Brief Summary
This video provides a comprehensive overview of the principles of management as outlined by Henri Fayol and F.W. Taylor. It covers the meaning, characteristics, and importance of management principles, as well as specific principles and techniques such as division of work, authority and responsibility, unity of command, and scientific management. The video emphasizes the practical application of these principles in real-world organizational settings.
- Meaning and Importance of Management Principles
- Fayol's 14 Principles of Management
- Taylor's Principles of Scientific Management and Techniques
Introduction
The video introduces the second chapter of Class 12th Business Studies, focusing on the principles of management. It promises a comprehensive one-shot explanation, covering everything from basic to advanced concepts. The aim is to complete the chapter within three to four classes, enabling students to later engage in case studies.
Official Syllabus
The video outlines the CBSE syllabus for the principles of management, emphasizing the importance of understanding the concept, significance, features, Fayol's principles, Taylor's principles of scientific management, and various techniques.
Meaning of Principle of Management
The principles of management are fundamental truths that guide managers in their actions and decisions. These principles enhance decision-making and improve organizational performance by providing a framework for managerial actions. For example, the principle of equity ensures fair treatment of all employees, preventing discrimination and fostering a positive work environment.
Characteristics/ Nature or features of management principles
Management principles have several key characteristics: they serve as general guidelines, are flexible, formed by practice and experimentation, universally applicable, behavioral in nature, and show cause-and-effect relationships. For instance, while principles like equitable pay are universally applicable, the specific amount considered a "good salary" can vary based on location and living conditions.
General guidelines
Management principles act as general guidelines that help managers make informed decisions. They are not rigid solutions but rather adaptable frameworks. These principles are developed through continuous practice and experimentation, ensuring they are relevant and effective.
Importance or significance of management principles
The importance of management principles lies in their ability to provide scientific decisions, offer guidelines to managers, fulfill social responsibilities, ensure optimum utilization of resources, and adapt to changes in the environment. Optimum utilization of resources means maximizing the use of resources to minimize waste, which is crucial for cost reduction and efficiency.
Henry Fayol 14 principles of Management
Henry Fayol, a French mining engineer, developed 14 principles of management that are widely used today. These principles, detailed in his book "General and Industrial Management," serve as a foundation for effective management practices.
1. Division of work
The principle of division of work involves breaking down the total work into small, manageable units and assigning each unit to a specific person. This specialization leads to expertise, reduces waste, and ensures timely completion of tasks. Violating this principle can result in inefficiency, duplication of work, and failure to achieve organizational goals.
2. Authority and responsibility
Authority is the power to take decisions, while responsibility is the obligation to complete tasks on time. Authority and responsibility must be balanced; too much authority leads to misuse of power, and too much responsibility leads to overburdening.
3. Discipline
Discipline means respecting the rules and regulations of the organization at every level. It ensures systematic working and improves efficiency. Violating discipline can lead to chaos and confusion.
4. Unity of command
Unity of command states that an employee should receive orders from only one boss to avoid confusion and maintain efficiency. Receiving orders from multiple bosses can lead to confusion, excuses, and a failure to complete tasks.
5. Unity of Direction
Unity of direction means that all members and employees in an organization must work towards one goal, following one plan. This ensures coordination and the achievement of organizational objectives.
6. Subordination of individual interests to general interest
Individual goals should be sacrificed for the achievement of organizational goals. Decisions must prioritize the interests of the organization over personal interests to foster coordination and growth.
7. Remuneration to persons
Fair remuneration is essential to keep employees motivated and productive.
8. Centralisation and decentralisation
Centralization involves retaining authority and power at the top level, while decentralization means evenly distributing power at all levels of management. A good company should adopt a mix of both to balance workload and develop managerial talent.
9. Principles of scalar chain
The scalar chain is the line of authority and communication from the highest to the lowest rank. While this chain should be followed, shortcuts like "gang plank" can be used for urgent communication to prevent delays.
10. Principle of order
The principle of order refers to the orderly arrangement of men and materials, ensuring a fixed place for everything and everyone in the organization. This saves time and energy in searching for resources and people.
11. Principle of equity
Equity means treating all employees with kindness, fairness, and justice, without any discrimination based on gender, language, caste, belief, or nationality. Equal treatment motivates employees and fosters a positive work environment.
12. Stability of tenure of Personnel
Job security should be provided to workers, giving them time to settle down and perform their best. Frequent transfers or terminations can lead to frustration and wastage of resources.
13. Initiative
Employees should be given the opportunity to take initiative in making and executing plans. Welcoming their suggestions fosters a sense of belonging and motivates them to work better.
14. Esprit De Corpse
Esprit de corps emphasizes unity and teamwork, promoting mutual trust and team spirit. Group efforts are more powerful than individual efforts, leading to easier achievement of organizational goals.
Scientific management
F.W. Taylor advocated for scientific management, which involves taking decisions based on scientific inquiry and experimentation rather than personal judgment. This approach ensures that management decisions are logical and fact-based.
Science not rule of thumb
Taylor insisted that each job in the organization should be based on scientific inquiry rather than the rule of thumb. This means using research and experimentation to determine the best methods and standards for performing tasks.
Harmony, not discord
There should be harmony between employees and management to minimize conflict. Understanding and coordination between the two groups are essential for a positive work environment.
Cooperation not individualism
Workers must cooperate with each other, with mutual confidence and understanding. Management should take workers into confidence before setting standards and targets, welcoming their suggestions and rewarding them for beneficial ideas.
Development of workers to their greatest efficiency
Workers should be given training and development opportunities to enhance their skills and efficiency. This includes providing training, updating knowledge, and offering promotional opportunities.
Scientific techniques of Taylor
Taylor introduced several scientific techniques to improve management practices.
Functional foremanship
Functional foremanship involves dividing the work in a factory into two departments: planning and production. Each department has specialized experts to ensure efficient operations.
Four experts underage department
In the planning department, four experts are the route clerk, instruction card clerk, time and cost clerk, and disciplinarian. These experts ensure that work is done efficiently and in a disciplined manner.
Standardisation and simplification of work
Standardization involves maintaining quality standards for products, while simplification means eliminating unnecessary diversification. This ensures that products meet specific standards and reduces costs.
Work study
Work study includes fatigue study, method study, motion study, and time study. These studies help in understanding and improving work processes.
Differential piece waste system (strong Motivator)
The differential piece wage system motivates workers by paying more to those who produce more. This system ensures that efficient workers are rewarded, and inefficient workers are encouraged to improve.
Mental revolution
The video concludes by emphasizing the importance of a mental revolution in management, where both workers and managers adopt a cooperative and scientific approach to work.
