Chapter 2: Principles of Management

Ans: Scalar chain requires the managers to follow a well defined chain of communication that flows from top to bottom. That is in a scalar chain, the information passes in a certain and defined manner from the top to bottom so as to avoid any ambiguity in communication.

Gang plank is an exception of scalar chain that states that in the situation of emergency where quick decisions and communications are needed, two managers who are working at the same managerial position can have a quick communication with one another.

For example:   

• A is heading 2 teams where B and F are at the same level, C and G are at the same level and D and H are at the same level. 

• Line of communication is B - C - D and F - G - H. In this D and H cannot directly contact each other, as per the principle of scalar chain. 

• But if an emergency arises, then using the prescribed flow may take a lot of time to communicate with each other. 

• Hence, to avoid this problem a system known as 'Gang plank' which is an exception of the scalar chain was introduced where employees working at the same level such as D or H could contact each other whenever urgent need arises.
  
  

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Ans: The principle of subordination of individual interest to general interest is violated.  According to this principle, an individual should give priority to its organizational goals over any personal interest.

The positive impacts of following this principle are:

• Better coordination between personal and organizational goals.

• Maintenance of peace and harmony within the organization.

• Increase in employee productivity as their efforts are directed towards the fulfilment of organizational goals, which will further help them in achieving their personal goals.

• Employees do not feel separated from the organization.

• Helps in achieving organizational goals.
  
  

Ans:  The principles of scientific management given by Taylor are as follows:

1. Science, not Rule of Thumb : This principle states that the management should follow scientific methods and not the rule of thumb method, which insists on finding solutions through trial and error approach. According to Taylor, following scientific methods will result in tremendous savings of time and materials, as well imparts more simplicity and ease of performing work.

2. Cooperation, Not Individualism: A spirit of cooperation should exist between the workers and management, and not the spirit of individualism. Both management and workers should cooperate with each other, and work collectively and cooperatively for the achievement of organizational goals. Management should consider all the good suggestions made by the employees and workers should never think of doing unreasonable things to the management to get their demands fulfilled.

3. Harmony, Not Discord: There must exist proper peace and harmony between the management and the workers for the smooth flow of the operations of the organization. As managers are the link between workers and the owners, the management should share profits with workers to keep them motivated and workers should also be willing to accept the changes for the good of the company. 

During times of conflict between management and workers, both should change their thinking and mentality towards each other, this concept is called mental revolution.

1. Development of each and every person to his/ her greatest efficiency and prosperity: According to this principle, adequate opportunities and training must be made available to employees, so that they strive to improve their performance and efficiency through enhanced skills, and are able to achieve new heights in their careers.
   
   

Ans: According to this principle, the efforts of each unit of the organization having a similar head and plan should move towards the achievement of the same objectives. Each division should have its own incharge and resources, so as to prevent overlapping of activities. 

For Example: A company manufacturing two different products should have separate incharge for both the products. Hence two different departments and divisions needs to be created. In case there is a single incharge, then there might be chances of duplication and poor utilisation of resources.

Ans: According to this principle, All the employees should be treated equally and as fairly as possible. No one should be discriminated against on the basis of their caste, religion, complexion, gender, nationality etc. 

Example: Men and women should be treated equally in a company.

Ans: It means unity is strength. According to this principle management should promote a spirit of mutual trust and belongingness among team members. It focuses on the word ‘We’ Instead of ‘I’

For example: In the military all the soldiers work together with trust and confidence for the other members so as to collectively achieve their goal.

Ans: According to this principle, there should be a place for everyone and everything and each person or the thing should be found in its/ his place. It helps in carrying out the activities on time, and in a smooth manner. 

For Example: In a plant layout, production is supposed to be taken on Machine 1 and Machine 2 in a sequence, then both the machines should be arranged near to each other. If both the machines are far away from each other, then there can be delay in the production process, thus causing reduced productivity, and high costs.

(e) Centralisation and Decentralisation: 

Ans: Centralisation is the concentration of power in the hands of selected persons in an organization. Decentralisation means sharing the authority with middle and lower levels in the organization. A balance should exist between complete centralisation and decentralisation in the organization. 

For Example: When all the decisions making powers are in the hands of top level management, it is centralisation, it is suitable in cases like military etc., and if the power to take decisions is shared to middle and lower levels then it is decentralisation, it is suitable when the other level of management have suitable knowledge and skills to take a decision.

(f) Initiative: 

Ans: According to this principle, workers should be provided with incentives to keep them motivated to work for the achievement of organizational goals. They should be encouraged to carry out their plans for improvement, it will make them comfortable to take more initiatives for the development of the organization.

For example, considering the suggestions and feedback from the workers while making decisions will make them feel motivated and a part and parcel of the organization.

Ans: Functional Foremanship is an extension to the principle of division of labor. In this technique each worker will work under eight foreman in the related process or function of production.

Taylor divides the eight foreman under two incharges: 

• Planning incharge 

• Production incharge.

Planning incharge includes:

• Instruction card clerk: His role is to give instructions to workers.

• Route clerk: He is responsible for the specification of the production route.

• Time and cost clerk: His role is to prepare time and costs sheets.

• Disciplinarian: His role is to ensure discipline.

Production incharge includes:

• Speed boss: His role is to ensure that the work completes in a timely and accurate manner.

• Gang boss: He is responsible to keep machines and tools in a ready state of work.

• Repairs boss: His role involves keeping the machines and tools in proper working conditions, and arranging for their repairs as and when needed.

• Inspector: He is responsible for checking the quality of work.
  
  

Mental revolution: 

Mental revolution focuses on the transformation of the mindset and attitude of workers and management towards each other. Management should try their best to satisfy the needs of the employees and workers should also do their best in order to develop the organization. Both should realise the importance of each other and cooperate with one another.

Ans: Time study helps in finding out the standard time required to perform a well- defined job. Time study also assists in the determination of wages, drafting incentive schemes, manpower requirements etc. 

Ans: It refers to the study of movements like changing positions, lifting objects, putting objects etc., which are undertaken while doing a job. The objective of motion study is to eliminate the unnecessary movements in order to complete a task in a shorter time. 

Ans: It seeks to determine the amount and frequency of rest intervals in completing a task to increase productivity. Rest is essential to perform the work with full capacity. This study helps to find out the standard intervals of break that help a worker to regain its energy.

Ans: The objective of method study is to find out the best way of doing the job. By determining the best method one can minimise the cost of production and maximise the quality and satisfaction of the customer.

(e) Simplification and standardization of work: 

Ans: Standardization refers to setting of standards or benchmarks for every business activity, such as standardization of work, process, etc. Standardization thrives to achieve quality work, and quality products by establishing standards of performance for men and machines. For example there are standards for gold (hallmark), agricultural products (Agmark), industrial products(ISI) that assure that the product is a quality product.

Simplification of work aims at eliminating the unnecessary diversity in the products. It helps in savings of cost of labor, machine and tools and increased turnover. There are shoe sizes, cloth sizes such as M, L, XL etc., this is done to reduce unnecessary variations, and expenses.

Ans: The differences between the contributions of Taylor and Fayol are:

Ans: Principles of both Taylor and Fayol play a significant role in the contemporary business environment. 

• Act as guidelines: These principles act as a guideline to managers for making decisions and taking appropriate actions. 

• Flexible: Such principles can be modified according to the demand of the situation which helps the managers to solve the problem accordingly.  

• Can be used in a number of situations: It can be used in various situations and the decisions based on this will be backed by facts and logic which makes it more applicable. 

• Provides lessons: These principles help the managers to learn from their past mistakes by providing insight into real word business. 

• Universally Applicable: These principles have universal applicability which makes them more reliable.

• Higher efficiency: It helps in development of an organization by improving efficiency and effectiveness with minimum use of resources and cost.

Ans: Following principles of management were violated:

• Unity of Command: As employees were working under more than one superior.  

• Unity of Direction: As the divisions were made to work on more than one product.

• Esprit de Corps: As the workers lacked the spirit of teamwork.

• Discipline: The workers were getting discipled due to increased pressure.

• Initiative: As workers were feeling cheated, and were lacking any initiative.

• Order: The implementation of changes were made without arranging for proper infrastructure.

• Division of work: They were made to work overtime, without any proper division of work.
  
  

Ans: The principles are explained below:

• Unity of Command: There should be one and only one superior for every individual employee as if the employees receives orders from more than one superior, then it may lead to confusion in the minds of employers regarding what to do and who to follow.

• Unity of Direction: According to this principle, the efforts of each unit of the organization having a similar head and plan should move towards the achievement of the same objectives. Each division should have its own incharge and resources, so as to prevent overlapping of activities. 

• Esprit de Corps: According to this principle, efforts should be made on the part of management to promote a sense of mutual trust and belongingness among the team members. Also use of the word ‘We’ should be prioritized over the word ‘I’ to inculcate the sense of unity among the members.

• Discipline: Everyone should follow the rules and regulations which are necessary for the working of the organization.

• Initiative: According to Fayol, subordinates should be encouraged to make and execute plans within the prescribed limits of authority.

• Order: According to this principle, there should be a place for everyone and everything and each person or the thing should be found in its/ his place. It helps in carrying out the activities on time, and in a smooth manner.

• Division of work: Each task is performed by a specialist or trained employee so that it will be completed effectively and efficiently.
  
  

Ans: Steps which can be taken by the company are:

• Motivation and proper incentive should be provided to workers.

• Scientific management should be adopted.

• Teamwork and coordination should be promoted for development of the organization.

• One subordinate should receive instruction from one superior only for smooth functioning of the organization.

• There must be separate divisions for different products.

• Efforts should be made regarding the arrangement of proper infrastructure.

• The work should be divided optimally, and overtime should be avoided.
  
  

Ans: Yes, the scientific management techniques recommended by Mukti Consultants will prove beneficial for the organization. It will improve the quantity and quality of product with reduction in costs, more simplicity and ease of work.

Ans: Following precautions need to be taken: 

• Production planning should be implemented in a systematic way.

• Differential piece rate system should not promote unhealthy and ugly competition between the workers.

• Functional foremanship should be introduced with proper motivation for the employees. 

• Standardization techniques should be implemented in different aspects of production, and proper methods should be developed for their training so that quality products are produced.

• Employees can be offered monetary incentives to motivate them to work more efficiently. 

• Not only work study, other methods should be introduced like motion study, time study, and fatigue study.
  
  

Ans: Each technique as specified in the case problem is:

• Scientific management 

It means the use of tools and techniques and specialized personnel to carry out the task for achieving better quality and cost reduction. It is a theory of management developed by Frederick Taylor in 1911 which focuses on the ways of getting the work done in the best and most cost-effective way. The firm should adopt scientific management so as to take benefits of better division of labor, cost reduction and increased efficiency.

• Production Plan: 

It refers to the planning of production operations so that a smooth and coordinated flow of production is made possible. It involves elements like

• Routing: It determines the route through which the raw materials will be transformed into finished goods.

• Scheduling: It provides a proper timeline and schedule in respect to time, day, date, regarding the beginning and completion of a particular operation.

• Dispatching: It involves the issuance of instructions and orders for the commencement of the production work.

• Feedback: It refers to the identification of deviations and errors in the production plan, based on the set standards and current performance.

• Functional Foremanship 

It is an extension to the principle of division of labor. In this technique each worker will work under eight foreman in the related process or function of production. Taylor divides the eight foreman under two incharges so that there is no confusion in the minds of workers regarding their incharges: 

• Planning incharge 

• Production incharge.

Hence, the company should employ functional foremanship so as to keep the planning and operational functional separate.

• Work Study: 

To enhance the efficiency, productivity and performance of the workers, various techniques of work study could be used by the company, such as.

• Time Study: Time study helps in finding out the standard time required to perform a well- defined job. Time study also assists in the determination of wages, drafting incentive schemes, manpower requirement etc.

• Motion Study: It refers to the study of movements like changing positions, lifting objects, putting objects etc., which are undertaken while doing a job. The objective of motion study is to eliminate the unnecessary movements in order to complete a task in a shorter time. 

• Fatigue Study: It seeks to determine the amount and frequency of rest intervals in completing a task to increase productivity. This study helps to find out the standard intervals of break that help a worker to regain its energy. 

• Method Study: The objective of method study is to find out the best way of doing the job. By determining the best method one can minimise the cost of production and maximise the quality and satisfaction of the customer.

• Standardization 

To ensure proper product quality and accountability, the firm should go for standardization.

It refers to setting of standards or benchmarks for every business activity, such as standardization of work, process, etc so as to achieve quality work, and quality products by establishing standards of performance for both men and machines. 

• Differential Piece Wage System 

To keep the workers motivated, and raise their efficiency levels the company should employ a differential piece wage system. It is a system which was used by Taylor under which workers are paid according to their efficiency. An efficient worker will get higher wages as compared to an inefficient worker.