Test: Principles Of Management - 1 - Commerce MCQ

Fredrick W. Taylor is recognised as the father of scientific management. He advocated for the division of work and responsibility between workers and management to enhance productivity.

• Taylor believed in breaking down tasks into smaller parts to find the most efficient way to perform them.
• He conducted time and motion studies to measure work processes and improve efficiency.
• Taylor argued that management should work closely with employees, fostering cooperation to eliminate the need for trade unions.
• He introduced the concept of scientific selection of workers, ensuring that tasks matched their skills and capabilities.
• His principles emphasised training and development to maximise both employee efficiency and company productivity.
• Taylor's ideas were published in his influential work, The Principles of Scientific Management, in 1911.

Overall, Taylor's approach aimed to create a partnership between management and a skilled workforce, leading to mutual benefits.

Human Relations Theory rejects formal institutionalisation and highlights the significance of human motivation and informal work groups.

• The theory emerged between the 1920s and 1950s.
• It suggests that employees do not solely respond to rules and economic incentives.
• Social needs, drives, and attitudes also play a crucial role in employee behaviour.
• The Hawthorne Studies were pivotal in demonstrating these concepts.
• This approach laid the groundwork for the development of behavioural sciences.

Scientific management uses systematic methods to identify the most efficient way to perform tasks. This approach was developed by Frederick W. Taylor and includes the following key principles:

• Development of a true science: Establishing a systematic approach to work.
• Scientific selection of workers: Choosing the right people for the right jobs.
• Training and development: Ensuring workers are trained in the best methods.
• Cooperation: Fostering a collaborative environment between management and employees.

Taylor's methods involved:

• Conducting time and motion studies to analyse tasks.
• Breaking jobs into smaller parts for efficiency.
• Standardising tools and methods to enhance productivity.

His approach aimed to maximise efficiency, reduce costs, and improve quality. For example, at the Bethlehem Steel Company, Taylor's principles led to a three-fold increase in productivity.

Cooperation, Not Individualism:

According to Taylor, for industrial efficiency, it is crucial to foster cooperation between management and workers rather than competition. Here are the key points:

• Open Communication: Management should actively listen to constructive suggestions from employees.
• Reward Suggestions: Employees should be recognised and rewarded for ideas that lead to cost savings.
• Involvement in Decisions: Workers should be included in significant decision-making processes.
• Harmony Over Conflict: Both parties should work together, reducing the need for strikes or unreasonable demands.
• Paternalistic Management: A management style that cares for employee needs can enhance workplace relations, as seen in Japanese companies.
• Shared Responsibility: There should be a balanced division of work and responsibilities between management and workers.
• Mental Revolution: A shift in mindset is needed for both management and workers to see each other as partners.

Taylor and Frank Gilbreth improved efficiency through motion study by:

• Identifying and eliminating unnecessary motions in tasks.
• Reducing the number of steps required to complete a job, which streamlined processes.
• Using tools like stopwatches to measure and analyse movements.
• Teaching workers to perform tasks more efficiently, such as reducing brick layering motions from 18 to just 5.
• Designing simple tools and equipment to aid in efficient task completion.

This approach significantly increased productivity and reduced the time taken to complete tasks.

The Differential Piece Wage System is designed to motivate workers by differentiating pay based on performance. Here’s how it works:

• Performance-Based Pay: Workers are rewarded with higher wages for exceeding standard output levels.
• Standard Output: A benchmark is set, such as 10 units per day. Workers meeting or exceeding this receive a higher rate, while those below receive less.
• Example: If a worker produces 11 units, they earn Rs. 550 (11 units x Rs. 50). Conversely, a worker producing 9 units earns Rs. 360 (9 units x Rs. 40).
• Motivation for Improvement: The wage difference (Rs. 190 in this case) encourages less efficient workers to enhance their productivity.
• Historical Context: Taylor cited examples, such as a worker named Schmidt, who significantly increased his earnings by improving his output through scientific management techniques.

Frank Gilbreth improved the brick-layering process significantly through the application of scientific management. His key contributions included:

• Reducing unnecessary motions: He cut down the number of motions required for brick laying from 18 to just 5.
• Introducing adjustable scaffolds: This innovation allowed workers to operate more efficiently and safely.
• Training workers: He taught bricklayers to use both hands simultaneously, enhancing their productivity.

These changes exemplify how scientific management can optimise work processes, leading to improved efficiency and output.

Efficiency refers to the ability to produce goods and services while using the minimum amount of resources. This concept is crucial in management as it helps organisations achieve their goals effectively. Here are some key points about efficiency:

• Resource Management: Efficiency ensures that both human and material resources are utilised optimally.
• Cost Reduction: By minimising waste, organisations can lower production costs.
• Improved Productivity: Efficient processes lead to higher output and better quality of goods and services.
• Decision-Making: Managers can focus on critical issues while delegating routine tasks, enhancing overall efficiency.

Just In Time Manufacturing is an inventory management strategy designed to enhance return on investment by minimising in-process inventory and its related costs. Key features include:

• Visual Signals: Utilises tools like KANBAN to indicate when replenishment is necessary at various production stages.
• Waste Reduction: Focuses on eliminating waste in production processes to improve efficiency.
• Cost Efficiency: Aims to lower costs associated with holding excess inventory.

This approach ensures that materials arrive just as they are needed, reducing storage costs and increasing operational efficiency.

Motion study focuses on analysing the movements involved in performing a job. Its primary goal is to:

• Identify unnecessary motions that can be eliminated.
• Enhance efficiency by reducing the time taken to complete tasks.
• Improve productivity, as demonstrated by Taylor's work, which reduced motions in brick layering from 18 to just 5.

Through careful observation, motion study helps to distinguish between:

• Productive motionsli>
• Incidental motions (e.g., trips to storage)
• Unproductive motions