Module-1 INTRODUCTION TO MANAGEMENT

Part -1 Management
❖ Nature and Characteristics of management
❖ Importance of management
❖ Function of management
❖ Management skills and competencies in 21st century

Q.1 EXPLAIN THE CONCEPT & NATURE OF MANAGEMENT.

Meaning :
➢ Management is the process of planning, organising, motivation, leading and controlling
all the resources of an organisation to reach its goal effectively and efficiently.
➢ Management is an co-ordination and administration for task to achieve goal.
➢ Management is an art as well as science.
➢ Management is not doing the work but getting the work done through the efforts of
others. It motivate other people to perform a specific jobs.
Definition :
[1] Mary Parker Follet stated “ Management is the art of getting things done through the
people.”
[2] Henri Fayol “ To manage is to forecast and to plan , to organise, to command , to
coordinate and to control.”
[3] Harold Koontz “ Management is the art of getting things done and with people in formally
organised group.”
[4] According to Peter Drucker “ management is a multipurpose organ that manages business
and manages managers and manages workers and works.”
[5] George Terry defines “ Management is a distinct process consisting of planning,
organising, actuating and controlling, perform to determine and accomplish stated objectives
with the use of human beings and other resources”
NATURE/ CHARACTERISTICS / FEATURES OF MANAGEMENT [ A3, F2, I2,G3]

✓ All pervasive
✓ An art as well as science
✓ Application at all level
✓ Flexibility
✓ Follows principles
✓ Intangible
✓ Innovation
✓ Group Activity
✓ Goal oriented
✓ Global applicable
✓ Process
✓ Helps to coordinate and coordination
[1] All Pervasive :

➢ Management is an activity that touches all walk of life. It is applicable at all type of
business organisation and non- business organisation.
➢ Management is also applicable to individual activities such as study. For example, a
student need to plan his study, organised necessary study material, get necessary
guidance and instruction from teachers, and if necessary adopt certain and control
major so that he completes the study systematically.

[2] An art as well as science :

➢ There is a considerable debate as to whether management is an art or science . In

practice , managing is an art.
➢ Management is an art because certain skills, essential for good management, are unique
to individuals.
➢ Management is a science because it has an organised body of knowledge. Hence
management is an art as well as science.
[3] Application at all level :
➢ Every organisation needs manager for managing business activities. The manager’s job is
basically the same at all levels.
➢ The managers at the higher levels have more important duties while managers at the
lower levels have to function in a routine manner.
[4] Flexibility :
➢ Management principles are flexible in nature. It means they can be changed or modified
according to the situation.
➢ Management can be flexible implementation principle to suit the requirement.
➢ Management principle can be adjusted or modified and can be used in organisation
according to its need.
[5] Follows Principles :

➢ Management follows established principles in managing the organisation. The principles

includes division of work, authority and responsibility , Discipline, order, unity of direct
and Equity etc.
➢ With the help of these principle of management the organisation achieved their
objectives effectively and efficiently.

[6] Intangible :
➢ Management as a process or activities is not directly visible. The effectiveness of
management is reflected by the result of the management process.
➢ Effective Management process can be generated higher result, i.e. higher productivity,
effective, disciplined workforce, cordial relations in the organisation etc.
[7] Innovation :
➢ management need to be creative and innovative. The success and survival of the
organisation largely depend upon the innovation.
➢ Managers must come up with new and creative ideas, new and better products, cost
effective process etc.
➢ Innovation gives competitive advantage to the firm. Objectives are achieved with higher
efficiency and at minimum cost.
[8] Group Activity :
➢ Proper management requires team work. The combined efforts of all the managers
bring success to the organisation.
➢ A single manager, however, capable may not be able to attain organisational goals
without the support of the other managers.
➢ For instance , a marketing manager may not be able to achieve success without the
support of production manager, purchase manager, HRD manager and other manager
in the organisation.
[9] Goal Oriented :
 ➢ Management places emphasis on results. The activities of the managers are focused on
the attainment of goals or results.
➢ It is not just activities that matters but better results. The result can be in the form of
reduction in wastage, optimum use of resources, motivated workforce, higher efficiency
etc.
[10] Global Applicable :
➢ The principles of management have Global application. The principles of management
are not restricted to a few countries.
➢ Effective managers in all organisation across all continents of the Global do follow the
principle of management.
[11] Process :

➢ Management is a systematic process undertaken by managers to attend objectives.

➢ The management process involves planning activities, organising resources, directing
subordinates and controlling activities etc. The process of management is a continuous
in nature.
[12] Helps to coordinate and control :

➢ Management principles are the guidelines for better coordination and control.
➢ Coordination is the essence of management. it gives one clear direction to the whole
organisation and bring unity in the whole organisation.
➢ It is also difficult task for manager to keep control on the performance of the
employees. management principle offers suitable system while establishing
coordination and control.

[2] EXPLAIN THE IMPORTANCE THE PRINCIPLE OF MANAGEMENT. [ March2014 /2016 /2018
/2020]
Meaning :
➢ Management is an art as well as science .
➢ Management is an co – ordination and administration for task to achieve a goal .
➢ Management is the process of planning , organizing , motivation ,leading and
controlling all the resources of an organization to reach its goal effectively and
efficiently .
➢ Management is not doing the work but getting the work done through the efforts the
others. It motivate other people to perform specific jobs.
Importance/ Significance/Need of principle of management [ T4/3R/EIO]
✓ Innovation
✓ Better relation
✓ Motivation
✓ Team work
✓ Corporate images
✓ Optimum use of resources
✓ Reduction in wastage
✓ Reduction in labour turnover
✓ Reduction in absenteeism
✓ Higher efficiency

[1] Innovation:
➢ Management leads to innovation in the organisation . For instance new & creative
ideas , new & better product , new scheme & cost effective process etc.
➢ Innovation gives competitive advantage to the firm. Objectives are achieved with higher
efficiency and at minimum cost.
[2] Better relation :
➢ Management helps to improve relations in the organization. Due to proper
management , the relations between the superior and subordinates improve and also
among the various departments & levels.
➢ Good relation generate team work and bring success to the organization.
[3] Motivation:
➢ The principles of management motivate the employee to perform effectively and
efficiently.
➢ for instance , the principle of remuneration makes the management to pay the right
salary is an other incentive to the Employees .
➢ Therefore, The employees would put in their best efforts to perform the organisational
activities.
[4] Team work :
➢ The principles of management develops team work in the organisation. For instance ,
the principle of team spirit makes the managers to divide and rule practices in the
organisation.
➢ Management develops team spirit and raises overall efficiency of a business enterprise .
[5] Corporate images :
 ➢ The principle of management can enhances the corporate images of the organisation .
➢ This is because principle enable better performance of the organization . The better
performance in turn generates corporate image ( goodwill) of the organization.

[6] Optimum use of resources :

➢ Management is done by considering resources of the organization. Therefore , all the
resources such as physical, capital and manpower are put to optimum use . The
resources are put to best possible use. This helps to generate higher efficiency .
[ 7] Reduction in wastages :
➢ Effective managers help to reduce wastages of resources . The manager would make
every possible efforts to minimize or avoid wastages of resources , wherever possible .
➢ Now a day , reduction in wastage brings higher returns to the organization .

[8] Reduction in labour turnover :

➢ Management helps to reduce labour turnover. Labour turnover takes place when
employees leave the organization and other join in the organization.
➢ High labour turnover is not good for the organization. Proper management make the
employees motivated and loyal to the organization.

[ 9] Reduction in absenteeism :
➢ Proper management helps to reduce absenteeism. Absenteeism takes place when
employees remain absent without prior permission.
➢ Management facilitates proper division and allocation of work. Therefore the employees
are satisfied with the work performance , and as such absenteeism gets reduced.

[ 10] Higher efficiency :

➢ Proper management can facilitates higher efficiency in the organization. Efficiency is
the ratio of return to cost . Due to proper management , there can be higher returns at
reduced costs.
➢ Management brings in higher efficiency to the organization. This is because of optimum
use of resources and minimization of wastages .
[3] Explain functions of management.
➢ In 1916, Henry Fayol provided a ‘functional approach to management ' in his book,
“ Industrial and General Management “.
➢ Fayol’s list of managerial function include planning, organising, commanding,
coordinating and controlling.
➢ In 1930s, Luther Gullick coined the function of management in one word – POSDCORB-
Planning, Organising, Staffing, Directing, Co- ordinating, Reporting and Budgeting.
[1] Planning :
➢ Planning is the primary function of management. It occupies the first position in the
management process.
➢ Every function of management is based on planning. It includes deciding the things to
be done in advance.
➢ Planning involves the process of determining the goals and objectives of the
organization.
➢ Planning bridges the gap from where we are to where want to go.

[2] Organizing :
➢ Organization is next to planning. It is a process identifying and bringing all the resources
that is men, material, machine, money and method to use them properly for achieving
the goals and objectives.
➢ In simple words, organizing means arranging the way and means for execution of
business plan.
➢ In planning, the management decides what is to be done in future whereas organizing
function decides the ways and means to achieve what has been planned.
[3] Staffing :
➢ Staffing is the process of attracting, recruiting, selecting, placing developing and
retaining best workforce.
➢ Selecting right man for the right job at right time is the principle of staffing.
➢ It includes manpower or human resources planning.
➢ Human resources planning and human resources development are two broad
component of staffing function.
[4] Decision Making :
➢ It is an essence of management. Every function of management involves decision
making .
➢ James stoner defines decision making as “ the process of identifying and selecting a
course of action to solve a specific problem”.
➢ The management must take right decision at the right time. Managers need to be
proactive in decision making .

[5] Directing:
➢ Directing is the soul of management process.
➢ It is the process of instructing, guiding , communicating , inspiring , motivating and
supervising the employees to achieve predetermined goals of an organization.
➢ It ensures that people in the organization work effectively for accomplishment of
objectives. It is said to be the heart of management process.
➢ Director is the person who shows the correct path as well as guides the employees in
solving the problems wherever necessary.

[6] Co-ordination:
➢ Co – ordination is an integration of different activities which are important for an
organization.
➢ Co-ordination between different functions and all level of employees in the essence of
organization success.
➢ It becomes necessary to bring together the group efforts and harmonies them carefully.
➢ It is a process of inter-linking of action. There is a need for coordination at all level.
o The top level coordinates the activities with the middle level
o The middle level coordinates the activities with the lower level.

[7] Controlling:

➢ Controlling is the end function of management . Controlling is the core of management

process.
➢ Controlling is a function of comparing the actual performance with the predetermined
standard performance.
➢ Planning and controlling are major parts of the management cycle.
➢ The process of controlling helps in formulating of future plans also.
[8] Other functions :
➢ Management experts like Luther Gullick state other functions such as reporting and
budgeting . In fact, reporting and budgeting are important element of planning and
controlling.
➢ Budgets are prepared at the time of planning for various activities such as sales,
advertising, training cost and so on.
➢ Budget estimates can be compared with actual performance, and corrective measures
are taken , if there are deviation.
[4] Discuss the skills and competencies required by a professional managers.
➢ A skill is an individual’s ability to translate knowledge into action. Hence it is seen in
individual’s performance. A manager occupies executive position and need certain
managerial skills to as to perform his duties in an effective manager.
➢ Managerial skill may be general or specific. The skills, which a manager requires, can be
termed as managerial skill. All managers need such skills.
➢ However the intensity of skills varies from organisation to organisation and also as per
the level of management.
➢ The concept of managerial skill was initially suggested by Henry Fayol. but Robert Lee
Katz made popular the concept of managerial skill in an article in Harvard Business
review September 1974.
➢ Robert Lee Katz classified manager skills into three groups.
• Conceptual skills
• Human skills
• Technical skills
[1] Conceptual Skills :
➢ Conceptual skill indicates the ability of a manager to think about the future of his
organisation, his ability to do abstract thinking and his ability to assess the
environmental changes.
➢ Conceptual skills involve mental habit that have to be developed early in life.
Conceptual skill enable a manager to set appropriate organisation goal for himself and
for his team.
➢ According to Katz, the top management requires more conceptual skill as compared to
that lower level management. This is because, the top manager spend more time in
planning and organising and also in dealing with the important vital problem or
situation.

[2] Human Skills :

➢ It refers to interpersonal skills. Human skills are required to lead, to communicate, to
motivate, to develop team spirit, and most of all the work with people.
➢ Human skills help the managers to create an environmental in which people feel
secured and free to express their view and opinion.
➢ All managers at all levels need to have such skills. This is because, the manager at all
level need to interact with people within and outside the organisation.
[3] Technical skills:
➢ Technical skills help to deal with day-to -day operation or activities. The lower level
managers requires more of technical skills as compared to top level managers . This is
because the lower level managers are in charge of day- to- day operations.

Apart from the above three main skills , five more skills can be stated. Such skills do overlap the
above three skills.
[4] Design Skills :
➢ It refers to problem solving skills. Managers should not just identify a problem, but
design the best solution to solve the problem. For this purpose, the managers need to
be intelligent, experienced, and up- to- date with latest developments. This would
enable the manager to design or arrive at better solution.
[5] Administrative Skills :
➢ The manager, especially, at higher levels need to have the ability to frame plans and
policies. According, they need to get the work done. They should be able to co-ordinate
various activities of the organisation. They must be able to regulate performance in an
orderly manner.
[6] Decision Making Skills :
➢ All managers at all level need to make decisions. Managers must have a skill to generate
alternatives and then to select the best alternative in order to deal with a particular
activities / situations. For the purpose of decision making managers need to :
• Collect the right information
• Analyses the information
• Make systematic decision

[7] Communication Skills :

➢ Managers need to be effective communicators. They should know what to
communicate, when to communicate, whom to communicate and how to
communicate. Effective communication skills are necessary for every manager.
[8] Leadership Skills :
➢ Good managers need to be good leaders as well. They should lead and motivate by
examples. They should have good leadership qualities and follow the right leadership
style depending upon the situation.
 Module-1 INTRODUCTION TO MANAGEMENT

Part -2 Evaluation of management thoughts

❖ Fayol’s principle of management
❖ Principle of Scientific Management
❖ Techniques of scientific Management
❖ Evaluation of Taylor’s Scientific Management
❖ Elton Mayo’s Hawthorne Experiment

[1] EXPLAIN PRINCIPLE OF MANAGEMENT ( HENRY FAYOL)

The credit for suggesting the principle of management goes to French industrialist, Henry Fayol
( 1841-1925) . He developed his management principles and general management theory and
published them in the form of a book (in French ) “ Administration industrielle et generale” in
1916. It was translated into English in 1930 under the heading “ Industrial and General
administration”. He is rightly treated as “ Father of modern management “ . Fayol was of the
opinion that all managers in all organization , whether large or small , need to follow the
principle in managing business affairs.

PRINCIPLE OF MANAGEMENT [ A,E,I,O,U2] [ C,D2/R,S4]

✓ Division of work
✓ Authority and Responsibility
✓ Discipline
✓ Unity of Command
✓ Unity of Direction
✓ Subordination of Interest
✓ Centralization
✓ Remuneration
✓ Scalar chain
✓ Order
✓ Equity
✓ Stability of Tenure
✓ Initiative
✓ Stability of tenure
[1] Division of Work :
➢ According to this principle , the work in an organization must be divided among
individuals and departments. Division of work leads to specialisation and enable a
manager to concentrate effectively on the work .
➢ It gives more and better work with the same efforts. Fayol suggests such division of
work to all types of work – managerial ,financial , technical and accounting .

[2] Authority and Responsibility :

➢ According to Fayol , there should be a balance between authority and responsibility .
Authority is the power or right to take decision . The responsibility is the obligation for
accepting the authority .
➢ Authority must be equal to responsibility. If authorities is more than responsibility ,
then a manager may misuse it. And if responsibility is more than authority, then he may
feel frustrated.
[3] Discipline :
➢ According to Henry Fayol , there is always a need for discipline in an organization. It
means following and maintaining the rules and regulation of an organization by all
employees.
➢ Discipline needs to follow from top level to lower level in the organization. Discipline
helps to achieve the goals in the organization.
➢ Good discipline is the result of effective leadership. There must be a clear understanding
between the management and workers regarding the organization’s rule.
[ 4] Unity of Commond :
➢ Henry Fayol suggested that an employee should get order from on superior only . In
turn , the subordinate should report only to one superior.
➢ If two superiors exercise their authority on the same employees , there will be disorder
and confusion. In fact , dual command is always dangerous. Lack of unity of command is
like “ Too many cooks spoil the soup”.

[5] Unity of Direction :

➢ Fayol suggested that there should be one head and one plan in every organization . It
means there should be the same directions to all employees doing similar activity .
➢ A particular activity must be directed with the help of a single plan. In the absence of
unity of direction , there would be confusion among the employees.
[6] Subordinate of Interest :
➢ This principle states that the general interest of the organization is more important than
the interest of employees or a group of employees. Every employees or a group should
work in the interest of organisation and not for their own self interest .
➢ In other words , the interest of the organization should come first and then individual or
group interest.

[ 7] Centralization :
➢ According to Fayol , there is a need to have a proper balance between centralised and
decentralised . Centralization refers to the concentration of power and authority.
➢ He advised that extreme centralization or decentralization is to be avoided , especially in
large companies.

[8] Remuneration :

➢ Fayol suggests that wages and salaries be fair. More importantly wages must paid on
time. It should be as per the cost of living and value of the employee.
➢ Fayol also suggested that wages should be supported by non – financial benefits such as
a proper working condition and other facilities including canteen facilities , recreation
and welfare facilities .
[9] Scalar Chain :
➢ It refers to the line of command which runs from top level to the lowest level in the
organization . Fayol suggested that of gangplank/ bridge Should be used to prevent the
delay action .
➢ In this diagram, A to G and A to P are the scalar chains . A is the head of the whole
organization while B and K are the heads at the next level of management. B is
immediate superior to C while K immediate superior to L and so on. If F and O need to
contact each other for some purpose the scalar chain principle will follow.
[ 10] Order :

➢ Proper order is necessary in every organization. According to Fayol , there should be

place for everything and everything should be in its place . Thus , this principle requires
the orderly organization and placement of men, machines and other resources.
Misplacement of any kind is undesirable as it leads to disorder .
[11] Equity :
 ➢ The principle of equity relates to the treatment of subordinates . The dealing with the
subordinates should be fair . There should be combination of kindness and justice while
dealing with subordinates .
➢ There must not be any partiality in transfer, promotion and salary payment .
[12] Stability of Tenure :
➢ Employees should not be kept temporary basis . They should be kept permanent basis
so that they do not leave the organization.
➢ Fayol pointed out that mangers as well as non- managers need to time to learn and
understand their job . It they leave or are removed within a short period of time , the
learning time will be wasted.
[13] Initiative :

➢ The manager should always try to motivate and encourage. Subordinates should be
given freedom to come up with suggestion and ideas.
➢ This will help to achieve the organization goals and objectives. This will create a sense of
participation in the mind of employees.

[14] Esprit de corpse (Team work ):

➢ Henry Fayol has given emphasis on team work. Esprit de corpse means union is strength.
➢ Running any organization is a group activity and human resources are the valuable asset
of the organization.
➢ If all employees are working as a union and with mutual trust , the difficulties can be
solved quickly.
➢ Therefore , as a leader , manager should create a spirit of team work and understanding
among employees to achieve organization goal easily.

[2] EXPLAIN PRINCIPLE OF SCIENTIFIC MANAGEMENT.[ March-2015]

Ans: FREDRICK WINSLOW TAYLOR’S SCIENTIFIC MANAGEMENT THEORY [ S2/M2/C-D]
The Scientific Management Theory owes its origin to F.W. Taylor , who is regarded as the
father of scientific management. Taylor( 1856- 1915) was an American who started his career as
a machinist in Midvale steelworks . Taylor’s management theory is based on scientific
experiments.
This theory involves the application of scientific approach to decision making and solving
them at the same time . According to Taylor , problems should be solved by scientific
techniques rather than the rule of thumb and a trail and errors approach .
[ 1] Development of science for Each part of the job / Science , Not Rule of Thumb
➢ According to this principle , management should use the scientific method to
determined every activities performed by the employees in the organization. The
following elements of this principle:
❖ To find out the best way to do a particular job.
❖ To determined how much work can an employee perform in a day .
❖ To calculate the time required for each job by observing the employee .
❖ Decision are to be made on the basis of facts and by the application of scientific
management.
❖ Replacement of odd rule of thumb by use of method of enquiry , investigation ,
data collection , analysis and framing of rules .
[2] scientific selection , training and development of workers :

➢ Scientific management placed emphasis on scientific selection of the workers so that

the right job can be assigned to the right worker depending upon his abilities and skill.
➢ Scientific designed procedures ( tests and interviews ) to be adopted for the selection of
workers .
➢ Training must be provided not only to improve knowledge and skills , but also to
develop attitude and social behaviors .
➢ Right training method to be used depending upon the nature of job and the workers .
➢ Opportunities for development of workers ( having better capacity ) must be provided
by the management .

[3] Co -operation between management and employees :

➢ Taylor gave importance to cooperation between management and workers to develop
team spirit among the members of the organization .
➢ Development of positive attitude towards each other ( management and workers ).
➢ Efforts must be made to improve management – labour relations .
 ➢ Management should always considered the suggestion given by employees in decision
making process .
➢ Due to cooperation , trust, team spirit etc. internal competition will turn into healthy
working environment . They should treat each other as two pillars of organization .

[4] Division of Responsibility :

➢ Scientific management places focus on division of work so that each worker

concentrates on one function and specializes in that function .
➢ This improves the efficiency of individual workers , and that of the organization as a
whole .
➢ This principle determines the definite nature of roles to be played by different level of
managers and workers .
➢ Managers should always help, encourage and guide the employees . It helps for the
best performance of managers as well as employees .

[5] Mental Revolution :

➢ Taylor introduced the concept of “ Mental Revolution “. This principle focuses on the
change in the attitude of employees and management toward each other.
➢ Both should realize their equal importance in organization . They should give full
cooperation for achieving goal of organization. This will increase productivity and
profits .
➢ Workers need to be disciplined and loyal to the organization.
➢ Management needs to provide good working conditions to motivates workers .
➢ Management must give fair remuneration to the workers to motivate them .

[6] Maximum prosperity for employer and employees :

➢ Taylor believed that management and labour should have a common interest in
increasing production .
➢ Workers should make optimum use of available resources .
➢ Management and workers must focus on maximum output rather than signing an
agreement for certain level of output .
➢ Maximum output and optimum utilization of resources will bring higher profits for the
employees and better wages and incentives for the workers .

[3] What are the techniques of scientific management ?

Ans :The Scientific Management Theory owes its origin to F.W. Taylor , who is regarded as the
father of scientific management. Taylor( 1856- 1915) was an American who started his career as
a machinist in Midvale steelworks . Taylor’s management theory is based on scientific
experiments.
This theory involves the application of scientific approach to decision making and solving
them at the same time . According to Taylor , problems should be solved by scientific
techniques rather than the rule of thumb and a trail and errors approach .

Techniques of Scientific Management

✓ Work Study
✓ Standardization of Tools and equipment
✓ Scientific Task Setting.
✓ Scientific Selection and Training
✓ Functional Organization
✓ Differential piece -Rate wage plan
[1] Work Study :
➢ Before assigning the work to the available workforce, proper work study should be done
by management. Work study consists of an organized , systematic and critical
assessment of the various activities .Work study is based on the techniques such as time
study, motion study, method study and fatigue study.
[A] Time Study :

➢ It is a technique which enables the manager to ascertain standard time taken for
performing a specific job.
➢ Every job or every part of it is studied in detail.
➢ This technique is based on the study of an average worker having a reasonable skill and
ability.
➢ Taylor maintained that fair day’s work should be determined through observation,
experiment and analysis by keeping in view and average worker.
➢ Average worker is selected and assigned the job and then with the help of a stop watch,
time is ascertained for performing that particular job.
➢ Standard Time X Working Hours = Fair Day’s Work.

[B] Motion Study :

➢ In this study , movement of body and limbs required to perform a job are closely
observed.
➢ In other words, it refers to the study of movement of an operator on machine involved
in a particular task.
 ➢ Motion study increases the efficiency and productivity of workers by cutting down all
wasteful motions.
➢ It is helpful in eliminating unnecessary motions and finding the best method of doing a
particular job.

[C] Method study :

➢ There is always various methods of completing the task.

➢ This study is done to know the best method of doing the job.
➢ It helps in reducing the wastage of time, raw material and in improving the utility of all
resources as per predefined objectives.
➢ It is helpful in determining the methods for handling the raw material , transportations
and storage etc.

[D] Fatigue Study :

➢ It refers to determine the duration and frequency of rest intervals to complete a
particular job.
➢ The rest refreshes the workers. They work again with their full capacity.
➢ The main objective of this study is to maintain the efficiency level of workers.
➢ There may be so many causes of fatigue, such as long working hours , poor working
conditions , unsuitable work , unhappy relation with the boss etc.
➢ It has an adverse effect on the health and efficiency of the employees.
[2] Standardization of Tools and Equipment :
➢ With the result of experiment conducted at work place, Taylor advocated
standardization of tools and equipment.
➢ It improves the quality of work and reduce wastage of material and cost of production
etc.
➢ Working conditions must be standardized to improve morale of the workers.
➢ Tools and equipment should be standardized to achieve maximum output from workers.

[3] Differential Piece Rate System :

➢ Taylor suggested the differential piece- wage system. This technique of wage payment is
based on efficiency of worker.
➢ The efficient worker are paid more wages than inefficient one.
➢ On the other hand , those workers who produce less than standard number of piece are
paid wages at lower rate than prevailing rate.
 ➢ This system is a sources of incentive to workers who improving their efficiency in order
to get more wages.
➢ It also encourages inefficient workers to improve their performance and achieve their
standard.
➢ It leads to mass production which minimize cost and maximizes the profits.

[4] Functional Foremanship :

➢ F.W. Taylor has propounded the functional organisation.

➢ This form of organisation is totally based on the principle of specialisation and makes
full utilization of the expertise of various experts.
➢ In this functional organisation , work is divided into many small parts and each part is
assigned to an expert.
➢ Taylor has suggested the division of the work of factory manager into two sub
department.
➢ Taylor advocated appointment of 8 foremen , 4at the planning level and other 4 at
production level.
A) Planning Level

• Route Clerk ( Specifying the route of production)

• Instruction Clerk (Drafting instruction for workers)
• Time & Cost Clerk ( Preparation of Time and Cost sheet)
• Discipline (Ensuring Discipline)
B) Production Level
• Gang Boss (Keeping machines and tools ready)
• Speed Boss (Timely & accurate completion of job)
• Repair Boss (Ensuring proper working conditions of machines )
• Inspector (Checking the quality of work)
[5] Scientific Selection and Training :
➢ Management can select right persons for the right jobs by using scientific selection and
procedures.
➢ Traing must be done scientifically with the help of the right method , at the right time
and place.
➢ Training improves knowledge and skills and also develops attitude and social behaviour.
➢ Charts and slides and other visuals need to be used to make training meaningful.
[6] Scientific Task Setting:

➢ By using this technique , employees will complete the task according to standards given
and management can keep proper control on optimum utilization of workforce.
 ➢ Scientific work setting is important to prevent the employees from doing working much
below their capacity.

[5] Explain the Hawthorne Experiment conducted by Elton’s Mayo.

Ans:

➢ Human relations movement began with the Hawthorne experiment, which were conducted at
Western Electrical Works in USA between 1924 and 1932. The Hawthorne experiments were
conducted in 4 parts as follows:

[1] Illumination Experiments ( 1924 – 1927 )

➢ From 1924 to 1927, then National Research Council made a study in collaboration with the
Western Electrical to determine the effect of different level of illumination on productivity of
labour.
➢ The lighting condition for the test group of workers were varied, while it was kept constant for
the control group of workers.
➢ The researchers found that the productivity of the test group improved with an improvement in
lighting condition, and surprisingly it also improved, when the lighting conditions were
worsened.
➢ To complicate further, the productivity of control group also rise, even when there no change in
lighting condition.
➢ The researches concluded that something besides lighting was influencing the workers
performance.

[2] Relay Assembly Test ( Room Experiment) ( 1927-1929) :

➢ In this experiment, Elton Mayo and his associates were involved. In this experiment two groups
of 6 female telephone assembler each were placed in separate rooms.
➢ A number of variables were altered- wages were increased, rest period of varying length were
introduced, the work day and work week were shortened.
➢ The researchers, who now acts as supervisor, also allowed the group to choose your own rest
period and to have a say in others suggested changes.
➢ Productivity and morale of the groups increased consistently during the period of experiment.
The researchers also observed that even when the improvement in physical working conditions
were withdrawn, productivity and morale of the groups were maintained.
➢ The researchers concluded that the socio- psychological factors such as small informal group,
non - directive supervision , participation in work matter etc. were responsible for improvement
in productivity

[3] Mass Interview Program (1928-1931):

➢ Large number of workers were interview to find out the reason for increase productivity.
➢ This program indicated that productivity could be increased, if peoples are allowed to talk
freely about Matters that are of important to them.
[4] Bank Wiring Observation ( Room Experiment) ( 1932) :

➢ In this experiment, a group of 14 male employees in a bank wiring room were placed under
observation for 6 months.
➢ A worker's pay was made dependent on the performance of the group as a whole.
➢ There researchers expected that the more efficient workers would put pressure on less efficient
workers to complete the works. However, it was found that the group established its own
standard of output and social pressure was used to achieve the standards of output.

Conclusion of the Hawthorne Experiments:

• Employees would perform better when they are given freedom to participate in decision making
affecting their interest.
• Employees would also work more efficiently, when they believe that the management is
concerned of employees - welfare.
• When employees are treated with respect and dignity, their performance tends to improve
significantly.
• The informal and interpersonal relations among workers influence the worker’s behaviour and
performance more than the formal relation in the organisation.
• Effective communication between the superiors and subordinates can improve the relations and
overall productivity of the subordinates.
• The social and psychological factors and not just monetary incentives and physical working
conditions are responsible for workers’ productivity and job satisfaction.

[5] Evaluation of Taylor’s Scientific Management.

Answer:

➢ Taylor's scientific management was responsible for improvement in production efficiency,

better working conditions and increase in compensation to the employees.
➢ Despite several merits of scientific management, it is criticized by employees, trade unions,
employers and industrials psychologist.
➢ The main criticism of scientific management theory are started as follows:

[|] Criticisms by Employees:

[1] Loss of Initiatives:

➢ There is loss of initiative on the part of workers due to the separation of thinking from doing .
➢ The work method and operations are standardized. Workers have to act in accordance with the
instruction of the factory supervisors or foremen.
➢ Workers cannot take initiative and suggest for better ways of doing the work.
➢ Nowadays, organizations have adopted the concept of Quality Circles, TQM etc. where
employees give suggestion to improve productivity.
[2] Mechanical Approach:

➢ Taylor’s approach have been criticized as mechanical approach. Taylor placed too much
emphasis on efficiency without considering the human element. Taylor considered workers as
robot who could speed up and work at any cost.

[3] Undemocratic in Nature:

➢ Scientific management is criticized for being undemocratic in nature. The attitude of the
functional bosses is autocratic. The workers have to operate under the strict control and order
of the bosses.

[4] Problem of Unity of Command:

➢ Taylor advocated functional foremanship, where the workers have to report the eight
functional heads.
➢ This violate the principle of unity of command, where the workers are supposed to report to
only one superior and not to several bosses. Lack of unity of command can create confusion and
chaos in organisation.

[5] Exploitation of Workers:

➢ Critics point out that the speed up conditions place and undue pressures on employed to
perform work at faster level.
➢ Also, in many organisation, the management does not share the gains of higher productivity
with the workers. The workers get a little or no share in profits.