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Q.Explain any five points of significance of Principles of Management.

(OR)
Explain the following techniques of Scientific Management :
(a) Fatigue Study ; and
(b) Differential Piece Wage System
CBSECBSE Class XII Board 2019Subjective· 5mImportance★★★★★
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Part (a): Principles of management are significant for useful insights, optimum use of resources, scientific decisions, meeting a changing environment, and social responsibility/training and research.

Part (b): Fatigue study fixes rest intervals to keep workers efficient; the differential piece wage system pays efficient and inefficient workers at different rates to reward efficiency.

Principles of management are broad and general guidelines for managerial decision-making and behaviour. Their significance is explained below.

  1. Providing managers with useful insights into reality: The principles of management provide managers with useful insights into real-world situations. Adherence to these principles adds to their knowledge, ability and understanding of managerial situations and circumstances.

  2. Optimum utilisation of resources and effective administration: Resources, both human and material, are limited and must be put to optimum use. Principles help managers to reduce the wastage of resources and to establish a cordial relation between employees, leading to effective administration.

  3. Scientific decisions: Decisions must be based on objective assessment of the situation. Principles of management help in thoughtful decision-making. They emphasise logic rather than blind faith, so that decisions are free from personal bias and prejudice.

  4. Meeting changing environment requirements: Although principles are guidelines to action, they are flexible and can be modified by managers when required. Their appropriate modification helps managers meet the requirements of a changing environment.

  5. Fulfilling social responsibility, and management training, education and research: Principles guide managers to act responsibly towards society while pursuing their goals. They also form the basis of management training, education and research, as they provide the fundamental framework on which such study is built.

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