Chapter – 2 Principles Of Management (3+4 =7 marks)

Explain FAYOL’S Principle of DIVISION OF WORK (2 marks)

State the adverse effects on the violation of the principle of division of work – V. Imp

• According to this principle of Fayol’s, every task should be divided into small task and assigned to the right person who is capable of doing that job. He should also be trained for doing that job. This is called division of labour.
• This principle applies to all kinds of work managerial as well as technical
• Positive Effect: A person holding the same post and doing the same job will over time specialise in that job and improve his performance, efficiency and result in increased output.
• Adverse Effects: If this principle is violated it leads to
  (a) inefficiency (b) delay in work (c) increase in costs (d) decrease in output.

Explain FAYOL’S PRINCIPLE OF DISCIPLINE (2 marks)

• According to Fayol, discipline means respect for agreements that are directed at achieving energy, application, obedience and outward mark of respect (EARO).
• Fayol says that discipline requires:
  • Good supervisors at all levels
  • Agreements should be clear and fair
  • Penalties should be fairly imposed
• However Fayol does not support wrong use of authority to enforce discipline such as warnings, fines, suspensions, dismissal, etc.
• Example: If a company has entered into agreement with employees regarding their wages for 5 years then the company should honour it. Likewise, employee should also honour the commitments made by them.

An organisation follows the principles of management. What are the POSITIVE EFFECTS of each of the following principles of management on the organisation (3 will be asked) -3 marks (30-40 words) – V. Important

(a) Unity of Direction

Positive effect: of this principle is that it ensures unity of action and facilitates coordination

(b) Espirit de corps

Positive Effect: When esprit de corps is present the need to penalise the defaulting person is minimised

(c) Subordination of individual interest to general interest

Positive Effect: This principle suggests that the profit should be shared by all since one person cannot alone meet an order.