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Thursday, December 25, 2014

AHSEC - 12: Principles of Management Important notes for Feb' 2018 Exam

Unit – 2: Principles of Management
Q.1. What is meant by Management principles?
Ans: Management principles are those basic truths which have the ability to predict the result of the managerial activities.
Q.2. Why are the Principles called contingent?
Ans: Because they are affected by situations.
Q.3. State two features of Principles of management.                   2008, 2011
Ans: a) Universal Applicability  b) General Statements  c) Flexibility
Q.4. State one violating effect of the principle of ‘Division of work’
Ans: Lack of specialization.
Q.5. State one positive effect of the principle of ‘Unity of command’
Ans: Avoidance of confusion leading to efficiency.
Q.6. State the principle of ‘order’.
Ans: Proper placement of things and persons is called order.
Q.7. State the technique of scientific management which is the strong motivator for a worker to reach standard performance.
Ans:  Differential piece wage system which is introduced by F.W. Taylor.
Q.8. What is meant by Simplification as a technique of scientific management?
Ans: Simplification refers to putting an end to unnecessary types, qualities, sizes etc.
Q.9. What is the main objective of ‘Time Study?’

Ans: Time study aims at determination of standard time, to determine the labour cost and to create time management among the employees.
Q.10. Distinguish between contribution made by Fayol and Taylor on the basis of applicability.
Ans: Fayol's principles are applied universally as they are general in nature whereas Taylor’s principles are specific as they are scientific in nature.
Q.11. What is meant by ‘Mental Revolution?’
Ans: It calls for a change in the mental outlook of both, the employees and the management.
Q.12. What is the aim of motion study?
Ans: It aims at eliminating unproductive movements of the employees at work.
Q.13. What do you understand by principles of management?                  2009
Ans: Principles of Management are the statements of fundamental truth which provide guidelines which help management to take decisions and action. They are derived from observation and experimental studies.
Q.14. Mention the steps for deriving Management principles. 
Ans:  Steps for driving principles:
a)      Choice of the problem or opportunity
b)      Observation and study of the problem
c)       Making hypothesis
d)      Conclusion and forecasting
e)      Testing the principle
Q.15. Write down the characteristics (Nature) of management principles.          2008, 2011
Ans:  Characteristics/Nature of management principles are:
a)      Universal Application: Management principles are applied in every situation, where the objectives are attained through group efforts. All social, economic, political, cultural or even religious organizations apply management principles for the successful operations of their activities.
b)      Flexibility: The business situations and its social economic environment are always changing, so the management principles are dynamic enough to suit the size, nature, need and situation of the business.

c)       General statements: Management principles are concerned mostly with human behaviour, which cannot be tested under controlled conditions i.e., a laboratory.
d)      Influencing human behaviors: Human element is an essential factor of production. It activates and extracts work from other factors also. Every worker is individually different from other workers. Management is concerned with the integration of individual efforts and how to channeling them towards achieving the desired results.
Q.16. Explain briefly the NEED/IMPORTANCE of management principles?
Ans: Management principles are needed for the following reasons:
a)      Optimum use of resources: The management principle of “science, not rule of the thumb” suggests that every task should be done with minimum effort and energy and additional work can be done with the saved energy. By saving time, efforts and energy activities can be made economical and enhance the productivity of the resources.
b)      Change in technology: The management principle of “division of labour” helps management in identifying in which activity technology has changed. If there is no division of labour then confusion may prevail about what and how much to change.
c)       Effective Administration: The principle of ‘scalar chain’ helps the enterprise to communicate with people at different levels. ‘Unity of direction’ removes confusion in minds of employees; and ‘Unity of command’ avoids dual subordination. Thus these principles help management in managing their organisations effectively.
d)      Others: Besides the above, management principles also provide guidelines to managers to:
a. Effectively handle complex problems.
b.Clearly understand the nature and scope of their work
c. To make optimum use of the resources.
d.To take scientific decisions to meet changing conditions.
Q.17. Define Scientific Management.                    2007,
Ans:  Scientific Management may be defined as the scientific study and analysis of work, scientific selection and training of employees, standardization and scientific rate setting. It is an art of knowing exactly what a manager wants his workers to do and seeing it that they do it in the best and cheapest way.
According to F.W.Taylor who is regarded as the father of scientific management, “Scientific Management is the art of knowing exactly what you want your men to do and seeing that they do it in the cheapest way”.
Q.18. What are the Objectives of Scientific Management?
Ans: Scientific management has the following main objectives:
a)      With the use of standardized tools, methods, equipments, and development of workers increasing the rate of production.
b)      Reducing the cost of production by using the different cost control techniques.
c)       Improvement in the quality of product through quality control and inspections.
d)      To place the right person at the right place.
e)      Providing the wages to the workers according to their efficiency.
Q.19. What are the characteristics of Scientific Management?                   2008, 2009
Ans:  Scientific management has the following characteristics:
a)      Predetermined objectives: The objective of every job is predetermined and in order to achieve that objective physical and human resources are applied.

b)      Predetermined plans: In order to achieve the predetermined goal of every job, effective plans for the most appropriate use of the available resources are prepared. Planning in this case is goal oriented.
c)       Scientific analysis of plans: The utility, effectiveness and suitability of plans is tested and ascertained before it is put in practical operation.
d)      Set of rules: In order to implement the plans a set of rules are made.
e)      Work studies: Standardization of time, motion, fatigue and work is done after careful time, motion, work & fatigue studies, so that maximum output could be achieved at minimum sacrifice.
Q.20. What are the advantages and criticism of scientific management to the workers?                               2008
Ans:  Advantages to the workers: Improved working conditions, Higher standard of living, Free training, Interesting job, Incentive wage system.
Criticism of scientific management:  Rigid Control, Monotonous work, Lack of initiative, Exploitation, Lack of employment opportunities, Weak Unions.
Q.21. Explain the importance of principles of scientific management.
Ans:  Importance of principles of scientific management:
a)      Efficiency of business improves through simplification and specialisation.
b)      Helps in reducing the cost of production by eliminating all types of wastages.
c)       Enables to capture wide market since the price and cost of the product decreases.
d)      Enables the workers to earn more with the introduction of differential piece rate system.
e)      Provides better working conditions for workers.
Q.22. Explain Taylor’s principles (elements) of Scientific Management.                                2008, 2009
Ans:  Taylor’s philosophy consists of the following principles of scientific management:
a)      Replacing rule of thumb with science: According to this principle, scientific investigation should be applied in the scientific management, which will replace the rule of thumb. Taylor had made study of every job and fixed the method and timing for performing the job so that the worker should know that what, when, and how is required to perform the job. This principle is the starting point of scientific.
b)      Harmony in group action: This principle states that there should be cooperation between the management and the workers. In order to achieve the best possible results from the business operations, it is essential that there should be harmonious relations between the management and the workers.
c)       Division of responsibility between workers and management: According to this principle there should proportionate division of the responsibility between the managers and the workers, clearly defined, and predetermined.
d)      Maximum Output: Scientific Management aims for the continuous production and productivity. According to this principle management and the workers should try to increase the production at the minimum cost.
e)      Selection, training, and development of the workers in the scientific manner: According to this principle the right men is placed on the right job. The jobs are determined first for which the workers are required and then the qualifications required for the job are determined. On the basis of these standards the employees are selected.
Q.23. Distinguish between Time Study and Motion Study.
Time Study
Motion Study
It measures the standard time taken for a qualified worker to perform a well defined job.
It studies movements of body/machine to perform a job
The purpose is to decide how much time is normally required to perform a certain job
The purpose is to avoid wasteful motions and to determine the best way of doing a job
It measures the work provides a yardstick to decide between efficient and inefficient workers.
It eliminates and reduces wasteful and useless motions.
It aims at improving the performance of workers by discriminating them as efficient and inefficient.
It improves the performance of the workers without any discrimination.
Q.24. Define the principle of unity of command. What can be the consequences if this principle is violated? 2009,2013
Ans:  Principle of unity of command: According to this principle of Fayol, every employee should receive orders and instructions from one boss and he should be responsible and accountable to him only.
The violation of this principle will have the following consequences:
a)      It will be very difficult to maintain discipline
b)      Duplication of work
c)       Over – lapping of orders and instructions
d)      Disrespect to the work and officers
Q.25. List out Fayol’s 14 general principles of management.                       2007, 2011, 2012, 2013, 2014
Ans:   Different management experts have explained different principles on the basis of their research. Henry Fayol, a famous industrialist of France, has described fourteen principles of management in his book General and Industrial Management.
While presenting the principles of management Fayol has kept two things in mind. Firstly, the list of the principles of management should not be long but should be suggestive and only those principles should be explained which become applicable in most of the situations. Secondly, the principles of management should be flexible and not rigid so that changes can be made in them in case of need.
Fayol suggested the following 14 principles:
1.       Division of work: Division of work is important for reducing work burden of an employee and improves his skills. This helps an individual to get specialization in his area of expertise. This helps to increase the productivity of an individual.
2.       Authority and Responsibility: Authority is the right to issue command and make decisions. Responsibility is obligation towards organization and decisions made. There must be balance in authority and responsibility. If there is no authority, he cannot fulfill his responsibility and if an individual has an authority he must have equal responsibility.
3.       Discipline: Discipline is important for the success of an organization. There must be good employee-employer relationship. Employees must obey orders and employer must provide good leadership.
4.       Unity of command: According to this principle of Fayol, every employee should receive orders and instructions from one boss and he should be responsible and accountable to him only.                           (2009)

5.       Unity of Direction: One objective and one plan. There must be one plan for an organization at a time and should be directed by one manager using the same plan.                             (2011)
6.       Subordination of individual interests to the general interest: The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.
7.       Remuneration: Fair wage for the service is important. Every worker should be paid fair remuneration.
8.       Centralization: Centralization refers to the degree to which subordinates are involved in decision making. Whether decision making is centralized (to management) or decentralized (to subordinates) is a question of proper proportion.
9.       Scalar Chain: The line of authority from top management to the lowest ranks represents the scalar chain. There should be a chain for the flow of communication. Authority must flow from top management to lower and responsibility must flow vice-versa.                     (2010)
10.   Order: There must be an order for everything. Material and people must be placed in right place. Right person at right place and right material at right time and in right place.
11.   Equity: manager should treat all his subordinates equally. There should be no difference or should not show special attention or kind to any particular subordinate.
12.   Stability of tenure of personnel: There must be stability and job security. High employee turnover affects organization adversely.
13.   Initiative: The successful management provides an opportunity to its employees to suggest their new ideas, experiences and more convenient methods of work. It is the duty of the manager to encourage the feeling of initiative among the employees for doing some work
14.   Esprit de Corps: Promoting team spirit will build harmony and unity within the organization. (2012, 2015)
Q.26. Discuss the following techniques of scientific management:          2007, 2010, 2012, 2013, 2015
a) Fatigue study b) Method study  c) Motion Study d) Time Study e) Mental Revolution
a) Fatigue study: It refers to the duration and frequency of rest intervals to complete a particular job. The rest refreshes the workers. They work again with full energy and stamina. Long working hours, poor working conditions, unsuitable work can also be the causes of fatigue. It should be reduced.                                               2016
b) Method study: It refers to identify the most suitable, economical way of doing a particular activity. To conduct this study, process chart, operation research technique can be used. The main objective is to minimize the cost of production and maximize the quality of the work.  (2013)
c) Motion Study: Motion study is designed to eliminate unnecessary motions and to reinforce necessary motions. It is a close observation of analyzing the body movements of the worker performing the job. This study helps in analyzing that if any element of the job can be eliminated or not.                                 (2013)
d) Time study: This study helps in determining the time required by an average skill worker to efficiently perform a particular job. Time study helps in determining the standard time for the job. This standard time is then fixed for the workers for performing the job. So, time study is used to measure precisely the time required in doing every element of a job with the purpose of deciding the fair day’s work.
e) Mental Revolution: Taylor emphasized the mutual cooperation between the workers and the management as the human element comprising of worker and management is essentially a very sensitive factor of production. The basic idea behind the mental revolution is to change the mental attitude of the workers and the management towards each other. Mental revolution requires that there should be perfect cooperation and coordination between the efforts of labour and the management.
f) Functional foremanship: In this technique Taylor suggested the division of factory in two departments: planning department and production department as Taylor felt that workers must be free from the burden of planning and they must concentrate on work and production.
Q.27. Who introduced the concept of functional foremanship?                                2008, 2010, 2015
Ans: F.W. Taylor. It insists on hiring specialist for every job. (8 Specialists foremen). Four specialists suggested for planning department namely Route clerk, Instruction card clerk, Time and cost clerk and Disciplinarian and four specialists for operational department namely Gang boss, Speed boss, Repair boss and Inspector.
Q.28. Who introduced the concept of Gang Plank?                          2011
Ans: Henry Fayol. It permits direct communication between employees working at same level.
Q.29. General and Industrial Management book written by which writer?                           2008, 2012
Ans: Henry Fayol
Q. 30. Distinguish between Taylor’s and Fayol’s contributions.                                  2016
Point of Difference
Taylor’s techniques and principles are concerned with worker’s efficiency.
Fayol’s principles are concerned with management efficiency.
Taylor laid great emphasis on standardisation of work.
Fayol laid great emphasis on functions of managers.
Applicable to specialised situation.
Universally applicable.
Unity of command
Did not follow this principle as Taylor insisted on minimum 8 bosses. (This point was asked in 2015 exam)
Strictly followed this principles i.e. one boss for one employee.
Taylor’s techniques are expressed as scientific management.
Fayol’s techniques are expressed as general theory of administration.
Taylor developed a personality of scientist and become famous as father of scientific management.
Fayol developed the personality of researcher and practitioner and become famous as father of general management.
31. Who classified the activities of an industrial organisation into six groups?                   2010
Ans: Henry Fayol
32. Mention the similarities between Taylor and Fayol.
Ans: Taylor and Fayol’s principles are complementary to each other because both have relevance in the business due to the following reasons:
a) The main aim of Taylor’s as well as Fayol’s principles is maximising the efficiency.
b) Both insist on cooperation between employees and employers.
c) Both give more importance to organisational interest over the individual interest.
d) Bothe suggested division of work for specialisation.
e) The principles of both are used as basis for research in the field of management studies.