RBSE SS Business Studies study materials
RBSE SS Business Studies study resources

RBSE SS Business Studies: Principles of Management

RBSE SS Business Studies · Work through your exam, one topic at a time.

All guide sections

Principles of Management

What the domain tests

Principles of management are broad guidelines for managerial behaviour. RBSE tests their nature-universal, flexible, general, contingent-and the contributions of Fayol and Taylor. Fayol gave 14 principles; Taylor gave scientific management ideas and techniques. Do not mix their lists.

Core rules

  • Fayol: division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest, remuneration, centralisation/decentralisation, scalar chain, order, equity, stability of personnel, initiative, esprit de corps.
  • Taylor: replace rule of thumb with science; harmony, cooperation, development of each person. Techniques: functional foremanship, standardisation and simplification, method/motion/time/fatigue studies, differential piece wage.
  • Unity of command = one boss per employee. Unity of direction = one head and one plan for a group with the same objective.
  • Scalar chain is the formal line of authority; a gang plank allows direct contact in emergencies.

Worked example

A worker receives orders from both the production manager and sales manager, causing confusion. This violates unity of command. If the same firm runs all fan production under one production head and one plan, that satisfies unity of direction. A direct call between two lower managers to solve an urgent breakdown is a gang plank, not a violation of the scalar chain.

Traps

Principles are flexible, not rigid laws. Unity of command is not unity of direction. Taylor’s functional foremanship deliberately violates unity of command, so explain it as a technique with specialist bosses. Do not credit Fayol with differential piece wage or time study.