[AHSEC Class 12, Business Studies Notes, Revised Syllabus, 2022 Exam, Principles of Management]
Class 12 Business Studies Notes
Unit – 2: Principles of Management
Objective Types Questions:
1. Who is called the father of scientific
management? 2019
Ans: F. W .Taylor
2. Who authored the “the Principles
and Methods of Scientific Management”?
Ans: F. W. Taylor
3. Who is called the father of
administrative management theory of 14 principles of management?
Ans: Henry Fayol
4. Name the book authored by Henry
Fayol on Management. 2008,
2012, 2017
Ans: General and industrial management in the year 1949
5. Who introduced the concept of Gang
Plank?
Ans: Henry Fayol. It
permits direct communication between employees working at same level.
6. Which principles state ‘one plan’
one boss’ and ‘one head, one plan’?
Ans: Unity of command, Avoidance
of confusion leading to efficiency.
7.
How management principles are derived?
Ans: Principles of Management are the
statements of fundamental truth which provide guidelines which help management
to take decisions and action. They are derived from observation and
experimental studies.
8. Which principle of management
promotes team spirit, harmony and unity within the organisation?
Ans: Principle of Esprit De Corps
9. Who gave functions and principles
of management?
Ans: Henry Fayol
10.
What is meant by Management principles? 2009
Ans: Principles of Management are the
statements of fundamental truth which provide guidelines which help management
to take decisions and action. They are derived from observation and
experimental studies.
11.
State two features of Principles of management.
2008,
2011
Ans: a) Universal
Applicability b) General Statements c) Flexibility
12.
Which techniques of scientific management describe one best way to perform a
task?
Ans: Method Study
13.
State how the principles of management are flexible.
Ans: Principles
of Management are flexible, which means that they are not rigid, and can be
modified by the manager as per the situation.
14.
What do you understand by principles of
management?
Ans: Principles
of Management are the statements of fundamental truth which provide
guidelines which help management to take decisions and action. They are derived
from observation and experimental studies.
15.
State one objective of fatigue study.
Ans: Its main
objective is to refresh the workers so that they work again with full energy
and stamina.
16.
Who introduced the concept of functional
foremanship?
Ans: F.W. Taylor.
It insists on hiring specialist for every job. (8 Specialists foremen)
17.
Who classified the activities of an industrial organisation into six
groups?
Ans: Henry Fayol
18. Why are the Principles called contingent?
Ans: Because they are
affected by situations.
19. Why management principles are universal?
Ans: Management
principles are universal because they are applicable in all organisations in
all situations whether it is a profit making or non-profit making.
20. State the technique of scientific management which is the
strong motivator for a worker to reach standard performance.
Ans: Differential piece wage system which is
introduced by F.W. Taylor.
21. What is meant by ‘Mental Revolution?’
Ans: It calls for a
change in the mental outlook of both, the employees and the management.
22. Name the association that has
devised a code of conduct for Indian managers.
Ans: All India Management
Association (AIMA) has devised a code of conduct for Indian
managers.
23. State one violating effect of the principle of ‘Division of
work’
Ans: Lack of
specialization.
24. State one positive effect of the principle of ‘Unity of
command’
Ans: Avoidance of
confusion leading to efficiency.
25. State the principle of ‘order’.
Ans: Proper placement
of things and persons is called order.
26. State the technique of scientific management which is the
strong motivator for a worker to reach standard performance.
Ans: Differential piece wage system which is
introduced by F.W. Taylor.
27. What is meant by Simplification as a technique of scientific
management?
Ans: Simplification
refers to putting an end to unnecessary types, qualities, sizes etc.
28. What is the main objective of ‘Time Study’ and ‘Motion study’?
Ans: Time study aims
at determination of standard time, to determine the labour cost and to create
time management among the employees.
Motion Study: It aims
at eliminating unproductive movements of the employees at work.
29. Who introduced the concept of Gang Plank? 2011, 2017
Ans: Henry Fayol. It
permits direct communication between employees working at same level.
30. Who introduced the concept of functional foremanship? 2008, 2010, 2015
Ans: F.W. Taylor. It
insists on hiring specialist for every job. (8 Specialists foremen). Four
specialists suggested for planning department namely Route clerk, Instruction
card clerk, Time and cost clerk and Disciplinarian and four specialists for
operational department namely Gang boss, Speed boss, Repair boss and Inspector.
31. Who classified the activities of an industrial organisation
into six groups? 2010
Ans: Henry Fayol
32. Which technique of scientific
management violated the principle of ‘unity of command’? 2018
Ans: Functional foremanship
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ALSO READ (AHSEC ASSAM BOARD CLASS 12)
1. AHSEC CLASS 12 BUSINESS STUDIES CHAPTERWISE NOTES
2. AHSEC CLASS 12 BUSINESS STUDIES QUESTION PAPERS (FROM 2012 TILL DATE)
3. AHSEC CLASS 12 BUSINESS STUDIES SOLVED QUESTION PAPERS (FROM 2012 TILL DATE)
4. AHSEC CLASS 12 BUSINESS STUDIES IMPORTANT QUESTIONS
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Long Answer Type
Questions (2/3/5)
Q.1. What
are Management Principles? Mention the steps for deriving Management
principles.
Ans: Principles
of Management are the statements of fundamental truth which provide
guidelines which help management to take decisions and action. They are derived
from observation and experimental studies.
Steps for driving
principles:
a)
Choice of the
problem or opportunity
b)
Observation and
study of the problem
c)
Making hypothesis
d)
Conclusion and
forecasting
e)
Testing the
principle
Q.2. Write
down the characteristics (Nature) of management principles. 2008, 2011
Ans: Characteristics/Nature
of management principles are:
a)
Universal
Application: Management principles are applied in every situation, where
the objectives are attained through group efforts. All social, economic,
political, cultural or even religious organizations apply management principles
for the successful operations of their activities. 2017
b)
Flexibility: The
business situations and its social economic environment are always changing, so
the management principles are dynamic enough to suit the size, nature, need and
situation of the business.
c)
General
statements: Management principles are concerned mostly with human behaviour,
which cannot be tested under controlled conditions i.e., a laboratory.
d)
Influencing human
behaviors: Human element is an essential factor of production. It activates and
extracts work from other factors also. Every worker is individually different
from other workers. Management is concerned with the integration of individual
efforts and how to channeling them towards achieving the desired results.
e)
Based on cause
and effect relationship: Management principles are based on cause and effect
relationship that means these principles tells why a principle is applied in
given situation and what are their effects.
Q.3. Explain briefly the
NEED/IMPORTANCE of management principles? Or Why proper understanding of
management principles is necessary? 2018,
2019
Ans: Management principles are needed
for the following reasons:
a)
Optimum use of resources: The management principle of “science, not rule
of the thumb” suggests that every task should be done with
minimum effort and energy and additional work can be done with the saved
energy. By saving time, efforts and energy activities can be made economical
and enhance the productivity of the resources.
b)
Change in technology: The management principle of “division of
labour” helps management in identifying in which activity
technology has changed. If there is no division of labour then confusion may
prevail about what and how much to change.
c)
Effective Administration: The principle of ‘scalar chain’ helps
the enterprise to communicate with people at different levels. ‘Unity of
direction’ removes confusion in minds of employees; and ‘Unity of command’ avoids
dual subordination. The knowledge of principles improves the understanding of
managers about the ways and means of managing an organization. Management
principles are helpful in taking decisions and handling situations arising in
course of management.
d)
Helps in thoughtful decisions
making. Management principles help in thoughtful decision-making. They
emphasize logic rather than blind faith. Management decisions taken on the
basis of principles are free from bias and prejudice.
e)
Fulfilling social responsibilities: A business is a creation of society
and makes use of resources of society so it must do something for society. Management
principles guide the managers to perform their social responsibilities.
f)
Direction for training of managers. The
principles are helpful in identifying the areas of management in which existing
and future managers should be trained. The principles of management help the
universities and professional institutes to impart teaching and training in the
theory and practice of management.
g)
Role of management. The principles focus
on matters on which greater managerial attention is required. Principles act as
ready reference for the managers to check whether their decisions are
appropriate or not.
Q.4. List
out Fayol’s 14 general principles of management. 2007, 2011, 2012, 2013, 2014, 2020
Ans: Different management experts have explained different principles on the
basis of their research. Henry Fayol, a famous industrialist of France, has
described fourteen principles of management in his book General and Industrial
Management.
While presenting the principles of management
Fayol has kept two things in mind. Firstly, the list of the principles of
management should not be long but should be suggestive and only those
principles should be explained which become applicable in most of the
situations. Secondly, the principles of management should be flexible and not
rigid so that changes can be made in them in case of need.
Fayol suggested
the following 14 principles:
1.
Division of work: According to
this principle the whole work must be divided into small tasks instead of
assigning the whole task to one person. Division of work is important for
reducing work burden of an employee and improves his skills. This helps an
individual to get specialization in his area of expertise and thereby improves
the productivity of an individual.
2.
Authority and Responsibility: Authority
is the right to issue command and make decisions. Responsibility is obligation
towards organization and decisions made. According to this principle, There
must be balance in authority and responsibility. If there is no authority, he
cannot fulfill his responsibility and if an individual has an authority he must
have equal responsibility.
3.
Discipline: Discipline is
important for the success of an organization. According to this principle,
there must be rules and regulations for systematic working in the organisation
and both subordinate and superior must follow these rules. There must be good employee-employer
relationship. Employees must obey orders and employer must provide good
leadership.
4.
Unity of command: According to
this principle of Fayol, every employee should receive orders and instructions
from one boss and he should be responsible and accountable to him only. This
principle will be violated if an employee is asked to receive orders from more
than on superior. (2009), 2017
5.
Unity of Direction: According to
this principle “One unit means objective and one plan. There must be one plan
for an organization at a time and should be directed by one manager using the
same plan. This principle leads to good coordination in the organisation. (2011), 2017
6.
Subordination of individual interests to the general
interest: According to this principle, the interest of the organisation
must be kept superior to the interest of individuals or employees. The goal of
the organisation must not be sacrificed because individuals or employees will
be able to achieve their objectives only when the organisation prospers.
7.
Remuneration: According
to this principle, Fair wage for the service must be given to the employees to
give them maximum satisfaction. Every worker should be paid fair remuneration
and if workers are not satisfied than they can never contribute his maximum.
8.
Centralization and Decentralisation: Centralisation
refers to concentration of power or authority in few hands i.e., top level.
Decentralisation is defined as systematic distribution of authority at every
level of management. According to
this principle, an organisation must not be completely centralised or
decentralised but there must be combination of both depending on the nature and
size of the organisation.
9.
Scalar Chain: The line of
authority from top management to the lower level management represents the
scalar chain. There should be a chain for the flow of communication. Authority
must flow from top management to lower level management and responsibility must
flow vice-versa. (2010)
10.
Order: There must be an
order for everything. According to this principle, order does not mean command
but it refers to orderly arrangement of people and material in the
organisation. Right person at right place and right material at right time and
in right place is the key for success of any organisation.
11.
Equity: According to this principle, manager should treat all his subordinates
equally. There should be no difference or should not show special attention or
kind to any particular subordinate.
12.
Stability of tenure of personnel: According
to this principle, the management must provide the feeling of job security
among the employees. There must be stability and job security. High employee
turnover affects organization adversely.
13.
Initiative: The successful
management provides an opportunity to its employees to suggest their new ideas,
experiences and more convenient methods of work. It is the duty of the manager
to encourage the feeling of initiative among the employees for doing some work
14.
Esprit de Corps: According
to this principle, there must be team spirit within an organisation. Management
must develop a feeling of belongingness among the employees with develop team
spirit and unity within the organization. (2012,
2015)
Q.5.
Explain the concept of Scalar chain and Gang Plank.
Ans: The line of
authority from top management to the lower level management represents the
scalar chain. There should be a chain for the flow of communication. Authority
must flow from top management to lower level management and responsibility must
flow vice-versa. This principle was explained by Fayol with the help of a ladder
diagram which showed the flow of information.
For example, in an organization
there are employees A, B, C, D, E, F, G, H, I, at various posts. If employee
‘C’ has to communicate with employee ‘G’ using the scalar chain, the route
should be like C4B4A4F4G. Thus there will be four steps for the information to
reach from employee ‘C’ to the employee ‘G’.
Due to more clear system of
authority and communication, problems can be solved easily, also the
accountable person can be held quickly without any confusion and delay. Though
this principle is very effective and clear, but it consumes a lot of time. In
case of emergency, information will take a lot of time to reach the desired
position which may delay the action as well as decision.
Gang plank: For overcoming this limitation of scalar
chain, fayol introduced the concept of ‘Gang Plank’. According to this concept,
two executives of the organization of different department at the same level
can communicate directly in case of emergency, so that speedy decisions and
actions could be taken. In case of the above example, if employee ‘C’ has to
contact employee ‘G’, he can easily and directly communicate the information to
‘G’ using this Gang plank (‘C’4‘G’). This reduces a lot of time and helps in
effective performance.
Q.6. Define
Scientific Management. 2007,
Ans: Scientific
Management may be defined as the scientific study and analysis of work,
scientific selection and training of employees, standardization and scientific
rate setting. It is an art of knowing exactly what a manager wants his workers
to do and seeing it that they do it in the best and cheapest way.
According to F.W.Taylor who is regarded as the father of
scientific management, “Scientific Management is the art of knowing exactly
what you want your men to do and seeing that they do it in the cheapest way”.
Q.7. What are the Objectives of
Scientific Management?
Ans: Scientific management has the following main objectives:
a)
Increased production with the use of
standardized tools, methods and equipments.
b)
Reducing the cost of production by using the
different cost control techniques.
c)
Improvement in the quality of product through
quality control and inspections.
d)
To place the right person at the right place.
e)
Providing the wages to the workers according
to their efficiency.
Q.8.
What are the characteristics of Scientific Management? 2008, 2009
Ans: Scientific
management has the following characteristics:
a)
Predetermined
objectives: The objective of every job is predetermined and in order to achieve
that objective physical and human resources are applied.
b)
Predetermined
plans: In order to achieve the predetermined goal of every job, effective plans
for the most appropriate use of the available resources are prepared. Planning
in this case is goal oriented.
c)
Scientific
analysis of plans: The utility, effectiveness and suitability of plans is
tested and ascertained before it is put in practical operation.
d)
Set of rules: In
order to implement the plans a set of rules are made.
e)
Work studies:
Standardization of time, motion, fatigue and work is done after careful time,
motion, work & fatigue studies, so that maximum output could be achieved at
minimum sacrifice.
Q.9.
What are the advantages and criticism of scientific management to the workers? 2008
Ans: Advantages
to the workers:
a) Increase
in production and productivity due to planning in task and scientific methods of
doing work.
b) Improved
working conditions to the workers viz., proper working hours, lighting,
ventilation, rest etc.
c) Higher
standard of living due to increased wages under differential wage incentive
plan.
d) Proper
selection and training of workers and right man is given a right job.
e) Specialisation
of workers due to division of labour.
Criticism of
scientific management:
a) Monotony
of work because a specialised worker has to do a similar job regularly.
b) Loss
of workers skill and initiative because of standardisation of works.
c) Exploitation
of workers because there is no concept of participation of workers in gains
arises due to increased productivity.
d) Discrimination
amongst the workers because efficient workers gent more wages are compared to
the inefficient ones.
e) Fixation
of wages, working conditions and working hours are decided by the management
which weakens the trade unions.
Q.10. Explain
the importance of principles of scientific management.
Ans: Importance
of principles of scientific management:
a)
Efficiency of
business improves through simplification and specialisation.
b)
Helps in reducing
the cost of production by eliminating all types of wastages.
c)
Enables to
capture wide market since the price and cost of the product decreases.
d)
Enables the
workers to earn more with the introduction of differential piece rate system.
e)
Provides better
working conditions for workers.
Q.11. Explain
Taylor’s principles of Scientific Management. 2008,
2009
Ans: Taylor’s philosophy
consists of the following principles of scientific management:
a)
Replacing rule of thumb with science:
According to this principle, scientific investigation should be applied in the
scientific management, which will replace the rule of thumb. Taylor had made
study of every job and fixed the method and timing for performing the job so
that the worker should know that what, when, and how is required to perform the
job. This principle is the starting point of scientific. This principle is concerned with selecting the best way of
performing a job through the application of scientific analysis and not by
intuition or hit and trial methods.
b)
Harmony in group action:
This principle states that there should be cooperation between the management
and the workers. In order to achieve the best possible results from the
business operations, it is essential that there should be harmonious relations
between the management and the workers.
c)
Division of responsibility between workers and management: According to this principle there should
proportionate division of the responsibility between the managers and the
workers, clearly defined, and predetermined.
d)
Maximum Output: Scientific
Management aims for the continuous production and productivity. According to
this principle management and the workers should try to increase the production
at the minimum cost.
e)
Selection, training, and development of the workers in the scientific
manner: According to
this principle the right men is placed on the right job. The jobs are
determined first for which the workers are required and then the qualifications
required for the job are determined. On the basis of these standards the
employees are selected.
Q.12.
Discuss the various techniques/Elements of scientific management. 2007, 2010,
2012, 2013, 2015, 2018, 2020
Ans:
Taylors has suggested the following
techniques of scientific management:
1. Scientific Task Setting: The first technique of scientific management
is the scientific task setting. The work should be designed by the management
is such a way that an average worker can be able to do the work within a given
period of time. It should not be higher than the average capacity of the worker
nor lower than his capacity.
2. Work study: Work study is the detailed analysis of an
activity with an objective to remove inefficiency and find out the best way to
perform the work. work study includes the following techniques:
a) Fatigue study:
It refers to the duration and frequency of rest intervals to complete a
particular job. The rest refreshes the workers. They work again with full
energy and stamina. Long working hours, poor working conditions, unsuitable
work can also be the causes of fatigue. It should be reduced. 2016
b) Method study:
It refers to identify the most suitable, economical way of doing a particular
activity. To conduct this study, process chart, operation research technique
can be used. The main objective is to minimize the cost of production and
maximize the quality of the work. (2013)
c) Motion Study: Motion
study is designed to eliminate unnecessary motions and to reinforce necessary
motions. It is a close observation of analyzing the body movements of the
worker performing the job. This study helps in analyzing that if any element of
the job can be eliminated or not. (2013)
d) Time study: This
study helps in determining the time required by an average skill worker to
efficiently perform a particular job. Time study helps in determining the
standard time for the job. This standard time is then fixed for the workers for
performing the job. So, time study is used to measure precisely the time
required in doing every element of a job with the purpose of deciding the fair
day’s work.
3) Mental Revolution: Taylor emphasized the mutual cooperation
between the workers and the management as the human element comprising of
worker and management is essentially a very sensitive factor of production. The
basic idea behind the mental revolution is to change the mental attitude of the
workers and the management towards each other. Mental revolution requires that
there should be perfect cooperation and coordination between the efforts of
labour and the management.
4) Functional
foremanship: In this technique Taylor suggested the division of factory in two
departments: planning department and production department as Taylor felt that
workers must be free from the burden of planning and they must concentrate on
work and production. To develop specialisation in the productivity, Taylor
suggested four functional experts for each department supervise, guide and
instruct the worker.
Four functional experts suggested for planning
department are: Route Clerk, Instruction Card Clerk, Time and Cost Clerk and
Disciplinarian.
Four functional experts suggested for
production department are: Gang Boss, Speed Boss, Repair Boss and Inspector.
5)
Differential wage system: The scientific technique of differential wage
rate system emphasises on paying different rate of wage for efficient and
inefficient employees. To conduct differential wage rate system Taylor
suggested that the company must fix a standard rate of wage for workers
producing standard output. The workers who produce more than the standard
target must be paid with a higher rate of wages as compared to those who are
producing less than standard.
Q.13. Distinguish
between Time Study and Motion Study.
|
Time Study |
Motion
Study |
|
It
measures the standard time taken for a qualified worker to perform a well
defined job. |
It
studies movements of body/machine to perform a job |
|
The
purpose is to decide how much time is normally required to perform a certain
job |
The
purpose is to avoid wasteful motions and to determine the best way of doing a
job |
|
It
measures the work provides a yardstick to decide between efficient and
inefficient workers. |
It
eliminates and reduces wasteful and useless motions. |
|
It aims at improving the performance of workers by
discriminating them as efficient and inefficient. |
It improves the
performance of the workers without any discrimination. |
Q.14. Taylor’s techniques of
management are universally applicable. Do you agree? Give any four reasons in
support of your answer.
Ans: Taylor’s
techniques are developed through scientific approach and not by rule of
thumb. Any principle developed scientifically is universally applicable
because these are not affected by personal feelings or biasness of managers.
The techniques which facilitate the universal applicability of Taylor’s
principles are:
a)
Time study
b)
Motion study
c)
Method study
d)
Fatigue study
But, some techniques of scientific management are not universally applicable
under some situations. These are:
a) Functional
Foremanship: This technique is not applicable in the organization
following the principle of unity of command.
b) Differential
Piece Wage system: This technique is also not applicable in the organization
following the principle of equity.
Q.15. Define
the principle of unity of command. What can be the consequences if this
principle is violated? 09, 13
Ans: Principle
of unity of command: According to this principle of Fayol, every employee
should receive orders and instructions from one boss and he should be
responsible and accountable to him only. This principle will be violated if an
employee is asked to receive orders from more than on superior.
The violation of
this principle will have the following consequences:
a)
It will be
very difficult to maintain discipline
b)
Duplication of
work
c)
Over – lapping of
orders and instructions
d)
Disrespect to the
work and officers
Q.16.
“Taylor’s principles of scientific management and Fayol’s principle of
management are mutually complementary“. Do you agree? Considering the above
statement, write a brief note on the similarities and
dissimilarities between Taylor’s and Fayol’s contributions. 2016
Ans: Yes, I agree
with the view – “Taylor’s principle of scientific management and Fayol’s
principles of management are mutually complementary “. Taylor and Fayol’s principles are
complementary to each other because both have relevance in the business due to
the following reasons:
a) The
main aim of Taylor’s as well as Fayol’s principles is maximising the
efficiency.
b) Both
insist on cooperation between employees and employers.
c) Both
give more importance to organisational interest over the individual interest.
d) Bothe
suggested division of work for specialisation.
e) The
principles of both are used as basis for research in the field of management
studies.
Difference between Taylor’s and Fayol’s Contributions
|
Point of
Difference |
Taylor |
Fayol |
|
Concern |
Taylor’s techniques
and principles are concerned with worker’s efficiency. |
Fayol’s principles
are concerned with management efficiency. |
|
Emphasis |
Taylor laid great
emphasis on standardisation of work. |
Fayol laid great
emphasis on functions of managers. |
|
Applicability |
Applicable to
specialised situation. |
Universally
applicable. |
|
Unity of command |
Did not follow this
principle as Taylor insisted on minimum 8 bosses. (This point was asked in
2015 exam) |
Strictly followed
this principles i.e. one boss for one employee. |
|
Expression |
Taylor’s techniques
are expressed as scientific management. |
Fayol’s techniques
are expressed as general theory of administration. |
|
Personality |
Taylor developed a
personality of scientist and become famous as father of scientific management. |
Fayol developed the
personality of researcher and practitioner and become famous as father of
general management. |
Q.17.Write a detailed note on contribution of FW Taylor and Henry
Fayol.
Ans: CONTRIBUTION OF F.W. TAYLOR
F.W. Taylor is one of the founders (the other
two are Max Weber and Henry Fayol) of classical thought/classical theory of
management. He suggested scientific approach to management also called
scientific management theory. Frederick Winslow Taylor well-known as the
founder of scientific management was the first to recognize and emphasis
the need for adopting a scientific approach to the task of managing an enterprise.
He tried to diagnose the causes of low efficiency in industry and came to the
conclusion that much of waste and inefficiency is due to the lack of order
and system in the methods of management. He found that the management
was usually ignorant of the amount of work that could be done by a
worker in a day as also the best method of doing the job. As a result,
it remained largely at the mercy of the workers who deliberately shirked work.
He therefore, suggested that those responsible for management should
adopt a scientific approach in their work, and make use of
"scientific method" for achieving higher efficiency. The scientific
method consists essentially of:
a) Observation
b) Measurement
c) Experimentation and
d) Inference.
He advocated a thorough planning of the job by
the management and emphasized the necessity of perfect understanding and
co-operation between the management and the workers both for the enlargement of
profits and the use of scientific investigation and knowledge in industrial
work. He summed up his approach in these words:
a) Science, not rule of thumb
b) Harmony, not discord
c) Co-operation, not individualism
d) Maximum output, in place of restricted output
e) The development of each man to his greatest efficiency and
prosperity.
(After this paragraph write a note on
scientific management)
Contribution of Henry Fayol
Henry Fayol (1841-1925): was a
Frenchman with considerable executive experience who focused his research on
the things that managers do. He wrote during the same period Taylor did. Taylor
was a scientist and he was managing director of a large French coal-mining
firm. He was the first to envisage a functional process approach to the
practice of management. His was a functional approach because it defined the
functions that must be performed by managers. It was also a process approach
because he conceptualized the managerial job in a series of stages such as planning,
organizing and controlling. According to Fayol, all managerial tasks could be
classified into one of the following six groups:
• Technical
(related to production);
• Commercial
(buying, selling and exchange);
• Financial
(search for capital and its optimum use);
• Security
(protection for property and person);
• Accounting
(recording and taking stock of costs, profits, and liabilities, keeping balance
sheets, and compiling statistics);
• Managerial
(planning, organizing, commanding, coordinating and control);
He pointed out that these activities exist in
every organization. He focused his work on the administrative or managerial
activities and developed the following definition:
• Planning
meant developing a course of action that would help the organization achieve
its objectives.
• Organizing
meant mobilizing the employees and other resources of the organization in
accordance with the plan.
• Commanding
meant directing the employees and getting the job done.
• Coordinating
meant achieving harmony among the various activities.
• Controlling
meant monitoring performance to ensure that the plan is properly followed. (after this paragraph write a brief note on
principles of management)