Chapter 2- Principles Of Management

Question 1

Nature of principles of management-

Answer 1

1) universal applicability
2) general guidelines
3) formed by practice and experimentation
4) flexible
5) mainly behavioural
6) cause and effect relationship
7) contingent

Question 2

Universal applicability

Answer 2

• the principles of management are intended to apply to all types of organisation
• however the extent of their applicability would vary according to nature, business activity and scale of operations etc

Question 3

General guidelines

Answer 3

• the principles are guidelines to action but do not provide readymade or straight forward solutions to managers
• this is so because, real business situations are very complex and dynamic and involve many factors

Question 4

Formed by practice and experimentation

Answer 4

• the principles of management are formed by experience and collective wisdom of all the managers and experimentation

Question 5

Flexible

Answer 5

• the principles of management are not rigid prescriptions that have to be followed absolutely
• they can be modified by the manager when the situation so demands
• they provide the manager with enough discretion to do so

Question 6

Mainly behavioural

Answer 6

• management principles aim at influencing behaviour of human beings. Therefore they are mainly behavioural
• this does not mean that they do not pertain to things and phenomenon. It is just a matter of emphasis
• the enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes

Question 7

Cause and effect relationship

Answer 7

• the principles of management are intended to establish a cause and effect relationship so that they can be used in similar situations in a large number of cases

Question 8

Contingent

Answer 8

• the application of principles of management are contingent or dependent on prevailing situation at a point of time
• they have to be changed as per requirement

Question 9

Importance of principles of management

Answer 9

1) provide managers with useful insights into reality
2) optimum utilisation of resources and effective administration
3) scientific decisions
4) meeting changing environment requirements
5) fulfilling social responsibilities
6) management training, education and research

Question 10

Providing managers with useful insights

Answer 10

• the principles of management provide the managers with useful insights into real world situations
• adherence to these principles will increase their knowledge, ability and understanding of managerial situations and circumstances.
• it will also enable the managers to learn from their past mistakes and conserve time in solving recurring problems
• as such management principles also increase managerial efficiency

Question 11

Optimum utilisation of resources and effective administration

Answer 11

• resources both human and material available to a firm are limited. Therefore the heavy to be put to optimum use
• this means that resources should be used in such a manner that they provide maximum benefit with minimum cost.
• principles equip the manager to foresee the cause and effect relationship and wastage association to trial and error approach is overcome
• effective administration means impersonalisation of managerial conduct so that managerial power is used with discretion
• principles of management limit the boundary of management discretion so that decisions and actions are free from personal bias and prejudices

Question 12

Scientific decision

Answer 12

Decisions must be based on fact, thoughtful and justifiable in terms of intended purpose

• they must be timely, realistic and subject to measurement and evaluation
• management principles help in thoughtful decision making. They emphasis logic rather than blind faith
• decisions taken on the basis of principles are free from bias and prejudice

Question 13

Meeting changing environment requirements

Answer 13

• although the principles are in nature of general guidelines, they can be modified to help managers meet changing requirement of the environment

Question 14

Fulfilling social responsibility

Answer 14

• the increased awareness forces business especially limited companies to fulfill their social responsibilities.
• management theory and management principles have evolved in response to these demands
• the interpretation of principles assume the newer and contemporary meaning of the change in time

Question 15

Management training, education and research

Answer 15

• Management principles are at the core of management theory. They are therefore used in management training, education and research.
• they also enable refinement of management practices by facilitating development of new management techniques

Question 16

Meaning of scientific management in words of Taylor

Answer 16

In the words of Taylor scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way

Question 17

Principles of scientific management by F W Taylor

Answer 17

1) science, not rule of thumb
2) harmony, not discord
3) cooperation, not individualism
4) development of each and every person to his/her greatest efficiency and prosperity

Question 18

Science not rule of thumb

Answer 18

The limitation with rule of thumb was that every manager followed their own indigenous rule of thumb with the absence of an established theory. Therefore maximum efficiency could not always be reaped.
Scientific study involved investigation of traditional methods, unifying the best practices and establishing a standard method which would be followed throughout the organisation

Question 19

Harmony, not discord

Answer 19

Taylor emphasised that there should be complete harmony between the management and workers for this they required a complete mental revolution. Both of them should realise each is important.
Example- Japanese work culture

Question 20

Cooperation, not individualism

Answer 20

It is an extension of harmony, not discord. There should be complete cooperation between labour and management.

Question 21

Development of each and every person to his/her greatest efficiency and prosperity

Answer 21

Each person should be scientifically selected, work assigned should suit his/her mental, physical and intellectual capabilities to increase efficiency, they should be given required training