Study the following case/situation and express your opinion. Mr. Harshad is an entrepreneur and engaged in production of eco-friendly utensils.

Study the following case/situation and express your opinion.

Mr. Harshad is an entrepreneur and engaged in production of eco-friendly utensils. Both male and female workers are working in his factory. All male employees are directly working on machines whereas female employees are working in Packaging Department. Mr. Sharath is working as Finance Manager while Mrs. Naina is working as HR Manager who is responsible for recruiting employees in the factory. On this basis:

i) Identify any one principle of management in above case.

ii) What is the designation of Mrs. Naina in this organization.

iii) Who is responsible for overall planning of the organisation?

Solution: 

i) In the above case, principle of Division of work is identified.

ii) The designation of Mrs. Naina is Human Resource Manager.

iii) Mr. Harshad, an entrepreneur of eco-friendly utensils, is responsible for overall planning of the organisation.

Balbharati Solutions for Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Chapter 1: Principles of Management

Chapter 2: Functions of Management

Chapter 3: Entrepreneurship Development

Chapter 4: Business Services

Chapter 5: Emerging Modes of Business

Chapter 6: Social Responsibilities of Business

Chapter 7: Consumer Protection

Chapter 8: Marketing

Answer in brief. Explain any five principles of management of Henry Fayol?

Answer in brief.

Explain any five principles of management of Henry Fayol?

Solution: 

1) Principle of Division of Work:

According to this principle, the work is divided into different kinds such as technical, financial, commercial, security operations, accounting and managerial. It is assigned to employees as per their qualities and capabilities. It helps in improving efficiency and expertise of employees which ultimately turns into expected productivity level.

2) Principle of Authority and Responsibility:

Authority is the right to take decisions. It is necessary to get the things done appropriately from subordinates. Authority always comes with the responsibility. If the manager is given the authority to complete a task within a given time, he should be held responsible if he does not complete the work in given time.

 

3) Principle of Discipline:

According to Fayol, discipline is the most essential thing in the organization. Employees must obey and respect the rules that govern the organization. Discipline helps to achieve the goals in the organization. Good discipline is the result of effective leadership. There must be a clear understanding between the management and workers regarding the organization's rules. Basic discipline should be observed at all levels of management.

4) Principle of Unity of Direction:

This principle states that 'there should be one head and one plan' in every organization. Each group in the organization should have the same objective and the group should be directed by one manager using single plan.

5) Principle of Remuneration:

Appropriate remuneration to staff or employees is the principle to keep them satisfied financially as well as retain them for long span of time within the organization. The fair remuneration effects on the productivity and efficiency level in total. The remuneration should be fixed by taking into consideration the skill, expertise, knowledge, tenure, cost of living, market trend, profitability of organization etc.

Balbharati Solutions for Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Chapter 1: Principles of Management

Chapter 2: Functions of Management

Chapter 3: Entrepreneurship Development

Chapter 4: Business Services

Chapter 5: Emerging Modes of Business

Chapter 6: Social Responsibilities of Business

Chapter 7: Consumer Protection

Chapter 8: Marketing

Study the following case/situation and express your opinion. In 'Fine Diamonds Ltd.' 200 employees are working in three shifts.

Study the following case/situation and express your opinion.

In 'Fine Diamonds Ltd.' 200 employees are working in three shifts. In the first shift 60 employees, in the second shift 60 employees, and in the third shift 80 employees are working without sufficient breaks except for lunch break and shift change break. No employee is able to complete the work in designated time due to inappropriate time management which results in delay for next shift employees.

i) Identify which scientific principle needs to be followed by the company.

ii) Suggest two scientific techniques which can be used for smooth flow of work in 'Fine Diamonds Ltd. '

iii) Why the work is not being completed in time?

 

Solution: 

In the above case, Principle of scientific management called Science, Not Rule of Thumb needs to be followed.

Work-study based on the technique of fatigue study and Scientific task setting can be used for smooth flow of work in 'Fine Diamonds Ltd.

Reasons for non-completion of work in time are :

(a) Long working hours without sufficient breaks reduces the efficiency of labour.
(b) Inappropriate time management (planning) done by the departmental head (Functional Manager) result into delay for next shift employees.
(c) Standard required time and standard output are not defined by the manager or management of "Fine Diamonds Ltd."

Balbharati Solutions for Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Chapter 1: Principles of Management

Chapter 2: Functions of Management

Chapter 3: Entrepreneurship Development

Chapter 4: Business Services

Chapter 5: Emerging Modes of Business

Chapter 6: Social Responsibilities of Business

Chapter 7: Consumer Protection

Chapter 8: Marketing

Justify the following statement. Principles of management are flexible in nature.

Justify the following statement.

Principles of management are flexible in nature.

Solution: 

(1) Principles of management are the statements of fundamental truth which act as guidelines for managerial decision-making and action. They establish cause and effect relationships. They are evolved through observation, analysis, and experiments.

(2) Principles of management although fundamental, are not rigid. They are flexible in nature in the sense they can be changed or modified according to the situation and requirements of the organization. Managers can change these principles to suit the requirements of the organization.

(3) Principles of management are flexible guidelines providing ample scope for making changes according to the nature of the enterprise, its size, competitive situation, etc. For instance, in the context of the present business scenario, in many places, the 'family management has been substituted by professional management.

(4) The modern business world is dynamic. The situations in a business enterprise keep on changing continuously. No two circumstances are identical. Principles of management can be changed, adjusted or modified, and used in the enterprise as per its changing needs and requirements. By identifying problems of business changes will be accepted.

Balbharati Solutions for Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Chapter 1: Principles of Management

Chapter 2: Functions of Management

Chapter 3: Entrepreneurship Development

Chapter 4: Business Services

Chapter 5: Emerging Modes of Business

Chapter 6: Social Responsibilities of Business

Chapter 7: Consumer Protection

Chapter 8: Marketing

Answer in brief. Describe any four techniques of scientific management?

Answer in brief.

Describe any four techniques of scientific management?

Solution: 

Some of the major techniques of scientific management are as follows:

1) Standardization of Tools and Equipment:

With the result of experiments conducted at work place, Taylor advocated the standardization of tools and equipment. Standardized working environment and methods of production help to reduce spoilage and wastage of material, cost of production, fatigue among the workers and it improves the quality of work.

2) Scientific Task Setting:

Taylor emphasized the need for fixing a fair day's work. A scientific work setting is important to prevent the employees from doing work much below their capacity. By using this technique, employees will complete the task according to standards given and management can keep proper control on optimum utilization of the workforce.

3) Scientific Selection and Training: 

Management can select the right persons for the right jobs by using scientific selection procedures. It needs to fix job specifications as per requirement. Employees are selected according to predetermined standards in an impartial way. After selection, management should provide the proper training programs to increase their efficiency. 

4) Differential Piece-Rate Wage Plan:

Taylor suggested the differential piece-wage system. Higher rates are offered to employees who complete the work more than the standard quantity under this system. On the other hand, if an employee is performing below the standard; he shall be given a lower rate of wages. This technique motivates the employees to attain higher standard performance and earn wages i.e. remuneration at a higher rate.

Balbharati Solutions for Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Chapter 1: Principles of Management

Chapter 2: Functions of Management

Chapter 3: Entrepreneurship Development

Chapter 4: Business Services

Chapter 5: Emerging Modes of Business

Chapter 6: Social Responsibilities of Business

Chapter 7: Consumer Protection

Chapter 8: Marketing

Justify the following statement. Management principles are helpful in optimum utilization of resources.

Justify the following statement.

Management principles are helpful in optimum utilization of resources.

Solution: 

(1) Materials or abstract qualities that a person or organization uses to perform the work are called resources, e.g. tools, stocks, time, employees, etc. In every organization, two types of resources are used and they are

(i) Physical resources such as material, machine, money, etc. 

(ii) Human resources i.e. manpower.

 

(2) The different types of resources are used in the organization to manufacture or produce different types of goods and services. The resources are scarce in relation to their demand and therefore resources should not be wasted and misused. They should be used carefully and up to their optimum capacity.

 

(3) The basic aim and function of management are to make and maintain proper balance and allocate these resources by putting them to maximum possible use and control on wastage of resources. Through the use of different techniques and management principles, management maintains discipline and a healthy working environment to establish a cordial relationship with the employees.

 

(4) It helps to increase the efficiency level of employees and to manage the administration effectively, e.g. use of modern and standard tools and machinery. It also helps to increase quality, productivity, and level of efficiency of human resources.

Balbharati Solutions for Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Chapter 1: Principles of Management

Chapter 2: Functions of Management

Chapter 3: Entrepreneurship Development

Chapter 4: Business Services

Chapter 5: Emerging Modes of Business

Chapter 6: Social Responsibilities of Business

Chapter 7: Consumer Protection

Chapter 8: Marketing

Chapter 2 - Matrices, Balbharati solutions, for Mathematics and Statistics 1, (Commerce) 12th Standard HSC, Maharashtra State Board, Latest edition,

• EXERCISE    2.1  PAGES 39 - 40
• EXERCISE    2.2  PAGES 46 - 47
• EXERCISE    2.3  PAGES 55 - 56
• EXERCISE    2.4  PAGES 59 - 60