Nature and Significance of Management

Management Principle is a statement which reflects the fundamental truth about some phenomenon based on cause and effect relationship and they are serving as a guide to actions for managerial decisions to the execution. Management principles are derived on the basis of Deep observation and repeated experiments.

Nature of Principles of Management:

Universal Applicability: The principles of Management are universal that means they are applicable to all types of organizations irrespective of their size and nature.

General Guidelines: Management principles are able to give guidelines to solve the problems but not give readymade solutions for all problems.

• Practice and Experiments: These principles are developed only after deep and thorough research.
• Flexibility: these principles are not set of rigid statements but can be modified by the managers who are using them.
• Behaviour: These are formed to guide and influence the behavior of employees.
• Cause and effect relationship: These are based on cause and effect. for suppose if a particular principle is applied in a situation will be an effect.
• Contingent: Management principles are contingent or dependent on the situation prevailing in the organization.

The significance of Management Principles :

• Providing managers with useful insight into the reality
• Optimum utilization of the resources
• Scientific decisions
• Changing meeting environment requirements
• Fulfilling social responsibility
• Management training, education and research

Henry Fayol Principles of Management:

Henry Fayol was born in 1841, France. He completed the degree in mining in 1860 and he was start working as Engineer in a coal mining company.in 1888, he was promoted to the Managing Director of that company but at that time the company was in insolvency so immediately he took the challenge and applied his managerial techniques to bring out the company from this situation and he succeeded. After 30 years company is leading with strong financial background.

Henry Fayol  managerial techniques:

• Division of work
• Authority and responsibility
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual interest to general interest
• Remuneration of employees
• Centralisation and Decentralisation
• Scalar chain
• Order
• Equity
• Stability of personal
• Initiative
• Esprit de corps

Scientific management is defined as applied science for each and every element of management.

According to Taylor, Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.

Scientific principles of management

• Science, not rule of thumb
• Harmony, not discord
• Co-operation, not individualism
• Development of workers to their greatest efficiency and prosperity

Scientific Techniques by Taylor  

->Functional Forman ship is in this technique, Taylor suggested the division of factory in two departments

i)Planning Department:

• Route clerk
• Instruction card clerk
• Time and cost clerk
• Disciplinarian

ii)Operational Department

• Gang boss& speed boss
• Repair boss
• Inspector

->Standardisation and simplification of work

• Standardisation is possible when standard is maintained right from selection of tools,                          equipment, and machine to use

->Fatigue study: In this

• The frequency of rest intervals
• The duration if rest intervals the number of rest intervals

->Method study: it is the best method or way of performing the job

->Time study: The standard time required to perform the job, Setting up the standard target of workers required to perform a job, Categorising the workers into efficient and inefficient employees

->Motion study: Motion study is to observe the working of worker when he s performing the job and note down all movements he is doing

->Differential piece wage system: This technique is emphasis on paying wages to efficient and inefficient employees with different rate

->Mental revolution: The mental Revolution are

•  Cooperation between workers and management
•  Change in mental attitudes of workers and management towards each other