Principles of Management — NCERT Solutions

The scalar chain is the formal line of authority from the highest to the lowest level in an organisation. Communication should normally follow this chain.

A gang plank is a shortcut allowed in an emergency so that two employees at the same level can communicate directly without waiting for the full chain. It helps avoid delay, though the relevant superiors are informed later.

Mr. Rathore violated the principle of Subordination of Individual Interest to General Interest. He gave preference to his cousin instead of choosing the supplier that was better for the company.

Positive impacts of following this principle:

• The organisation’s interest will come before personal interest.
• Decisions will be fair and objective.
• It will build trust among employees and stakeholders.
• It will help the company achieve its larger goals efficiently.
• It prevents misuse of power for personal or family benefit.

Taylor’s principles of scientific management are:

1. Science, not rule of thumb: Work should be done according to scientific analysis, not personal guesswork.
2. Harmony, not discord: There should be complete harmony between management and workers; both should realise their mutual dependence.
3. Cooperation, not individualism: Management and workers should cooperate rather than compete.
4. Development of each and every person to his or her greatest efficiency and prosperity: Workers should be scientifically selected, trained and developed so that both the worker and the company benefit.

These principles aim at increasing efficiency, output and mutual benefit.

(a) Unity of direction: All activities of the organisation having the same objective should be directed by one head and one plan. This avoids overlap and confusion. For example, if a company makes both motorcycles and cars, each product line should have its own division, own plan and own incharge.

(b) Equity: Managers should be fair and just in dealing with employees. There should be no discrimination on the basis of gender, religion, caste, language, nationality, etc. For example, in a multinational company, employees of different nationalities should be given equal opportunities.

(c) Espirit de corps: It means team spirit and harmony among employees. Management should encourage cooperation so that organisational goals are achieved smoothly. For example, a manager should use “we” instead of “I” and promote teamwork in a department.

(d) Order: There should be a place for everything and everyone in their place. Materials and people should be arranged properly for efficiency. For example, tools in a workshop and files in an office should be kept in fixed places so that time is not wasted in searching.

(e) Centralisation and decentralisation: Centralisation means concentration of decision-making power at the top, while decentralisation means dispersal of authority among lower levels. The proper balance depends on the size and nature of the organisation. For example, large organisations usually allow more decentralisation, while major policy decisions may remain centralised.

(f) Initiative: Employees should be encouraged to think of and carry out useful ideas on their own. A good organisation may have an employee suggestion system and reward useful suggestions. For example, a worker suggesting a way to reduce cost or save time should be appreciated and rewarded.

Functional Foremanship

Taylor suggested separating planning from execution at the shop-floor level. Under this system, there are eight foremen:

• Under planning incharge: instruction card clerk, route clerk, time and cost clerk, disciplinarian
• Under production incharge: speed boss, gang boss, repair boss, inspector

Each specialist performs a particular function, which improves efficiency and uses specialised knowledge.

Mental Revolution

This means a complete change in attitude of both management and workers—from competition to cooperation. Both sides should realise that they need one another and should share gains fairly. It creates harmony, reduces conflict and improves productivity.

Time study: It determines the standard time needed to complete a well-defined job. It helps fix labour cost, decide the number of workers needed and frame incentive schemes. For example, if one box takes 20 minutes, a worker can make 3 boxes in an hour.

Motion study: It studies the movements involved in doing a job and removes unnecessary motions so that the job takes less time and effort. For example, Taylor reduced brick-laying motions from 18 to 5.

Fatigue study: It determines the rest intervals needed during work so that workers do not get exhausted physically or mentally. Proper breaks improve efficiency. For example, heavy manual work may require short pauses at intervals.

Method study: It finds out the one best way of doing a job. It examines the sequence of operations, the arrangement of men, machines and materials, and tries to reduce cost and improve quality. For example, assembly-line production is a result of method study.

Simplification and standardisation of work: Standardisation means setting standards for process, materials, tools, time and methods; simplification means eliminating unnecessary varieties and dimensions. These techniques reduce cost, improve quality, save labour and allow fuller use of machines. For example, companies like Toyota use standardisation and simplification to improve efficiency.

Differences between Taylor and Fayol:

1. Perspective: Taylor focused on the shop floor; Fayol focused on the top level of management.
2. Approach: Taylor’s ideas were based on observation and experimentation; Fayol’s were based on personal experience.
3. Focus: Taylor aimed at increasing productivity; Fayol aimed at improving overall administration.
4. Unity of command: Fayol strongly supported it; Taylor did not consider it important because of functional foremanship.
5. Applicability: Taylor’s principles apply to specialised situations; Fayol’s are universally applicable.
6. Personality: Taylor was a scientist; Fayol was a practitioner.
7. Expression: Taylor gave Scientific Management; Fayol gave General Theory of Administration.

Their contributions were complementary.

Taylor and Fayol remain relevant in modern business because their principles still help managers improve efficiency and administration.

• Taylor’s ideas support standardisation, work study, time study, motion study, and productivity improvement. Modern techniques like lean manufacturing, Just in Time, Kaizen, Six Sigma, operations research, robotics and computers are based on similar ideas.
• Fayol’s principles help in organising, coordinating, delegating, maintaining discipline, promoting equity, and encouraging initiative and team spirit. They are useful in both traditional and modern organisations, including service and high-tech sectors.
• Both sets of principles are flexible and can be adapted to changing business environments.

Thus, they continue to guide management practice today.

a. Violated principles

The company violated these Fayol principles:

• Division of Work
• Unity of Command
• Unity of Direction
• Discipline
• Espirit de corps
• Initiative
• Order

b. Brief explanation

• Division of work: work should be divided into specialised tasks.
• Unity of command: each employee should receive orders from only one superior.
• Unity of direction: all activities with the same objective should have one plan and one head.
• Discipline: rules and agreements should be obeyed.
• Espirit de corps: team spirit and harmony should be promoted.
• Initiative: workers should be encouraged to suggest improvements.
• Order: people and materials must be in the right place at the right time.

c. Steps to restore the company

• Restore specialisation by dividing work properly.
• Ensure each worker has one boss.
• Set separate plans and heads for different products.
• Enforce clear rules and fair discipline.
• Promote team spirit and good communication.
• Encourage employee suggestions and reward initiative.
• Arrange proper infrastructure and workplace order so resources are in suitable places.

(a) Yes, but not by itself. Scientific management can improve efficiency, reduce waste and increase productivity, but the intended outcome will be achieved only if it is introduced carefully and with worker cooperation. If it is forced without proper preparation, it may create resistance and problems.

(b) Precautions:

• The company should ensure proper planning before change.
• Workers should be trained and informed about the new system.
• The management should maintain harmony and cooperation with employees.
• The changes should be introduced gradually and according to actual needs.
• Proper authority, responsibility, supervision and incentives should be fixed.
• The company should avoid overburdening workers and should provide fair wages and rest.

(c) Technique-wise response:

1. Production planning: Routing, scheduling, dispatching and feedback should be clearly organised so that work moves smoothly and there is no confusion.
2. Functional foremanship: Planning should be separated from execution, but workers should not face confusion. The eight specialists should be appointed properly according to their abilities.
3. Work study: Time, motion and method studies should be used to find the best way of doing work and to remove waste.
4. Standardisation: Standards for materials, tools, methods and output should be fixed so that quality and accountability improve.
5. Differential piece rate system: It should be used only if standard output is properly fixed and workers are treated fairly; otherwise it may create dissatisfaction.
6. Overall implementation: All these techniques should be applied together with mental revolution, meaning mutual trust, cooperation and shared gains between management and workers.