Principles of Management Class 12 PDF

Principles of management CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT As science, management also contains some principles which are developed by experts, Management principles are the sta...

Principles of management CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT As science, management also contains some principles which are developed by experts, Management principles are the statements of fundamental truth which act as a guidelines for taking managerial decisions. Development of management principles As the principles of science are based upon lots of practice and experiments, similarly management principles are also not developed overnight, a full proof procedure is adopted to develop these principles. Steps involved Deep observation The first and for most thing which is essential in any particular task is to observe everything carefully. Management principles are developed after deep observations only. Repeated experiments After observing a particular situation, the next steps to derive a solution on the basis of observation, but to convert the solution into a principle its testing under different situation is necessary. Nature/Features of management principles 1.Basic and general guidelines The principles of management are not specific statements which can be blindly applied by the managers. They are just the basic guidelines whose results may vary under different conditions CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 2.Helps in management The principles of management are formed to guide and help the managers. They precisely insist on improving the relation between managers and workers (superior and subordinates) 3.Flexible These principles are not fixed or rigid in nature, they are just the guidelines. So their application can be modified by the manager according to the need and requirement of the organisation. 4.Formed by practice and experiments As stated above, these principles are developed by deep observation and repeated experiments under different conditions, and not by the intuition of any particular person or group of persons. 5.Based on cause and effect relationship The above statements means that these principles can tell us that if a particular principle is applied on a specific situation then what might be the result, but they can’t give exact or absolute result. 6.Improvisation required As discussed earlier, these principles are only the general guidelines and not the specific statements, so the manager has to improvise the application of principle according to the need of the organisation. CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 7.Universally accepted As all the other principles, management principles also universally accepted (i.e. can be applied to all kinds of organisations) Their results may vary on the basic of nature and suitability of organisation, but they are suitable for all kind of organization. Importance of Management principles 1.Provides direction These principle increases the knowledge and ability of the managers, they guides the managers in order to take right and acceptable decision in certain situations. 2.Effective Administration The principles of management act as a guidelines or base in the formation of policies and plans of an organisation. It provides the managers a practical view of what they are thinking and its expected results. 3.Optimum utilization of resources The principles of management always emphasis on systematic and efficient working environment in the organisation, it leads to minimisation of wastage and overlapping of task. 4.Scientific Decision Management principles are based upon scientific approach, that is they help the managers to approach various problems of management in a systematic and scientific manner. 5.Fulfilling social responsibilities The principles of management provide equal importance and consideration to the responsibilities of society also. These principles guide the manager to fulfill social responsibilities also. FOLLOW US ON INSTAGRAM @gaurav_jainofficial CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 6.Management training and development The application of management requires scientific judgment and logical thinking which forces the managers to do research and training. As a result they act as a base for training. Fayol’s Principles of management Hendry fayol was born in France in 1841 Known as “Father of management studies and thoughts” Principles of Management by fayol 1.Principle of Division of work According to this principle, Fayol suggested that the whole work must be divided into smaller tasks and each individual must be assigned with one job only and they must also be according to his capability, qualification and experiences. The basic phenomena of this principle was, When similar work is performed by an individual again and again he will automatically becomes more perfect and specialized. Merits of using this principle Specialization Increases efficiency of labour Consequences if principle is not applied Lack of efficiency No specialization Chances of wastage and overlapping of work JOIN OUR TELEGRAM CHANNEL ( GAURAV JAIN OFFICIAL ) FREE NOTES/PDF PRACTICE PAPER DAILY UPDATE CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 2.Principle of Authority and Responsibility Authority means power to take decision, whereas Responsibility refers to the obligation to complete the job. Fayol suggested that there must be the balance between authority and responsibility, that is the individual must be given authority in matching to the given responsibility only Merits of using this principle No Misuse of Authority Helps in meeting responsibilities Consequences if principle is not applied Misuse of Authority Delay in work Overburden with responsibilities 3.Principle of Discipline Here fayol said that the word discipline does not only means following rules and regulations but it also refers to developing commitments in the mind of employees towards each other. Fayol insist that discipline is required at superior as well as at subordinate level also Merits of using this principle Systematic working Increases efficiency Reduces overlapping Completion of task CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT Consequences if principle is not applied Confusion Wastage of resources Delay in work 4.Principle of unity of Command According to this principle fayol insist that, an employee should receive orders from one boss only. The reason behind that is if he receives order from more than one boss then the point of confusion arises in his mind related to which work should be done first and which one next. Merits of using this principle No confusion No ego clashes Improves efficiency Consequences if principle is not applied Ego Clashes Subordinate can get excuses for non completion of task Confusion in the mind of subordinate CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 5.Unity of Direction “One unit means one plan” According to this principle, the efforts of all the employees in the organization must be directed towards one direction only, that is for the achievement of comman goal Merits of using this principle Achievement of organizational goal Integrated efforts Consequences if principle is not applied Lack of co-ordination Delay in achieving goal Wastage of efforts 6.Subordination of Individual interest to general interest According to this principle, the interest of organisation must be in the same direction as of individual interest. If this happens then there is no problem in achieving the goal, but if the direction of both individual and organisation changes, then it is a task of managers to unify their efforts and goals. FOLLOW US ON INSTAGRAM @gaurav_jainofficial CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT Merits of using this principle Achievement of organisational goal Completion of individual goal Co-ordination increases Consequences if principle is not applied Failure in achieving organisational goal Frustrated employees 7.Principle of remuneration of persons An adequate salary always increases the morale of a subordinate, According to this principle fayol suggested that the employees in the organisation must be fairly and adequately paid so that they get maximum amount of satisfaction. As a satisfied employee work much more efficiently Merits of using this principle Motivated employees Commitment of employees increases Consequences if principle is not applied Increase in turnover of employees Dissatisfaction of employees JOIN OUR TELEGRAM CHANNEL ( GAURAV JAIN OFFICIAL ) FREE NOTES/PDF PRACTICE PAPER DAILY UPDATE CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 8.Principle of centralisation and decentralisation Centralisation refers to concentration of powers in few hands only, whereas Decentralisation refers to evenly distribution of power in the organisation According to this principle, a company must not be completely centralised nor decentralised, a combination of both must be adopted Plans and policy making decisions- centralised General decisions - decentralised Merits of using this principle Benefits of centralisation as well as decentralisation Fast decision making Consequences if principle is not applied Delay in actions Misuse of power CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 9.Principle of scalar chain Scalar chain refers to the line of authority of superiors from highest to lowest rank Fayol insist that the chain must be strictly followed for passing information in the organisation. Moreover, fayol also provides a short cut path in case of emergency and urgent information, this path is known as gang plank. It permits direct communication between the subordinates working at same level of authority without following scalar chain. Merits of using this principle Systematic flow of information No communication gap Consequences if principle is not applied No role clarity Communication gap 10.Principle of order Under this principle, Order does not means command but here orders signifies orderly arrangement of men and material in the organisation. Fayol insist that there must be a fixed place for keeping everything in the organisation so that no time and energy is wasted in search of any man or material. CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT Merits of using this principle Proper utilization of time Systematic working No wastage Consequences if principle is not applied Wastage of time and energy Not able to get man and material at right time 11. Principle of Equity It refers to equal and kind treatment of employees According to this principle, employees would be treated with fair behavior as only a fairely treated employ can give his/her best in work. Merits of using this principle Satisfied employee Increase in efficiency Boost the morale of employees Consequences if principle is not applied Dissatisfaction in employees Unhealthy relation between superior and subordinate FOLLOW US ON INSTAGRAM @gaurav_jainofficial CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 12.Stability of tenure of personnel According to this principle fayol insist on no frequent transfer or termination of employees. Management must provides a feeling of job security in the minds of employees as with the feeling of insecurity an employee can’t work with his best efforts, Also it takes time for a person to settle down and start working, so frequent transfers will automatically reduces his ability and efficiency Merits of using this principle Increases the efficiency Reduces wastage of time and resources Consequences if principle is not applied Wastage of resources Frustration in the mind of subordinate Dissatisfaction 13.Principle of Initiative(self efforts) Fayol insist that the employees in the organisation must be given an opportunity to take some initiative in making and executing the plan for which they can also be rewarded, it gives them immense satisfaction. Merits of using this principle Develops the feeling of belongingness Increase the morale of employees Increases efficiency JOIN OUR TELEGRAM CHANNEL ( GAURAV JAIN OFFICIAL ) FREE NOTES/PDF PRACTICE PAPER DAILY UPDATE CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT Consequences if principle is not applied Dissatisfied employees Reduces their efficiency Employees can’t work to their best 14.Principle of Esprit de corps Esprit de corps-Union is strength(team work) Fayol emphasis on team work According to this principle, every employee in the organisation must consider himself as a part of a team and always try to achieve the target of the team. Team work is far better than individual contribution Merits of using this principle Develops team spirit Achievement of group goal Creates healthy environment Consequences if principle is not applied No team effort Scattered organisation More stress on individual FOLLOW US ON INSTAGRAM @gaurav_jainofficial CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT Scientific management developed by F.W. Taylor Taylor was born in 1856 in USA Known as “Father of Scientific Management” Applied scientific methods on the problems of management Scientific Management Application of science in every element of management is known as scientific management. That is, knowing exactly what we actually want from our employees and seeing that they will do it in best possible manner. Scientific principles of management( by F.W. Taylor) 1.Science not rule of thumb According to this principle, each and every job that is performed in the organisation should be based on scientific enquiry and not on the bases of intuition or by hit and trial method by higher authority. 2.Harmony, not discord According to this principle, all the members in the organisation must work together, that is with mutual understanding and healthy behavior. Both the groups (workers and management) must listen and give regards to the problems and suggestions of each other. CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 3.Co-operation not individualism It is an extension of “Harmony not discord” According to this principle taylor suggested that, work must be carried on in co-operation with each other, that is with mutual confidence and understanding for each other Co-operation can be developed by many ways Managers must welcome the suggestion of employees There must be an open communication system Workers should not go on strike and make unreasonable demand 4.Development of workers to their greatest efficiency and prosperity The efficiency of an organisation depends upon the efficiency of its workers, and the efficiency of workers can be increased by proper selection and training. According to this principle taylor suggested that the employees in the organisation must be sent for training on regular intervals in order to make them more efficient and competitive. Mental Revolution Changing the outlook and behavior of worker and managers towards each other and developing the sense of positive thinking and team work in each other is known as mental revolution What workers want- Gud salary What managers want- efficient work How to do mental revolution- managers must share some gain with efficient employees CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT Scientific techniques by taylor Besides principle, taylor also suggested techniques which are beneficial for the organisation, which are as follows 1.Functional foremanship Taylor suggested that the factory must be divided into 2 departments one is planning and the other is production department, and each department must be regarded with at least 4 heads each The reason for such division is to reduce the workload and burden of planning department and make the work flow more smooth and easy. Heads in each department are as follows Under planning department Route clerk - Responsible to fix up the sequence of steps for mechanical and manual job Instruction card clerk - to provide instruction Time and cost clerk - to determine standard time and cost Disciplinarian - Responsible for performance of job in orderly and systematic Way Under functional/operational department Gang Boss - Arranges the required resources to perform a job Speed boss - Assures timely completion of job Repair clerk - to check functioning of machine on regular basis and fix if required Inspector - Keeps a check on quality control of output JOIN OUR TELEGRAM CHANNEL ( GAURAV JAIN OFFICIAL ) FREE NOTES/PDF PRACTICE PAPER DAILY UPDATE CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 2.Standardization and simplification of work Scientific management always emphasizes on maintaining the standard related to every step of business operation. Standardization does not only means quality standard but it includes all the aspect of the product Standardization helps in Unity in quality of products Setting up performance standards for men and machine Simplification emphasis on elimination of unnecessary diversity of product, size and types When a company reduces its variety of products it can focus on quality of the remaining few products which can result in increase in sales and profit 3.Fatigue study This study is conducted to find out the frequency, duration and number of rest intervals required by the workers to make them more efficient then earlier. While performing a job, every human mind gets tired, so the need and requirement of rest interval is necessary to get him back on work. Taylor suggested that the time period and frequency of rest interval must not be decided by the wish of managers but a scientific study must be undertaken. FOLLOW US ON INSTAGRAM @gaurav_jainofficial CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 4.Method study This study is conducted to find out the best method of production which can minimize the cost and results to increase in profit of the organisation Taylor strongly suggested that the choice of method must not be according to the rule of thumb but every method must be given a practical approach and the best among them had to be selected. 5.Time study This study is conducted to find out Standard time to perform a job Setting up the standard target for workers Determining the number of workers required to perform a job Categorizing the workers as efficient and inefficient Taylor suggested that the standard time required to do a job must not be decided on the will of manager, but time study must be conducted to determine the standard time scientifically 6.Motion study It is conducted To determine the movement of workers at work place To differentiate between productive and unproductive movements Cutting the unproductive movements To design such equipments and tools which can minimize the unproductive movements of workers Taylor suggested that, to bring efficiency in the organisation motion study must be conducted. JOIN OUR TELEGRAM CHANNEL ( GAURAV JAIN OFFICIAL ) FREE NOTES/PDF PRACTICE PAPER DAILY UPDATE CLASS 12 BUSINESS  NOTES PRINCIPLES OF MANAGEMENT 7.Differential piece wage system It emphasis on Paying different rate of wages to efficient and inefficient workers Extra and bonus wages to efficient employees will motivate them to work in the same manner whereas it also motivates the inefficient workers to comes in the category of efficient workers and earn more. When the payment is based upon the number of units produced, it will automatically increases the level of production Taylor suggested that the organisation must fix a standard rate of wage for standard workers. Workers who produce more than the standard must be paid higher rate of wages and those who lies below the standard must be paid with less wage rate than standard. 8.Mental revolution It is conducted to Change the mental attitudes of workers and managers towards each other( in one direction) Increase in co-operation between workers and management Develops positive thinking in workers and management towards each others Taylor strongly stressed on changing the mental attitude of workers and management towards each other and developing positive thinking and feeling of co-operation among them. CLASS 12 BUSINESS  NE SHOT THE GAURAV JAIN BEGINNER ADVANCED PRINCIPLES OF MANAGEMENT CLASS 12 WHATSAPP CHANNEL FOR NOTES AND IMPORTANT QUESTIONS 7690041256 YE LE BAALAK... MAUJ KAR THE GAURAV JAIN 7690041256