Principles of Management
Domain 2 - Principles of Management - tests Taylor's scientific management, Fayol's fourteen principles, the techniques of each, and the contrast between the two thinkers.
Taylor's scientific management
Five principles: science, not rule of thumb; harmony, not discord; cooperation, not individualism; development of each person to greatest efficiency and prosperity; mental revolution on both sides.
Techniques: functional foremanship (eight specialists - route clerk, instruction card clerk, time and cost clerk, disciplinarian, speed boss, gang boss, repair boss, inspector); standardisation and simplification of work; method study; motion study; time study; fatigue study; differential piece wage system.
Fayol's fourteen principles
Division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration, centralisation and decentralisation, scalar chain, order, equity, stability of personnel, initiative, esprit de corps.
Gang plank: a permitted shortcut across the scalar chain in an emergency, e.g. E contacting W directly instead of climbing the chain.
Worked example: differential piece rate
Standard output = 20 units/day; ₹5 per unit below standard, ₹8 per unit at or above standard. Worker A makes 24 units → 24 × 8 = ₹192. Worker B makes 18 units → 18 × 5 = ₹90. A makes 6 units more but earns ₹102 more, because the higher rate applies to all units once the standard is reached. Reasoning: the scheme penalises inefficiency and rewards output, which is exactly Taylor's aim.
Traps
- Unity of command (one boss per person) vs unity of direction (one head, one plan for one group of activities).
- Taylor's approach is shop-floor and bottom-up; Fayol's is top-down general administration.
- Functional foremanship deliberately violates unity of command.