Topics
Nature and Significance of Management
- Case Study: Tata Group – Excellence in Management
- Concept of Management
- Characteristics of Management
- Objectives of Management
- Importance of Management
- Nature of Management
- Management as an Art
- Management as a Science
- Management as a Profession
- Levels of Management
- Functions of Management
- Coordination as an Essence of Management
- Management in the Twenty-First Century
Principles and Functions of Management
Business Finance and Marketing
Principles of Management
- Case Study: Toyota's Guiding Principles of Management
- Evolution of Management Principles
- Concept of Management Principles
- Nature of Management Principles
- Significance of Management Principles
- Taylor's Scientific Management Theory
- Principles of Scientific Management
- Techniques of Scientific Management> Functional Foremanship
- Techniques of Scientific Management> Standardisation and Simplification of Work
- Techniques of Scientific Management> Differential Piece Wage System
- Fayol’s Principles of Management
- Comparison of Taylor's and Fayol’s Principles.
Business Environment
- Case Study: Dharamveer Kamboj's Entrepreneurial Journey
- Concept of Business Environment
- Importance of Business Environment
- Dimensions of Business Environment
- External Factors> Economic Environment
- External Factors> Social Environment
- External Factors> Technological Environment
- External Factors> Political Environment
- External Factors> Legal Environment
- Economic Environment in India
- The 1991 Economic Crisis and Reforms
- Liberalisation
- Privatisation
- Globalisation
- Demonetisation
Planning
Organising
- Case Study: Wipro's Organisational Restructuring for Growth
- Organising
- Steps in the Process of Organising
- Importance of Organising
- Structure of Organisation
- Types of Organisation Structure > Functional Structure
- Types of Organisation Structure > Divisional Structure
- Comparison Between Functional Structure and Divisional Structure
- Formal Organisation
- Informal Organisation
- Comparison between Formal Organisation and Informal Organisation
- Concept of Delegation of Authority
- Concept of Decentralization
- Comparison Between Delegation and Decentralization
Staffing
- Case Study: Management of Human Resources at Infosys
- Staffing
- Staffing as Part of Human Resource Management
- Evolution of Human Resource Management
- Staffing Process
- Aspects of Staffing > Recruitment
- Sources of Recruitment
- Internal Sources
- External Sources
- Aspects of Staffing > Selection
- Aspects of Staffing > Training and Development
- Methods of Training
Directing
- Case Study: Leadership Development at Ford Motor Company
- Directing
- Principles of Directing
- Elements of Directing
- Supervision
- Motivation
- Motivation> Motivation Process
- Motivation> Importance of Motivation
- Motivation > Maslow’s Need Hierarchy Theory of Motivation
- Motivation> Financial and Non-Financial Incentives
- Leadership
- Communication
- Communication> Formal Communication
- Communication> Informal Communication or Grapevine
- Barriers to Communication
- Improving Communication Effectiveness
Controlling
Financial Management
- Case Study: Tata Steel–Corus Acquisition
- Concept of Business Finance
- Concept of Financial Management
- Financial Decisions> Investment Decision
- Financial Decisions> Financing Decision
- Financial Decisions> Dividend Decision
- Concept of Financial Planning
- Importance of Financial Planning
- Capital Structure
- Factors affecting the Choice of Capital Structure
- Fixed Capital
- Working Capital
Financial Markets
- Concept of Financial Market
- Money Market
- Capital Market
- Primary Market
- Secondary Market/Stock Exchange
- Distinction Between Capital Market and Money Market
- Distinction between Primary and Secondary Market
- Functions of Stock Exchange
- Trading Procedure of Stock Exchange
- Depository Services
- Demat System
- Securities and Exchange Board of India (SEBI)
Marketing Management
- Concept of Marketing
- Concept of Marketing Management
- Marketing vs. Selling
- Marketing Management Philosophies
- Functions of Marketing
- Concept of Marketing Mix
- Marketing Mix> Product
- Classification of Products> Consumer Products
- Classification of Products> Industrial Products
- Branding
- Packaging
- Labelling
- Marketing Mix> Pricing
- Marketing Mix> Physical Distribution
- Marketing Mix> Promotion
- Promotion Mix
- Advertising
- Personal Selling
- Sales Promotion
- Public Relations
- Distinction Between Advertising and Personal Selling
Marketing
- Concept of Financial Market
- Types of Financial Market
- Money Market
- Capital Market
- Primary Market
- Secondary Market/Stock Exchange
- Securities and Exchange Board of India (SEBI)
- Distinction Between Capital Market and Money Market
- National Stock Exchange of India (NSE)
- Overview of Marketing
Consumer Protection
- Case Study: Consumer Protection in Banking Services
- Concept of Consumer Protection
- Importance of Consumer Protection
- Consumer Protection Act, 2019
- Concept of Consumer
- Consumer Rights
- Responsibilities of Consumers
- Ways and Means of Consumer Protection
- Redressal Agencies Under The Consumer Protection Act
- Role of Consumer Organisations and NGO's
- Overview of Consumer Protection
Estimated time: 13 minutes
CBSE: Class 12
Introduction
- A wage system proposed under Scientific Management that pays workers at two different rates based on their performance relative to a set standard output.
- Designed to reward efficiency and penalise inefficiency through a financial incentive mechanism.
CBSE: Class 12
Working
- Management sets a standard output for workers.
- Workers at or above the standard → paid at a higher rate per unit.
- Workers below the standard → paid at a lower rate per unit.
- The difference in daily earnings acts as motivation to achieve or exceed the standard.
CBSE: Class 12
Numerical Example
| Worker Category | Performance | Rate per Unit | Effect |
|---|---|---|---|
| Efficient Worker | At or above standard | Rs. 50 per unit | Higher daily earnings |
| Inefficient Worker | Below standard | Rs. 40 per unit | Lower daily earnings |
The wage gap between efficient and inefficient workers is significant and intentional - it pushes workers to meet the standard.
CBSE: Class 12
Example: Case of Schmidt
- A worker named Schmidt was used to demonstrate the system in practice.
- Under scientific management, Schmidt increased his output of pig iron.
- As a result, he earned approximately 60% higher wages.
CBSE: Class 12
Mental Revolution
Taylor stressed that scientific management requires a mental revolution - a complete change in attitude from both sides.
Key principles:
- Workers and management must cooperate, not conflict
- Both must focus on sharing the surplus generated through efficiency
- The goal is a fair day's work in exchange for fair wages.
CBSE: Class 12
Later Developments Linked to Scientific Management
| Development | Context |
|---|---|
| Operations Research | Systematic decision-making in management |
| Assembly Line | Ford's Model T production system |
| Lean Manufacturing | Eliminating waste in production |
| Robotics | Automation of physical tasks |
| Computers in Production | Modern manufacturing management |
CBSE: Class 12
Key Points: Techniques of Scientific Management> Differential Piece Wage System
- The Differential Piece Wage System applies two wage rates - higher for efficient workers, lower for inefficient ones - based on standard output.
- The financial gap between the two rates is the core motivating force of the system.
- Schmidt's case demonstrates that higher output directly results in significantly higher earnings (~60% more).
- Taylor's "mental revolution" is essential - both workers and management must adopt a cooperative, efficiency-first mindset.
- The surplus must be shared between workers and management, not contested.
- Scientific management principles evolved into modern tools: operations research, lean manufacturing, robotics, and computer-aided production.
