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(d) Direction

According to Taylor, mental revolution means a complete transformation in the attitude of the management and the workers towards each other.

Co-ordination

(c) co-operating

Stability of the Tenure of Personnel

(c) providing employment

Principles of scientific management:

(i) Science, not rule of thumb advocates that there is only one best method to maximise efficiency and this method should substitute ‘rule of thumb’ throughout the organisation.

(ii) Harmony, not discord advocates that there should be complete harmony between the manage and the workers.

(iii) Co-operation, not individualism states that competition should be replaced by co-operation.

(iv) Development of each and every person should be scientifically selected, placed and trained to ensure the greatest efficiency and prosperity for both the company and the workers.

Differential piece wage rate system.

It means obedience to the organizational ruled and employment agreements. One should have good relationship with others, following rules and regulations, performing of assigned tasks honestly with interest, all come under discipline.

(i) Science, not Rule of Thumb.

(ii) Harmony, not Discord

i. Motion Study

ii. Time Study

iii. Work Study

iv. Principle of Initiative

v. Principle of Order.

To increase the efficiency of workers

According to Fayol, “People and Materials must be in suitable places and at appropriate time for maximum efficiency”. This principle states that “There is a place for everything and everything must be in its place”.

By eliminating unnecessary and wasteful movements in the job.

Science not rule of thumb.

Workers should be encouraged to develop and carry out their plans for improvement. Initiative refers to the steps taken by the employees towards their self-motivation.

The time study helps to improve the efficiency of the workers as because of it:

i. The workers try to complete their task within specified period.

ii. The workers get the benefit of incentive plan prepared on its basis.

Employee turnover should be minimized to maintain organizational efficiency. Employees should be selected and appointed through various procedures. He should be kept at their post for a minimum fixed period. They should be given reasonable time to show their results.

The motion study helps to improve the efficiency of the workers as under it the efforts are made:

i. to eliminate the unnecessary motions and.

ii. keep the number of necessary motions at the minimum.

A global depository receipt is an instrument in the form of a depository receipt or certificate, denominated in U.S dollar, created by an overseas Depository Bank outside India, and issued to non-resident Investors against the issue of ordinary shares or foreign currency convertible bonds of the issuing company.

Merits of GDRs:

1. There are less administrative formalities as regards dividend payment on GDRs. 

2. There are less formalities connected with the issue of GDRs. 

3. The cost of raising funds through GDRs from international markets is less as compared to domestic issues. 

4. GDRs help in tapping international capital for domestic companies. 

5. GDRs offer comparatively better share values as compared to domestic issues. 

6. GDRs enhance the image of the company that has issued them. 

7. GDRs broaden shareholders base!

GDRs = Global Depository Receipts.

A bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches. ‘

A financial instrument used by private markets to raise capital denominated in either U.S. dollars or Euros.

• Holders of GDR are eligible only for capital appreciation and dividend but no voting rights.
• These instruments are called EDRs when private markets are attempting to obtain Euros.
• It is a negotiable instrument and can be traded freely like any other security.
• A holder of GDR can convert it into any other security at any time.

Stability of tenure of personnel – It is the management principle developed by Henry Fayol. All others are Taylors Scientific management principles.

In this case the principle of ‘Order’ is violated. Following are the consequences of it:

i. Misuse of resources.

ii. Increase in the possibility of accidents.

iii. Height of disorder.

Correct option is (a) Finding the best way of doing thing

Correct option is (b) Principle of order

Principal of unity of command implies that every employee should receive orders and instructions from one boss only and he should be responsible and accountable to him only.

Different types of debentures that a company can issue are described below:

1. Convertible and Non-convertible Debenture: Convertible debentures are those debentures that can be converted into equity shares after the expiry of a specified period. On the other hand, non-convertible debentures are those which cannot be converted into equity shares. 

2. Registered and Bearer: Registered debentures are those which are duly recorded in the register of debentures holders maintained by the company. These can be transferred only through a regular instrument of transfer. In contrast the debentures which are transferable by more delivery are called bearer debentures. 

3. Secured and Unsecured: Secured debentures are such which create a charge on the assets of the company, thereby mortgaging the assets of the company. Unsecured debentures on the other hand do not carry any charge or security on the assets of the company.

4.First and Second: Debentures that are rapid before other debentures are known as first debentures. The second debentures are those which are paid after the first debentures have been paid back.

WIPRO and ICICI

Correct option is (c) Method study

Speed Boss, Gang Boss, Repair Boss, and Inspector.

Functional Foremanship: A foreman refers to a person who is in charge of the operational-level workers.

According to this technique, the planning and the production functions should be separated. That is, under the manager, there should be one planning incharge and one production incharge. Each incharge should have four personnel under him/ her.

The following are the four persons that work under the planning incharge:

(i) Instruction Card Clerk: To give instructions to the workers.

(ii) Route Clerk: To show the route of production.

(iii) Time and Cost Clerk: To take care of the time and costs.

(iv) Disciplinarian: To ensure that discipline is being maintained.

As per this principle, an employee should receive orders from only one superior at a time. Because of it, there will be no confusing situation for the subordinates and hence, their efficiency increases.

Principle of ‘Unity of Command’ implies that each and every subordinate should have one and only one boss. Orders and instructions should come from only one head. 

This helps the working of any organisation in the following manner

• Authority responsibility relationship is clearly defined. 
• Subordinates know to whom they are accountable. 
• Discipline and order are maintained.

Principle of Unity of Command implies that each and every subordinate should have one and only one boss. Orders and instructions should come from only one head. This helps the working of any organisation in the following manner 

(i) Authority responsibility relationship is clearly defined. 

(ii) Subordinates are known for whom they are accountable. 

(iii) Discipline and order is maintained.

Unity of command:

• The concept of getting command from only one superior is called Unity of Command.
• Employees cannot follow orders from more than one superior. Hence this principle suggests that employee should get order from only one superior for any job or activity.
• As per this principle, an employee should be responsible to only one superior or department for a particular job.
• This principle prevents any confusion that may arise amongst employees with respect to whose order to follow. If order comes from more than one superior then it creates confusion amongst employees and hampers industrial discipline.

Principle of equity:

This principle requires the managers to be kind and just to workers. Superiors should be impartial while dealing with their subordinates.

Correct option is (D) All of these

d. All of the above

1. Principle of initiative.

2. Their attachment with the company will increase and they will offer new and useful ideas.

Benefits of specialisation will not be available.

The principle of unity of command states that an employee should receive orders from and be answerable only to one superior. On the other hand, under functional foremanship an employee receives order from many superiors at a time and he/she is answerable to all of them. Hence, we find that there is a contradiction between the two. This contradiction is because of the difference in their respective objective.

The objective of the principle of unity of command is to avoid confusion regarding the work to be done and that of functional foremanship is to make possible the full utilisation of expertise of various experts.

d. none of the above.

The principle of ‘Remuneration to Employees’ is violated as the manager’s expectation has no use without providing fair remuneration to the employees. It increases the labour turnover rate.

The principle of ‘Scalar Chain’ is violated as during communication the various steps of Scalar Chain are overlooked. It creates disorderly flow of information.

The principle being overlooked is ‘Unity of Command’ as at the same time there are many superiors giving orders to the same employee. It reduces the efficiency of the subordinates.

Decrease in the efficiency of the organisation.

Height of disorder.