chapter 2 Flashcards
(52 cards)
father of management
Henry fayol
father of scientific management
FW Taylor
principle
a statement which reflects the fundamental truth about some phenomena based on cause and effect realtionship.
management principles
broad and general guidelines of decision making and behaviour of managers
difference between management principles and scientific principles
management principles are:
1. very flexible
2. applied with creativity
3. have to keep peace with changes in the environment
pure science principles
1. rigid
2. applied in absolute or static manner
3. do not change with time
nature of principles of management
- flexible
- formed by practice and experimentation
- universal applicability
- contingent
- cause and effect relationship
- mainly behavioural
- general guidelines
importance of management principles
- scientific decisions
- providing mangers with useful insights into reality
- management training, education and research
- fulfilling social responsibilities
- optimum utilisation of resources and effective administration
- meeting changing environment requirements
Henry Fayol occupation
minning engineer
nemonic for general principle of management
DAD U C USSR O I SEE
full form of DAD U C USSR O I SEE
- division of work
- authority and responsibility
- discipline
- unity of command
- centralisation and decentralisation
- unity of direction
- scalar chain
- stability of tenure of personnel
- remuneration of employees
- order
- initiative
- subordination of individual interest to general interest
- equity
- espirt- de- corps
division of work
- division of work promotes specialisation
- each job be assigned to the person according to his capacity or qualification and experience.
- division of work promotes efficiency
- Fayol suggested that division of work not only at factory but at management levels as well as to improve the productivity accuracy and speed of workers
authority and responsibility
- authority and responsibility go together
- there should be a partly or balance between authority and responsibility
3.Fayol stressed that right and power to give orders should be balances by the responsibility for performing necessary functions.
discipline
- discipline is the obedience to organisational rules ad regulations of employment agreement
- it is immaterial whether these agreements are imposed on the employees or reached upon with their consent
- discipline is absolutely essential for the smooth running of the business.
- according to Fayol, discipline requires good superiors at all level, clear and fair agreements and judicious application of penalties.
unity of command
- this principles states that “a subordinate should receive orders and be responsible to only one boss”
- Fayol claimed that if unity of command is violated, “authority is undermine, discipline is en-dangered, order disturbed and disability threatened “
- if there are two or more superiors for an employee, it will undermine discipline, create confusion and disturb order and stability
unity of direction
- Fayol advocated, “one head and one plan” for a group of activities having the same objective.
- unity of direction implies that efforts of a group are directed towards a common goal.
difference between unity of command and unity of direction
unity of command
1. one subordinate should receive orders from and should be responsible to only one superior
2. it prevents dual subordination
3. it affects an individual employee.
unity of direction
1. each group of activities having the same objective must have one head and one plan
2. it prevents overlapping of activities
3. it affects the entire organisation
subordination of individual interest to general interest
- the interest of an organisational should take priority over the interests of any one individual employee
- in all situations the interest of the group will supersede the interest of any one individual employee
remuneration of employees
- the overall pay and compensation should be fear to both employees and the organisation
- the employees should be paid for wages, which should give them a reasonable standard of living
- at the same time, it should be within the paying capacity of the organisation.
centralisation and decentralisation
- centralisation reserves the decision making power at top level while decentralisation distributes the power at every level of the management,,
- the degree of centralisation of authority should vary according to the needs of the situation
- according to Fayol, there should be proper balance between centralisation and decentralisation is the organisation.
- any organisation can’t be completely centralised or decentralised.
Scalar chain
the solar chain is a chain of authority and communication from the highest to the lowest rank.
every communication should follow the prescribed route
the main disadvantage of scalar chain is that communication takes too much time as the order comes from the top level to the bottom in the chain.
oder
A place of everything (everyone) and everything (everyone) in its place.
Fayol suggested that every material should be kept at a fixed place and there should fixed seat/place for every employee of the organisations so that no time and energy is wasted in the search of that material or men.
this will remove all hindrances in the activities of the business and will lead to increased productivity.
equity
equity refers to kind and fair treatment to all employees.
this will infuse loyalty and devotion among the employees.
for Fayol, equity does not mean a total absence of force or harshness. at times forces becomes necessary for the sake of equity.
stability of tenure of personnel
Fayol emptied that employees should not be moved frequently from one position to another, i.e. the period of service in job should be fixed.
once selected they should have stability of tenure
they should be given reasonable time to show results.
initiative
initiative is the power of thinking out a plan and executing the plan without being asked to do so.
it stimulates human endeavour
the best suggestion/ initiative should be rewarded