Chapter-2 principles of management

Chapter 2 (Principles of management)

1. Mr. Neeraj, the salesman in Progress Ltd., designed a new cost saving advertisement technique ‘ through his personal experience and suggests the same to his sales manager but it was not appreciated by his sales manager and he also warned him not to come with any suggestions in future. Which principle of Fayol is being overlooked by the sales manager? What should have been the appropriate way of response by the sales manager?

2. The production manager assigned a target of producing 1,000 TV sets in the month oi April to , group of 10 workers. They mutually decided to produce 100 W sets each. Among them, Vishal (one of the worker in the group) fall sick. The other workers refused to divide his work among themselves and concentrated only on the production of their own individual target of production. As a result target of 1,000 TV sets could not be achieved. 

(a) Name the principle of Fayol which is violated in the given case.

(b) What does it state? 

(c) What should have been the appropriate course at action

3. Rama" Ltd. was engaged in the business of manufacturing auto components. Lately, its business was expanding due to increased demand for cars. The competition was also increasing. .In order to keep its market share intact, the company directed its workforce to work overtime. But this resulted in lot of problems. Due to increased pressure of work the efficiency of workers declined. Sometimes the subordinates had to work for more than one superiors. The workers were becoming undisciplined. The spirit of teamwork, which had characterised the company previously, had begun to wane.

Identify any three principles of management which were being violated, quoting the lines from the above case.

4. 'Puneet Constructions Ltd’. had never given any importance to the suggestions of its employees. All the employees in the company considers themselves superior than the other. They neither help anybody nor get help from anybody. Last year, Mr. Shivam was appointed as Chief Manager of the company. He was an MBA from IMM Ahmedabad and also seven-year experience of the same post. Immediately after taking charge he decided to deal with both the problems of the company. He convened a meeting of all the employees and said, "All the employees are free to give their suggestions. Besides, the one who gives the best suggestion will be awarded a prize. In addition, he advised them to discard ego and extend help in each other’s work. We will have to give it the shape of a movement. Those who participate in this movement will be promoted at the earliest." Shivam proved to be a good leader.

    Identify and explain the principles of management discussed above by quoting the lines.

5. 'New Delhi Ltd.’ is a famous services providing company. Mr. AmanMalhotra is its Managing Director. He continuously motivates his Research and Development department that new and latest methods of doing work be explored. The provisions has also been made to give reward to those employees who will participate in a particular exploration. He also believes that two groups working on managerial and non-managerial posts are similar to two wheels of an organisational vehicle. If this vehicle (organisation) is to be driven in a right way then both the wheels should be property aligned. Mr.Aman is a successful leader. Among his employees, he has instilled the feeling that no decision will be taken without consulting the subordinates. To excel in this field, is the main motive of Mr. Amanand he paid lot of attention to training of employees 

    Identify the principles of scientific management discussed above by quoting the lines

6. Voltech india Ltd, is manufacturing LED bulbs to save electricity and running under heavy losses. To revive from losses, the management thought of shifting the unit to backward area where labour is available at the low cost .The management also asked workers to work overtime without any additional payment and promised to increase the wages of the workers after achieving the mission 

i) State principle of management discussed above

ii) Identify two values which company wants to communicate to the society

7. On 27th September, 2015, PM Narendra Modi visited the headquarters of ‘Facebook’    in California. This news was covered by ABP News Channel. The news item highlighted the following unique features of Facebook’s office:

Office spread over 4.5 lakh sq feet area of land. Within the office, the employees use skates to move from one place to another.10, 000 employees working in the office, all at same level. No cabin or separate room for any employee. There is open work place to ensure mutual understanding and team work. All meeting are held in a conference room having walls made of glass. Anyone can see with whom the manager is meeting or interacting. Focus is not on working hours, rather on quality of work. There is ample provision for leisure activities, rest rooms, widespread clean and green environment and beautiful nursery at the terrace for the employees.

     On the basis of above information, answer the following questions:

a) Name one principle of Fayol followed in the Facebook’s office.

b) State any two values followed by the Facebook’s office.                                 

8. Arun and Sonia, having same educational qualifications are working as managers in Alfa Ltd. Arun belongs to rural area where employment opportunities are very less whereas Sonia belongs to urban area.Ignoring many others differences between the two, management of Alfa Ltd.  appointed them as ​manager, on the same salary package of  Rs. 40,000 per month.  

​(A)​Name and explain the principle of management being followed in the above case.

​(B)​Identify any two values on which management of Alfa Ltd. emphasis.​​​

9. Nutan Tiffin Box service was started in Mumbai by Mumbai Dabbawalas. The Dabbawalas who are the soul of entire Mumbai aim to provide prompt and efficient services by providing tasty homemade tiffin to all office goers at right time and place. The service is uninterrupted even on the days of bad weather, political unrest and social disturbances. Recently they have started online booking system through their website ‘mydabbawala.com’. Owing to their tremendous popularity amongst the happy and satisfied customers and members, the dabbawalas were invited as guest lecturers by top business schools. The Dabbawalas operate in a group of 25-30 people along with a group leader. Each group teams up with other groups in order to deliver the tiffin on time. They are not transferred on frequent basis as they have to remember the addresses of their customers. They follow certain rules while doing trade- No alcohol during working hours; No leave without permission; Wearing of white cap & carrying ID cards during business hours. 

Recently on the suggestion of a few self motivated fellow men, the dabbawalas thought out and executed a plan of providing food left in tiffins by customers to slum children. They have instructed their customers to place red sticker if food is left in the tiffin, to be fed to poor children later. 

a) State any two principles of management given by Fayol from above paragraph 

b) Give any two values which the Dabbawalas want to communicate to the society. 

10. Mohan always comes 1 hour late in the office and leave half an hour before the scheduled time. No penal action is taken against him. Other employees also started coming late in the office. Management is very disturbed with this and has started scolding the employees.
(a) Which management principle is being violated in the given case?
(b) Explain the principle.
(c)  Mention one probable adverse consequence of violation of the given principle

Chapter-1 nature and significance of management

Q1. Delhi CM Mr. Arvind Kejriwal launched Odd Even rule for cars in Delhi to cut pollution by restricting the number of cars running on city road. 

a) Identify and explain the objective of Management highlighted by our Chief Minister in the above case.
Hint: social objectives

Q2. Mrs. Wason passed her MBBS examination and also passed MS examination as an eye specialist. After 2 years of completing her studies she joined a big hospital as an eye surgeon. Now she is performing successfully since last few years. Mr. Madan founder of CTA feels that Mrs. Wason is experiencing the aspect of science and Ms. Sachdeva feels that she is experiencing the aspect of Art. Who is right? Give reasons in support of your answer.
Hint: both science as well as art

Q3 Shiv Nadar, chairman and CEO of HCL attributes the success of the group to its management team and their entrepreneurial spirit which together have enabled it to handle rapid changes in the environment and technologies. At HCL management believes that happy, satisfied and self motivated employees help in reducing costs and increase productivity. It also has a strong sense of social responsibility and has set up educational institutions in the field of management, engineering, computers etc.

Identify and explain the significance of understanding management by quoting relevant lines from the case study.

Hint: management creates dynamic environment
Full fill personal objectives

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Q4 Raman agreed to be an employee of a company on the condition that he will be given a project offering competitive salary, career advancement opportunity, promotion and recognition. Mr. John, (general manager) puts Raman in a project in which promotion is not possible. Raman gets disheartened and feels frustrated all the time. Such frustration also reflected in his work and he could not bring desired results. 

(a)  Which objective of management Raman could not achieve? Explain.

(b) Identify the other two objectives.

(c) What should Mr. John do to avoid such problem?                                                        

Hint: a)organisational objectives
b)social, personal c)personal and organisational objectives should match

Q5 Vineet joined a company after completing graduation in management from a reputed business school. During his induction training, he was informed that he would be working in production department. The company wanted to achieve 30% increase in output in the next quarter. His general manager, a man with decades of experience, also said that management is a complex activity. He expected Vineet to make production plans, identify incentive schemes for workers to make their strengths effective and ensure that there is no disruption due to technical glitch. Vineet realised very quickly that his job is a series of continuous tasks. After one month, he was informed by the general manager that due to increase in international demand, production targets have been raised. 

He called an urgent meeting of his supervisors and senior workers. He offered them an opportunity to realise their potential and earn more by working overtime and in multiple shifts. He was delighted that at the end of the quarter, he was able to meet the targets, workers were happy and there was no chaos.

Identify and explain any four characteristics of management referred in above case.                      

Q6 The production manager assigned a target of producing 1,000 TV sets in the month of October among the group of 10 workers. They mutually decided to produce 100 TV sets each. Among them 3 of the workers of the group fell sick. The other worker refused to divide his work among and concentrated only on the production of their own individual target of production the group target of 1,000 TV sets could not be achieved..

(i)Which characteristic of management is violated in the above para?

Hint: a group activity

Q7 XYZ Power Ltd. Set up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas. They revenue earned by the company was sufficient to cover the costs and the risks. The demand of the lanterns was increasing day-by-day. So the company decided to increase production to generate higher sales. For this, they decided to employ people from the nearby villages as very few job opportunities were available in that area. They company also decided to open school and creches for the children of its employees.

(i) Identify and explain the objectives of management discussed above.

(ii) State any two values which the company wanted to communicate to the society.
Hint: social objectives

Q8 Kamal, Khan and Devid are partners in a firm engaged in the distribution of dairy products in Madhya Pradesh. Kamal is a holder of Senior Secondary School Certificate from Central Board of Secondary Education with Business Studies as one of his elective subjects. Khan had done his post-graduation in Hindi literature and Devid in Dairy Farming. One day there was a serious discussion between Khan and Devid regarding the nature of 'Management as a Science'. Khan argued that Management was not a science whereas Devid was of the opinion that Management was a science. Kamal intervened and corrected both Khan and Devid about the nature of Management as a Science with the help of his knowledge of Business Studies. Explain, how Kamal would have been able to satisfy both Khan and Devid.    
Hint                                 Hint: define mgt. as art and as science

Q9 Shahrukh Khan is an epitome of success. He adds humour and humane touch in his performances at the live shows. He has redefined the image of a lead actor in cinema and given it a ‘negative, sympathetic and glamorous look’. A manager also redefines and creates styles and techniques based on his experience and imagination. Identify the nature of management form the given statement  ​

Q10 Alia Enterprises, a company was initially producing grinders and mixers. Now,  with the changing scenario and emerging trends of working women there is a greater demand for a  product which is more efficient and a multi-tasker. On analyzing the situation, the company decided to penetrate into the market for producing Food Processor. Which level of management will take this decision?  ​

Q11 Sushil is running a business enterprise producing handloom and handicraft products in Maharashtra under the name ‘Fabmart Enterprises’. He has employed 1,000 craftsmen and artisans in his firm. The basic reason for its existence is to produce those handicraft items which have a market demand & are reasonably priced. He performs all the functions of management all the time with the help of his managers. He is working with a team of individuals who have diverse needs and goals. He along with his marketing experts conducts market survey to know the tastes and preferences of consumers. Thus he adapts to changing environment and produces goods according to the needs of the customers. The employees working in his firm are happy and satisfied, and there is orderliness instead of chaos. 

   Identify any five features of management from the above para. Also quote lines that denote these features​

Q12 Amar Ltd.is engaged in production of electrical goods The company’s profits and market   share are declining. The production  department blames the marketing department for not meeting the sales targets and  the marketing department blames the production department for producing goods which are not of good quality and do not meet the customer’s expectations. The finance department blames both the production and marketing departments for declining return on investment. 

          1.What quality of management do you think the company is lacking?   

          2.List its two features

          3.List any two values which are ignored by employees of Amar Ltd.  

Q13 What distinguishes a successful manager from less successful manager is ability to put the principles and methods of management into practice .What aspect of nature of management is being highlighted here.

RE-LIVE UR CHILDHOOD:::
In our day to day life due to work pressure,expectations and responsibilities we forget to live our life...
Take on simple example u have a glass of water in hand half filled with water....what do u see...some of u will see half filled half empty....
Now think like a child he will not think about the water in glass....
What he will do think?
This glass was tension and responsibilities u were carrying in Ur hand, put it aside if u think like a child, pour it play with it....Ur problem will be solved.

Be like a child, smile and relax everything will be fine

Reduce Ur stress.....

Time please" theory of stress reduction....
When I was a kid I used to play a game....my all friends ran here and there & I run to catch them...
When anyone from us get feel extremely tired..we say "Time Please" and we take some rest, prepare ourself for the next round.
But u ll think why I m discussing these things here.
Sometimes our childhood things give us very simple solution for dealing with the problems.

When we have a problem with us we try to solve them and when it is not solved we feel tired....so we should say "Time please" to our problems and should wait for a while collect all Ur energy and then again run after the problem. Give time to Ur problem some problems will solve by their own and for some u ll get the solution.

So don't loose Ur heart u all catch the solution run to catch if one time u fail say Ur self Time please and again start.......

U all get the problem solved.

Happy problem solving!!!!!!

14 Principles of HENRY FAYOL for Management

1.Division of Work:

·         Work is divided into small tasks/jobs.

·         A trained specialist who is competent is required to perform each job.

·         Thus, division of work leads to specialisation.

·         According to Fayol, “The intent of division of work is to produce more and better work for the same effort. Specialisation is the most efficient way to use human effort.”

2. Authority and Responsibility:

According to Fayol, “Authority is the right to give orders and obtain obedience, and

·         responsibility is the corollary(attached) of authority.

·         The two types of authority are official authority, which is the authority to command, and personal authority which is the authority of the individual manager.”

·         Authority is both formal and informal . Managers require authority commensurate with their responsibility.

·         There should be a balance between authority and responsibility.

·         An organisation should build safeguards against abuse of managerial power.

3. Discipline:

·         Discipline is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation.

·         According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.

4.Unity of Command:

·         According to Fayol there should be one and only one boss for every individual employee.

·         If an employee gets orders from two superiors at the same time the principle of unity of command is violated.

·         The principle of unity of command states that each participant in a formal organisation should receive orders from and be responsible to only one superior.

5.Unity of Direction:

·         All the units of an organisation should be moving towards the same objectives through coordinated and focussed efforts.

·         Each group of activities having the same objective must have one head and one plan.

·         This ensures unity of action and coordination.

6. Subordination of Individual Interest to General Interest:

·         The interests of an organisation should take priority over the interests of any one individual employee according to Fayol.

·         Every worker has some individual interest for working in a company. The company has got its own objectives. For example, the company would want to get maximum output from its employees at a competitive cost (salary). On the other hand, an employee may want to get maximum salary while working the least.

·         In any circumstance the organisation objective should be first priority.

7. Remuneration of Employees:

·         The overall pay and compensation should be fair to both employees and the organisation.

·         The employees should be paid fair wages, which should give them at least a reasonable standard of living.

·         At the same time it should be within the paying capacity of the company.

8. Centralisation and Decentralisation:

·         The concentration of decision-making authority is called centralisation  (power in few hands) whereas its dispersal among more than one person is known as decentralisation.

·         According to Fayol, “There is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.”

·         The degree of centralisation will depend upon the circumstances in which the company is working.

·         In general large organisations have more decentralisation than small organisations.

9. Scalar Chain:

·         An organisation consists of superiors and subordinates.

·         The formal lines of authority from highest to lowest ranks are known as scalar chain.

·         According to Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.”

·         In case of urgent need this chain can be ignored and subordinate can be communicate with each other.

10.Order:

·         According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.”

·         The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’.

·         Essentially it means orderliness. If there is a fixed place for everything and it is present there, then there will be no hindrance in the activities of business/ factory.  

11.Equity:

·         Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible

·         This principle emphasises kindliness and justice in the behaviour of managers towards workers.

·         This will ensure loyalty and devotion.

12. Stability of Personnel:

·         “Employee turnover should be minimised to maintain organisational efficiency”, according to Fayol.

·         Personnel should be selected and appointed after due and rigorous procedure.

·         But once selected they should be kept at their post/ position for a minimum fixed tenure.

·         They should have stability of tenure.

·         They should be given reasonable time to show results.

13.Initative:

·         Workers should be encouraged to develop and carry out their plans for improvements according to Fayol.

·         Initiative means taking the first step with self-motivation.

·         it does not mean going against the established practices of the company for the sake of being different.

·         A good company should have an employee suggestion system whereby initiative/ suggestions which result in

substantial cost/time reduction should be rewarded.

14. Espirit De Corps:

·         Management should promote a team spirit of unity and harmony among employees, according to Fayol.

·         Management should promote teamwork especially in large organisations because otherwise objectives would be difficult to realise.

·         It will also result in a loss of coordination.

·         A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster team spirit.

·         This will give rise to a spirit of mutual trust and belongingness among team members. It will also minimise the need for using penalties.

4 lessons that I learned on how to find the right direction in life:

Here are 4 lessons that I learned on how to find the right direction in life:

1. Stop over-thinking.

So much of our stress and anxiety about the future stems from all the analysis and thinking we do as adults. We ask ourselves all sorts of questions. I recall countless nights lying awake, entertaining ideas and wrestling with my soul. I tried so hard to figure out where I would end up that I often felt defeated before I even began.

But all the over-analysis got me nowhere; it just burned more time.

The reality is that no matter how smart we may be, we cannot predict the future. Things are moving so fast and we’re so interconnected that it is impossible to predict where you’ll end up five years from now.

You just don’t know. And that’s not necessarily a bad thing, because you will not be basing your choice of direction based on a forecast that’s likely to be wrong.

You’ll be making your choice on what’s really important to you, right here and right now, not tomorrow.

By recognizing and ultimately accepting the unpredictable nature of life, we can stop over-thinking and over-analyzing and start living more in the present moment. This helps to open the mind up to the possibilities of today.

2. Try anything. Do something.

When you take action and start doing things, you begin to feel better almost immediately, because instead of thinking about some far off place in your head full of uncertainty, you will be working on something that is really certain: your actions.

So many times, I used to get caught up in the chaos of life and was consumed by it, until I realized that while I cannot control what will happen tomorrow, I can control the actions I take every single day.

That’s the real beauty of life—knowing that you have absolute control over each of your thoughts, words, and actions. 

And by trying, moving, asking, engaging, experimenting, and walking forward, it puts you one step further than where you were yesterday. And you just never know where that one step will lead you.

3. Follow your inner voice. 

I used to feel that if only I knew more, I would be able to make a better decision about the direction I wanted to take in life. But as I dug deeper trying to get more information, the hole got so deep that I found myself buried.

Confused and overwhelmed with so much information, at times conflicting, I just didn’t know what or whom to believe.

Then, I just let go. I let go of all evidence and started following my gut. 

I took chances; I took small steps walking forward in the dark. I stumbled, fell but got back up, and went in a different direction. Then again, and again, and again. As they say, the first step was the hardest but I eventually found my way, not because some data point on a career chart showed me which way to go, but because I started to trust my inner voice.

Sure, it was wrong often, but it got better eventually because I was out there doing and learning—not sitting and waiting.

4. Believe in yourself.

When I first started exploring new opportunities to find the right direction in my life, I found myself overwhelmed by the competition. There were so many others just like me trying and doing what I was doing.

And turning to my friends didn’t offer any respite, because instead of encouraging me to try new avenues, some of them brought me back to where I began. “Why don’t you be more pragmatic?”

Feeding me with seeds of self-doubt, it took me some time to recover my momentum. And it was in the positive voices of so many others in blogs such as this, videos, and social media that I found encouragement to keep at it. It felt like they were talking about me.

And in that positive lens, I found the light inside of me to bring forward the resiliency that lay dormant.

No longer suppressed by someone else’s ideas of the way things “ought to be,” I continued on my newly discovered path. The more I focused on my own voice and the voices of encouraging friends, the more I grew to believe in myself.

Although for some, finding the right direction might require the journey of a lifetime, I do believe that there is one direction that we are all meant to go: forward.

By taking small steps each and every day, putting aside over-thinking, and realizing that you have everything you need deep within, you can find the right direction in your life. And while it may not be the direction you expected, it will work out just fine.