamwork, independent contractors work for different sectors and the
work may differ, and lack of communication between the contractors will prevent
them from discussing the collective duties for promoting the growth of the
organization. The major components that determine group performance and
satisfaction are: the external conditions imposed on the group, group member
resources, group structure, group processes, and group tasks2.

I hope this helps!

Management principle

Henry Fayol, also known as the Father of Modern Management Theory, gave a new
perception on the concept of management. He introduced a general theory that can be
applied to all levels of management and every department. He envisioned maximising
managerial efficiency. Today, Fayol’s theory is practised by the management to
organise and regulate the internal activities of an organisation.

The fourteen principles of management created by Henri Fayol are explained below.
1. Division of Work
Henri believed that segregating work in the workforce amongst the workers will enhance
the quality of the product. Similarly, he also concluded that the division of work improves
the productivity, efficiency, accuracy and speed of the workers. This principle is
appropriate for both the managerial as well as a technical work level.
2. Authority and Responsibility
These are the two key aspects of management. Authority facilitates the management to
work efficiently, and responsibility makes them responsible for the work done under
their guidance or leadership.
3. Discipline
Without discipline, nothing can be accomplished. It is the core value for any project or
any management. Good performance and sensible interrelation make the management
job easy and comprehensive. Employees’ good behaviour also helps them smoothly
build and progress in their professional careers.
4. Unity of Command
This means an employee should have only one boss and follow his command. If an
employee has to follow more than one boss, there begins a conflict of interest and can
create confusion.
5. Unity of Direction
Whoever is engaged in the same activity should have a unified goal. This means all the
people working in a company should have one goal and motive which will make the
work easier and achieve the set goal easily.
6. Subordination of Individual Interest
This indicates a company should work unitedly towards the interest of a company rather
than personal interest. Be subordinate to the purposes of an organisation. This refers to
the whole chain of command in a company.
7. Remuneration
This plays an important role in motivating the workers of a company. Remuneration can
be monetary or non-monetary. Ideally, it should be according to an individual’s efforts
they have put forth.
8. Centralization
In any company, the management or any authority responsible for the decision-making
process should be neutral. However, this depends on the size of an organisation. Henri
Fayol stressed on the point that there should be a balance between the hierarchy and
division of power.
9. Scalar Chain
Fayol, on this principle, highlights that the hierarchy steps should be from the top to the
lowest. This is necessary so that every employee knows their immediate senior also
they should be able to contact any, if needed.
10. Order
A company should maintain a well-defined work order to have a favourable work
culture. The positive atmosphere in the workplace will boost more positive productivity.
11. Equity
All employees should be treated equally and respectfully. It’s the responsibility of a
manager that no employees face discrimination.
12. Stability
An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.
13. Initiative
The management should support and encourage the employees to take initiatives in an
organisation. It will help them to increase their motivation and morale.
14. Esprit de Corps
It is the responsibility of the management to motivate their employees and be supportive
of each other regularly. Developing trust and mutual understanding will lead to a
positive outcome and work environment.
In conclusion, the 14 Principles of Management the pillars of any organisation. They are
integral for prediction, planning, decision-making, process management, control and
coordination.

Scientific management

Principles of Scientific Management by Taylor:


F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father of scientific
management’ proved with his practical theories that a scientific method can be
implemented to management. Taylor gave much concentration on the supervisory level
of management and performance of managers and workers at an operational level.
Let’s discuss in detail the five principles of management by F.W Taylor.
1. Science, not the Rule of Thumb-
This rule focuses on increasing the efficiency of an organisation through scientific
analysis of work and not with the ‘Rule of Thumb’ method. Taylor believed that even a
small activity like loading paper sheets into boxcars can be planned scientifically. This
will save time and also human energy. This decision should be based on scientific
analysis and cause and effect relationships rather than ‘Rule of Thumb’ where the
decision is taken according to the manager’s personal judgement.
2. Harmony, Not Discord-
Taylor indicated and believed that the relationship between the workers and
management should be cordial and completely harmonious. Difference between the two
will never be beneficial to either side. Management and workers should acknowledge
and understand each other’s importance. Taylor also suggested the mental revolution
for both management and workers to achieve total harmony.
Additional Reading: Difference Between Fayol and Taylor Theory of Management
3. Mental Revolution-
This technique involves a shift of attitude of management and workers towards each
other. Both should understand the value of each other and work with full participation
and cooperation. The aim of both should be to improve and boost the profits of the
organisation. Mental Revolution demands a complete change in the outlook of both the
workers and management; both should have a sense of togetherness.
4. Cooperation, not Individualism-
It is similar to ‘Harmony, not discord’ and believes in mutual collaboration between
workers and the management. Managers and workers should have mutual cooperation
and confidence and a sense of goodwill. The main purpose is to substitute internal
competition with cooperation.
5. Development of Every Person to his Greatest Efficiency-
The effectiveness of a company also relies on the abilities and skills of its employees.
Thus, implementing training, learning best practices and technology, is the scientific
approach to brush up the employee skill. To assure that the training is given to the right
employee, the right steps should be taken at the time of selection and recruiting
candidates based on a scientific selection.

Difference between
Management is a process through which the members of an organization gets the job
done with the help of other people. The decision-making process and the performance
of management are guided by various principles of management. Different management
theories are composed of many management thinkers. Out of which, two such eminent
thinkers are Fredrick Winslow Taylor (F.W. Taylor) and Henry Fayol.
In management theory, Henry Fayol, a French mining engineer contributed fourteen
management principles and various concept of a general theory of administration,
whereas, F.W.Taylor, an American mechanical engineer improved the theory of
scientific management and contributed four management principles. Let’s learn in-depth
the Fayol vs Taylor’s Theories of Management.

Henry Fayol Theory of Management


Henry Fayol also known as ‘father of modern management theory’ gave a new
perception to the concept of management. He introduced a general theory that can be
applied to all levels of management and every department. The Fayol theory is
practised by the managers to organize and regulate the internal activities of an
organization. He concentrated on accomplishing managerial efficiency.
Also Check: Henri Fayol 14 Principles of Management

F.W.Taylor Theory of Management


F.W. Taylor or Fredrick Winslow Taylor is also known as the ‘father of scientific
management’ proved with his practical theories that a scientific method can be
implemented to management. This scientific process involved experiments, observation,
analysis, and inference and was applied to create a cause and effect relationship.
Taylor gave much concentration on the supervisory level of management and
performance of managers and workers at an operational level.
This article is ready to reckoner for all the students to learn the difference Between
Fayol vs Taylor’s Theories of Management.

Henry Fayol F.W. Taylor

Definition

Henry Fayol, father of F.W. Taylor, father of


modern management scientific management
contributed fourteen contributed four
management principles, management principles,
accomplishing managerial for enhancing overall
efficiency. productivity.

Concentrated

Top-level management Low-level management

Approach

Top management based on Supervisory viewpoint and


top downward approach. bottom upward approach

Focus

Focused on delivering Increasing productivity of


managerial efficiency. labour

Theory-based on

Personal experience Observation and


experiment

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