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Syllabus

Overview of Principles of Management

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Estimated time: 82 minutes
CBSE: Class 12

Key Points: Evolution of Management Principles

  • Management principles developed over time through different schools of thought, from early civilisations to modern management.
  • Classical Theory focused on scientific management (F.W. Taylor), administrative principles (Henri Fayol), and bureaucracy (Max Weber) to improve efficiency.
  • Neo-Classical Theory (Human Relations Approach) emphasised the importance of human factors, social needs and employee behaviour (Hawthorne Studies).
  • Behavioural Science Approach used psychology and sociology to understand motivation and human behaviour in organisations (Maslow, McGregor, Herzberg).
  • Modern Management views organisations as complex systems and uses scientific tools, research and a contingency approach to solve problems.
 
CBSE: Class 12

Key Points: Concept of Principles of Management

  • Principles of management are broad guidelines that help managers in decision-making and behaviour.
  • They are flexible in nature because they deal with human behaviour, which keeps changing.
  • Management principles are not as rigid as scientific principles and must be applied according to the situation.
  • Principles are different from techniques. Principles are guidelines, while techniques are specific methods or steps to perform a task.
  • Principles are also different from values. Values are moral beliefs, whereas principles are practical guidelines formed through research.
  • While applying management principles, managers must consider social and ethical values.
CBSE: Class 12

Key Points: Nature of Principles of Management

  • Principles of management are general guidelines developed through observation, experience and experimentation.
  • They are universally applicable to all types of organisations, but their use may vary according to the situation.
  • They provide general guidance, not fixed or ready-made solutions to problems.
  • They are flexible and can be modified according to changing business conditions.
  • They mainly deal with human behaviour and help in managing people effectively.
  • They establish cause and effect relationships to guide managerial decisions.
  • Their application is contingent, meaning they depend on the specific situation and circumstances.
CBSE: Class 12

Key Points: Significance of Principles of Management

  • Principles of management provide useful guidance to managers in real business situations.
  • They improve managerial efficiency by helping managers avoid repeated mistakes and save time.
  • They ensure optimum use of resources by reducing waste and increasing benefits at minimum cost.
  • They help managers take scientific and logical decisions based on facts, not personal bias.
  • They assist managers in adapting to changes in the business environment.
  • They encourage fulfilment of social responsibilities towards customers, employees and society.
  • They form the basis of management education, training and research, helping develop management as a profession.
CBSE: Class 12

Key Points: Taylor's Scientific Management

  • Scientific Management is a part of the Classical School of Management.
  • It was developed by F.W. Taylor, an American mechanical engineer.
  • Taylor aimed to improve industrial efficiency during the Industrial Revolution.
  • He believed in finding the “one best way” to perform a job through scientific analysis.
  • He is famous for time and motion studies to increase productivity.
  • He supported cooperation between management and workers for better results.
  • He introduced the term “Scientific Management” in his book The Principles of Scientific Management (1911).
CBSE: Class 12

Key Points: Principles of Scientific Management

  • Scientific Management was introduced by F.W. Taylor to replace the old “rule of thumb” method.
  • It uses scientific study and analysis to find the “one best way” of doing a job.
  • The principle of “Science, not Rule of Thumb” means decisions should be based on research and standard methods.
  • “Harmony, not Discord” stresses peaceful relations and mutual trust between workers and management.
  • “Cooperation, not Individualism” means both workers and managers should work together instead of competing.
  • Taylor supported equal division of work and responsibility between management and workers.
  • He emphasised scientific selection, training and development of workers to increase efficiency and prosperity.
CBSE: Class 12

Key Points: Taylor’s Contribution to Scientific Management

  • Taylor introduced a scientific approach to management instead of the traditional rule of thumb method.
  • He used time study and motion study to fix standard time and increase efficiency and productivity.
  • He emphasised standardisation of tools, methods and work procedures for uniform performance.
  • He separated planning and execution, where managers plan the work and workers perform it.
  • He gave four main principles: development of a true science, scientific selection of workers, scientific training, and cooperation between management and workers.
CBSE: Class 12

Key Points: Techniques of Scientific Management> Functional Foremanship

  • Functional Foremanship was introduced by F.W. Taylor to improve supervision in factories.
  • Taylor believed one foreman could not perform all duties effectively, so he divided the work among specialists.
  • Planning and execution were separated. A Planning Incharge and a Production Incharge were appointed.
  • Under planning, four specialists worked: Instruction Card Clerk, Route Clerk, Time and Cost Clerk, and Disciplinarian.
  • Under production, four specialists worked: Speed Boss, Gang Boss, Repair Boss, and Inspector — each responsible for specific production tasks.
CBSE: Class 12

Key Points: Techniques of Scientific Management> Standardisation and Simplification of Work

  • Taylor supported standardisation, which means setting fixed standards for processes, materials, methods, machines and performance.
  • Standardisation is done using scientific methods like time study, motion study, fatigue study and method study.
  • The objectives of standardisation are to ensure uniform size, quality, interchangeability of parts, and better performance of workers and machines.
  • Simplification means removing unnecessary varieties, sizes and types of products to reduce complexity.
  • Simplification leads to cost savings, reduced inventory, better use of machines and higher production efficiency.
CBSE: Class 12

Key Points: Techniques of Scientific Management> Method Study

  • Method study aims to find the one best way of doing a job.
  • It studies every activity from purchase of raw materials to delivery of the final product.
  • It helps in reducing cost of production and improving quality and customer satisfaction.
  • Techniques like process charts and operations research are used in method study.
  • The assembly line system, used by Ford and modern automobile companies, is an example of method study.
CBSE: Class 12

Key Points: Techniques of Scientific Management> Motion Study

  • Motion study analyses the movements involved in doing a job, such as lifting, sitting, and changing positions.
  • Its main aim is to remove unnecessary movements to save time and increase efficiency.
  • Movements are classified as productive, incidental, and unproductive.
  • Taylor and Frank Gilbreth reduced bricklaying motions from 18 to 5, increasing productivity nearly four times.
  • Motion study helps in designing better tools and training workers, leading to higher efficiency and better results.
CBSE: Class 12

Key Points: Techniques of Scientific Management> Time Study

  • Time study determines the standard time required to complete a specific job.
  • It uses time-measuring devices and multiple observations to fix accurate standard time.
  • It helps in deciding the number of workers required and fixing labour costs.
  • It is useful for designing incentive wage schemes based on standard performance.
  • Example: If one box takes 20 minutes, a worker makes 3 boxes per hour and 21 boxes in 7 working hours — this becomes the standard task.
CBSE: Class 12

Key Points: Techniques of Scientific Management> Fatigue Study

  • Fatigue study determines the amount and frequency of rest intervals needed during work.
  • Proper rest pauses help workers regain energy and maintain efficiency.
  • It increases productivity by reducing physical and mental tiredness.
  • Causes of fatigue include long working hours, heavy work, poor relations, and bad working conditions.
  • Removing causes of fatigue and giving suitable rest improves overall performance.
CBSE: Class 12

Key Points: Techniques of Scientific Management> Differential Piece Wage System

  • The Differential Piece Wage System was introduced by Taylor to reward efficient workers.
  • Workers are paid different wage rates based on their performance compared to the standard output.
  • Those who meet or exceed the standard get a higher rate per unit, while others get a lower rate.
  • The system aims to motivate inefficient workers to improve their performance.
  • It is based on scientific work study, which fixes standard time and output.
  • Taylor believed efficiency results from joint efforts of workers and management.
  • The system promotes mental revolution, encouraging cooperation instead of conflict to increase productivity and profits.
CBSE: Class 12

Key Points: Applications of Scientific Management by Taylor and his Contemporaries

  • Taylor determined the optimum load of 21 pounds per worker through scientific work-study, saving Bethlehem Steel about $75,000 to $80,000 per year.
  • Pig iron handling increased from 12.5 tons to 47 tons per worker per day, raising workers’ wages by 60% and reducing the number of labourers required.
  • Taylor published “The Art of Cutting Metals,” which helped make cutting processes more scientific.
  • He introduced the Piece Rate Wage System with incentives to reward efficient workers.
  • Frank Gilbreth applied scientific management to bricklaying by reducing unnecessary motions and improving tools, which increased efficiency.
CBSE: Class 12

Key Points: Fayol's Principles of Management

  • Henri Fayol was a French mining engineer and is known as the Father of General Management.
  • He focused on managerial efficiency, while Taylor focused on worker efficiency.
  • Fayol identified the main functions of management – Planning, Organising, Directing (Commanding), Coordinating and Controlling.
  • He divided business activities into six areas: Technical, Commercial, Financial, Security, Accounting and Managerial.
  • Fayol stated that managers should have qualities like physical fitness, moral values, education, knowledge and experience.
  • He developed 14 principles of management to improve organisational efficiency.
  • His book “General and Industrial Management” is a foundational work in classical management theory.
CBSE: Class 12

Key Points: Henry Fayol's 14 Principles of Management

  • Division of Work – Work should be divided into small tasks to increase efficiency and specialisation.
  • Authority and Responsibility – Managers must have authority to give orders and responsibility to perform tasks. Both should be balanced.
  • Discipline – Employees must follow rules, agreements, and respect authority.
  • Unity of Command – Each employee should receive orders from only one superior.
  • Unity of Direction – Activities with the same objective should follow one plan and one head.
  • Subordination of Individual Interest to General Interest – Organisational interest is more important than individual interest.
  • Remuneration of Employees – Employees should receive fair and reasonable wages.
  • Centralisation and Decentralisation – There should be a proper balance between concentration and distribution of authority.
  • Scalar Chain – There should be a clear chain of authority from top to bottom.
  • Order – There should be a proper place for everything and everyone.
  • Equity – Managers should treat employees with fairness and kindness.
  • Stability of Personnel – Employees should have job security to ensure efficiency.
  • Initiative – Employees should be encouraged to take initiative and suggest improvements.
  • Esprit de Corps – Management should promote team spirit and unity among employees.
 
CBSE: Class 12

Key Points: Terms of Modern Production/Scientific Management

  • Just-in-Time (JIT) is an inventory system that reduces storage cost by producing or purchasing goods only when needed, often using Kanban signals.
  • Lean Manufacturing focuses on eliminating waste such as overproduction, waiting time, excess inventory and defects to reduce cost and improve quality.
  • Kaizen means continuous improvement. It encourages small, regular improvements in processes to increase productivity and reduce waste.
  • Six Sigma is a data-based method that reduces defects and improves quality by controlling variations in processes.
  • All these modern techniques aim to improve efficiency, reduce cost, save time and increase customer satisfaction.
CBSE: Class 12

Difference Between Unity of Command and Unity of Direction

Basis Unity of Command Unity of Direction
Meaning One subordinate should receive orders from and should be responsible to only one superior. Each group of activities having the same objective must have one head and one plan.
Aim It prevents dual subordination. It prevents overlapping of activities.
Implications It affects an individual employee. It affects the entire organisation.
CBSE: Class 12

Comparison of Henry Fayol and F. W.. Taylor

Basis of difference Henri Fayol F. W. Taylor
Perspective Top level of management Shop floor level of a factory
Unity of Command Strong supporter Not important under functional foremanship
Applicability Applicable universally Applicable to specialised situations
Basis of formation Personal experience Observations and experimentation
Focus Improving overall administration Increasing productivity
Personality Practitioner Scientist
Expression General Theory of Administration Scientific Management
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