Maharashtra Board Class 12 OCM Chapter 1 Principles of Management Solutions

Select the Correct Option and Rewrite the Sentence

 

Question 1. ................... was regarded as the Father of Scientific Management.
(a) Henry Fayol
(b) F. W. Taylor
(c) Philip Kotler
Answer: (b) F. W. Taylor
In simple words: F. W. Taylor is called the father of scientific management because he used scientific rules and experiments to make factory work much faster and easier.

🎯 Exam Tip: Always remember that F. W. Taylor is associated with "Scientific" management, whereas Henry Fayol is known for "Modern" management. Keeping this distinction clear will help you score full marks in MCQs.

 

Question 2. Principle of ……………… is based on ‘A place for everything and everything in its place.
(a) Discipline
(b) Order
(c) Equity
Answer: (b) Order
In simple words: The principle of order means that there should be a fixed, designated place for every tool and person in the office so that no time is wasted searching for them.

🎯 Exam Tip: Remember that the phrase 'a place for everything' directly connects to the management principle of 'Order'.

 

Question 3. Member of organization should receive orders from ………………..
(a) many superior
(b) one superior
(c) all superiors
Answer: (b) one superior
In simple words: To avoid confusion and conflicting instructions, an employee should get orders and directions from only one boss.

🎯 Exam Tip: This question refers to the 'Unity of Command' principle, which states that an employee must have only one direct supervisor to prevent confusion.

 

Question 4. Scalar chain means the hierarchy of …………….. from the top level to the lower level for the purpose of communication.
(a) discipline
(b) unity
(c) authority
Answer: (c) authority
In simple words: Scalar chain is the formal line of authority and power that runs from the highest rank to the lowest rank in a company.

🎯 Exam Tip: Always associate the term 'Scalar Chain' with the formal line of 'authority' and communication flow in an organization.

 

Question 5. Taylor recommended total ……………….. foremen to control the various aspects of production.
(a) eight
(b) three
(c) two
Answer: (a) eight
In simple words: Taylor suggested having eight specialized supervisors (four for planning and four for execution) to guide and manage workers in a factory.

🎯 Exam Tip: Under functional foremanship, Taylor divided the work into planning and execution departments, with 4 foremen in each, making a total of 8.

 

Question 1. Match the pairs

Group A	Group B
A) Henry Fayol	1) Eight Foremen
B) Principle of Unity of Direction	2) F.W. Taylor
C) Principles of Management	3) Proper division of all activities
D) Scientific Management Theory	4) general guidelines
E) Functional Organization	5) A place for everything and everything in its place
	6) One head-one plan
	7) Low wage rate
	8) Harmony between the employees and management
	9) German engineer
	10) Modern Management

Answer:

Group A	Group B
A) Henry Fayol	1) Modern Management
B) Principle of Unity of Direction	2) One head-one plan
C) Principles of Management	3) general guidelines
D) Scientific Management Theory	4) F.W. Taylor
E) Functional Organization	5) Eight Foremen

These concepts form the bedrock of classical and scientific administrative systems used worldwide.
In simple words: This exercise helps us connect famous management thinkers with their main ideas. For example, Henry Fayol is known for modern management, while F.W. Taylor developed scientific management.

🎯 Exam Tip: Double-check that each term in Group A is paired with its most specific definition or creator from Group B to avoid confusion.

1. (C) Give One Word/Phrase/Term for the Following Statements:

 

Question 1. The study of movement of an employee as well as machine while completing particular task.
Answer: Motion Study. This technique helps in eliminating unnecessary movements to increase overall efficiency.
In simple words: Motion Study is watching how workers and machines move so we can cut out wasted actions and work faster.

🎯 Exam Tip: Remember that Motion Study specifically focuses on physical movements of both humans and machines to reduce waste.

 

Question 2. The technique of observing and recording the time required by an employee to complete a given task.
Answer: Time Study. It helps in determining the standard time required to complete a specific job under normal conditions.
In simple words: Time Study is measuring exactly how long a job takes so we can set fair daily work targets.

🎯 Exam Tip: Associate 'recording the time' directly with Time Study to easily score full marks.

 

Question 3. Study consists of an organised, systematic and critical assessment of various activities.
Answer: Work Study. It combines techniques like method study, motion study, and time study to ensure maximum productivity.
In simple words: Work Study is a complete check-up of how a job is done to find the best and most efficient way to do it.

🎯 Exam Tip: Work Study is the umbrella term that includes time, motion, and fatigue studies, so look for keywords like 'systematic assessment of various activities'.

 

Question 4. The principle which deals with ‘to do work with innovative way’.
Answer: Principle of Initiative. This principle encourages employees to think of new ideas and execute them to improve the organization.
In simple words: The Principle of Initiative means giving workers the freedom to suggest and try out new, creative ways of doing their jobs.

🎯 Exam Tip: Always link 'innovation' and 'new ideas' with the Principle of Initiative.

 

Question 5. The principle which is based on ‘a place for everything and everything in its place’.
Answer: Principle of Order. It ensures that both materials and people are in their designated places to avoid confusion and waste of time.
In simple words: The Principle of Order means keeping tools and people in the right spots so nobody wastes time searching for them.

🎯 Exam Tip: The phrase 'a place for everything' is the classic definition of the Principle of Order, so memorize this exact connection.

 

1. (D) State Whether the Following Statements are True or False

 

Question 1. The principles of management are universal in nature.
Answer: True. This is because these principles can be applied to all types of organizations, regardless of their size or nature.
In simple words: This is true because basic management ideas work everywhere, whether it is a small school, a big business, or a sports team.

🎯 Exam Tip: When explaining why this statement is true, use the keyword 'universally applicable' to secure full marks.

 

Question 2. Management principles are applied differently under different situations.
Answer: True. Management principles are flexible and their application depends on the prevailing situation or context within an organization.
In simple words: This is true because managers must adapt rules to fit the specific problems and situations they face daily.

🎯 Exam Tip: Remember that management principles are situational (contingent) and not rigid like physical sciences.

 

Question 3. Only some principles of management are important.
Answer: False. All principles of management are of equal importance and must be applied together to achieve organizational goals.
In simple words: This is false because all management principles work together to help a business run smoothly, so none of them should be ignored.

🎯 Exam Tip: State clearly that all principles are of equal importance to score full marks in such true/false questions.

 

Question 4. Henry Fayol has given different techniques of management.
Answer: False. Henry Fayol proposed 14 general principles of management, whereas F.W. Taylor introduced scientific techniques of management.
In simple words: This is false because Henry Fayol is famous for giving general principles, while F.W. Taylor is the one who created specific management techniques.

🎯 Exam Tip: Do not confuse Fayol's 14 principles with Taylor's scientific techniques; keeping this distinction clear is key for exams.

 

Question 5. F. W. Taylor has proposed 14 principles of management.
Answer: False. F.W. Taylor proposed the principles of Scientific Management, while Henry Fayol proposed the 14 principles of general management.
In simple words: This is false because Henry Fayol came up with the 14 principles, while Taylor focused on scientific ways to improve work efficiency.

🎯 Exam Tip: Always associate the number '14' with Henry Fayol and 'Scientific Management' with F.W. Taylor.

 

Question 6. Each member of organisation should receive orders only from one superior.
Answer: True. This is based on the Principle of Unity of Command, which helps avoid confusion and conflicts in the workplace.
In simple words: This is true because if an employee gets orders from only one boss, they will not get confused about whose work to do first.

🎯 Exam Tip: Mention the term 'Unity of Command' when explaining this answer to show a deeper understanding of the concept.

 

1. (E) Find the odd one.

 

Question 1. Principle of Authority and Responsibility, Motion Study, Principle of Division of Work, Principle of Discipline.
Answer: Motion Study. This is because Motion Study is a scientific technique of management proposed by F.W. Taylor, while the others are general principles of management proposed by Henry Fayol.
In simple words: Motion Study is the odd one out because it is a scientific tool to measure movement, while the other three are general rules for running a business.

🎯 Exam Tip: Identify the category of each term (Fayol's principles vs. Taylor's techniques) to easily find the odd one out.

 

Question 2. Fatigue Study, Principle of Unity of Command, Work Study, Motion Study.
Answer: Principle of Unity of Command. This is because the Principle of Unity of Command is one of Henry Fayol's 14 principles of management, whereas the others are scientific management techniques developed by F.W. Taylor.
In simple words: The Principle of Unity of Command is the odd one out because it is a general rule about having one boss, while the others are scientific studies to improve work efficiency.

🎯 Exam Tip: Remember that studies like Fatigue, Work, and Motion studies are always grouped under Taylor's scientific management.

1. (F) Answer in One Sentence

 

Question 1. What is principle of unity of command?
Answer: Principal of unity of command implies that every employee should receive orders and instructions from one boss only and he should be responsible and accountable to him only. This prevents any confusion or conflict in the mind of the employee regarding their duties.
In simple words: This principle means that a worker should have only one manager to give them directions. Having more than one boss can cause confusion and make it hard to know who to listen to.

🎯 Exam Tip: Clearly mention "one boss only" and "responsible and accountable" as these are the key terms examiners look for to award full marks.

 

Question 2. What is standardization of tools and equipment?
Answer: Standardisation of tools and equipment refers to providing the standard tools and equipment for production and maintaining standard working conditions and environment at the place of work. This systematic approach helps in reducing wastage and improving overall efficiency.
In simple words: This means giving workers the right, high-quality tools and a good workplace so they can do their jobs well. It ensures that everything used in production meets a set quality level.

🎯 Exam Tip: Focus on the dual aspects of "standard tools" and "standard working conditions" to secure full marks.

 

Question 3. What is differential wage rate?
Answer: Differential wage rate means offering higher rate of wages to those employees who complete the work more than the standard quantity and lower rate of wages to those employees who perform below the standard fixed. This system acts as a strong financial incentive for workers to perform at their best.
In simple words: This is a system where workers who do more work get paid a higher rate, while those who do less get paid a lower rate. It encourages everyone to work harder.

🎯 Exam Tip: Make sure to contrast the "higher rate for above-standard work" with the "lower rate for below-standard work" clearly.

 

Question 4. What is Subordination of Individual Interest into Organisational Interest?
Answer: Subordination of individual interest into organisational interest means the interest of an individual must be given less importance than the interest of the organisation. This ensures that the collective goals of the company are always prioritized over personal desires.
In simple words: This principle means that the goals of the whole company are more important than the personal goals of any single worker. Everyone must work together for the success of the group.

🎯 Exam Tip: Use the keyword "interest of the organisation" and explain that it comes before individual goals to show a complete understanding.

 

Question 5. What is the meaning of principle?
Answer: Principle means a fundamental truth or proposition that serves as the foundation for a system of belief or behaviour or for a chain of reasoning. These guidelines help individuals and organizations make consistent and effective decisions.
In simple words: A principle is a basic rule or truth that guides how we behave or make decisions. It acts like a compass to help us choose the right path.

🎯 Exam Tip: Remember the phrase "fundamental truth" as it is the core definition of a principle.

1. (G) Correct the Underlined Word and Rewrite the Following Sentences.

 

Question 1. Security in job always affects adversely on the efficiency of employees.
Answer: Insecurity in job always affects adversely on the efficiency of employees. This stability of tenure helps boost overall morale and productivity.
In simple words: When workers feel their jobs are safe, they work better. If they worry about losing their jobs, their work quality goes down.

🎯 Exam Tip: Remember that 'insecurity' is the opposite of 'security' and is the correct term when describing negative impacts on employee efficiency.

 

Question 2. Esprit de corps means ‘division is strength’.
Answer: Esprit de corps means ‘unity is strength’. This principle emphasizes the power of teamwork and mutual trust within an organization.
In simple words: Esprit de corps is a French phrase that means working together as a team makes everyone stronger.

🎯 Exam Tip: Always associate 'Esprit de corps' with team spirit and unity rather than division.

 

Question 3. Each member of organisation should receive orders from only one subordinate.
Answer: Each member of organisation should receive orders from only one superior. This prevents confusion and establishes a clear line of authority.
In simple words: To avoid confusion, an employee should only take orders from one boss at a time.

🎯 Exam Tip: This question refers to the principle of 'Unity of Command', where orders must flow from one superior only.

 

Question 4. Decentralisation means concentration of powers and authorities at a specific position.
Answer: Centralisation means concentration of powers and authorities at a specific position. In contrast, decentralisation refers to delegating authority throughout all levels of management.
In simple words: Centralisation is when all decision-making power is kept at the very top level of management.

🎯 Exam Tip: Do not confuse centralisation (concentration of power) with decentralisation (dispersal of power).

 

Question 5. Management techniques are applied differently under different conditions.
Answer: Management principles are applied differently under different conditions. These principles are flexible guidelines rather than rigid rules.
In simple words: Management principles are not fixed; they must be adjusted depending on the situation.

🎯 Exam Tip: Remember that principles are flexible and situational, whereas techniques are specific methods of action.

 

2. Explain the Following Terms/Concepts

 

Question 1. Motion Study
Answer: (1) This is one of the important techniques f of scientific management developed by E W. Taylor. Motion study refers to the movements of employees, as well as movement of machine while completing . a particular task. By eliminating unnecessary movements, it helps in increasing the overall productivity and efficiency of the workforce. The motion study helps the manager to know the movements required for a person to do a particular job.
In simple words: Motion study is a method that looks at how workers and machines move while doing a job. By removing useless movements, work gets done faster and with less effort.

🎯 Exam Tip: Mention Frederick Winslow Taylor (F.W. Taylor) as the pioneer of this study to secure full marks.

 

Question 2. Differential Piece Rate System.
Answer:
(1) According to F. W. Taylor, the differential piece wage rate plan is necessary to motivate the employees to attain higher standard performance and to earn remuneration at a higher rate. Differential piece wage rate plan suggests that remuneration should be fixed and paid in such a way that average worker is motivated to attain standard output.
(2) In differential piece wage rate plan, the standard is determined for production by the management. The workers who produce more than the standard are to be paid more in the form of incentives and those who produce less than the standard are to be paid less by way of penalty. This technique encourages those who perform well and motivates those who have performed less than the standard required to improve their performance.
(3) Taylor suggested the differential piece wage system and further stated that the discrimination should be made between the efficient and inefficient workers. This system ensures fairness by directly linking compensation to individual productivity. This technique explains that, efficient workers should be paid more remuneration in comparison to inefficient workers.
(4) Thus, the differential piece-rate wage plan technique motivates the able employees to attain higher performance and earn wages at higher rate.
In simple words: This system pays workers based on how much they produce. Faster and more efficient workers get paid a higher rate per piece, while slower workers get a lower rate, motivating everyone to work harder.

🎯 Exam Tip: Clearly distinguish between the rates paid to efficient and inefficient workers to highlight the motivational aspect of this system.

 

Question 3. Fatigue Study
Answer: The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates physical and mental stress, which ultimately hampers overall organizational productivity.
In simple words: Fatigue study helps in determining the amount and frequency of rest intervals required to complete a task. It ensures workers do not get too tired, which keeps their efficiency high.

🎯 Exam Tip: Mention both physical and mental aspects of fatigue, along with its causes like long hours and lack of breaks, to secure full marks.

 

Question 4. Time Study.
Answer: (1) Time study is one of the important techniques of scientific management developed by E. W. Taylor. Time study is useful to the manager to determine and record the time needed to complete a particular job or task. It is based on the speed of an average worker. This technique helps in avoiding any wastage of time.
(2) Under this technique of scientific management, every part of the entire work is considered in detail and the time required to complete each element of job or task is ascertained. On the basis of the time study, the manager determines the standard time required to complete a particular job. This also facilitates the manager to decide the remuneration to be paid and efficiency of the worker and to control the cost of work.
In simple words: Time study is a method used by managers to measure how much time an average worker takes to finish a task. This helps the company set fair work standards and decide on fair salaries.

🎯 Exam Tip: Clearly mention that Time Study is developed by F.W. Taylor and is used to determine the standard time for completing a task to score full marks.

Study the Following Case/Situation and Express Your Opinion

Mr. Harshad is an entrepreneur and engaged in production of eco-friendly utensils. Both male and female workers are working in his factory. All male employees are directly working on machines whereas female employees are working in Packaging Department. Mr. Sharath is working as Finance Manager while Mrs. Naina is working as HR Manager who is responsible for recruiting employees in the factory.

 

Question 1. (i) Identify any one principle of management in above case.
Answer: In the above case, the principle of Division of Work is identified. This principle helps in specializing tasks to improve overall productivity.
In simple words: The principle of Division of Work is shown here because different people are given specific jobs based on their roles.

🎯 Exam Tip: Identify the principle clearly and briefly explain how it applies to the given scenario to secure maximum marks.

 

Question 1. (ii) What is the designation of Mrs. Naina in this organisation?
Answer: The designation of Mrs. Naina is Human Resource Manager. She plays a vital role in managing employee relations and recruitment.
In simple words: Mrs. Naina works as the Human Resource (HR) Manager, which means she is in charge of hiring new workers.

🎯 Exam Tip: Directly state the designation as mentioned in the passage without overcomplicating the answer.

 

Question 1. (iii) Who is responsible for overall planning of the organisation?
Answer: Mr. Harshad, an entrepreneur of eco-friendly utensils, is responsible for overall planning of the organisation. As the owner, he sets the vision and direction for the entire business.
In simple words: Mr. Harshad, who started the business, is the one responsible for making all the big plans for the company.

🎯 Exam Tip: Always look for the entrepreneur or top-level manager in the text when asked about overall planning responsibilities.

...employees, in second shift 60 employees and in third shift 80 employees are working without sufficient breaks except lunch break and shift change break. No employee is able to complete the work in designated time due to inappropriate time management which results into delay for next shift employees.

 

Question. Identify the scientific principles and techniques to be followed in the given case:
(i) Identify which scientific principle needs to be followed by the company.
(ii) Suggest two scientific techniques which can be used for smooth flow of work in ‘Fine Diamonds Ltd.’
(iii) Why the work is not being completed in time?
Answer:
(i) In the above case, Principle of scientific management called Science, Not Rule of Thumb needs to be followed. This principle suggests that work should be planned scientifically rather than relying on trial-and-error methods.
(ii) Work study based on the technique of fatigue study and Scientific task setting can be used for smooth flow of work in ‘Fine Diamonds Ltd.’
(iii) Reasons for non-completion of work in time are:
1. Long working hours without sufficient breaks reduces the efficiency of labour.
2. Inappropriate time management (planning) done by the departmental head (Functional Manager) result into delay for next shift employees.
3. Standard required time and standard output are not defined by the manager or management of “Fine Diamonds Ltd.”
In simple words: The company needs to use scientific planning instead of old trial-and-error methods. Giving workers proper breaks and setting clear daily targets will help them finish their work on time.

🎯 Exam Tip: When analyzing case studies, clearly link the problems mentioned in the passage (like lack of breaks) to specific management principles (like fatigue study).

Answer in Brief

 

Question 1. Explain any five principles of management of Henry Fayol.
Answer:
(1) Principle of Division of Work: According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.
(2) Principle of Authority and Responsibility: Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if a manager is given authority to complete a task within a given time, he should be held responsible for its non-completion.
(3) Principle of Discipline: Discipline is extremely important to run any organization smoothly. It refers to obedience, respect for authority, and observance of established rules and regulations.
(4) Principle of Unity of Command: According to this principle, an employee should receive orders and instructions from only one superior or boss. This helps in avoiding confusion and conflicts.
(5) Principle of Unity of Direction: This principle states that there should be 'one head and one plan' for a group of activities having the same objective. It ensures unity of action and coordination.
In simple words: Henry Fayol's principles are guidelines for running a business successfully. They suggest dividing work based on skills, balancing power with responsibility, maintaining discipline, and ensuring employees take orders from only one boss to avoid confusion.

🎯 Exam Tip: To score full marks, list the names of the five principles clearly as sub-headings and write 2-3 explanatory sentences for each.

Question 2. Explain the Principle of Authority and Responsibility.
Answer: If a manager is given the authority to complete a specific task within a given time, he would be held responsible for the same. A manager should have adequate authority to take managerial decisions on his own to achieve the goal. This balance prevents misuse of power and ensures tasks are completed efficiently.
In simple words: Authority means the power to make decisions, and responsibility means being answerable for the work. A good manager needs a balance of both to do their job well.

🎯 Exam Tip: Always emphasize that authority and responsibility must go hand in hand; having one without the other leads to inefficiency or misuse of power.

 

Question 3. Explain the Principle of Discipline.
Answer: Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management. Proper discipline builds a healthy and productive work environment.
In simple words: Discipline means following the rules and respecting agreements. It helps the company run smoothly and helps everyone work together without confusion.

🎯 Exam Tip: Mention that discipline is required at all levels of management, not just for lower-level employees, to secure full marks.

 

Question 4. Explain the Principle of Unity of Command.
Answer: According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more than one boss at a time, he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only. This prevents conflicts and confusion in the workplace.

In simple words: This rule says that every worker should have only one boss to give them orders. If you have two bosses telling you to do different things at the same time, you will get confused.

🎯 Exam Tip: Drawing a simple diagram showing one boss with multiple subordinates versus multiple bosses with multiple subordinates will help you secure full marks.

 

Question 5. Explain the Principle of Unity of Direction.
Answer: Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies. This alignment ensures that everyone is moving towards the same organizational destination.
In simple words: This principle means that departments with the same goal should follow one single plan under one leader. It keeps everyone moving in the same direction.

🎯 Exam Tip: Remember the key phrase "One head for One plan" as it is the core concept of this principle and highly looked for by examiners.

 

Question 6. Explain the Principle of Subordination of Individual Interest to Organisational Interest.
Answer: According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation. This collective focus ensures the long-term survival and prosperity of the business.
In simple words: The goals of the company are always more important than the personal goals of any single worker. Everyone must work for the success of the whole team first.

🎯 Exam Tip: Use the analogy of a sports team where winning the game (team goal) is more important than individual player statistics (personal goal) to make your answer stand out.

 

Question 2. Describe any four techniques of scientific management.
Answer:
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes an organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.
(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.
(ii) Method Study : In order to get best quality with cost effectiveness, it is important and challenging for a manager to identify the best method from various available methods to complete the specific job. This method is useful to reduce the wastage of time, raw material and to improve usefulness of the resources to achieve defined objectives. It is also useful to determine the methods to handle the raw materials, storage, inspection and transportation.
(iii) Motion Study : Motion study refers to the close study of the movements of employees as well as machines in completing a particular task. This technique is useful to manager to eliminate the unnecessary movements and to find out the best method of completing a specific task. It improves efficiency and productivity of the employees. This method is also useful to understand and decide about the elimination of some elements of a job or changing their sequence for smooth flow of work.
(iv) Fatigue Study : The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers. Providing scheduled rest intervals can significantly boost overall workplace morale.
In simple words: Scientific management uses systematic techniques like studying time, methods, movements, and fatigue to make work more efficient. By analyzing these factors, managers can reduce waste, save time, and keep workers healthy and productive.

🎯 Exam Tip: Clearly define each of the four techniques—Time, Method, Motion, and Fatigue study—and highlight how they collectively improve organizational efficiency.

Standardisation of Tools and Equipment

On the basis of experiments conducted at work place, Taylor insisted to provide standard tools and equipment, standard working environment and standard methods of production. It helps to reduce spoilage and wastage of materials, cost of production, fatigue among the employees on the one hand and improves quality of work on the other hand.

Scientific Task Setting

Taylor laid stress on the need for fixing a fair day’s work. The technique of scientific task setting is useful to restrain the employees from performing the task much below their capacity. As a result, they will complete their task according to the standards given and management will be able to keep proper control on the optimum use of available workforce.

Scientific Selection and Training

By using scientific selection procedures, management easily select right persons for the right jobs. According to this technique, job specifications required to be fixed and employees are selected as per predetermined standards in an impartial way. After their selection, the management should arrange proper training programmes to increase efficiency.

Functional Organisation

Taylor suggested that planning of the work is to be done by different people and actual work is to be supervised by different set of people. Every worker in the factory is to be supervised by two different sets of supervisors. He further suggested total eight foremen to control the various parts of the production. They are categorised as follows:

At Planning Level:

• Route clerk: Explains the movement of work from one machine to other.
• Instruction clerk: Gives and records instructions to complete the work.
• Time and cost clerk: Decides the time to complete the work and work out the cost.
• Discipline: To see to it that workers work as per factory rules.

At Implementation Level:

• Gang Boss: Gets the actual work done from employees.
• Speed Boss: Takes care that work is done in specified time.
• Repair Boss: Manages security and maintenance of mechanism.
• Inspector: Makes sure that work is completed as per specified standards.

Justify the Following Statements

 

Question 1. Principles of management are flexible in nature.
Answer:
(1) Principles of management are the statements of fundamental truth which act as guidelines for managerial decision-making and action. They establish cause and effect relationship. They are evolved through observation, analysis and experiments.
(2) Principles of management although fundamental, are not rigid. They are flexible in nature in the sense they can be changed or modified according to the situation and requirements of the organisation. Managers can change these principles to suit the requirements of the organisation.
(3) Principles of management are flexible guidelines providing ample scope for making changes according to the nature of enterprise, its size, competitive situation, etc. For instance, in the context of present business scenario, at many places the ‘family management has been substituted by professional management’.
(4) Modern business world is dynamic. The situations in a business enterprise keep on changing continuously. No two circumstances are identical. Principles of management can be changed, adjusted or modified and used in the enterprise as per its changing needs and requirements. By identifying problems of business changes will be accepted. These principles serve as dynamic tools rather than static rules.
In simple words: Management principles are not fixed rules written in stone. They can be easily changed or adjusted by managers to fit the unique and changing needs of their business.

🎯 Exam Tip: To score full marks, clearly highlight the contrast between "rigid" and "flexible" and use the example of family management versus professional management.

 

Question 2. Management principles are helpful in optimum utilization of resources.
Answer:
(1) Materials or abstract qualities that a person or organisation uses to perform the work is called resources, e.g. tools, stocks, time, employees, etc. In every organisation, two types of resources are used and they are: (i) Physical resources such as materials, machines, money, etc. and (ii) Human resources i.e. manpower.
(2) The different types of resources are used in the organisation to manufacture or produce different types of goods and services. The resources are scarce in relation to their unlimited demand, making their efficient management absolutely critical.
In simple words: Every business has limited resources like money, machines, and workers. Management principles help the business use these resources in the best possible way without wasting them.

🎯 Exam Tip: Remember to categorize resources into physical and human resources, as this distinction is key to explaining optimum utilization.

 

Question 3. Principle of equity is important.
Answer:
(1) The principle of equity suggests that employer should give kind, fair, just and equal treatment to the employees. Managers should be kind, impartial and fair to their subordinates. This creates a harmonious work environment where everyone feels valued.
(2) The principle of equity further states that there should not be any discrimination between the employees while making the payment of wages. The employees working on the same level but in different departments should be paid same wages.
(3) The wages payable to employees should not depend on the departments but the level at which they are working, e.g. Foremen should be paid higher wages than that is paid to employees working under them.
(4) The principle of equity also states that there should not be any discrimination between the employees while distributing work between them. As far as possible, there should be equal distribution of work. Thus, equality in treatment of employees boosts the morale and develops a sense of belongingness among the employees. It helps to develop loyalty of employees towards organisation and avoid conflicts.
In simple words: The principle of equity means treating all employees fairly and equally without any unfair bias. When workers are treated with respect and paid equally for equal work, they feel happier and work harder for the company.

🎯 Exam Tip: To score full marks, clearly explain how equity applies to both treatment and wages, and mention how it boosts employee morale.

 

Question 4. Taylor emphasized on standardization of tools and equipment.
Answer:
(1) Fredrick Winslow Taylor published Principles of Scientific Management. His primary objective was to increase efficiency of employees by scientifically designing jobs. According to his views, management problems should be solved through experiments and use of scientific techniques rather than rules of thumb and triad and error approach.
(2) Taylor had conducted many experiments at workplace and as a result of those experiments, he advocated standardisation of tools and equipment. Standard here, means a level of quality or achievement, especially a level that is acceptable. By establishing these uniform standards, organizations can ensure consistent output across all departments.
(3) According to him, standardised working environment and standardised methods of production tools and equipment help to reduce spoilage and wastage of materials. This in turn reduces the overall cost of production.
(4) Similarly use of standardised tools and equipment increases efficiency of employees and also helps to reduce fatigue among the workers. This improves the quality of work.
In simple words: Taylor believed that using the same high-quality tools and methods at work helps reduce waste and saves money. It also makes the work easier for employees and helps them perform much better.

🎯 Exam Tip: Highlight how standardization reduces both material waste and worker fatigue to secure maximum marks.

 

Question 5. Differential piece wage rate plan is necessary.
Answer:
(1) According to F. W. Taylor, the differential piece wage rate plan is necessary to motivate the employees to attain higher standard performance and to earn remuneration at a higher rate. Differential piece wage rate plan suggests that remuneration should be fixed and paid in such a way that average worker is motivated to attain standard output. This system directly links an individual's effort and output to their financial reward.
(2) In differential piece wage rate plan, the standard is determined for production by the management. The workers who produce more than the standard are to be paid more in the form of incentives and those who produce less than the standard are to be paid less by way of penalty. This technique encourages those who perform well and motivates those who have performed less than the standard required to improve their performance.
In simple words: This plan pays workers based on how much they produce. Efficient workers who do more than the standard get paid higher rates, while slower workers get paid less, which motivates everyone to work harder.

🎯 Exam Tip: Clearly explain the distinction between the payment rates for high-performing and low-performing workers to show a complete understanding of this system.

6. Attempt the Following

 

Question 1. Explain in detail any five Principles of Management given by Henry Fayol’s?
Answer:
(1) Principle of Division of Work : According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.
(2) Principle of Authority and Responsibility: Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if manager is given authority to complete a specific task within a given time, he would be held responsible for the same. Manager should have adequate authority to take managerial decisions on his own to achieve the goal.
(3) Principle of Discipline: Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management.
(4) Principle of Unity of Command: According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more than one boss at a time, he will get confused and will not be able to perform his duties effectively. This principle helps in avoiding conflicts and overlapping of work.
(5) Principle of Unity of Direction: This principle states that there should be 'one head and one plan' for a group of activities having the same objective. All efforts of the department must be directed towards achieving the common goal.
In simple words: Henry Fayol's principles help businesses run smoothly. They suggest dividing work based on skills, giving managers both power and responsibility, maintaining discipline, and ensuring each worker gets orders from only one boss to avoid confusion.

🎯 Exam Tip: To score full marks, clearly state the name of each principle as a heading and write a brief explanation highlighting key terms like 'specialisation', 'accountability', and 'unity'.

he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only.

(5) Principle of Unity of Direction: Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies.

(6) Principle of Subordination of Individual Interest to Organisational Interest: According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation e.g. while playing a game a team players should always play to win the game and not for his individual records.

 

Question 2. Describe different techniques of scientific management.
Answer: (1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes an organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.
(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time limits for each task to ensure maximum efficiency.
In simple words: Scientific management uses systematic studies like observing the time taken for tasks to make work processes highly efficient. This helps managers set fair and realistic daily targets for every worker.

🎯 Exam Tip: Clearly define each technique of work study, such as time study and motion study, using clear headings to secure maximum marks.

standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

 

(ii) Method Study: In order to get best quality with cost effectiveness, it is important and challenging for a manager to identify the best method from various available methods to complete the specific job. This method is useful to reduce the wastage of time, raw material and to improve usefulness of the resources to achieve defined objectives. It is also useful to determine the methods to handle the raw materials, storage, inspection and transportation.

 

(iii) Motion Study: Motion study refers to the close study of the movements of employees as well as machines in completing a particular task. This technique is useful to manager to eliminate the unnecessary movements and to find out the best method of completing a specific task. It improves efficiency and productivity of the employees. This method is also useful to understand and decide about the elimination of some elements of a job or changing their sequence for smooth flow of work.

 

(iv) Fatigue Study: The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

 

(2) Standardisation of Tools and Equipment:
On the basis of experiments conducted at work place, Taylor insisted to provide standard tools and equipment, standard working environment and standard methods of production. It helps to reduce spoilage and wastage of materials, cost of production, fatigue among the employees on the one hand and improves quality of work on the other hand.

 

(3) Scientific Task Setting:
Taylor laid stress on the need for fixing a fair day’s work. The technique of scientific task setting is useful to restrain the employees from performing the task much below their capacity. As a result, they will complete their task according to the standards given and management will be able to keep proper control on the optimum use of available workforce.

 

Question 3. Elaborate Principles of Scientific Management.
Answer: The principles of scientific management are as follows:
1. Science, Not Rule of Thumb
2. Harmony, Not Discord
3. Mental Revolution
4. Co-operation, Not Individualism
5. Division of Responsibility
6. Development of employer and employees for greater efficiency and maximum prosperity. These core guidelines help organizations streamline their operations and boost overall productivity.
In simple words: Scientific management means using logical, tested methods instead of old habits to run a business. It focuses on teamwork, training, and clear roles so both workers and owners can succeed together.

🎯 Exam Tip: Memorize all six principles by heart and list them in order, as examiners look for these exact headings to award full marks.

1. Science, Not Rule of Thumb

Rule of thumb method is based on personal judgements of the manager which should be substituted with the methods developed through scientific analysis of work. Taylor emphasised more on the use of scientific method for every small job. This principle related with selecting the best way of doing a work after scientific analysis. Under this method, standard required time and standard output are defined by the manager. This method is useful to save time and human energy, to get expected standard output and to increase organisational efficiency.

 

2. Harmony, Not Discord

This principle states that, in every organisation these should be proper co-ordination and harmonious relations between the management and employees. This will help in minimising conflicts between them and in achieving the goals of the organisation. The perfect understanding between employees and management is also helpful in creating healthy work environment. Organisation should also think about the maximum prosperity of the employees.

 

3. Mental Revolution

The concept of ‘mental revolution’ was introduced by Taylor. This principle highlights on the complete change in the attitude of the management and employees toward each other. Both should recognise their equal importance in the organisation. They should co-operate with each other to achieve goals or objectives of the organisation. This in turn will increase productivity and profits.

 

4. Co-operation, Not Individualism

This principle states that there should be mutual co-operation between employees and management. Co-operation, trust, team spirit, etc. are important to avoid internal competition and to create healthy working environment. Management should always appreciate and consider the suggestions given by the employees in decision-making process. The management should treat the employees as an integral part of the organisation in all respects. Employees should also resist themselves from going on strikes and making unacceptable or unnecessary demands from the management. Thus, they should see each other as two pillars of the organisation.

 

5. Division of Responsibility

This principle states that while dividing the work there should be corresponding division of responsibility between the managers and employees. Major planning should be done by the top and middle level management and employees should concentrate on its execution. The reporting of the jobs should be done by the subordinates as per the instructions given by their

 

Question 4. Explain nature (characteristics) of principles of management.
Answer: The nature (characteristics) of principles of management is (are) explained as follows:
(1) Universal application : Management principles are universal in nature. They are applicable to all types of organisations irrespective of the type, size or nature, e.g. government, college, hospital, bank. etc. Their application may have to be modified, but they are suitable for all kinds of organisations, whether in private sector or public sector. This adaptability makes them highly versatile tools for managers worldwide. Similarly, principles of management are applicable to all levels of management. For instance, the principle of division of labour is applicable to all types of organisations.
(2) General guidelines : Management principles give general guidelines to tackle the organisational situations wisely and to solve the problems systematically. They are not rigid. Application of management principles depend upon the situation, size and nature of organisation, e.g., when we say according to principle of remuneration, the employees must be paid fair remuneration. The term ‘fair’ may vary as per nature, size and financial ability of the organisation.
(3) Principles are formed by practice and experiments : The management principles are developed gradually with thorough research work, experiments and systematic observations. The results of such observations and experiments are developed after their practice in different organisations.
In simple words: Management principles are flexible rules that can be used in any organization to guide managers in making decisions and solving everyday problems based on real-world experience.

🎯 Exam Tip: Clearly list and explain at least three key characteristics with real-world examples like 'division of labour' to secure maximum marks.

(4) Flexibility: Management principles, although fundamental are not rigid statements. They have to be applied differently under various conditions. It is possible to make suitable changes in their application according to the requirement of the organisation. Thus, Management principles are flexible guidelines providing ample scope for making changes according to the nature of enterprise, its size, competitive situation, etc.

(5) Behavioural in nature: Management is a teamwork or a group activity. Management principles aim at influencing individual efforts and directing them to achieve various objectives of the organisation. They are directed towards regulating human behaviour so that people give their best to the organisation. Thus, principles of management are designed to influence human behaviour.

(6) Cause and effect relationship: Management principles indicate cause and effect relationship. Each principle has a definite effect on the efficiency or working of management. For example, payment of good remuneration and incentives increases output. Similarly, effective advertisement given by the organisation increases the sale of a product.

(7) All principles are of equal importance: All the principles of management have equal importance and they also carry equal weightage with reference to their applicability in the organisation. For example, it cannot be said that the principle of division of labour is more important than the principle of unity of command or vice versa. Management principles are not static in nature. They are not absolute like principles of pure sciences like Chemistry, Mathematics, etc. They are the principles of social science. They are to be modified and applied according to the size and nature of the organisation, keeping in mind the requirements.

Answer the Following Questions

 

Question 1. What are the techniques of scientific management? Explain in detail.
Answer: The techniques of scientific management given by F. W. Taylor are explained as follows: These techniques help in maximizing efficiency and reducing waste in the production process.
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes Em organised systematic and critical assessment of different activities or functions. It is based on
In simple words: Scientific management techniques are practical methods used to study work scientifically so that workers can do their jobs faster and with less effort.

🎯 Exam Tip: When explaining Taylor's techniques, clearly define 'Work Study' and its components like time study and motion study to secure maximum marks.

Techniques of Scientific Management

The different techniques like time study, method study, motion study and fatigue study:

(i) Time Study: Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

(ii) Method Study: In order to get best quality with cost effectiveness, it is important and challenging for a manager to identify the best method from various available methods to complete the specific job. This method is useful to reduce the wastage of time, raw material and to improve usefulness of the resources to achieve defined objectives. It is also useful to determine the methods to handle the raw materials, storage, inspection and transportation.

(iii) Motion Study: Motion study refers to the close study of the movements of employees as well as machines in completing a particular task. This technique is useful to manager to eliminate the unnecessary movements and to find out the best method of completing a specific task. It improves efficiency and productivity of the employees. This method is also useful to understand and decide about the elimination of some elements of a job or changing their sequence for smooth flow of work.

(iv) Fatigue Study: The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

(2) Standardisation of Tools and Equipment:
On the basis of experiments conducted at work place, Taylor insisted to provide standard tools and equipment, standard working environment and standard methods of production. It helps to reduce spoilage and wastage of materials, cost of production, fatigue among the employees on the one hand and improves quality of work on the other hand.

(3) Scientific Task Setting:
Taylor laid stress on the need for fixing a fair day’s work. The technique of scientific task setting is useful to restrain the employees from

...performing the task much below their capacity. As a result, they will complete their task according to the standards given and management will be able to keep proper control on the optimum use of available workforce.

 

(4) Scientific Selection and Training: By using scientific selection procedures, management easily select right persons for the right jobs. According to this technique, job specifications required to be fixed and employees are selected as per predetermined standards in an impartial way. After their selection, the management should arrange proper training programmes to increase efficiency.

 

(5) Functional Organisation: Taylor suggested that planning of the work is to be done by different people and actual work is to be supervised by different set of people. Every worker in the factory is to be supervised by two different sets of supervisors. He further suggested total eight foremen to control the various parts of the production. They are categorised as follows:

(A) At planning level:

• 1. Route clerk: Explains the movement of work from one machine to other.
• 2. Instruction clerk: Gives and records instructions to complete the work.
• 3. Time and cost clerk: Decides the time to complete the work and work out the cost.
• 4. Discipline: To see to it that workers work as per factory rules.

(B) At implementation level:

• 1. Gang Boss: Gets the actual work done from employees.
• 2. Speed Boss: Takes care that work is done in specified time.
• 3. Repair Boss: Manages security and maintenance of mechanism.
• 4. Inspector: Makes sure that work is completed as per specified standards.

 

(6) Differential Piece – Rate Wage Plan: Taylor suggested that discrimination should be made between efficient and less efficient workers. In this technique, the standard is determined (fixed) for production. The workers who produce more than the standard output are to be paid remuneration at higher rates and those who produce less them the standard quantity are to be paid at lower rate of

🎯 Exam Tip: When explaining Functional Organisation, clearly distinguish between the planning level and implementation level foremen, as examiners look for this specific classification to award full marks.

 

Question 2. Explain 14 principles of Henry Fayol in detail.
Answer: Henry Fayol, the Father of Modern Management, developed 14 principles of management to guide managers in running organizations effectively. These principles act as a guide for managerial decision-making and action.

The 14 principles of management are:
1. Principle of Division of Work
2. Principle of Authority and Responsibility
3. Principle of Discipline
4. Principle of Unity of Command
5. Principle of Unity of Direction
6. Principle of Subordination of Individual Interest to Organisational Interest
7. Principle of Centralisation
8. Principle of Remuneration
9. Principle of Scalar Chain
10. Principle of Order
11. Principle of Equity
12. Principle of Stability of Tenure
13. Principle of Initiative
14. Principle of Esprit de corps (Team Work)

Detailed explanation of the principles:

1. Principle of Division of Work: According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.

2. Principle of Authority and Responsibility: Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if a manager is given authority to complete a specific task within a given time, he should be held responsible if he fails to do so.

3. Principle of Discipline: Discipline is essential for the smooth running of any organization. Employees must obey and respect the rules that govern the organization, and management must provide clear leadership.

4. Principle of Unity of Command: Each employee should receive orders from and be accountable to only one superior. This prevents confusion, conflict, and overlapping of instructions.

5. Principle of Unity of Direction: All activities with the same objective must be directed by one manager using a single, coordinated plan to ensure unity of action.

6. Principle of Subordination of Individual Interest to Organisational Interest: The interests of the organization as a whole must take priority over the personal or individual interests of any employee or group of employees.

7. Principle of Centralisation: Centralization refers to the concentration of decision-making power at the top level. There should be a proper balance between centralization and decentralization depending on the size and nature of the organization.

8. Principle of Remuneration: The compensation paid to employees should be fair, reasonable, and satisfactory to both the employees and the organization to maintain high morale.

9. Principle of Scalar Chain: This is the formal line of authority from the highest to the lowest rank. While this chain should normally be followed, a direct communication link called 'Gang Plank' can be used during emergencies to avoid delays.

10. Principle of Order: This principle states that there should be a proper place for everything and everyone, ensuring that resources and people are in the right place at the right time for maximum efficiency.

11. Principle of Equity: Managers should treat all subordinates with kindness, fairness, and justice, ensuring there is no discrimination based on gender, caste, or religion.

12. Principle of Stability of Tenure: Employees should be given job security and stability of tenure. Frequent transfers or terminations can create insecurity and reduce overall efficiency.

13. Principle of Initiative: Managers should encourage employees to take the initiative in proposing and executing new ideas, which fosters creativity and motivation.

14. Principle of Esprit de corps (Team Work): Management should strive to build a strong sense of unity, harmony, and team spirit among employees to achieve organizational goals successfully.
In simple words: Henry Fayol created 14 basic rules to help managers run a business smoothly and fairly. These rules cover everything from dividing work among experts to encouraging teamwork and treating employees with respect.

🎯 Exam Tip: Memorize the names of all 14 principles first, and then write a brief 1-2 sentence explanation for each to secure full marks in long-answer questions.

...held responsible for the same. Manager should have adequate authority to take managerial decisions on his own to achieve the goal.

 

3. Principle of Discipline

Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management.

 

4. Principle of Unity of Command

According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more them one boss at a time, he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only.

 

5. Principle of Unity of Direction

Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies.

 

6. Principle of Subordination of Individual Interest to Organisational Interest

According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation.

e.g. while playing a game a team players should always play to win the game and not for his individual records.

 

7. Principle of Centralisation
Centralisation means concentration of authority or power in a few hands at the top level. As number of employees is less in a smaller organisation there is centralisation of authority. Decentralisation means even distribution of authority or power at every level of management. As number of employees and levels of management are more in a larger organisation, there must be decentralisation of some authorities for its smooth functioning. According to Fayol, there must be a proper balance between centralisation and decentralisation, depending upon the nature and size of an organisation.

 

8. Principle of Remuneration
According to this principle, the employees must be paid fair and appropriate remuneration to keep them satisfied financially and to retain them within the organisation for longer period of time. While fixing remuneration various factors such as the skill, knowledge, expertise, tenure, cost of living, market trend, profitability of organisation, etc. should be considered. It boosts the morale of employees and increases efficiency and productivity.

 

9. Principle of Scalar Chain
According to Fayol, in the organisation decisions, orders, instructions, messages, etc. must be passed through a chain, i.e. from the general manager to the respective functional manager, then to the supervisor, then to the foreman and then ultimately, to the workers. Similarly, suggestions, information, grievances, etc., must flow from the worker in the upward direction. This is called Scalar Chain. Sometimes, following a scalar chain becomes a lengthy process. In such cases, ‘Gang Plank’ is followed which permits speedy and direct communication between the employees working at the same level of authority. However, for this, permission of the proper authority is necessary.

 

10. Principle of Order
The principle of order is based on ‘a place for everything and everything in its place’. According to this principle, in every organisation there should be proper, systematic and orderly arrangement of men and materials. There should be a fixed place to keep every material and thing used in the organisation and a fixed place or a seat for every employee. The purpose of this principle is to reduce wastage of time and energy. This principle emphasises more on the proper and optimum utilisation of physical and human resources.

 

Question 11. Principle of Equity
Answer: This principle states that the management should be fair as well as friendly to the subordinate staff. There should be no discrimination of employees in regard to division of work, delegation of the authorities, deciding the monetary terms, etc. This principle also states that the remuneration should depend not on the department but at the level at which employees are working. It means the employees working on the same level but in separate departments must be paid equal wages. It will also help in avoiding conflicts in an organisation. A harmonious work environment is essential for overall productivity.
In simple words: This principle means treating all employees fairly and equally, without any discrimination, and paying equal wages to people doing the same level of work.

🎯 Exam Tip: Remember that equity does not mean equal salary for everyone, but equal pay for equal work levels without discrimination.

 

Question 12. Principle of Stability of Tenure
Answer: According to this principle, at the time of recruitment of employees, the management should assure them about the stability of tenure (i.e. job security). This creates a sense of belonging among the employees. Job security increases efficiency of the employees and minimises employees turnover ratio. Feeling secure in one's position encourages long-term commitment to the company's vision.
In simple words: This principle states that employees should be given job security so they feel safe, work more efficiently, and do not leave the company quickly.

🎯 Exam Tip: Highlight how job security directly reduces employee turnover and boosts overall organizational efficiency.

 

Question 13. Principle of Initiative
Answer: Initiative means to do the work in an innovative way in his or her personal capacity. According to this principle, managers should give freedom, opportunity or encourage the subordinates to take initiative while working on given job. Their suggestions and ideas should be invited before framing the plan. This can work as a morale booster for the employees and leads to timely achievement of organisational goals. Welcoming new ideas fosters a culture of continuous improvement.
In simple words: This principle encourages managers to give employees the freedom to suggest new ideas and work creatively, which boosts their confidence.

🎯 Exam Tip: Focus on the keyword 'morale booster' and explain how involving employees in planning helps achieve goals faster.

 

Question 14. Principle of Esprit de corpse (Team Work)
Answer: ‘Esprit de corpse’ means union is strength. This principle integrates and co-ordinates the individual and group efforts. It emphasizes the spirit of teamwork. The manager as a leader should create the feeling of team spirit and understanding among the various groups. When entire group of employees works as a team, their efforts get directed towards realising the goals of the organisation. Mutual trust and cooperation are the foundation of successful team execution.
In simple words: This principle means that unity is strength, and managers should build strong teamwork and cooperation among employees to achieve goals together.

🎯 Exam Tip: Always translate 'Esprit de corps' as 'union is strength' in your answer to secure full marks.