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Principles of management


Today we are going to discuss the new chapter of business studies CBSE class 12 that is Principles of Management. With videos, Notes, Case Studies, and more.

Also, we are going to give you study notes, video lectures, and also PDF of handly lecture notes. Firstly, I want to share with you what are all the topics which we are going to cover in this article. Also, you can watch all the chapters videos on my YouTube channel by clicking here.

principles of management
principles of management

In this chapter we will cover the following topics;

  1. Concept of principles of management
  2. Nature of principles of management
  3. Significance of Management
  4. Scientific Management BY F.W Taylor
  5. Principles Of Scientific Management
  6. Techniques Of Scientific Management
  7. Fayol’s Principles
  8. 14 Principles Of Fayol

“Management principles are guidelines for decision-making and behavior for the whole organisation.”

Concept of Principles of Management

“Management principles are guidelines for decision-making and behavior for the whole organization.”

1_ Management principle is general therefore everyone can follow it whether big or small, profit or non-profit organisation.

2_ It’s broad in nature. Therefore it is present everywhere.

3_ It’s flexible in nature. So, we can change it according to our needs.

Nature of principles of management

Nature of management is as follows:

1_ It’s of universal applicability. Hence followed in all kinds of organization and the uses of principles may vary from one situation to another.

2_ It’s a general guideline, not a strict rule.

3_ It’s a general guideline, not a strict rule.

4_ It is flexible in nature. Hence can change according to the situation.

5_ It is mainly behavioural. Hence, formed to guide and influence the behaviour of people.

6_ It causes and effects relationships of the organisation to a certain extent. Hence you can predict the outcome of the results of the organisation and can ignore mistakes.

7_It is contingent in nature. Hence we can alter it. So, we can say that it is situation-based.

Significance of Management

Significance of management is as follows;

1_ It helps managers in better understanding the business situation with useful insights into reality.

2_Managers can avoid wastage by optimum utilisation of resources and effective administration.

3_It meets changing requirements. Hence, organisations can adapt to changing situations.

4_It helps in fulfilling social responsibility.

5_It is used in training, education, and research and helps in the development of management as a principle.


Scientific management was given by Fredrick Winslow Taylor. He was born on 20 March 1856 and died on 21 March 1915.

F.W Taylor is also known as the father of scientific management.

It is applicable in factory administration. Hence done by lower-level management.


1_We should work scientifically and not according to the rule of thumb. This principle aims at finding out the best method to perform a task and increase human efficiency.

2_It helps in creating harmony among managers and workers by mental revolution.

It says that both (managers and workers ) must change their thinking and workers must perform well and on the other hand, managers must share gains with the workers.

3_Managers must work in co-operation with workers not individually. Hence managers must consult workers in decision making and workers should not go on strikes.

4_Managers should select the right employees and assign them proper task according to their ability and provide them with timely incentives for motivation.

It helps in the development of each and every person to his or her greatest efficiency and prosperity.


(I)_Functional foremanship: Taylor believed that all the qualities cannot be found in single person.

He suggested putting a worker under a eight functional foreman.

He was somehow against unity of command.

Factory manager :

It comprises Planning Incharge and Production Incharge

Planning Incharge:

It comprises following:

1_ Route clerk : It’s work is to suggest sequence in which operations to be performed

2_ Instruction clerk: It’s work to give instructions to work for handling their jobs.

3_ Time and cost clerk: It’s work is to frame time schedule and record a cost of operations.

4_Disciplinarion: Its work is to enforce rules and maintain discipline in the factory.

Production Incharge:

It comprises following:

1_Gang boss: It’s work is to provide inputs so works can be done effectively

2_Speed Boss: It’s work is to check if the work production is going on it and accurately or not .

3_Repair boss: It’s work is to check whether machines are in good condition or not.

4_Inspector: It’s work is to inspect final output produced.

(II)_Standarisation and simplification of work: It means bringing uniformity in all business activity and reduction of extra varities, dimenson, sizes which are not required and it wll help in increasing efficiency.

(III)_Method Study: It means finding out the best method to perform the work.

(IV)_Motion Study: It means studying motion like moving, holding, etc. Taylor says that if that motion is necessary then keep it and if not then remove that motion.

(V)_Time Study: It means that a standard time needed to perform a well defined job.

(VI)_Fatigue study: It means determining the amount of frequency of rest intervals in order to get maximum productivity.

(VII)_ Differentiatial piece wage system: It means to differentiate between the wages of efficient workers and inefficient workers.


  • He is also known as the Father of general management. It is applicable to office administration.
  • He cleared the distinction between technical and managerial skills and identified the process of management.
  • He developed 14 principles.


1_Division of work: It means dividing work into small tasks and giving that work to the expert one.

2_ Authority and responsibility: Fayol says that every person should have authority and responsibility in a balanced way to avoid misuse of power.

3_ Discipline: It says that management should ensure that every person in the management should respect each other.

Rand regulation should be fair and there shouldn’t be any discrimination.

4_Unity of command: Fayol says that there should be one boss of the workers.

5_Unity of direction: Fayol says that there should be one head for one plan.

6_Subordination of individual interest to general interest: It says that directing general interests towards the organisation’s goal.

7_ Remuneration of employees: It says that efficient workers should get higher salaray.

8_Centralisation and decentralisation: In centralisation, powers are limited in few hands.

Decentralisation powers are distributed in the top, middle and lower level of management.

9_ Scalar Chain: There should be a proper flow of communication.

When a lower-level worker talks to the higher level management in case of emergency then this process is known as gang plan.

10_Order: Fayol says that every manager get their separate department I the management.

11_Equality: Every employee should get fair treatment in the management.

12_Stability of personnel/ tenure: It means that every employee should get time to settle in the management and there should be a proper selection of employees.

13_ Initiatives: Fayol says that there should be involvement of every employee in the decision making.

14_ Espirit de Corps: Fayol says that there should be a feeling of brotherhood and humanity among workers. He said that I should be replaced by us.

So, Guys, we have finally over with this chapter.

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Business Vidya

Hello, my name is KUNAL LONHARE. I am an entrepreneur based in india. This is a blog and I am the founder of it, where I post how can a person acquire Good marks In academics without wasting any money for tuition fees.

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