Principles of Management - Recharge Chapter 2

Introduction

• Chapter 2: Principles of Management
• Not a readymade solution, but a guideline for decision-making.
• Contributions by Henry Fayol (General Management) and Frederick Winslow Taylor (Scientific Management).

Nature of Management Principles

• Contingent: Adaptable according to situations (e.g., discipline changes with context).
• Flexible: Not rigid; open to adaptation.
• Behavioral: Based on human behavior.
• Cause and Effect: Each principle links actions to outcomes.
• Universally Applicable: Can be applied across businesses with modifications.

Importance of Management Principles

• Provide useful insights into real-world management.
• Aid in resource utilization and minimizing wastage.
• Encourage scientific decision-making.
• Support effective administration and social responsibility.
• Guide training, education, and research for managers.

Fayol’s Principles of Management

• Division of Work: Specialization through work division.
• Authority and Responsibility: Balance of power and responsibilities.
• Discipline: Adherence to rules and regulations.
• Order: Systematic arrangement for efficiency.
• Espirit de Corps: Promotes team spirit; replaces "I" with "We".
• Scalar Chain: Hierarchical communication; includes "Gang Plank" for exceptions.
• Subordination of Individual Interest: Prioritize organizational benefits over personal.
• Initiative: Encourage individual suggestions and contributions.
• Equity: Fair treatment without discrimination; salary based on capability.
• Centralization and Decentralization: Balance between centralized and decentralized decisions.
• Stability of Personnel: Allow time for employee stabilization.
• Remuneration: Fair pay based on skills, capability, and standards.
• Unity of Command: Orders should come from one boss.
• Unity of Direction: One plan for each unit.

Taylor’s Scientific Management

• Science, Not Rule of Thumb: Use scientific methods to determine the best practices.
• Harmony, Not Discord: Foster positive relations between workers and management, supported by a mental revolution.
• Cooperation, Not Individualism: Emphasize collaboration over solo efforts.
• Development of Every Person: Continuous training and development.

Techniques by Taylor

• Functional Foremanship: Division into planning and production with specific roles.
  • Planning: Disciplinarian, Instruction Card Clerk, Route Clerk, Time and Cost Clerk.
  • Production: Speed Boss, Inspector, Repair Boss, Gang Boss.
• Standardization and Simplification: Remove unnecessary variety and establish standards.
• Study Methods:
  • Method Study: Identify best methods scientifically.
  • Motion Study: Minimize unnecessary movement.
  • Time Study: Determine optimal time for tasks.
  • Fatigue Study: Optimal rest intervals.
• Differential Piece Wage System: Wage based on productivity beyond a standard target.
• Mental Revolution: Change mindset to foster cooperation and positivity.

Conclusion

• Screenshots recommended for a quick review.
• Preparation for Chapter 3.