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Principles of Management (Grade 12)

Max Weber's Bureaucracy Theory focused on developing a strictly defined hierarchy governed by clearly defined regulations within organizations. The key principles included each office being controlled by higher ranking offices, management based on rules, appointments and promotions based on qualifications, and special training. This aimed to increase efficiency and standardization within large organizations.

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0% found this document useful (0 votes)
202 views20 pages

Principles of Management (Grade 12)

Max Weber's Bureaucracy Theory focused on developing a strictly defined hierarchy governed by clearly defined regulations within organizations. The key principles included each office being controlled by higher ranking offices, management based on rules, appointments and promotions based on qualifications, and special training. This aimed to increase efficiency and standardization within large organizations.

Uploaded by

Supriya Shrestha
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© © All Rights Reserved
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•Principles are fundamental truth.

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.

4) Systematic selection and Training


- Scientific management concept give focus on selection of staff. There should be
right person for right job. According to Taylor training should be given to staff in
order to increase skill, ability, creativity and efficiency.
5) Division of responsibilities
- The next principles of scientific management is
division of responsibilities. According to Taylor,
manager has to formulate plan and policies and
employee has to implement plan and policies that are
formulated by the manager.

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.

2) Authority and Responsibility


- Authority and Responsibility are two commonly used terminology. In management authority
and responsibility are interrelated to perform business activities effectively, there should be
balance of authority and responsibility. Authority without responsibility the business activities
will be irresponsible and responsibility without authority cannot perform the business activities
confidently.
3) Unity of command
-Henry Fayol give focus on unity of command.
According to Henry Fayol in order to give the
uniformity in business activities there should be
one boss and one plan for a group having a
common goal. Unity of command helps to
minimize the misunderstanding conflict of
business activities.

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.

ii) Social order


- It refers to the right person to a right job at a right place.
7) Discipline
- It is an essential elements for the success of any
business organization. Discipline includes:
-To follow rules and regulations
-Obedience to supervisor
-Having knowledge
-Training
-Control for a system

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.

10) Remuneration of personnel


- It is the reward of the employee for their contribution in
any business organization. Remuneration must be fair and
satisfactory to both party. Remuneration depends on:
-Productivity
-Living standard
-Condition of business organization
-Competitors
-Agreements
11) Stability of Tenure
- This principles is related to the job of the
employee. It means employee turnover should be
minimize. Henry Fayol believes that employee
turnover increase:
-Increase the cost of selection.
-Increase the cost of training.
-Increase in supervision cost.
-Increase in wastage of raw material.
-Decrease in efficiency of management.

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.

14) Esprit De Corps


- It is a proverb it means union is strength. The problem of union should be solved
on a time. There should be coordination, team sprits among the group for the
efficiency of an organization.
- Max Weber (1864-1920), a German
Sociologist, developed a theory of bureaucratic
management which  focused on the need for a
strictly defined hierarchy governed by clearly
defined regulations. Generally bureaucracy
means a group of workers, for example, Civil
service employees of the government. The main
Max Weber's objectives of Mar Weber's Bureaucracy theory
are as follows"
Bureaucracy Theory I) Each office should be controlled and
supervised by higher ranking office.
Ii) Business is management by rules.
- Appointments and promotions based on person's
qualifications for the job.
Principles of - Special training or experience are set for the position.
- Standard administrative products.
Bureaucracy - Hierarchical command structure(clear lines of
command)
- Shield from day to day political pressure.
- Max Weber a German Sociologist propounded the theory called principle of
bureaucracy- a theory related to authority structure and relations in the 19th century.
According to him, bureaucracy is the formal system of organization and
administration designed to ensure efficiency and effectiveness. He suggested an
ideal model for managements as bureaucratic approach. He, in the book the theory
of social and economic organizations, explained the basic principles of bureaucracy.
He gave emphasis on division of labor, hierarchy, detailed rules and impersonal
relations.
1) Job specialization
- Jobs are divided into simple, routine and fixes
category based on competence and functional
specialization.

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

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