14 Principles of Henry Fayol | Management | Business Studies

YouTube.Com/TarunAnejaClasses

14 principles of management given by Henri Fayol

1.    Division of work:- According to Henri Fayol, work should be divided into small specialised tasks,each performed by specialist only. Thus, specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed.

2.    Authority of work:- In order to get things done in an organization, management has the authority(rights) to give orders to the employees. Of course with this authority comes responsibility. So there should be a balance between proper authority and responsibility. In other words, authority and responsibility go together and they are two sides of the same coin.

3.    Discipline:-It is about obedience, good conduct and respectful interactions.

4.    Unity of command:-(Orders from one manager) An individual employee should receive orders from one manager and that the employee is answerable to that manager. If tasks and related responsibilities are given to the employee by more than one manager, this may lead to confusion which may lead to possible conflicts for employees.

5.    Unity of direction:- All employees deliver the same activities that can be linked to the same objectives. All activities must be carried out by one group that forms a team. These activities must be described in a plan of action. (one head  and one plan)

6.     Subordinate(secondary place) of individual(particular employee) interest:- Personal interests are always subordinate to the interests of the organization. The primary focus is on the organizational objectives and not on those of the individual.

7.    Remuneration of employees:- The remuneration should be sufficient to keep employees motivated and productive. There are two types of remuneration namely non-monetary (a compliment, more responsibilities, credits) and monetary (compensation, bonus or other financial compensation).

8.    Centralisation and decentralisation:- Centralization implies the concentration of decision making authority at the top management (executive board). Sharing of authorities for the decision-making process with lower levels (middle and lower management), is referred to as decentralization. An organization should strive for a good balance in these two things.

9.    Scalar chain:- There should be a clear line in the area of authority (from top to bottom and all managers at all levels). Each employee can contact a manager or a superior in an emergency situation without challenging the hierarchy.

10.  Order:-There should be a right place for everything and everything should be at its right place.

11.  Equity:- Employees must be treated kindly and equally without partiality.

12.  Stability of tenure(WORKING LIFE) of personnel(GROUP OF EMPLOYEES):- Management strives to minimize employee turnover and to have the right staff in the right place. 

13.  Initiative:- Employees should be allowed to express new ideas. This encourages interest and involvement and creates added value for the company. Employee initiatives are a source of strength for the organization. This encourages the employees to be involved and interested.

14.  Esprit the corps(Union in strength):- Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.

Please take a moment to Like, Subscribe, and Comment on this video!
View Our Channel To See More Helpful Videos - https://www.youtube.com/tarunanejaclasses
We provide Tuition classes and home tuitions as well
For Class related enquiries contact # 8800655354

Principles Of management in Hindi

YouTube.Com/TarunAnejaClasses

Principles of Management

Mr. Henri Fayol

·         Called Father of Management

·         Developed 14 Principles

·         Gives general guidelines for ‘managerial decision making’

Frederick Winslow Taylor

·         Called Father of scientific management.

·         Concerned about factory inefficiency due to the reason he developed scientific principles.

·         Insist about the application of scientific principles and adopt systematic management technique.

·         Disregard the rule of thumb and trial and error method.

Management Principles

·         A fundamental truth that provides a guide to thought and action.

·         Gives a broad understanding of general guidelines and decision making.

Nature

1.       General guidelines.

2.       Contingent or depend upon some external factor.

3.       Formed by intense practice & experimentation.

4.       Having cause & effect relationship.

5.       Universal applicability.

6.       Flexible (i.e. modified as per need).

Importance

1.       Improves Understanding (about the internal management of the organisation).

2.       Direction for Training of Managers.(helps to finding out the area that where we find out our futuristic managers).

3.       Role of Management.(just like a guide tells what a manager is expected to do in a particular  situation).

4.       Guide to Research in Management (various research are being possible due to the applicability management principles).

Please take a moment to Like, Subscribe, and Comment on this video! View Our Channel To See More Helpful Videos - https://www.youtube.com/tarunanejaclasses

#3 Objectives of Management

Please take a moment to Like, Subscribe, and Comment on this video! View Our Channel To See More Helpful Videos -https://www.YouTube.com/tarunanejaclasses

#2 Levels Of Management & Nature Of Management

Youtube.com/tarunanejaclasses

Facebook.com/tarunanejaclasses

Website: tarunaneja.com

Nature of Management

·         Management as a science

1.       Universal Applicability.(not exactly fulfill this feature of science)

2.       Systematised Body Of Knowledge.(available)

3.       Principles Based on Experimentation.(exist)

4.       Standardised principles.(not exist)

·         Management as an Art

1.       Systematised body of knowledge.(exist)

2.       Practice of management has different styles.(exist)

3.       Based on practice and creativity.(exist)

·         Management as a Profession

1.       Well defined body of knowledge.(exist)

2.       Entry is restricted. (Not exist)

3.       Professional Association. (Not exist)

4.       Ethical code of conduct.(Exactly not possible)

5.       There’s always a service motive. Service motive with profit earning (Not exist)

Nature And Significance Of Management Business Studies Class XII Chapter...

YOUTUBE.COM/TARUNANEJACLASSES

Chapter 1 - Nature and Significance of Management 

Management is the process of getting things done with the aim of achieving goals effectively

and efficiently.

Effectiveness versus Efficiency

1.       Effective but not efficient:- completing the work on time but at higher cost.

2.       Efficient but not effective:-Work Done within the framework of given cost structure without achieving the target.

For example, it is easier to be effective and ignore efficiency i.e., complete the given task but at a high cost. Suppose, a company’s target production is 5000 units in a year. To achieve this target the manager has to operate on double shifts due to power failure most of the time. The manager is able to produce 5000 units but at a higher production cost. In this case, the manager was effective but not so efficient, since for the same output, more inputs (labour cost, electricity costs) were used.

Characteristics of Management

1.       Goal oriented Process: It is a goal oriented process, which is undertaken to achieve already specified and desired objectives by proper utilization of available resources.  

2.       Pervasive: Management is universal in nature. It is used in all types of organizations whether economic, social or political irrespective of its size nature and location and at every level.  

3.       Multidimensional: It is multidimensional as it involves management of work, people and operations.  

4.       Continuous: It consists of a series of function and its functions are being performed by all managers simultaneously. The process of management continues till an organization exists for attaining its objectives.

5.       Group Activity: It is a group activity since it involves managing and coordinating activities of different people as a team to attain the desired objectives.

6.       Dynamic function: It is a dynamic function since it has to adapt according to need, time and situation of the changing environment. For example, McDonalds made major changes in its ‘Menu’ to survive in the Indian market.

OBJECTIVES OF MANAGEMENT

Management  seeks  to  achieve certain objectives which are derived from the basic purpose

of the business. Objectives of management can be classified into three major categories :

·         Organizational or Economic Objectives: The main objective of any organization should be to utilize human and material resources to the maximum possible advantage, i.e., to fulfil the economicobjectives of a business. These are:

1.     Survival:  Management  must  ensure  the  survival  of the  organization.  In  order  to survive, an organization must earn enough revenues to cover costs.

2.     Profit: Management has to ensure that the organization makes a profit, which is an incentive for the continued successful operation of the enterprise.

3.     Growth: Management  must exploit fully  the growth potential of the organization. Indicators of growth of a business are –(i) increase in sales turnover (ii) increase in the number of products andemployees (iii) increase in capital investment, etc.

·         Social Objectives : These objectives involve the creation of benefits for the society. This includes :

1.     Supply of good quality products and services at reasonable prices.

2.     Using friendly methods of production

3.     Generating  employment  opportunities  to  the  disadvantaged  sections  of  the society.

·         Personal Objectives:   These   objectives   are   related   to   the   employees   of   the organizations. Management should satisfy their diverse needs such as :-

1.     Competitive salary and perks

2.     Peer recognition

3.     Personal growth and development

IMPORTANCE OF MANAGEMENT

·         Management helps in achieving goals bygiving a common direction to the individual efforts.

·         Management   increases   efficiency   by   reducing   the   costs   and   increasing   the productivity.

·         Management helps individuals to develop team spirit, cooperation  and commitment to group success.

·         Management helps in the development of the society

·         Management  helps  people  adapt  to  changes  so  that  the  organization  is  able  to maintain its competitive edge.

IMPORTANCE OF CO-ORDINATION

·         Coordination  helps  the  enterprise  present  a  picture  of  unified  approach  to  the problems of the enterprises.

·         Coordination helps in achieving the commonness of purpose.

·         Coordination helps   in   avoiding   conflict   between   the   specialists   and   the   other members of the organization.

·         Coordination helps to ensure unity of action among interdependent departments.

·         Coordination helps to integrate efforts of people in the organization.

Co-Ordination (Essence)

Meaning :- The process of organizing people or groups so that they work together properly and well.

Features:-

COORDINATION INTEGRATES GROUP EFFORTS

·         Coordination is applied to the group efforts and not to an individual. 

·         If  only  an  individual  is  working,  the  question  of  coordination  does  not arise. 

·         Coordination helps to integrate the efforts of all individuals who may have their personal goals in their minds, are directed towards the goals of the organization. 

(2) COORDINATION ENSURES UNITY OF ACTION

·         The managers working at the different levels ensure that efforts of the individuals are focused towards achieving the organizational goals. 

·         It is the force that bids the working of individuals and departments and eliminates overlapping of activities.

(3) COORDINATION IS A CONTINUOUS PROCESS

·         Coordination is not a one-time process. 

·         It begins at planning function and continues till controlling. 

 (4) COORDINATION IS A PERVASIVE FUNCTION

·         Coordination is required throughout the organization at different levels, among different divisions, among different departments, different groups and individuals. 

·         There may be some common functions between different divisions and departments and functioning of one department affects the functioning of other departments.

Conclusions :-So,  to  eliminate  overlapping  and  wastage  of  resources,  coordination  is necessary.

THANKS ALL!!!!

For more Videos:-SUBSCRIBE TO OUR CHANNEL ON YOUTUBE

Tarunanejaclasses

Fb/tarunanejaclasses

TYPES OF LIABILITY

TYPES OF LIABILITY Two ways of categorization:-

1. As per time Period

2. as Per the party to whom our firm owes.

As per time Period:-It may be a) Current Liability or b) Non- Current Liability

Current Liability:-1. Expected to be paid within one year.

2. Examples Creditors, Bills Payable, Outstanding Expenses etc.

Non Current Liability also called fixed liability:- Those liability which are to be repaid after one year.

Examples are:- Public Deposits, Long term loans etc.

As per the party to whom our firm owes:-

a.) Internal Liabillity or b) External Liability

Internal Liability:-Means the liability of the business towards its owners also called capital.

External Liability:- Means what amount our firm owes to outsiders.Examples Creditors, Bank Loans, Outstanding Payment etc.

By the end of this lecture you will be able to understand the various types of liability mainly in the form of internal v/s external liability and current v/s non-current liability. Please take a moment to Like, Subscribe, and Comment on this video! View Our Channel To See More Helpful Videos - https://www.youtube.com/tarunanejaclasses

MEANING OF LIABILITY

Please take a moment to Like, Subscribe, and Comment on this video! View Our Channel To See More Helpful Videos - https://www.youtube.com/tarunanejaclasses