Chapter 2 Principles of Management Solutions
Question - 11 : - Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment
Answer - 11 : -
The principles of Taylor and Fayol play an important role in contemporary business environment. Taylor’s scientific management principles and Fayol’s administrative principles provide guidelines to the managers in taking actions and decisions. They help in explaining and predicting the business situations and thereby, guides the managerial behaviour. Although they cannot be used as it is but they prove as important guidelines in complex real business situations. Managers can use them in different situations to solve the recurring problems. Decisions taken on the basis of these principles are based on facts and logic and are thereby, more appropriate. They are developed over time by a continuous process of observations and experimentation. Thus, they provide useful insight into the real business situations. These principles have universal applicability and are used by all organisations irrespective of the size, nature, region. Moreover, as these principles are based on the human behaviour so, they help in establishing a relationship between human and material resources in an organisation. The applicability of these principles helps in overall development of the organisation. These principles aim at increasing the overall efficiency in the organisation along with optimum utilisation of resources. They also highlighted the importance of cooperation among the employees and the managers while maintaining a harmonious work environment.
Question - 12 : - Identify the principle of management (out of 14 given by Henry Fayol) that were being violated by the company.
Answer - 12 : -
Company violated following principles
(i) Division of work (ii) Unity of command
(iii) Unity of direction (iv) Discipline
(v) Subordination of individual interest to general interest
(vi) Order
(vii)Initiative (viii) Remuneration
Question - 13 : - Explain these principles in brief.
Answer - 13 : -
(i) Division of Work As per the case work is not divided among the workers as per their specialisation. As specialisation is the most efficient way to use human efforts and produces more and better work.
(ii) Unity of Command In the case subordinates had to work for more than one superior. This results in declining efficiency. As per Fayol’s principle of unity of command there should be one boss and if it is violated it results in authority is undetermined, discipline is in jeopardy, order distributed and stability threatened. Same we are observing in the above case.
(iii) Unity of Direction The units of an organisation should be moving towards the same objective. Each group must be having same objective must have one head one plan. But in case first the producers are working on one product then moved to two or more group. Thus, this principle is also violated.
(iv) Discipline In the case, there is a lack of formalised control as the workers are working beyond there abilities. There is no rules and regulations as well as lack of employment agreement.
(v) Subordination of Individual Interest to General Interest Every individual is working better only when the organisation is giving priority to their general interest. In the case, company in only focusing over its objective not on employees.
(vi) Order People and materials must be in suitable places at appropriate time for maximum efficiency. But in case they are not following the order of anything,
(vii) Initiative It implies that workers should be self motivated, suggestions should be taken from the employees. It results in substantial cost and time reduction but here they are taking no feedbacks, no suggestions.
(viii) Remuneration The workers should get the fair wages but in case workers are performing day and night but they are not getting a fair amount for the same. This results that they are feeling cheated.