—-.7 er dies (XII) ‘ 28 / ABD’s Bull’s Eye — Business Studie ecco = ¢ (NCRT Case Sats) ; rusiness of food and selling it, F limited was engaged in the business of food processing Bits py Ody : ood quality ang cy Under a Popular brand. Lately the business was expanding due ae aera Prices. Also With more People working, the market for proces: eae ~ we Players w ere also Coming to cash in on the new trend. In order to : eep PP a ach Short ry ‘© company directed its existing workforce to work ov ae : s : = : Many Problems. Due to increased pressure of work the efficiency ol : “ ers den eametimes the subordinates had to work for more than one eireror ca 7 dein! “ticiency. The divisions that were previously working on one product were also mage : Work on two °F more products. This resulted in a lot of overlapping and wastage. The we Were ‘Oming indisciplined. The spirit of teamwork, which had characterised the compas Previously was beginning to wane. Workers were feeling cheated and initiative was a © quality of th vas beginnin decline and market share was on the "8 decrease.” '€ products was a aa baa (@) I ’ the company had implemented changes without creating the required i dentify the Principles of Management (out of 14 given by Henry Fayol) that wer being violated by the company, 2 Explain these principles in brief (c) What steps should the compan take in relation to the above prin <° restore the company to its past glory? Principles employee in an i at a given point of : 1 — ies so that they can have a ae this level of wage and salary should be within the oPrinciples of Manscement / 29 (vi) Subordination of individual interest to general Int 3 ; ahaa ‘ . he interest of the cxpunieation stead eee eee This principle states that individual supersede the interest of an y one (vii) Initiative: The focus of this s rinciple is c principle is on encouraging employees to develop and carry out plans for bringing ab: ; cnmanieation ging about improvements in the functioning of the (c) The company should take following steps immediately to r glory a (i) Proper division of work among the workers should be done accordi their potential /capability. — (di) It should be ensured that one worker should receive orders from superior at a given time. a (iii) Proper compensation should be paid to all the employees. (iv) Motivating and disciplined environment should be developed in the company. ‘o) Creative ideas from workers should be welcomed and their interest should Pe taken care of and linked with company’s objective.= 30 / ABD's Bull’s Eye - Business 2" 3S i (a) Yes, agree that Scientific Management should Be the intended outcome. in min (b) The following precautions should be kept 1" Management: Scientific management should be (i) Care should be taken by the company that ST 4, working. implemented after a thorough study of various ie done after determining the (ii) Planning, routing and scheduling of work should act on the speed and flow of logical sequencing of work as it can have a major imps k in a major way. ; work, It thus affects effectiveness and efficiency of wor % it leads to having 8 (ii) Functional foremanship though has its advantages but since © go into this foreman on top of each worker, a lot of thought and planning 1 ead eae decision. This will violate the principle of Unity of Command y confusion, chaos and indiscipline, if not handled properly. (i) Work studies should be undertake but sometimes unrealistic targets get set due to them and workers feel pushed to work at a very hectic pace. Also the working becomes very rigid. troduced. It will help in achieving int d while introducing Scientific (2) Too much of standardisation leaves no room for customised output even if it is needed for a particular customer. oe 7 (vi) Differential piece wage system is not taken too well by the wi unions. They feel that differentiating between more efficient a workers in this manner, creates a class conflict within them, 7Principles of Management / 31 OCC) Sa OSS Seema, a student of management likes to relate what she learnt in class to real life situation. She observed many situations: while watching educational programmes on television vied her the concepts of Scientific Management. In one such programme, factories nts for products like automobiles, computers and mobile phones that remini | manufacturing compone were shown. Name the concept of Scientific Management that should be adhered to, while manufacturing, (1 Mark) [CBSE, OD COMPTT. 2017] components for such products Standardisation and Simplification of work. Reema is one of the most successful managers of her company, Globe Ltd. She Knows that the principles of management are intended to apply to all types of organisations, business as well as non-business, small as well as large, public sector as ‘well as private sector. (a) One of the points related to the nature of mana; rinciples is being highlighted in the above description. Identify the é ‘ . (b) Explain any three other points of the nature of principles of management other the (3 Marks) [CBSE, OD COMPTT. 2017] one identified above. (a) Universal applicability. (b) The nature of principles of management are: (@) General guidelines: The principles are guidelines to action which need to be adjusted and used as per the demands of the situation. (ii) Flexible: The principles are not rigid like science but are modified according to the business environment needs. (ii) Behavioural: The principles aim to influence t'. sapredictable, complex and dynamic human behaviour. (a) The concerned principle of management is “Initiative”, In this, workers a encouraged and motivated to develop and carry out their plans for aes in the organisation. According to this principle, management should boost the employees to take initiative and develop new working ideas. They should be encouraged to put forward their thoughts and accordingly the effective ideas should be duly rewarded. This in turn will help in increasing the efficiency of the work as well as the whole organisation. NE ee oa 732 / ABD’s Bull's Fyt fic management which helps in eliminating, unnecess, thus results in saving cost is”! c Le technige, f resources, reducing, inventories and increasing the tumove, ‘ ducing, the costs of labour and machinery wed in a process. This further helps in attaining The technique of scienti diversity of products and aims at fuller utilisation © to a large extent. It also helps in re eliminating the unnecessary steps invo a higher level of efficiency. Name and explain the principle of management which requires judicious application of penalties by the management. Name and explain the technique of scientil interchangeability of manufactured parts and products. fic management which helps in establishing (4 Marks) [CBSE, OD 2019] The principle of management which requires judicious application of penalties by the management of an organisation is known as “Discipline”. According to this principle, an organisation should function with discipline and follow rules and policies. It is important for both the management and the workers to honour their commitments while carrying out clear and fair agreements. This ensures smooth working relations in the organisation and creates a harmonious working environment. “Standardisation” is the technique of scientific management that helps in establishing interchangeability of manufactured parts and products. “Standardisation”, implies setting of bench marks for any work or activity. It provides the standards that have to be followed during the production process. Various other techniques of scientific management, such as method study, fatigue study and time study, are also based on the concept of standardisation. Nikita and Salman completed their MBA and started working in a m | company at the same level. Both are working hard and are happy with f | Salman had the habit of backbiting and wrong reporting about his colle | boss. All the employees in the organisation knew aboutiit. At the time of p er the performance of Nikita was judged better than Salman. Even then tl | Sharif, decided to promote Salman, stating that being a female, handle the complications of the higher post. | (a) Identify and explain the principle of management whi multinational Saat x (b) Identify the values which are being ignored quoting the li ‘Z (a) Th r principle of management that is being violated nua e This principle focuses on treating each employee fairly equal each employee should be equal in the eyes of the rt should be regarded as equal on grounds of religion, language However, as the boss is differentiating between Nikita 8Principles of Management / 33 gender, despite the fact that Nikita has done better than Salman, the principl i is being violated by the company: Principle of Equity The following are being, ignored Gender equality is being ignored by the boss as he is wrongly promoting Salman on the basis of gender. A good and friendly working environment is being ignored by Salman as he backbites and wrongly reports about his colleagues. Name and explain the principle of management according to which a manager should replace “I” with “We” in all his conversations with workers. (4 Marks) [CBSE, OL The principle is “Espirit ys” This principle recommends that the employees of an organisation should work in a spirit of unity and common interests. They should work as a team. This spirit proves useful especially in large organisations, where achievement of objectives becomes difficult without teamwork {If a manager uses “we” instead of “I”, then it evokes in each of his or her subordinates, a greater sense of belongingness. The word “we” enhances team spirit by increasing mutual coordination and understanding among the employees, which in turn improves efficiency and easy achievement of the isational almost equal division of work and responsibility between w | management even takes workers into confidence before | workers are satisfied as the behaviour of the n State the principle of management Identify any two values which the34 / ABD’s Bull's Eye — Business Studies (XI) (a) The principle of management described in the above para is Discipline, Discipline is the obedience to organisational rules and employment agreement Which are necessary for the working of the organisation. (b) Values that the company wants to communicate to the society are: () Concern for the environment. (i) Development of backward regions. Pawan is working as a ‘Production Manager’ in CFL Ltd. engaged in manufactur; of CFL bulbs. There is no class conflict between the management and workers. The working conditions are very good. The company is earning huge profits. As a policy matter, management is sharing the gains with the workers because they believe that Prosperity of the company cannot exist for a long time without the prosperity of the employees. (@) State the principle of management described in the above para. (6) Identify any two values which the company wants to communicate to the society. (4 Marks) [CBSE, OD 2014) (4) The Principle discribed in above para is ‘Harmony not Discord’. It advocates that there should be complete harmony between management and the workers. To achieve this, Taylor called for a complete mental revolution on the part of both management and workers (®) Values which the company wants to communicate to the society are: (@) Sensitivity towards the environment. (ii) Good behaviour in human interaction. Caseler 10: Brokpeclery manufacturing files and folders of plastic files and folders. For this, they employ people job opportunities are available. An employee, Harish, it was not welcomed by the production manager. A for improvement in design, but that was also not ap (a) State the principle of management descril (4) Initiative: Workers should be encouraged to develop and improvements According to Fayol, ‘Initiative means taking Initiative means eagerness to initiate action withou According to Fayol, employees should be allowed to think and e about improvements in work related matters.Principles of Management / 35 (b) Values which the company wants to communicate to the society are: (i) Sensitivity towards the environment (ii) Creation of job opportunities. (iii) Development of backward regions ‘Aapka Vidyalaya’ believes in holistic development of students and encourages team building through a mix of curricular, co-curricular and sports. A committee of ten prefects was constituted to plan different aspects of the function. They all decided to use recycled paper for decoration. There was a spirit of unity and harmony and all members supported each other. With mutual trust and belongingness the programme was systematically planned and executed. Kartik, one of the prefects realised that unknowingly the group had applied one of the principles of management while planning and executing the programme. He was so inspired by the success of the function that he asked his father to apply the same principle in his business. His father replied that he was already using this principle. (a) Identify the principle of management applied for the success of the programme. (b) State any two features of management highlighted in the above para. (c) Identify any two values which ‘Aapka Vidyalaya’ communicated to the society. 4 Marks) [CBSE, DELHI 2015] (a) Espirit De Corps. (b) Two features of management highlighted in the above para are: (®) Management is all pervasive: Management is present everywhere. Activities of ae encom. nessye 36 | ABD's Bull’s Eye ~ Business Studies (XII) From the above: (a) Identify and state any one gener: of business env ronment i xe ) ; Also, identify any two values which the above guiding principles and environmen robe as conveying to the society. (4 Marks) (CBSE, DELHI COMpry, 4 mi | principle of management and any one dimeng Toy factors. (a) Principle of management is ‘Initiative’, “AXN Ltd.’ develops a culture in the com that enhances individual creativity and team work while honouring mutual trust respect between management and labour. ‘Initiative’ means eagerness to initiate acy without being asked to do so. According to Fayol, employees should be alloweg think and execute plans, to bring about improvements in work related matters, Dimension of business environment: Social environment which includes like customs and traditions, values, social trends etc. This was because provide clean and safe products to enhance the quality of life throughout Values being conveyed: () Respect for law. (iii) Cleanliness and hygiene. (ii) Raising standard of living. (iv) Secularism. \¢SGMka ‘Kanpur Leather Ltd.’ is the manufacturer of leat he on large scale and its organisational structure is functional. various foremen have been employed. Each foreman has been: planning, implementation and control. This has led toa Suggest a technique of scientific management to effectively organise planning and its execution. (4 0 Social forces “AXN Ltd’ the world (by The technique of scientific management which may help Kanpur effectively organise and plan its execution is ‘Functional Foremanship’, (Functional foremanship is a technique which aims to improve th at shop floor level. (ii) Taylor identified a list of qualities of a good foreman or a qualities could not be found in a single person, Taylor p (iii) In this technique, planning is separated from executi for planning and four foremen for execution. It is division of work and specialisation, (iv) The four foremen for planning werd route clerk, instruction clerk and disciplinarian They would draft instructions { route of production, prepare time and cost sheet and enst (v) The four foremen for execution were gang boss, speed I ‘They were responsible for timely and accurate cor and tools ready for operation by the workers, ensuring p machines and tools and checking the quality of work 1Principles of Management / 37 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. arted online booking system through their website ‘mydabbawala.com’. ndous popularity amongst the happy and satisfied customers and alas 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 No alcohol during working hours; No leave without certain rules while doing trade - permission; Wearing of white cap and carrying ID cards during business hours. self-motivated fellow men, the Dabbawalas thought out left in tiffins by customers to slum children. They have ker if food is left in the tiffin, to be fed to poor Recently, they have st Owing to their treme members, the Dabbaw: Recently, on the suggestion of a few and executed a plan of providing food instructed their customers to place red sticl children later. ‘ (a) State any one principle of management given by Fayol and one characteristic of management mentioned in the above case. (b) Give any two values which the Dabbawalas want to communicate to the society. (4 Marks) (CBSE, SAMPLE PAPER 2016) (a) Principles of management given by Fayol are: (i) Initiative: The focus of this principle is on encouraging employees to develop and carry out plans for bringing about improvements in the functioning of the organisation. (i) Discipline: This states that all the employees and the management must adhere to rules and employment agreements of the organisation. (ii) Esprit-de-corps: This principle promotes a feeling of team spirit among employees of the organisation. This helps a lot in achieving organisational goals. The characteristics of management are: (i) Management helps in achieving group goals: The task of a manager is to gi common direction to the individual effort in achieving the overall goal eine organisation. (ii) Management creates a dynamic organisation: Environment is constantly changing. Individuals resist change as it often means moving from a familiar, Petre environment into a newer and more challenging one. Management helps people adapt to these changes so organisation maintain its competitive edge. (b) Values that have been communicated by the Dabbawalas are: (i) Fulfilling social oe , (ii) Empathy towards adva ‘children. ed a coffee shop ‘Aroma Coffee Can’ in a famous mall in New Delhi. aie ee ce shop was the special aroma of coffee and a wide variety of flavouy Sane Sues aa business was neither profitable nor popular. Sanchit Was ke, panos inmate aro Sandhya, an MBA from a reputed college, aa manager to find out the causes fot the same. Sandhya took feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions in between, which could be eliminated, She fixed a standard time for processing the order. She also realized that there were some flavours whose demand was not enough. So, she also decided to stop the sale of such flavours. As a result with in a short period Sandhya was able to attract the customers. Identify and explain any two techniques of scientific management used by Sandhya to solve the problem. (4 Marks) [CBSE, DELHI 2017] EEE Techniques of Scientific management used by Sandhya to solve the problem were: () Motion Study: It is a technique to study the movements that are necessary for doing a well defined job. It seeks to eliminate unnecessary and wasteful movements so that it takes less time to complete a job efficiently. (ti) Simplification of Work: It is a technique to eliminate superfluous varieties, sizes and dimensions of products. It leads to reduced inventories, fuller utilisation of equipment and-increased turnover to reduce costs. SDSL Principles of Taylor and Fayol are mutually comp! © management should share the gains with the workers, wl émployee compensation should depen earning caj give them a reasonable standard of living. ” ee Identify and explain the principles of Fayol and Taylor refer} ee. () “Harmony, Not Discord’ by Taylor: This can be inferred from the lit should share gains with the workers’, Taylor emphasised that the managers and the workers should n work environment. They should realise their interdepend introduced this principle to maintain a peaceful kinship found that if the workers are deprived of their wishes strike. This affects the productivity and the working et situation Taylor was ardent about a mental revolution. It thinking of both the workers and managers. (ii) ‘Remuneration of Employees’ by Fayol: This can be employees compensation should depend on the earni should give them a reasonable standard of living’.Principles of Management / 39 According to this principle, the compensation paid to the employees should be . j Nould be fair anc just. That is, the employees must be paid appropriately as per their work re: i if es vi They must be able to lead a reasonable and a decent standard of living. It is only wher g- It is only when the employees are paid adequately that they are satisfied and are encourag cd to give their best to work. Principles of Taylor and Fayol are mutually complementary. One believed that The management should scientifically select the person and the work assigned should suit his’/ her physical and intellectual capabilities, while the other suggested that the work can be performed more efficiently if divided into specialised tasks. Identify and explain the principles of Fayol and Taylor referred to in the above para. (5 Marks) [CBSE, OD 2014] The two principles mentioned in the given paragraph are as follows: (i) Development of each and every person to his/her greatest efficiency and prosperity: Industrial efficiency depends upon efficiency and competency of workers. Effi y should be built in right from the process of employee selection, assignment of work on the basis of their capabilities, giving training when needed. Employees should be recruited in a scientific manner. They should be assigned work according to their mental and physical qualities. For increasing the efficiency, a proper training should be given to the workers. (ii) Division of work: It means that a given task is divided into small parts or units to ensure that it is executed in a competent manner. These units should be assigned to each individual based on his ability rather than giving the whole of the work to one person, Thus, division of work promotes specialisation. st by th are mutually comp! One believed that, time or t cost 1 reduction shoyld be | f ylor and Fayol referred in the above para. ee (5 Marks) [CBSE, FOREIGN 2014] The two principles that are being regarded in the given paragraph are as follows: ,-operation and Not Individualism: “Management should not close its ears to , t e suggestions made by the employees.” This principle is extension of the principle of harmony and not discord. According to this principle, both management and workers should develop understanding and secure mutual co-operation. Management should give importance to suggestions made by the workers and workers must desist from going on strikes and making unreasonable demands. Initiative: “A good company should have an employee suggestion system, whereby suggestions which result in substantial time or cost reduction should be rewarded.” According to Fayol, ‘Initiative means taking the first step with self-motivation’, Initiative means eagerness to initiate action without being asked to do so. According to Fayol,ee 40 / ABD’s Bull’s Eye — Business Studies (X11) employees should be allowed to think and execute plans, to bring about improvemen, in work related matters. However initiative does not imply freedom to do whatepan F .. e people like. They must observe discipline. 2 cama Sakaar Foundation is an NGO (Non-Governmental Organisation) working i) nprove the lives of children with medical needs, the homeless and victims of naturaj | disasters. Apart from donations in cash, they collect dry ration, old clothes, shoes, toys books, medicines etc. from donors. At Sakaar Foundation’s office in Lucknow the materia] collected is segregated, classified and put in shelves and boxes that are labelled systematically, There is a specific place for each of these items and volunteers put everything at their respective places. The volunteer work is divided into specific jobs like fund raising, field visits, social media updates and so on. Each volunteer is part of a particular team, depending on their competen, and training. Each volunteer becomes specialized in their respective field, leading to efficient utilization of human effort. The management of Sakaar Foundation does not close its ears to any constructive suggestions made by the volunteers. There is an equal division of work and responsibility between volunteers and management. All the day long the management work side by side the volunteers helping, encouraging and smoothing the way for them. (a) Identify and explain one principle each of ‘Scientific Management’ and ‘General Management’ adopted by Sakaar Foundation. (b) State any two values that Sakaar Foundation is displaying and promoting in society through their work. (5 Marks) [CBSE, OD COMPTT. 2017] (a) (i) Principle of ‘Scientific Management’ adopted by Sakaar Foundation: * Co-operation, not individualism: There should be complete co-operation between the management and the workers instead of individualism. For all important decisions taken by the management, workers should be taken into confidence. The management should be open to any constructive suggestions made by the employees and suitably reward them. (ii) Principle of ‘General Management’ adopted by Sakaar Foundation: * Order: The principle of order states that people and materials must be in suitable places at appropriate time for maximum efficiency i.e., there should be a place for everything and everyone in an organisation and that person or thing should be found in its allotted place. Order leads to increased productivity and efficiency. * Division of work: The principle of division of work states that 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. (b) Valuag that Sakaar Foundation is displaying and promoting in society through theit work are: (i) Concern for the society, (ii) Optimum utilization of resources.Principles of Management / 41 Karan Nath took over North Motor Company’ from his ailing father three month ago. In the past the company was not performing well. Karan was determined to improve the company’s performance. He observed that the methods of production as well as selection of employees in the company were not scientific. He believed that there was only | one best method to maximise efficiency. He also felt that once the method is developed, the workers of the company should be trained to learn that ‘best method’. He asked the Production Manager to develop the best method and carry out the necessary training. The Production Manager developed this method using several parameters right from deciding the sequence of operations, place for men, machines and raw materials till delivery of the product to the customers. This method was implemented throughout the organisation. It helped in increasing the output, improving the quality and reducing the cost and wastage. Identify and explain the principles and the technique of scientific management followed by the Production Manager in the above case. (6 Marks) [CBSE, DELHI 2013] The principles of scientific management followed by the Production Manager in the above case are: (i) Science, not rule of thumb: Taylor always believed that there was ‘one best method’ that can lead to maximum efficiency and this method can be developed through observation, analysis and repeated experimentation. He advocated that this best method should replace rule of thumb in all operations of a business. Thus, when decisions are taken on the basis of scientific approach instead of personal opinions and judgements, the ‘Rule of Thumb’ is replaced by ‘Science’. (ii) Development of each and every person to greatest efficiency and prosperity: Taylor was of the view that the concern for efficiency should be built in right from the stage of selection of employees. Each person should be scientifically selected and the work assigned to them should suit the mental, physical and intellectual abilities of the selected employee. They should be given proper training to increase their efficiency. This way employees would produce more and earn more which would ensure their greatest efficiency and prosperity for both, workers and the organisation. The technique of scientific management followed by the Production Manager in the above case is: ‘ Method Study: There may bea number of possible methods of performing a job with different cost . Taylor suggests finding ‘one best way’ of performing a job. The purpose of ‘method study is to minimize production costs and use organisation’s resources such land, labour, capital etc. for better results. For example, Taylor devised the concept of a line By using the method study. This technique was used successfully by Ford Motor pany and is used by the auto companies even today.e 42 / ABD’s Bull’s Eye — Business ‘Studies (XH) ion of office Fama The company has a policy of offering 10 percent discount to their regular customers .u"® ; credit period of 30 days. Mr. Sam, their sales manager, is an efficient and effective Pert associated with company since last 12 years. Sonne} While finalising a high value deal with an old client, Mr. Sam gets stuck in a situation ay y_| | client requests him to grant a credit period of 40 days. The client even offers to hand ove’ | post dated cheque for the 40th day. era | Mr. Sam approaches his senior manager with the request to take permission for an ex credit period as the deal is quite profitable. The senior manager refuses to grant it and the company loses the order and also disappoints an old and faithful client. On the basis of the given information about Style Furnishings Ltd., answer the following questions: | (a) Can Mr. Sam be held responsible for losing the deal? Give reason for your answer. (b) Explain the related principle in the above situation. @ Marks) (a) No, we cannot hold Mr. Sam responsible for losing the deal. He wasn’t given the necessary authority to carry out the assigned responsibility. This is a clear situation of imbalance between authority and responsibility. (b) The concerned principle in the above case is, ‘Parity of Authori lity’ This principle states that there should be a balance between authority and responsibility ie., authority should always be equal to responsibility. Authority is the right to take decisions and get it implemented through subordinates, whereas responsibility refers to the obligation on the part of subordinates for doing/ completing the assigned task. ne j ee his team. As the business grows, additional branches country, but Mr. Robert still keeps all decision making delays in decision making and lowers efficiency of bus Mr. Robert should follow the principle of ‘Cent given by Henry Fayol. The concentration of decision-making authority at the top centralisation, while the dispersal of same, throughout all the called, decentralisation. According to Fayol, an organisation should have a balance b and complete decentralisation. No organisation can be completely decentralised. eePrinciples of Management / 43 Major decisions like setting up goals, objectives, policies and strategies can be handled by the top management, whereas the routine jobs like, assignment of work to workers and their supervision, purchase decisions for routine raw material etc., can be handled at middle and lower levels. When an organisation grows in size and complexity it needs to adopt a Chath ane up. People who are at the site of action should be given decision making authority to take timely decisions and improve efficiency. Ramesh and Ravi are office assistant in a company having the same educational qualifications. Ramesh gets € 13,000 per month and Ravi gets ® 17,000 per month as salaries for the same working hours. Which principle of management is being violated in this case? Name and explain the principle. (3 Marks) ESE Tre principle of Equity has been violated in this case. According to Fayol, “Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible.” Equity refers to fair treatment of all workers in an organisation. Fair treatment involves kindness and justice on part of the superiors on dealing with their subordinates. By Amy and Sammy are friends and graduate from a law school together. 'y sets up her law practice and establishes her Law Firm while | reputed Law Firm of her city. On one of her visits to s office | office surroundings are in a mess. Files and | There is no assigned place for the stationery I44 / ABD's Bull’s Eye — Business Studies (XH). : Feil Lid has the policy of frequent turnover of employers. 8 frequently, avoid making them permanent and to pa S is leads to a sense of insecurity among them. The n. Thus, they are not able to give their ‘Angel Cosmetics ; employees are removed from their jobs them increments and hight out for er salaries. Th hie are always on a look a more stable organisatio! maximum contribution to the job- tli : ; aie i ‘osmetics Pvt. Ltd. answer the f f On the basis of the given information about Ange following questions: : . ple which is being violated in the above situation? Identify the princi Explain the principle which is being violated in the above situation? (4 Marks) The principle being overlooked in the above situation is, ‘Stability of Tenure’, given by Henry Fayol. Stability of Tenure: This principle states that the employee turnover should be minimised to achieve maximum organisational efficiency. They should be selected after a rigorous procedure. After they are placed on the job they should be kept in their position for a minimum fixed tenure so that they are able to settle in the job and are able to show good results. If they are moved frequently from their jobs it will lead to a sense of insecurity and instability in their minds. QMS Mz Jacob set up a plastic ball z tables was such that the worker had to bend down to pick up stool and put the raw material inside the machine. The machine i: | than where the workers could reach, without getting onto the ‘Mr. Jacob observed this and noted down all the movements i realised that the movements of bending down and getting material into the machine were very time consuming, led to and slowed down the production process. On the basis of the given information about Mr. Jacob, ans (a) Which technique has helped Mr. Jacob realise tl process? (b) Suggest to Mr. Jacob, a solution to the above pro Scientific Management. Motion Study is a study of movements of d worker while performing a specific task. MoPrinciples of Management / 45, Work tables should be designed in such a manner that the raw material can be Placed at the same level as that of the worker. This will eliminate the need for the workers to bend each time they need the raw material. The machine should be placed at a level such that the workers don’t need to get onto a stool every time raw material needs to be put into the machine. Tiya Philip, a manager at Well Foams Pvt. Ltd., is very lax with her subordinates | and colleagues. She doesn’t give them parameters of rules for reporting to work and | achievement of targets./With the result, the subordinates do not follow the organisational | tules. The agreements between workers and management are also not clear and fair. On the basis of the given information about Tiya Philip, answer the following questions: | Identify the principle which is being violated in the above situation? Explain the principle which is being violated in the above situation? (4 Marks) P ciple of Dicipline’, given by Henry Fayol, is being overlooked in the above situation. (6) Discipline: This principle states that, discipline is the obedience to organisational rules and employment agreements, which are necessary for the working of the organisation. T ciple of discipline requires: : (i) Good superiors at all levels,46 / ABD’s Bull’s Eye = Business Studies (XIN) Martin Sammy after completing his B.Com course and joins M.B.A. for furthe studies. After his classes begin he realises that he is being taught the concepts of P; inciples o Management which he had already studied, in class 12th. When he discusses this with | lecturer, he’s told that these principles of management form the core of management studi and are a base for all courses related to the field of management. The lecturer also tells him that the principles of management differ from those of science. | On the basis of the given information about Martin Sammy answer the following questions | | Outline the concept of principles of management. How are the principles of management different from those of science? | Why did the lecturer say that these principles form the core of management Studies? | Explain any two points highlighting the importance of principles of management, Principles of management serve as a broad and general guideline for the managerial decision making and action. Principles of management are not as rigid as the principles of pure science. In the field of managemeni we deal with human beings and their behaviour is not static or uniform, thus the principles have to be modified and applied creatively to suit the requirements of the given situation. Principles of management form the core of management studies as they are used as the basis for management training, research and education. s of Management is listed below: reality: The principles of management increase managerial efficiency by i increasing their knowledge, ability and understanding of managerial situations and circumstances. They help the managers to learn from past mistakes and also help to solve recurring problems more efficiently. ting changing environment requirements: Principles of management help managers to meet changing requirements because they can be moulded to suit the changing environmental needs. This is because management principles are flexible by nature and can be modified as per the requirements. Peter Harris wants to set up a factory of manufacturing decorative lamps and lights. He decides to use recycled material for the lights and wherever : He proposes to use a scientific and rational approach in all the decisions that he takes for setting up and for running the factory rather than using hit and trial methods or personal likes and dislikes. He wants to adopt a paternalistic approach towards th so that class-conflicts can be avoided between workers and : that he will involve his workers in decision making and offer suggestions are valuable and lead to value addition in the On the basis of the given information about Peter Harris answer t c Identify and explain the principles of scientific hat Peter Harris is planning to adopt in his organisation. i (b) List any two values that he wants to communicate by using hi cee ___G Marks)Principles of Management / 47 ntific Management that Peter Harris plans to apply are: Science, not rule of thumb: Taylor always believed that there was ‘one best method’ that can lead to maximum efficiency. And this method can be developed through observation, analysis and repeated experimentation. He advocated that this best method should replace rule of thumb in all operations of a business. (ii) Harmony, not discord: In the paternalistic style of management, the employees are taken care of, by the employer as a father would take care of his kids. Taylor emphasised that both, management and workers, have to bring about a complete Mental Revolution for each other. Both sides have to realise that each one is important and rather than fighting over dividing the gains of higher output they should work as a team and aim to increase the gains jointly. lues that Peter Harris wants to communicate by using recycled material are: () Concer for environment. (i) Sense of responsibility for the society at large. (b) Val48 / ABD's Bull’s Eye — Business Studies (AN) } 1 nana; i d time taken by an to determine the standaré t wed ‘ eh a worker to complete a given task. An ae seh os cen ies Mee the help 3 r ; x , tch, time taken by him to perfor i nee repeateal with different average workers for the specified job a then standard time for that job is fixed. tive of time study is e number of workers needed to be employed to complete _ Time Study: This study helps ) To ascertain the given task. (ii) To determine labour costs. ie (iii) To determine suitable incentive schemes for rewarding and motivating above average or efficient workers. 2. Motion Study: This study refers to the study of movement of workers, like ftir sitting, bending, putting, etc. which they undertake while doing a typical job, Video cameras are used to record their movements and then three types of movements are identified — productive, incidental and unproductive. The objective of motion study is to eliminate the unproductive movements so the workers are able to complete their tasks in minimum possible time and increase their efficiency. s 12: Suzanne owns a factory of producing costume jewellery and has women employees who she has hired from a backward village from a nearby preference to women when selecting employees. She takes good and provides them with free meals and a comfortable, hygienic 2 Over the past few weeks Suzanne observes that Tina, one of her | showing a decline in productivity as well as initiative. After when things don’t improve, Suzanne decides to confront Tina | towards work. On being asked, Tina confesses that she was | as other team members used to question her that what was the | were being paid the same amount of salary irrespective of the | On the basis of the given information about Suzanne, (a) If Suzanne approaches you for a solution to the analysis and solution? State a few values that Suzanne wants to comm backward village and taking good care of then If Suzanne approaches me for the solution, I would ad of Differential Piece Wage System Given by EW. Ta This is an incentive bonus plan different workers. Under this plan, hs on p a standard of performance is set and those workers who per! ; are paid at a higher wage rate as compared to a v workers. This difference in the Wage rate motivates the ‘ages the less efficient ones to atPrinciples of Management / 49 For example, Suzanne may fix the standard output at 50 pieces per day and those who produced standard or more than standard will be paid % 10/- per piece. Those who Produce less than 50 units will get paid at the rate of € 8/- per piece. Now, an efficient worker who produces, say 55 pieces will get 55 x 10 = % 550/-, whereas a less efficient worker who produces 48 units will get 48 x 8 = % 384/-. According to Taylor this difference of wages will be a strong motivator for the efficient workers to further improve and for the inefficient ones to at least touch the standards. The v: alues that Suzanne wants to communicate are: ( Respect and care for her team of workers by giving free meals and safe, hygienic and comfortable work environment. (ii) Taking care of the socie ty by giving employment opportunities to women from a backward area, (ii) Women empowerment by giving preference to women at the time of selection of employees. besa—_ 50/ ABD's Bus TY of Scientific Management, given by EW. Taylor, a One of the principles y of the organisation should be selected scientifically and q sig) 1, physical and intellectual abilities, Sui to suit his mental of them to get the maximum from each w y Orker, bout principles of Scientific Management angy, the hand every worker ened to him e co be provided to all that eac job should be a training should al On the basis of the giver’ information al following questions ain the above mentioned principle. (a) Hentify and expla Jain the advantages of above mentioned principle. (5 Mats, (&) Bp The Efficiency and Prosperity’. Taylor was of the view that the concer for efficiency should ilt i ne z stage of selection of employees. Each person should be “ete Sa work assigned to them should suit the ment i ee etn and te selected employee. A Te a They should be given proper traini i i ining to increase their effici i employees produce more and earn more which a eee ay t elicony prosperity for both, workers and the organisation. a aa (>) The advantages of this principle are: (® High morale of employ ii) igh mo ees. (ii) Increased productivity. (iii) Higher job satisfaction. (io) Less ubour henna absenteeism. ee ee above mentioned principle is “Development of each and every Person to G; 0 Greatey | mb gh ean 7 : i 7 one till the end | ready for delivery. This lead to the above mentioned tasks were gi employees were directed towards heya ate was working in his ares of Specials aaa , and showed a higher 5 a aresu uniform quality. efficiency. output cane el ofS lentify the principle bei advan being followed by aL Principle being followed by Impex Furnit iture Pvt. Ltd. is given my Henry FayolPrinciples of Management / 51 kt ivided into small Fayol suggested that the work in an organ’ ation should Pea uP ee divided into sm bs individual employees. parts or jobs. These parts/jobs should be gned to individual employ The advantages of division of work are ica ; ecialist of that job. (i) When the workers repeatedly perform the same tas they become sp i ) The speed and quality of work also improves. i inimised. ) Efficiency also goes up as cost and wastages are minimise i authorit (eS SAL Thomas is working as a manager of United Bearings Ltd. He has the ity to make purchases for the organisation and also to appoint employees. e's Thomas misuses his authority and grants an order of office stationery to his Pro improvement in work and productivity. He expects are also dissatisfied as they don’t get fair wages fo The production activities of United Bearing: the factory is disposed off in the nearby On the basis of the given information « questions: digi (a) Identify and explain va United Bearings Ltd.,52/ ABD’s Bull’s Eye — Business Studies (XM) (iii) Initiative: According to this principle, subordinates should be encouraged oe up with suggestions /take initiative, which results in substantial cost/time edu, Om They should be encouraged to take the first step with self-motivation, Within prescribed limits of authority. the “Thomas also has a habit of not letting the employees put forwa,, suggestions for improvement in work and productivity. He expects them on follow his orders.” ») Remuneration of employees: According to this principle, remuneration employees should be just and equitable so that both employees and the organisa get the maximum satisfaction. The wages should give at least a reasonable standary of living to the workers. And at the same time they should be within the Paying capacity of the organisation. Lines: “Employees are also dissatisfied as they don’t get fair wages for the Work they put in.” (b) The values being ignored by United Bearings Ltd. are: (® Ignoring the interest of the society as its activities lead to water pollution. ) Fairness and justice towards the employees. % takes care of assigning work to workers as per their | that work should be divided in such a manner that | task again and again. He always involves them in | them and encourages them to suggest ways to ii | He ensured that workers get salary as per the worl | establish a reasonable standard of living. He did | basis of caste, religion, sex etc. All this led to the | organisational objective over individual o | In the context of the above case: On the basis of the given information about questions: Identify the Principles of Management EEE 1he following Principles of Manage (i) Development of each and every person to h (ii) Division of Work. ; (iii) Initiative. (iv) Remuneration of employees. (v) Equity. (vi) Subordination of individual interest toPrinciples of Management / 53 A i a m1 vach atleast the a : A technique proposed by Taylor aims at motivating a worker to reac h standard performance. id explain t Hint: Differential piece wage system. Caseler 2: Identify the technique of scientific management statement given below: which are described by the ) WI ‘ 4, tools, method of work (a) When uniformity is introduced in materials, machines, tools, ™ after, due research a specialist foreman. ed by (c) When a change in attitude of both managers and workers should be brought (3 Marks) aitah : . about, from competition to cooperation Hint: (a) Standardisation of work. (b) Functional foremanship. () Mental revolution — Atul, a manager of an organisation knows that the newly appointed worker, Karan, belongs to the backward class category. Atul always undermines Karan’s performance and looks for opportunities to insult him in front of other workers. (a) Identify and explain the Fayol’s principle which is violated. and working conditior (b) When each worker is superv (3 Marks) Hint: (a) Equity. (b) Respect for all. (Equal treaten ee Management of the organise ion doesn’t take any action against this, Slow : « also start reporting late to work and try to leave early, Noo disturbed and takes steps against all workers, \°™ th employ management starts to get (a) Which principle of management is being violated in the given cas se effect of this situation ignored by employees. é Marky) Hint: Discipline. +7: You are selected for the post of Assistant Manager in a retail chain company, father who is a Managing Director in a real estate company gives the flowing advice to you before you join the job. He says, son you will come across opportunities which may tempt you to misuse your powers for personal or fang benefit at the cost of general interest of the company. In such a situation you shoul always take that decision which is in the interest of the organisation. You exhibit exemplary behaviour in front of your subordinates as it will raise rou stature in their eyes. Also, while interacting with anyone in the com, official matters, you should always adopt the formal chain of authority ang communication. (a) Identify and explain the various principles of management that your father advised you about. ieee (b) Also list two values in your father’s suggestions. (b) Values: Honesty and self Restraint. Caseler 8: In a car repair workshop it was observed that mechanics and each time a mechanic needed a under the car that he was repairing, to pick up the to slip out from under the car and replace the tool in who needed it could take it from the tool box. Ronny, a new supervisor, observes this and be better if each worker is alloted a separa' place of work and he doesn’t need to needed a tool. (a) Identify and explain the technique (b) State the objective of this tecl pig ue, Hint: (a) Motion study. (b) Objective of motio Caseler 9: Mr. Rahul is a production consultant and work output of various companies where effectiveness and efficiency. He is appro Mr. Rahul notices all movements of wi and fixes a standard time for eachFRINCIPIE days would be and how many ation of these, sr implement hat should be should have n order. Afte rest intervals t numb f worl ae workers that the company d by the company to complete a give Mr. Ra Rahul now gets down to studying, the r amina and e' next stage M workers by given to fficiency: worker ers so that they regain thei scided to Rahul now de After one ye. ort one year of following this, in the rewarding them at a differenti aimee between efficient and inefficient wage rate based on their output. (a) Identify e ci “ y the concept of management being used by Mr Rahul above (b) Explain the diffi plain the different elamenta of the eoneapt identified above that he (a) Scientifi , entific Management. @ i b) dees of Scientific Management: aa a Study. (ii) Time Study. iii * aod Study. (iv) Fatigue Study. oe ‘v) Differential Piece Wage System. re selet 10: After completing a course in fa 1 employs seven persons in a garment store. She 2 u jobs in an effective and