OCM 3 Marks Each

• Management is an art of getting work from others i.e. humans. Keeping this ‘ in mind these thoughts consider human behaviour as the main part of, management.
• Prof. Urvik said, “You manage your men, your men will manage rest of all”. A business unit is managed by people. Hence, it is utmost important to study inter-relationship between humans at work place.
• Since, management of people is done on a constant basis the thoughts related to human behaviour emphasizes on studying aspects that affect behaviour of humans in the work place and their approach towards the work. So, these thoughts emphasize on concepts like job satisfaction, increasing efficiency of employees, ways to keep them motivated, etc. All this is done by performing psychological observations on employees.
• Concepts like inter-human relations, motivation, leadership, information communication process, disposal of industrial disputes are included in behaviour related thoughts.
• One of the biggest drawbacks of this approach is that it focuses on psychological aspects only and does not consider economic parameters of the business unit. Hence, some believe that the human relations cannot be maintained at the cost of productivity.

• Human is at the center of the management. So, the principles of management largely affect human behaviour.
• Human behaviour is a psychological phenomenon and so implementing management principles on humans will affect their behaviour in the industry.
• Hence, it is important to keep this in mind while implementing the principles.

• The format of industries and business-Hnit again changed after 1960. This demanded,the need of special approach of management.
• Management was not restricted to only business and industrial units but also included professional people and units that provided professional services like that of taxation, law, medicine, etc. These professions gave rise to a new class of managers.
• Over and above management thoughts, thoughts for psychology, social studies, statistics, mathematics and computer, information technology also emerged.
• Management Gurus like Koontz O’Donnell, George R. Terry, Peter F. Drucker, William Ouchi and C. K. Prahlad have contributed in the thoughts of modern management.

• Scalar chain is the formal line of authority which moves from highest to lowest rank in a straight line. This chain specifies the route through which the information is to be communicated to the desired location/person.
• Fayol emphasized that each information in the organization must flow according to this chain to facilitate clear communication of orders of the superiors and feelings of the subordinates.
• This chain must be strictly followed in the organization.
• This principle emphasizes on creating chain from top level management to bottom level employees.
• Chain of power from higher administrative officers to bottom level employees should not be broken. .
• There should be proper delegation of powers and responsibility at respective level. Moreover, the employees of the unit should be aware of , who is responsible to whom.

• The return or reward given to the employees against the service they render is called remuneration.
• Fayol says that employees of company should be paid suitable and ideal wages. This makes owner-employee relation stronger.
• In a unit, all employees do not work with the same efficiency. Some employees show higher efficiency,than other. Such employees should be given more wages or rewards compared to other. This will keep the employees loyal towards the unit and stop them from leaving the job.
• The unit should also put into practice promotional schemes like bonus, profit sharing, representation in management committee, etc.

• This principle states that ‘general interest’ is superior to ‘individual interest’.
• This principle tells that interest of whole unit should be kept in focus rather than interest of individual or group of employees.
• The manager must try to integrate the individual goal with the organizational goal in such a manner that both the objectives are accomplished with efficiency and effectiveness.

• Planning shapes the future of business. However, if activities do not go as planned, then they are re-directed and brought on the planned track.
• The directions fo’r these things should be given by superior authority. By doing so activities can be well co-ordinated and all the tasks can be done easily.
• According to this principle there should be only one superior employee leading a particular group of employees. This group should be focused on one specific objective at a time.

• A proper discipline should be maintained for successfully attaining business objectives.
• Discipline creates harmonious environment at work place.
• In order to maintain discipline in the industry it is very important to make optimum use of equipment and to see that activities are done consistently.
• Industrial discipline can be established by setting specific rules and code of conduct. This then leads to proper administration of the unit.
• It becomes easy to manage and control the unit having more employees if proper code of conduct is established.
• It also increases work interest of employee and makes the work easy for the managers.
• Supervision, clear and appropriate contracts between workers and owners and appropriate implementation of punishments at every level are important aspects of discipline.

• The scientific study of time required for completion of a task is called time study.
• The time decided on the basis of the study to finish this work under normal circumstances is called standard time for that time i.e. whenever a task will be done in that unit, it will be done within this standard time.
• As per Taylor, a task should be finished within the standardized time.
• Time study is very important for making optimum use of production equipment and achieving objectives on stipulated time.

• As per the scientific management, the workers should be selected through appropriate and scientific methods.
• Under scientific selection, the business unit sets standards or benchmarks / for education of employees, skill, guts, physical strength, training, etc. before selecting them.
• The unit also conducts a variety of scientific tests to know the work interest of employees. .
• Adopting a scientific method of selection assures the unit that the selected candidates are well-suited for the organization.
• Managers have scientific evidence about the qualification, test-scores, data regarding interviews, etc. They analyse the data and then they select the best candidate for the organization. This assures consistent performance and higher productivity to the organization.

• Job analysis:

  • Analysis of the job to be done should be done before starting it. This is the best way to get work done speedily that too with lower cost.
  • Under job analysis, time and motion study as well as fatigue study should be done. This will decrease the cost of production and increase productivity.

• Over and above management thoughts, the thoughts of modern management included thoughts for psychology, social studies, statistics, mathematics and computer, information technology also emerged.
• Management Gurus like Koontz O’Donnell, George R. Terry, Peter F. Drucker,
  William Ouchi and C.K. Prahlad have contributed in the thoughts of modern management.

• Management is an art of getting work from others i.e. humans. Keeping this in mind thoughts related to human behaviour came into being.
• A business unit is managed by people. Hence, it is utmost important to study inter-relationship between humans at work place.
• Since, management of people is done on a constant basis the thoughts related to human behaviour emphasizes on studying aspects that affect behaviour of humans in the work place and their approach towards the work. Owing to these facts, Prof. Urvik said, “You manage your men, your men will manage rest of all”.

• These thoughts focuses on psychological aspects only and do not consider ecohomic parameters of the business unit.
• Hence, some believe that the human relations cannot be maintained at the cost of productivity of the unit.

• Contribution of Henri Fayol in thoughts of classical theory is also quite significant.
• He gave certain general principles of management.
• He decided levels of different tasks in business unit and tried to set limits for each task.
• He also provided universal principles of management as guidelines for performing managerial duty at different levels.

• The principles, opinions and thoughts given by several management gurus are together known as management thoughts.
• These thoughts are the outcome of several researches, studies and applications. These thoughts have led to the development of so many branches and sub-branches.

The major thoughts of management are:

• Thoughts of Classical Theory
• Thoughts of Neo-Classical Theory
• Thoughts related to Human Behaviour
• Thoughts of Modern Management

• Management principles are the main elements of management thoughts.
• Training, education and development are possible only through proper implementation of management principles.
• For example, in modern time, aptitude tests are conducted for appointing employees in various business units. These aptitude tests are prepared through research and by implementing and using management principles.

• Principles of management are developed on the basis of experiences gained by different experts in different situations.
• While managing the unit there arise several different types of simple and complex problems. These issues may differ from unit to unit. So, in these regards, the principles of management may work fine for one unit but might not work for the other.
• Hence, it should be noted that the principles of management are general guidelines. They cannot be observed strictly that too in the same manner by every business unit.

• • Principles of management are not rigid and are quite practical.
  • These principles are the. guidelines to perform a task.
  • For example, the principles guide the managers to take various decisions at the time of implementation of different tasks of management such as planning, organization and direction.
  • Experts believe that although the management principles are mostly true they are not absolute truth because there are also exceptions to these principles.

• Management principles are different techniques in the following ways:

  • Management principles and management techniques are two different things.
  • Methods or techniques are the set of steps taken to achieve the target whereas principles are the guidelines for the decisions which have been taken during implementation of. the techniques.
  • Similarly, principles are not values. Values are acceptable or preferable since they are related with the morality whereas the principles are the universal truth and guidelines for the human behaviour.

• Meaning of principle of management:

  • Rules and principles formed in business unit with respect to human behaviour for achieving of goal easily are called principles of management.
  • The principles of management work as a guide for the managers.
  • It should be well noted that the principles of the management are not the rules. They are only the sum and substance of the assumptions, traditions and experiences.
  • These principles lay a strong foundation for the success of a business unit.

  Concept:

  • Management is the combination of art and science.
  • Every science is based on some underlying principles, so is management. However, the principles of management are not as rigid as the pure science, but are quite flexible.
  • The principles of management have direct relationship with the human behaviour. Since they are related to human behaviour there is a scope of improvement as and when human behaviour evolves.
  • Human behaviour and the technology keep on changing. As a result, the principles of management must also be changed to adapt with the new changes.
  • Principles of management are the detailed and perfect guideline for making decisions and their implementation.
  • For example, through these principles the unit can increase the enthusiasm of the employees by giving them transfers, promotions etc.

• Activities of management have been carried out since centuries. The Kings and rulers have been using several elements of management in managing their reigns.
• Even during those times strategies were made for wars, building forts, training soldiers, managing the kingdom, water management, agriculture, etc.
• One can see systematic use of management policies and war strategies during the rule of Chandragupta Maurya and Chhatrapati Shivaji.
• As, the world evolved, various management gurus came into picture. These management gurus, thinkers, ideologists and authors have time and again given new principles through evaluation and reconsideration of the concept of management.
• Thus, the history of concept of management is very ancient and has been- changed periodically.
• These people have contributed to the modern day management. Frederik Taylor to Henri Fayol, Gilbreath, Max Weber, Chester Barnard, Peter F. Drucker and C. K. Prahalad played an important role in rendering various management principles to make it as per the era.
• Thus, management is not a modern day term. It existed even during the most ancient periods however, it has ever-evolved with time.