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Following are the dissimilarities in the ideas of Taylor and Fayol:

Difference between Taylor and Fayol

The following are the 14 principles of management suggested by Fayol:

i) Division of work - It means that a given task should be divided into small groups or units so that it can be performed in a more competent manner. This principle focuses on work specialisation.

ii) Authority and responsibility - ‘Authority’ means the power to give orders and assign duties, whereas ‘responsibility’ refers to someone’s obligation to perform the assigned duties. According to the principle, managers should strike a balance between power and obligation.

iii) Discipline - The principle says that every organisation should follow certain rules and regulations and ensure conformity to the set rules and policies. The management and the workers should honour their commitments and make fair agreements.

iv) Unity of command - According to the principle of unity of command, an employee should be answerable to only one boss. If an employee receives commands and directions from two or more superiors, then there will be chaos and conflict.

v) Unity of direction - Unity of direction means that each unit of an organisation should work towards the accomplishment of one goal. According to the principle, different units sharing common goals should have a single head and should frame plans and carry out tasks accordingly. This system ensures elimination of overlapping and duplication of work.

vi) Subordination of individual interest to general interest - Organisational goals should enjoy priority over personal interests of any individual. The individuals of an organisation should make sure that their personal interests do not affect the organisational interests in any manner.

vii) Remuneration of employees - Compensation should be fair for the employees and the management. This implies that employees should get fair wages and salaries so that they can have a reasonable and decent standard of living.

viii) Centralisation and decentralisation - Centralisation refers to the consolidation of power and authority in few hands. On the other hand, decentralisation refers to the delegation of authority to more than one level. As per the principle, the management must strike a balance between the areas that need to be decentralised and the responsibilities that need to be retained at the top-level management.

ix) Scalar chain - Scalar chain refers to a pre-defined, formal path of authority and communication in the line of order (from the highest rank to the lowest rank). Every individual in an organisation follows this chain of authority for communication.

x) Order - The principle focuses on the right arrangement of things at their respective places, i.e., ‘the right people at the right place and at the right time’. Order helps in carrying out tasks smoothly, and violation of this principle leads to chaos and delays in work.

xi) Equity - The principle focuses on treating each employee fairly and equally. According to the principle, all employees should be equal in the eyes of the management. All workers should be regarded as equal, irrespective of their religion, language, caste, etc.

xii) Stability of personnel - The principle suggests that the management should follow a rigorous procedure for the selection of potential candidates and work towards retaining employees for as long as possible. This ensures stability of personnel over a longer period.

xiii) Initiative - The principle suggests that workers should be given enough motivation and incentives to work. They should be inspired to come up with suggestions regarding their work, but those suggestions should be in line with the practices and rules of the organisation.

xiv) Espirit de corps - Espirit de corps is a concept that recommends that all employees should work in unity with one another. In other words, team spirit should be promoted by the managers and each employee should feel a sense of belongingness with the organisation.

(c) Scalar Chain

In case of unity of command, every employee receives instructions from one boss only and he is responsible and accountable to him alone. In case of functional foremanship, every worker receives instructions from eight losses, four from planning department and four from production department. In this way, unity of command stresses on centralisation and functional foremanship on decentralization.

Correct option is (A) Finance

Management thoughts are the outcome of researches, studies and results in the field of management.

Types of debentures:
1. Secured debentures:

Debentures that are secured against company’s assets are called secured debentures. This means that at the time of dissolution if the company does not . have sufficient funds to repay the debentures than it will sell the mortgaged assets to repay. These assets carry floating charge when mortgaged.

2. Convertible debentures:

• If a company has announced that after a specific time debentures will be converted fully or partly into equity shares then such debentures are known as convertible debentures.
• If the company has made a provision of converting debentures in its Memorandum of Association then the company would give equity shares against the debentures in a pre-decide ratio.

3. Non-convertible debentures:

Debentures that are not converted into shares and whose money is returned to the debenture holders as per specific conditions and time frame are called non-convertible debentures.

Correct option is (D) Equity shares

Management principles are statement of fundamental truth which provide guidelines for management decision making and action.

Correct option is (B) Charge

(a) Division of labour

(b) a) Division of work 

(b) Benefits of Division of Work

(1) It helps to minimize wastage.

(2) The quality and quantity of production will improve.

(3) It helps increase the efficiency of employees.

The Company violated the following principles. 

a. Division of work 

b. Unity of command 

c. Unity of direction 

d. Discipline 

e. Subordination of individual interest to general interest 

f. Order 

g. Initiative 

h. Remuneration.

The principle of ‘Discipline’ is violated as the manager’s behaviour is not disciplined at all. It creates an atmosphere of doubt and suspicion.

Relevance of Taylor and Fayol’s contribution in the contemporary business environment. Both Fayol and Taylor have given principles of management to improve efficiency in an organisation. Taylor gave us scientific principles of management which are being adopted by all organisations to improve its productivity at the shop floor level, the principles help in giving effective results. In the same manner, Henry Fayol gave in general principles of management which when implemented at any of the levels-top, middle or lower and helps in achieving better co-ordination, remove ambiguity and encourage the employees to improve their work performance.

(i) Division of Work:  As per the case work is not divided among the workers as per their specialisation. As specialisation is the most efficient way to use human efforts and produces more and better work. 

(ii) Unity of Command: In the case subordinates had to work for more than one superior. This results in declining efficiency. As per Fayol’s principle of unity of command there should be one boss and if it is violated it results in authority is undetermined, discipline is in jeopardy, order distributed and stability threatened. Same we are observing in the above case. 

(iii) Unity of Direction: The units of an organisation should be moving towards the same objective. Each group must be having same objective must have one head one plan. But in case first the producers are working on one product then moved to two or more group. Thus, this principle is also violated. 

(iv) Discipline: In the case, there is a lack of formalised control as the workers are working beyond there abilities. There is no rules and regulations as well as lack of employment agreement. 

(v) Subordination of Individual Interest to General Interest: Every individual is working better only when the organisation is giving priority to their general interest. In the case, company in only focusing over its objective not on employees. 

(vi) Order: People and materials must be in suitable places at appropriate time for maximum efficiency. But in case they are not following the order of anything, 

(vii) Initiative: It implies that workers should be self motivated, suggestions should be taken from the employees. It results in substantial cost and time reduction but here they are taking no feedbacks, no suggestions. 

(viii) Remuneration: The workers should get the fair wages but in case workers are performing day and night but they are not getting a fair amount for the same. This results that they are feeling cheated.

1. Unity of Command: 

The principle of unity of command state that each employee should receive orders from one superior only. It helps to avoid confusion and conflict in the employees.

2. Unity of Direction: 

Each group of activities having the same objective must have one head and one plan. This ensures unity of action and coordination.

A change in the format of industry and business units after 1960 was the main reason for thoughts of modern management to arise.

Correct option is (B) Public deposits

• Secured debentures
• Convertible debentures and
• Non-convertible debentures.

The principle of ‘Unity of Command’ is violating. As per this principle, an individual employee should receive orders from only one superior at a time and that employee should be answerable only to that superior. The violation of this principle reduces the efficiency of the subordinates.

The principle of ‘Equity’ is violated. This principle tells that the managers should treat their subordinates in a just and kind manner so that they develop a feeling of dedication and attachment for their work. For example, a labourer completes 10 units of goods in a day. Another labourer who happens to be a relative of the supervisor completes 8 units but both get equal remuneration. This violates the principles of equality. The second labourer should get less remuneration than the first one.

The principle of ‘Unity of Command’ is violated in this case. The following are the violating effects of it:

i. It creates a confused situation for the subordinates.

ii. It reduces the efficiency of the subordinates.

Division of work

Company violated following principles 

(i) Division of work 

(ii) Unity of command 

(iii) Unity of direction 

(iv) Discipline 

(v) Subordination of individual interest to general interest 

(vi) Order (vii)Initiative 

(viii) Remuneration

Fatigue study:

Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task.

The principle of ‘Equity’ suggests that employees should be treated with ‘Justice and Kindness’. It means all the employees should be treated equally and impartially.

The principle is essential in the management because of the following causes:

i. The employees remain satisfied.

ii. Increases the sense of devotion to the organisation.

iii. Skilled employees try to improve upon their skill.

iv. Unskilled employees try to achieve some skill.

1. Stability of tenure of personnel.

2. If employees are frequently changed from one job to another, the entire production process will be disturbed. Also, both quantity and quality of work get reduced. Frequent change in job will create job dissatisfaction in employees.

The main limitation of this approach is that human relation is given more importance which cannot be maintained at the cost of productivity.

Australian psychologist Elton Mayo’s theory of Hawthorne gave a new birth to behavior oriented thoughts.

i. It helps in achieving group goals.

ii. It increases efficiency.

Thoughts related to Human Behaviour:

• Management is an art of getting work from others i.e. humans. Keeping this ‘ in mind these thoughts consider human behaviour as the main part of, management.
• Prof. Urvik said, “You manage your men, your men will manage rest of all”. A business unit is managed by people. Hence, it is utmost important to study inter-relationship between humans at work place.
• Since, management of people is done on a constant basis the thoughts related to human behaviour emphasizes on studying aspects that affect behaviour of humans in the work place and their approach towards the work. So, these thoughts emphasize on concepts like job satisfaction, increasing efficiency of employees, ways to keep them motivated, etc. All this is done by performing psychological observations on employees.
• Concepts like inter-human relations, motivation, leadership, information communication process, disposal of industrial disputes are included in behaviour related thoughts.
• One of the biggest drawbacks of this approach is that it focuses on psychological aspects only and does not consider economic parameters of the business unit. Hence, some believe that the human relations cannot be maintained at the cost of productivity.

Debentures that are secured against company’s assets are called secured debentures.

Method study

Proper understanding of management principles is necessary because of the following reasons: 

(a) Provides useful insight to managers. The knowledge of principles improves the understanding of managers about the ways and means of managing an organization. Management principles are helpful in taking decisions and handling situations arising in course of management. 

(b) Helps in thoughtful decisions making. Management principles help in thoughtful decision-making. They emphasize logic rather than blind faith. Management decisions taken on the basis of principles are free from bias and prejudice. They are based on the objective assessment of the situation. 

(C) Optimum utilization of resources. Resources should be put to use in such a manner that they should give maximum benefit with minimum cost. Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. 

(d) Direction for training of managers. The principles are helpful in identifying the areas of management in which existing and future managers should be trained. The principles of management help the universities and professional institutes to impart teaching and training in the theory and practice of management. 

(e) Role of management. The principles focus on matters on which greater managerial attention is required. Principles act as ready reference for the managers to check whether their decisions are appropriate or not. 

1. Unity of command 

2. Authority and responsibility 

3. Order

A proper understanding of management principles is necessary because of the following reasons:

i. Provides Useful Insight to Managers: The principles of management were developed on the basis of the experience of various professional people. The principles inform the manager about the manner in which he should act in various situations so that he does not repeat the mistakes of the previous managers.

ii. Optimum Utilisation of Resources and Effective Administration: In every organisation physical (material, machines, money, etc.) and human (manpower) resources are used. The function of management is nothing but to put them to optimum use or avoid wastage of resources. And it is possible only when a manager makes use of the principles of management. The primary need of every organisation is that its administrative system should be effective. Only that administrative system is called effective where the managers can take balanced and quick decisions. In order to take such decisions, sufficient information and authority should be available. This is made possible with the help of the principles of management.

Mental revolution:

It involves a change in the mental attitude of workers and management towards each other. Both parties should realise each other’s importance and work towards the profit of the firm.

Based on human behaviour:

• Human is at the center of the management. So, the principles of management largely affect human behaviour.
• Human behaviour is a psychological phenomenon and so implementing management principles on humans will affect their behaviour in the industry.
• Hence, it is important to keep this in mind while implementing the principles.

i. To give deserving remuneration.

ii. To provide good working condition.

i. Organisational Objectives: It refers to the utilisation of human and physical resources available in the organisation, considering the interest of all stakeholders.

ii. Social Objectives: It refers to the consideration of the interest of the society during managerial activities.

iii. Personal or Individual Objectives: It refers to the objectives to be determined with respect to the employees of the organisation.

Under profession a man after training and long experience acquires proficiency with which he impartially serves different sections of society. As management satisfies some of the conditions for being a profession (like body of specialised knowledge and technique, formalised methods of acquiring training and experience, priority to the feeling of service) but the other characteristics (like representative professional association and code of conduct) have still not developed adequately. In India, the development of management as a profession is still at its infancy and is moving ahead gradually. Its recognition as a profession will increase in accordance with the pace of its development.

Correct option is (C) Convertible debentures

If a company has announced that after specific time debentures will be converted fully or partly into equity shares then such debentures are known as convertible debentures.

Management principles are dynamic - 

Management principles are flexible and can be utilized under different conditions of the organizations. They are influenced by the need of the given situation.

Human is the centre of the management. Principles of management have direct relationship with the human behavior which is a psychological phenomenon. 

Importance of Principles of Management:

i. Provide Useful Insight to Managers: The principles of management make the manager aware about the manner in which he should act in various situation so that he does not repeat the mistakes of the previous managers. In this way, timely guidance reduces the wastage of resources and the objectives can be achieved in a less expensive manner.

ii. Optimum Utilisation of Resources and Effective Administration: In every organisation physical (material, machines, money, etc.) and human (manpower) resources are used. The function of management is nothing but to put them to optimum use or avoid wastage of resources. And it is possible only when a manager makes use of the principles of management. The primary need of every organisation is that its administrative system should be effective. This is made possible with the help of the principles of management.

iii. Scientific Decisions: A scientific decision means a balanced decision. The principles of management provide the necessary training to the managers so that they can take scientific/balanced decisions.

iv. Fulfilling Social Responsibility: The principles of management increase the efficiency of the managers and enable them to fulfill their social responsibility. More efficient managers can make good quality products at reasonable prices available all the times.

Thoughts of modern management:

• The format of industries and business-Hnit again changed after 1960. This demanded,the need of special approach of management.
• Management was not restricted to only business and industrial units but also included professional people and units that provided professional services like that of taxation, law, medicine, etc. These professions gave rise to a new class of managers.
• Over and above management thoughts, thoughts for psychology, social studies, statistics, mathematics and computer, information technology also emerged.
• Management Gurus like Koontz O’Donnell, George R. Terry, Peter F. Drucker, William Ouchi and C. K. Prahlad have contributed in the thoughts of modern management.

Social Objectives – Quality Goods, Protect & conserve natural resources

i. To make available employment opportunities.

ii. To save environment from getting polluted.

iii. To participate in building charitable trusts, dispensaries, educational institutions, etc.