Key Points
Key Points: Taylor's Principles of Scientific Management
- F.W. Taylor = Father of Scientific Management: He introduced scientific measurement and study to solve managerial problems.
- Meaning of Scientific Management: It means knowing exactly what workers should do and ensuring it is done in the best and cheapest way (not hit-and-miss).
- Science, not Rule of Thumb: Work should be based on scientific study, planning, and standard methods, not trial-and-error.
- Harmony & Mental Revolution: There should be cooperation between management and workers, with a change in attitudes and sharing productivity gains.
- Productivity Focus: Aim for maximum output, plus division of work/responsibility (management plans, workers perform) and scientific selection + training of workers.
- Standardisation & Objectives: Standardise tools, equipment, methods, and working conditions to increase productivity, reduce cost per unit, and improve quality.
- Effects (Objections + Advantages): Workers feared overburdening, high standards, and unity breaking; but benefits include higher productivity & lower cost (employer), better conditions & earnings (employee), and higher living standard & national income (society).
Key Points: Fayol's Principles of Management
- Introduction: Henri Fayol (1841–1925) was a French industrialist who developed a general theory of management and wrote General and Industrial Management (French 1916; English 1929).
- 6 Business Activities: Fayol classified activities into Technical, Commercial, Financial, Security, Accounting, and Managerial.
- Functions/Elements of Management: Management includes Planning (forecasting), Organising, Commanding, Coordinating, and Controlling.
- Managerial Qualities: A good manager needs physical, mental, moral, educational, technical qualities and experience; Fayol stressed formal training/education.
- Work & Authority Principles: Key principles include Division of work, Authority with responsibility, and Discipline for smooth running.
- Unity & Interest: Follow Unity of command (one boss) and Unity of direction (one plan/one head), and ensure general interest over individual interest.
- Other Important Principles: Fair remuneration, balance of centralisation–decentralisation, scalar chain (with gang plank for urgent communication), order, equity, stability of tenure, initiative, and esprit de corps (team spirit).
Key Points: Universality of Management Principles
- Universality: Management principles apply to all organisations.
- Transferable: Managerial skills/knowledge can be shifted across firms and countries.
- Common need: Every organisation needs coordination of human + physical resources.
- Different application: Principles are same, but use differs by culture and situation (e.g., division of work level).
- Science vs art: Principles are universal (science), but practice is culture-bound (art); know-how can be imported via education/MNCs.
Key Points: Meaning of Principles of Management
- Principles of management are well-tested guides for managers, based on past experience and research.
- A principle is a basic truth that helps in thinking and taking action, and shows a cause–effect relationship between variables.
- These principles help managers solve problems scientifically and systematically and improve decision-making.
- They are not hard and fast laws—they must be applied according to the nature and needs of the situation (flexible).
- Principles are developed mainly through: (a) Observation of real events in practice, and (b) Experiment/empirical studies to test validity.
Key Points: Nature of Principles of Management
- Universal: Applicable in all organisations and at all levels of management.
- Flexible & Situational (Contingent): Not rigid or absolute—can be modified and applied as per the situation and needs.
- Human Behaviour Based: Deals with people, so it aims to influence human behaviour for the best results.
- Not exactly like Physical Sciences: Human behaviour is complex, so principles are general guidelines, not fixed laws.
- Cause–Effect + Equal Importance: Shows cause–effect relationships and all principles are equally important for managers.
Key Points: Need for Principles of Management
- Increase efficiency: Give tested guidelines to work better, avoid trial-and-error, save time and effort, and reduce mistakes.
- Explain management clearly: Help to understand and analyse the true nature of management and build management as a science.
- Help in training managers: Provide a conceptual framework for systematic and scientific training in institutes and universities.
- Support research & spread knowledge: Act as a base for further research, give new ideas, and help in teaching/management education.
- Social goals + better decision-making: Help in optimum use of resources, provide quality goods at fair prices, reduce waste, improve cooperation, and also clarify thinking + evaluate managerial behaviour.
Key Points: Relevance of Principles Today
- Principles still useful today: They have lasted over time, but may need modification according to the situation.
- Division of work + Authority–Responsibility: Work must be shared (one person can’t do all) and authority must match responsibility; the degree varies in different organisations.
- Discipline: Essential for smooth functioning, but the type of discipline differs (self-discipline vs strict/army-type).
- Unity of command & direction: Usually followed, but sometimes dual reporting happens and some firms use matrix structure.
- Other principles vary in practice: Fair pay, centralisation level, scalar chain may differ/ be violated; order, equity, stability, initiative, and team spirit are important but sometimes not properly followed.
Key Points: Distinction between Taylor and Fayol
| Basis | Taylor | Fayol |
|---|---|---|
| Level | Shop-floor | Top management |
| Role | Scientist | Practitioner |
| Aim | Worker productivity | Admin efficiency |
| Method | Measurement & study | Principles |
| Theory | Scientific management | General administration |
