Principal of Management Notes, Study notes of Business

Download Principal of Management Notes and more Study notes Business in PDF only on Docsity! Principles of Management CASE STUDIES CHANDOLA CLASSES Rajeev is a middle lever manager. He keeps all his subordinates under a lot of discipline. His employees however complain of wastage of time and efforts as they feel that nothing is being assigned in a proper way and a proper place, also no proper schedule is made for working. Which principle of management is violated here? Answer: The concept of management which is highlighted here is ‘principles of management’. Management principles are the broad and general guidelines which help employees in behavior and decision making. Question 3: Pakka employment is a company which takes care of the fact that the confidence of the employees should always be at its peak. For this reason they give surety to their employees for employment for a minimum fixed tenure of time. Which principle of management is followed here? Answer: The principle of management which is followed here is ‘stability of personnel’. Question 5: The plant superintendent of a company is very sad. When he was on leave he was expecting his subordinates to take the remaining work to the finish. However he finds a new way of dealing with this problem. He develops a system of suggestion building from the side of workers. For this a suggestion/complain box is to be kept where the workers can drop their advice and hence take steps from their side. Which principle of management has been implemented here off late by the plant superintendent? Answer: The principle of Fayol—’initiative’ was initially not followed and the establishment of suggestion/complaint box is a step in following it. Question 6: Suresh works in a bulb manufacturing company. Each bulb which is manufactured is of standard size and quality. Further if there is any unrequired type of bulb manufactured then its production is stopped. Last month when the company came to know that 10 watt bulbs were no more liked by customers, their production was stopped. He works in the purchase department. His job is to purchase the filaments required to make bulbs. This time when he purchases the filament he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing the filaments inside the bulb. Suresh knows this information should be given immediately to the production department before the assembling process starts. However he finds that his company’s policies only allow him to give the message to his immediate boss who will further pass this message to his boss. The passing of this message will continue till it reaches the desired person in the production department. Which technique of management is followed here? Also name the principle of management followed here by the company? Which option is now available to Suresh since the company is not allowing him to interact with the concerned worker in the production department? Answer: The concept of management discussed here is Mental Revolution. The owner of the company grants some funds for the benefit of the families of the employees. The employees on the other hand never resist any change or put excessive demands. Since the employee turnover ratio is low the principle of management which must have been followed is ‘stability of personnel’. Whenever there is violation of this principle of Fayol the employee turnover ratio increases. The increased employee turnover ratio is not good for an organisation and should be minimised. Question 8: Bhatkaav Enterprises is facing huge losses. The owner of the company is an MBA pass out. Even then many things in the organisation are happening which are indicative of lack of proper management in the company. First of all there is no specific sharing of work and any time any employee is asked to do anything. This has lead to wastage of efforts. Further due to negligence in proper work sharing there has been no specialisation development in the nature of the jobs done by the employees. There are no clear and fair agreements between the workers and the management. This has led to a lot of frustration in the workers. Management has quite often been found to be ignorant of not fulfilling promises done by it. There are also no strict rules and regulations binding on the conduct of the workers. The departmental heads who are the middle level managers in the company and hold key positions always favour their relatives. They quite often don’t turn up for job on time. They are always looking for special relaxations from the top management. This has led to feeling of resentment among the employees who are also demanding special favours and threatening strike in the coming days. Identify the three principles of Fayol violated in the above case. Answer: In the first paragraph of the case the principle of Fayol which is violated is ‘Division of Work’. In the second paragraph of the case the principle of Fayol which is violated is ‘Discipline’. In the third paragraph of the case the principle of Fayol which is violated is ‘Subordination of individual interests to general interests’. Question 10: Mohan works on the floor of a mall as a manager. He is very hard working but is unable to produce results for his organisation. His target for last month was a sale of 10 lakh rupees from his floor. However by the end of the month the sale was only 8 lakh rupees. He is very regular and takes all the necessary steps to complete the target. However his staff is not as competent as he himself is. When he tries to take action against disobedient employees the top management doesn’t allow him to do so. They haven’t given him the power to fire employees or take any strict action against them. Which principle of Fayol is violated here by the Organisation? Answer: The principle of Fayol which is violated here is ‘Authority and Responsibility’. The amount of responsibility put on the shoulders of the floor manager is not in proportion to the amount of authority given to him. He can’t take any strict action against his subordinates. Question 11: Enlightened Souls Pvt. Ltd. is a tube light manufacturing company. Before the start of the year they had promised their employees for bonus for extra production. It was also decided that those who will put extra time will be paid extra according to the number of hours. However people in the HR department who worked very hard later complained that they were not compensated for the extra number of hours that they used to stay in the office. Which principle of Fayol is violated here? Answer: Equity Question 13: Aditi who is heading the campus recruitment program of the firm that she is working in, gets an immediate order from the marketing head of the organisation. Mr. Rupesh asks her to hire only those candidates who have two years experience in the field of marketing and offer them a higher package. Moments later when she is about to enter the campus she gets another call from the HR head who asks her to hire candidates with zero experience. He gives her the logic that such candidates would be expecting lower packages in comparison to the candidates having experience in the industry. Which principle of Fayol stands violated here? What is the immediate outcome of the violation of this principle? State the principle. Answer: The principle of Fayol which is violated here is ‘Unity of command’. The Unity of command states that an employee should take orders only from one boss. The immediate outcome of the violation of this principle is dual subordination. Question 15: . Twenty new employees have started their career in XYZ Ltd. The employees are new to the environment of the organisation and have no idea about the demanding jobs. The management has decided to give them three months of time to show their results. Which principle of Fayol is followed here? How does this principle help the organisation? Answer: The principle of Fayol which is followed here is ‘Stability of Personnel’. This principle helps the organisation by reducing Employee Turnover. Thus the efficiency of the organisation is increased. Question 16: Enigma Coolers are the leading manufacturers in their area. They have decided to increase the productivity of their workers. For this they have chalked out a plan. They will be hiring operational managers who to work at the lower level of management. They have decided to keep eight managers over a single worker. Thus every worker will have to report to all these eight managers. Which technique of scientific management is followed here? What will be the benefit? Also tell which principle of Fayol will be violated here? Answer: The scientific technique used is ‘Standardization’. The three advantages of standardization are: 1. Standards of performance of men and machine can be established. 2. Standards of excellence and quality in materials can be established. 3. Machines and their components of standard size can be interchanged over different areas and conditions. Question 18: ‘Work is Worship’ is a leading construction company. The organisation has grown from strength to strength because of its innovative ideas and scientific approach of working. Ten years back the organisation went through a revolution. All the operations and activities were properly noticed and the standard time taken to perform them was noted. This took a few months and now the company could find out the amount of workers required and the number of days to be involved in the various manufacturing processes. A year later they moved to another level by considering the stress involved in the lives of the workers. The amount and frequency of rest intervals in finishing a particular task were noted. This helped the company in optimizing the rest intervals for the workers so that their outputs could be increased. After six more months the company decided to reward the efficient workers. A different rate of wage payment was decided for those workers who performed above the standard. The standard was decided. This led to a revolutionary change in the perspective of the workers who now started giving their full efforts in order to increase their wages. Which concept of management has been discussed in the above case? Name the three types of this management concept highlighted above. Also identify the lines where these types have been indicated. Answer: The concept of management which is discussed above in the whole case is Techniques of Scientific Management. The various types of techniques used are: 1. Time Study. All the operations and activities were properly noticed and the standard time taken to perform them was noted. 2. Fatigue Study. The amount and frequency of rest intervals in finishing a particular task were noted. 3. Differential Piece Wage System. A different rate of wage payment was decided for those workers who performed above the standard. Question 20: A scientist working in a factory for the betterment of the operational aspect studied all the steps involved in the manufacturing of the product. He very attentively noticed all sorts of movements to arrive at a simpler way of doing all the activities possible. With his hard work he was able to bring down the number of activities for the manufacturing of the final product from 34 to 22. This work was able to bring down the labour charges and decrease the total time of production. Thus he gave the organisation an added advantage. Which type of scientific technique is discussed here? Answer: The type of scientific technique discussed here is Motion Study. Question 21: ‘Kanpur Leather Ltd.’ is the manufacturer of leather products. It is pro¬ducing on large scale and its organisational structure is functional. In the production department various foremen have been employed. Each foreman has been made responsible for production planing, implementation and control. This has led to a situation of confusion and uncertainty. Suggest a technique of scientific management to Kanpur Leather Ltd. which may help it to effectively organise planning and its execution. Answer: The principle of management which is followed here is ‘Science not Rule of Thumb’ as the organisation tries to bring uniformity in its approach. Question 23: Star Limited is a garment manufacturing company which has been performing quite well. The company got a major order of 2000 shirts which it is supposed to manufacture and supply within two weeks time. On an average the company manufactures around 50 to 60 shirts in a day. Therefore, it is a very challenging task for the organisation. The management of the company asked its labour to put in extra hours without any additional payment to achieve this objective. In return, management has promised the workers that their wages will be increased on a permanent basis as soon as the project is over. The labour agreed to the management’s proposal and completed the assigned task within the allotted time frame. As per its promise the management increased the wages of the workers and the project became a great success. Both management and labour honoured their commitment. Identify the principle of Henri Fayol which has been highlighted in the above case. Answer: Discipline Question 25: In a huge manufacturing company there was a constant training programme running for the workers throughout the year. The workers were trained about the machines as the management realised that management is all about the relationship among workers and their proper handling of the machines. As the size of the organisation increased the management decided to release their hold on day to day activities of the organisation. A more decentralised approach was adopted where the workers could decide about the machines and the amount of raw material required instead of the traditional centralized approach as per the needs. The management knew that the external environment is dynamic. In order to meet stiff competition they clarified to the workers that their instructions should not be taken strictly and should be moulded as per the requirements of the organisation at the level where actual action takes place. Which natures of principles of management have been highlighted in the above case? Answer: The various natures of principles of management highlighted above are: 1. Mainly Behavioural. The workers were trained about the machines as the management realised that management was all about the relationship among workers and their proper handling of the machines. 2. Flexible. A more decentralised approach was adopted where the workers could decide about the machines and the amount of raw material required instead of the traditional centralized approach as per the needs. 3. General Guidelines. In order to meet stiff competition they clarified to the workers that their instructions should not be taken strictly and should be moulded as per the requirements of the organisation at the level where actual action takes place. Question 26: VLPS Hotels is a disciplined organisation. It has many branches. The organisation tries to apply discipline in all its branches with equal effectiveness. However it knows that the nature and location of different branches are different. They work under the impact of different cultures and work environments. Even then discipline as an important management principle is applied to all its branches —big or small, within the country or at foreign locations. Recently it formed a special body of five members to do research on cross functional expertise. The organisation has learnt through the experience of the competitors that understanding among various functional departments is important for increasing the productivity of the organisation. So broadly it can be understood how such body is going to affect the organisation through others’ experience. When it comes to remuneration of employees the organisation adopts payment of different salaries for the same post. The logic given by the organisation is that remuneration is based on situations and depends upon the employee’s capacity and the expenses involved in a particular city. Which natures of principles of management have been highlighted in the above case? Answer: The principle of management which is violated initially is Cooperation not Individualism as the suggestions were overlooked and the strikes happened. All the suggestions made by the workers are not even attended which has resulted in many strikes during last couple of months. The principle of management which is followed later on is Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity. However recent reports from the organisation say that there is a training module going on for the employees so that their individual development can take place to the maximum. The concept of management which is discussed in the last part of the case is Standardisation. This training module which is now to be followed at the main branch will be later given a uniform format and will be applied to all branches of the organisation. Question 28: Enigma Footwear is a very innovative organisation. The company has the policy of paying proper attention to the training of the managers. The organisation teaches various management principles to the managers whenever required so that they can apply them and understand the practical aspects of business through them. Year by year the organisation is able to increase its revenue. This is because the managers are able to economically use the funds of the organisation and increase the output of the workers through various principles like discipline and science not rule of thumb. This year the company will be opening its 14th branch in India. The firm has decided to start the campaign for adopting poor children. This year the target is 500 poor children due to be adopted. This will help the organisation put noticeable example in front of others who can learn a lot from this initiative of the company. Which points of importance of principles of management are highlighted in the above case? Identify the lines. Answer: The points of importance of principles of management highlighted above are: 1. Providing managers with useful insight into reality. The organisation teaches various management principles to the managers whenever required so that they can apply them and understand the practical aspects of business through them. 2. Optimum utilisation of resources and effective administration. This is because the managers are able to economically use the funds of the organisation and increase the output of the workers through various principles like discipline and science not rule of thumb. 3. Fulfilling social needs. The firm has decided to start the campaign for adopting poor children. Question 30: Wellness Water Purifier has seen a lot of ups and downs during last five years as a company. The most important learning the company has got is through its experiences. First three years of its existence were full of high employee turnover. The blames quite often put by the leaving employees was that of partial behavior whether it was concerned with salary, management, duty assignment, leaves, and the list can go on. Later the management after a brainstorming session realised that it was wrong in committing partial behavior towards its employees. Next two years it adopted the Fayol’s principle of ‘Equity’ in letter and spirit. Which nature of principle of management has been highlighted in the above case? Answer: In the above case the company has learned from its experience on the basis of practice and experimentation that the principle of ‘Equity’ should be adopted to avoid problems and increase its output. Thus in the above case the nature of principle of management highlighted is that Management principles are formed by practice and experimentation.