OCM 2 Marks Each

Differential wage-rate study:

• A referential wage-rate system is a method of wage payment in which after tests a standard time for any task is being set. The worker gets a high wage- rate for completing the job within the allotted time and lower wage-rate for / completing the job beyond the allotted time.
• Frederick Taylor favored this motivational wage method.
• Each worker working in factory has different work efficiency. Considering this fact, efficient worker should get more wages whereas workers having less efficiency should get lower wages.

Unity of command:

• The concept of getting command from only one superior is called Unity of Command.
• Employees cannot follow orders from more than one superior. Hence this principle suggests that employee should get order from only one superior for any job or activity.
• As per this principle, an employee should be responsible to only one superior or department for a particular job.
• This principle prevents any confusion that may arise amongst employees with respect to whose order to follow. If order comes from more than one superior then it creates confusion amongst employees and hampers industrial discipline.

• Under the traditional management, the owners dominated the workers.
• The workers were asked to do maximum work without giving them any major benefits.
• Workers had no voice of their own. They had to simply follow what was told to do in whatever manner.
• The orders given by the owners and managers was the rule of the thumb against which the workers had no say.

Flexibility:
The principles of management are not rigid. The manager may change them as per the need of the business. For example, in large units the principle of division of work may be applied uniformly, but in small units the principle of division of work may not be applied in the same proportion and hence the 1 manager of the small unit may have to change the principle as per the firm’s requirements,

Equality:

• Employees are a part of managerial system.
• The employees are human beings and so the management should adopt a practical and humanitarian approach to handle them.
• Superiors should behave appropriately and uniformly while taking work from their sub-ordinates.
• The management should make efforts to establish equality in unit informally father than through legal or traditional ways.
• This principle believes that behaviour of employees is based on faithfulness, attitude, uniformity and justice in the unit.

Peter F. Drucker has contributed to human resource management, marketing management and stress managemen

Peter F. Drucker

Esprit de corps means feeling of oneness, This principle shows that success’of an industrial unit lies in mutual relation of managers and employees. Hence there ‘ should be harmony between the managers and employees.

Raw material arrangement and social arrangement.

Scalar chain means emphasizing on creating chains from top level management to bottom level management. Power and responsibility should be vested as per their respective levels.

Centralization should be adopted in the organization where the size of the organization is small.

Remuneration means return against the services provided by employees. All employees do not work with same efficiency in a unit. These employees who are more efficient should be compensated more as compared to other employees. This helps in reducing labour turnover.

Division of work, Authority and responsibility, Discipline and Unity of command.

It includes activities like purchasing, sales, exchange of units.

Technical Activities, Commercial activities, Financial activities, Safety activities, Accounting activities and Management activities.

Henri Fayol

A differential wage-rate system is a method of wage payment in which after tests a standard time for any task is being set. The worker gets a high wage-rate for completing the job within the allotted time and lower wage-rate for completing the job beyond the allotted time.

Education of employees, skills, guts, physical strength, and training are some of the factors to be considered for selection of workers based on scientific standards.

Equipment, time, situation of work, resources, etc. are the factors considered for standardization.

Job analysis is a process to collect information about the duties, responsibilities, necessary skills, outcomes and work environment of a particular job.

According to Fredrick Taylor, planning is done by owners or managers and implementation by workers.

Management thoughts are the outcome of several researches, studies and applications.

Main objective of motion study is to find out a method which results into minimum wastage of movement of man and material.

Motion study means method of removing wastage of resources due to unnecessary and unproductive movement of men and material.

Scientific method, Planning and Implementation, Job Analysis, Standardization, Scientific selection and training, Financial motivation, Economical and Mental Revolution.

Knowing exactly what-you want your man to do and then see to it that they do it in the best and the cheapest way.

Scientific management is a mental revolution on the part of particular unit of employees in factory. It is a total mental revolution towards their tasks, duties, colleagues and owners.

Rule of thumb is where the workers were asked to do work as per order. No voice of workers was heard and there existed high dominance of owners.

The thought process of owners is optimization of profit and wealth whereas, that of employees is higher wages and job satisfaction.

Owners and workers.

Fredrick Taylor was an American mechanical engineer who became a manager in Bethlehem Steel Company. He is known as the father of scientific management.

When the format of industries and business unit changed afte- 1960, it demanded the need of special approach of management. Management was not restricted to only business and industrial units but also to professional people and units that provided professional services like that of taxation, law, medicine, etc. These professions gave rise to a new class of managers and hence management.

Koontz O’Donnell, George FT Terry, Peter F. Drucker, William Ouchi and C.K Prahlad are the main contributors of thoughts of modern management.

The main limitation of this approach is that human relation is given more importance which cannot be maintained at the cost of productivity.

Management is the art of getting work from others.

Elton Mayo, Herzberg, Rensis Likert, Chris Argyris, Mcgregor and Maslow.

Australian psychologist Elton Mayo’s theory of Hawthorne gave a new birth to behavior oriented thoughts.

Elton Mayo

Main contributions of scientific management lie in specialization in management, progressive wages system, and responsibility and scientific distribution of task.

Fredrick Taylor

Fredrick Taylor, Max Weber, Gilbreath, Henry Gantt and Henri Fayol.

Thoughts of classical theory, Thoughts of neo-classical theory, Thoughts of behavior related, and Thoughts of modern management.

Management thoughts are the outcome of researches, studies and results in the field of management.

Development and progress of society are also aim of the business apart from profit.

Using management principles decisions can be made appropriately and timely in an unbiased manner. These decisions are reality based and effective.

Decisions of business are based on facts, thoughtfulness, objectives, and justifiable factors.