Principles of Management (Grade 12)
Principles of Management (Grade 12)
They
are generally accepted as a guideline.
Management principles are changeable
according to environment. So traditional
principles are questioned. New principles
are emerged in their place through
Principles of practical experience and scientific
Management research. Various management principles
are emerged mainly after 1950's. The
principles of management are focused on
function, process and role of
management.
Scientific Management Concept
During the past century many writer wrote their own experience about management.
They try to explain the factor behind their success with the industrial revolution in
18th century, many industries were established in Europe and USA. They believe
that manager should concentrate their attention and energies for the improvement of
efficiency of management. The scientific management concept was developed to
solve the two major problem:
-How to increase the output of Average workers?
-How to improve the efficiency of management?
F.W Taylor has given contribution for the development of scientific management.
F.W Taylor is regarded as the father of scientific management. He was born in USA.
He start his career as mechanic. He joined steel company working as a machine
shop worker. After some year he become the chief engineer at the age of 28. After
his retirement he gave time for the development of scientific management. Most of
the experience were carried from his job time. He developed a new philosophy
which is known as scientific management. According to Taylor "Scientific
Management means knowing exactly what you want man to do and seeing that they
do in the best and cheapest way".
1) The staff who are producing less units of goods
that standard will get less amount of wages rate and
who are producing more amount of goods than
standard will get higher amount of wages rate.
2) Scientific management improved working
environment.
3) Scientific management improved working
condition.
Contribution of 4) Scientific management replace the rules of thumb
with scientific method. He developed systematic
F.W Taylor method to solve the problem.
5) Manager should improve the efficiency of the
employee by providing training, instruction and
suggestion.
6) Scientific management improve coordination,
mutual trust and confidence.
1) Replace the rules of thumb with science
- Scientific Management concept replace the
traditional concept based on rule of thumb, scientific
management principles are based on practical
F.w. Taylor experiment, experience, scientific research. According
principles/ to this principles, decision should be made on the basis
of facts rather than opinion.
Principles of
scientific 2) Harmony in group activities
management - There should be unity of action among employer and
employee. Scientific management promotes harmony
between manager and employee. There should be
proper understanding among the group for the success
of business organization.
3) Coordination not individual
- In an organization there are different department like marketing department,
finance department, human resource department though they perform the different
activities but they have a common goal. There should be coordination, link, team
spirit among the group for the higher productivity and efficiency of management.
6) Maximum output
- Taylor has given emphasis on the maximum output
instead of limited output or minimum output. This
principles is essential for the promotion of prosperity of
workers, owners and also to the society or large.
Maximum production ensure more wages to workers
because of piece rate system of wage payment.
Principles of Henry Fayol/ Principles of administrative
management
1) Division of work
- Administrative management promotes division of work. According to Henry Fayol, work
should be divided into different parts. The employee have to perform only the assigned parts
that is given by the manager. Division of work means distribution of right work to the right
personnel. It helps to improve efficiency, productivity, profitability of any business
organization.
4) Centralization
- Centralization means giving the decision
making power to top level only. Centralization
and decentralization depends on size, nature
and business activities of organization.
According to Henry Fayol, manager should
have final authority and responsibility and
subordinate should have sufficient authority and
responsibility to perform the business activities.
5) Scalar chain
- The scalar chain suggest that there should be a clear line of authority, from top to
bottom. The communication should follow the formal channel in hierarchy.
According to this principles, communication should pass through the proper scalar.
6) Order
- Order refers to the arrangement of physical and social order. According to Henry
Fayol there are two types of order:
I) Physical order
- It refers to the arrangement of material and physical order in a proper way.
8) Unity of Direction
- Henry Fayol gives focus on unity of direction.
There should be one boss and one plan for a group
having common goal. Unity of direction helps to
minimize the misunderstanding and conflict.
9) Subordination of Individual Interest to General Interest
- In an organization there are two types of interest, one is
individual interest and next is organizational interest.
According to Henry Fayol organization should provide
such a environment, so that organization interest will be
above than individual interest.
12) Equity
- Equity=kindness+ justice. Employee always
expects kindness and justice from a manager.
Manager should be both fair and friendly to all
subordinates. It helps to develop healthy
industrial relationship between management and
labor which is essential for the successful
working of an organizational.
13) Initiative
- It refers to ideas feeling, opinion, creativity of the employee. Manager have to
encourage their ideas and skill. So, it helps to increase the efficiency of an
organization.
20 Authority hierarchy
- Officers are organized in an hierarchy in which
Principles of higher officer controls lower position holders I.e
superior controls subordinates and their
Bureaucratic performance of subordinated and lower staff could
be controlled.
Theory
3) Formal selection
- All organizational members are to be selected on
the basis of technical qualifications and competence
demonstrated by training, education or formal
examination.
4) Formal rules of regulations
- To ensure uniformity and to regulate actions of
employees, managers must depend heavily upon formal
organizational rules and regulations. Thus, rules of law
lead to impersonality in interpersonal relations.
5) Career orientation
- Career building opportunity is offered highly life-long
employment and adequate protection of individuals
against arbitrary dismissal is guaranteed. Here
managers are professional officials rather than owners
units they manage. They work for a fixed salaries and
pursue their career within the organization.
- One way communication
- Exploitation of power
- Wastage of time, efforts and money
- Delay in business decision making
- Hinders innovation and creativity
- Inflexible an rigid methods
Disadvantages of
Bureaucracy