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2.1 Principles of Management 1 - Coggle Diagram
2.1 Principles of Management 1
Nature
1. Universal applicability
- Principles can be applied to all types of organizations
2. General Guidelines
- Principles are not readymade solutions to all problems - problems are complex, dynamic, many factors
3. Formed by practice & experimentation
- Principles are formed by experience of managers and experimentation
4. Mainly behavioral
- Principles aim to influence human behavior
5. Cause & Effect Relationship
- The principles establish cause and effect relationship so that it can be used in many similar situations
6. Contingent -
The application of the principles is contingent or dependent on the situation at that point of time
Significance
1. Provides managers with useful insights into reality
- help managers solve problems, save time
2. Optimum utilization of resources and effective administration
- help managers to use resources affectively
3. Scientific Decisions
- helps take timely decisions based on logic and facts
4. Handling changing requirements
- Helps managers handle changes in the environment
5. Fulfill social responsibility
- helps provide quality goods at reasonable rates, be environment friendly, provide employment, school, creche etc
6. Management Training, Research, Educatio
n - The principle of management are used to train managers, to educate and carry out research
Taylor
American Mechanical Engineer
Came up with
Principles of Scientific Management
Perspective on floor level of a factory
Applicable to specialized situations
Focuses on increasing productivity
Based on observations and experimentations
Personality of a scientist
Felt it was alright for a worker to receive orders from more than one superior
Taylor's Principles of Scientific Management
1. Science not rule of thumb
- He believed that there was only one method to maximize efficiency which can be developed by scientific study
2. Harmony not discord -
There should be complete harmony between management and workers, profit sharing, mental revolution - change in attitude from individualism to cooperation
3.Cooperation not Individualism
- There should be complete cooperation between management and workers - an extension of harmony not discord
4. Development of every work worker to his/her greatest efficiency and prosperity
- every person should be scientifically selected and trained to learn the best method
Techniques of Scientific management
1. Functional Foremanship
- Factory was divided into planning and production departments. Planning -
Instruction card clerk, route clerk, cost clerk & discipline
. Production -
Speed boss, gang boss, repair boss, inspector
2. Standardization & Simplification of work -
3. Method Study -
To study different methods of doing a task and to find out the best method to do it
4. Motion Study -
to study the movements of workers and eliminate unproductive movements
5. Time Study -
- to find out standard time required to complete a task well- helps to determine the number of workers required for the job
6. Fatigue Study -
studies the number and duration of rest intervals required for workers
7. Differential piece wage system -
Wages are different for efficient and inefficient workers. Efficient workers get higher piece wage and inefficient workers get lower piece wage. It rewards efficient workers and encourages inefficient workers to perform better