Class XII - Notes; By: Sarabjeet Singh
Chapter 2
Principles of Management
Principles of Management are the broad and general guidelines for managerial decision
making
They are different from principles of science as they deal with human behavior
They are different from techniques of management as techniques are method whereas
principles are guidelines to action and decision making
Principle of management are different from values which are formed as generally
accepted behavior in society where-as principles are formed through research having
technical nature.
Nature of Principles of Management
The nature of principles of management can be described in the following points:
(1) Universal applicability i.e. they can be applied in all types of organizations, business as well
as non-business, small as well as large.
(2) General Guidelines: They are General Guidelines to actions which however do not provide
readymade solutions as the business environment is very changing or dynamic.
(3) Formed by practice and experimentation: They are developed after a lot of research work on
the basis of experiences of managers.
(4) Flexible: They can be modified by the practicing manager as per the demands of the
situations.
(5) Mainly Behavioural: Since the principles aim at influencing human behaviour they are
behavioural in nature.
(6) Cause and Effect relationship: They aim to establish relationship between cause & effect so
that they can be used in similar situations.
(7) Contingent: Their applicability depends upon the prevailing situation at a particular point of
time. They are applied as per the situation.
Trick to remember: Ur Grand-Father, Father, and Mother r Counting Coins
Universal, General, Formed, Flexible, Mainly, Cause, Contingent
Significance of Management Principles:
1. Optimum Utilization of Resources: Firm has limited resources and these resources have
to be to be put to optimum use. By optimum use we mean that the resources should be
used in such a manner that they should give maximum benefit with minimum cost.
2. Scientific Decisions: Management principles help in thoughtful decision-making, which
emphasize logic rather than blind faith.
3. Management Training, Education and Research: Management principles are the base for
further research and development for already existing management practices. Principles
of management are at the core of management theory.
4. Providing Useful Insights To Managers: The principles of management provide the
managers with useful insights into real world situations. Following these principles will
add to their knowledge, ability and understanding of managerial situations and
A true guru is like coconut; hard from outer manifestation but soft from inner form. He will fight you,
for your betterment!
, Class XII - Notes; By: Sarabjeet Singh
circumstances. It will also enable managers to learn from past mistakes and conserve
time by solving recurring problems quickly.
5. Fulfilling Social Responsibilities: They direct businessmen to discharge their social
responsibilities towards various groups.
6. Meeting Changing Environmental Requirements: Modern principles act as flexible
guidelines that can be modified to meet the needs of changing environment in which the
business operates.
Trick to remember:
Our Sir Educates Us about Social Environment
Optimum, scientific, education, useful, social, environmental
F. W.TAYLOR (1856-1915)
Major contributions of Taylor
• Introduced scientific methods in management, as opposed to the rule of thumb.
• Emphasized on scientifically analysis of work and proposed to find one best way to do
work, by conducting time, motion and method studies.
• Sought to increase the efficiency of workers by eliminating wastage of all types.
• Emphasized on the need to have mental revolution – a complete change in the outlook
for both workers and management.
• Wrote a book on shop floor and an article, on “principles of Scientific Management”,
based on his findings and experiments.
• Taylor coined the term ‘Scientific Management’ and gave a new thinking to management.
• For his contributions, he came to be known as “The Father of Scientific Management”.
Scientific Management
“Scientific Management is, knowing exactly what you want your men to do and seeing that they
do it in the best and the cheapest way”.
It includes finding the most efficient methods of production, scientific selection and training of
workers, proper allotment of duties and work and achieving cooperation between workers and
management.
Principles of Scientific Management:
1. Science, not rule of thumb: Each job must be performed on the basis of scientific
enquiry and not on the basis of intuition or hit and trial method.
Taylor believed that there was only one best method to maximize efficiency. This
method can be developed through study and analysis and this method should substitute
‘Rule of Thumb’ throughout the organization.
2. Harmony, not discard: There should be complete harmony between the management
and workers; both should realize that each one is important.
Mental Revolution: Management should be willing to share gains of the firm
with the workers and workers should work hard and accept change for the good
of the firm and not go on strikes.
A true guru is like coconut; hard from outer manifestation but soft from inner form. He will fight you,
for your betterment!
Chapter 2
Principles of Management
Principles of Management are the broad and general guidelines for managerial decision
making
They are different from principles of science as they deal with human behavior
They are different from techniques of management as techniques are method whereas
principles are guidelines to action and decision making
Principle of management are different from values which are formed as generally
accepted behavior in society where-as principles are formed through research having
technical nature.
Nature of Principles of Management
The nature of principles of management can be described in the following points:
(1) Universal applicability i.e. they can be applied in all types of organizations, business as well
as non-business, small as well as large.
(2) General Guidelines: They are General Guidelines to actions which however do not provide
readymade solutions as the business environment is very changing or dynamic.
(3) Formed by practice and experimentation: They are developed after a lot of research work on
the basis of experiences of managers.
(4) Flexible: They can be modified by the practicing manager as per the demands of the
situations.
(5) Mainly Behavioural: Since the principles aim at influencing human behaviour they are
behavioural in nature.
(6) Cause and Effect relationship: They aim to establish relationship between cause & effect so
that they can be used in similar situations.
(7) Contingent: Their applicability depends upon the prevailing situation at a particular point of
time. They are applied as per the situation.
Trick to remember: Ur Grand-Father, Father, and Mother r Counting Coins
Universal, General, Formed, Flexible, Mainly, Cause, Contingent
Significance of Management Principles:
1. Optimum Utilization of Resources: Firm has limited resources and these resources have
to be to be put to optimum use. By optimum use we mean that the resources should be
used in such a manner that they should give maximum benefit with minimum cost.
2. Scientific Decisions: Management principles help in thoughtful decision-making, which
emphasize logic rather than blind faith.
3. Management Training, Education and Research: Management principles are the base for
further research and development for already existing management practices. Principles
of management are at the core of management theory.
4. Providing Useful Insights To Managers: The principles of management provide the
managers with useful insights into real world situations. Following these principles will
add to their knowledge, ability and understanding of managerial situations and
A true guru is like coconut; hard from outer manifestation but soft from inner form. He will fight you,
for your betterment!
, Class XII - Notes; By: Sarabjeet Singh
circumstances. It will also enable managers to learn from past mistakes and conserve
time by solving recurring problems quickly.
5. Fulfilling Social Responsibilities: They direct businessmen to discharge their social
responsibilities towards various groups.
6. Meeting Changing Environmental Requirements: Modern principles act as flexible
guidelines that can be modified to meet the needs of changing environment in which the
business operates.
Trick to remember:
Our Sir Educates Us about Social Environment
Optimum, scientific, education, useful, social, environmental
F. W.TAYLOR (1856-1915)
Major contributions of Taylor
• Introduced scientific methods in management, as opposed to the rule of thumb.
• Emphasized on scientifically analysis of work and proposed to find one best way to do
work, by conducting time, motion and method studies.
• Sought to increase the efficiency of workers by eliminating wastage of all types.
• Emphasized on the need to have mental revolution – a complete change in the outlook
for both workers and management.
• Wrote a book on shop floor and an article, on “principles of Scientific Management”,
based on his findings and experiments.
• Taylor coined the term ‘Scientific Management’ and gave a new thinking to management.
• For his contributions, he came to be known as “The Father of Scientific Management”.
Scientific Management
“Scientific Management is, knowing exactly what you want your men to do and seeing that they
do it in the best and the cheapest way”.
It includes finding the most efficient methods of production, scientific selection and training of
workers, proper allotment of duties and work and achieving cooperation between workers and
management.
Principles of Scientific Management:
1. Science, not rule of thumb: Each job must be performed on the basis of scientific
enquiry and not on the basis of intuition or hit and trial method.
Taylor believed that there was only one best method to maximize efficiency. This
method can be developed through study and analysis and this method should substitute
‘Rule of Thumb’ throughout the organization.
2. Harmony, not discard: There should be complete harmony between the management
and workers; both should realize that each one is important.
Mental Revolution: Management should be willing to share gains of the firm
with the workers and workers should work hard and accept change for the good
of the firm and not go on strikes.
A true guru is like coconut; hard from outer manifestation but soft from inner form. He will fight you,
for your betterment!
