Principles of management are not created overnight. They are derived through two main steps:

Step 1: Deep Observation. Management thinkers observe actual workplace situations and note how human beings behave under different conditions.

Step 2: Repeated Experimentation. The observed guidelines are repeatedly tested in various organizations. When they yield consistent results, they are established as principles.

Step 1: Define Universal Applicability. Principles of management have universal applicability. This means they can be applied to all types of organizations—whether it is a business, a hospital, a school, or a sports club, regardless of its size or location.

Step 2: Explain the Nuance. However, the extent of their application might vary depending on the nature of the organization. The core idea remains the same, but the implementation is adapted to the specific context.

Step 1: Unity of Command. This principle states that an employee should receive orders from and be accountable to only one boss. It prevents confusion and conflicts arising from multiple superiors.

Step 2: Unity of Direction. This principle states that all units of an organization moving towards the same objective should be directed by one head and one plan. It ensures coordination and alignment of efforts across the department.

Step 1: Define Gang Plank. Gang Plank is an exception to the principle of Scalar Chain (the formal line of authority).

Step 2: State its Purpose. Its purpose is to allow direct communication between two employees working at the same level of authority in different departments, specifically during emergencies. This is done to avoid delays in decision-making that would occur if the formal scalar chain were followed.

F.W. Taylor gave four crucial principles to improve industrial efficiency:

1. Science, Not Rule of Thumb: This principle advocates that instead of relying on intuition or trial-and-error methods (Rule of Thumb), managers should scientifically analyze every part of a job to find the "one best way" to do it.
2. Harmony, Not Discord: There should be a complete mental revolution and mutual understanding between management and workers. Both must realize they need each other. This replaces conflict and mistrust with peace and cooperation.
3. Cooperation, Not Individualism: This is an extension of the 'Harmony, Not Discord' principle. It emphasizes that work should be carried out through mutual cooperation. Management should welcome good suggestions from workers, and workers should not go on unreasonable strikes.
4. Development of Each Person to His/Her Greatest Efficiency: This principle focuses on employee development. Employees should be scientifically selected, trained, and assigned work according to their physical and mental capabilities to maximize their individual productivity and prosperity.

Henri Fayol gave 14 principles of management. Four major ones are:

1. Division of Work: Work should be divided into small tasks, and each task should be assigned to a specialist. This leads to specialization, which increases efficiency and speed.
2. Authority and Responsibility: Authority (the right to give orders) and Responsibility (the obligation to complete tasks) must be balanced. Giving authority without responsibility leads to misuse, while responsibility without authority makes the worker ineffective and unaccountable.
3. Scalar Chain: This refers to the formal line of authority and communication flowing from the highest to the lowest ranks. Fayol strictly advised that this chain should not be broken in normal circumstances to maintain order and clear communication.
4. Esprit De Corps: Management must promote a team spirit of unity and harmony among employees. A manager should replace "I" with "We" in conversations to foster mutual trust and a sense of belonging.

Answer: (c) Functional Foremanship

Explanation: Taylor suggested 8 specialist foremen—4 for planning and 4 for execution—to improve efficiency by separating the two functions.

Difficulty: Easy

Answer: (b) Kind, fair, and just treatment of employees

Explanation: Equity means no discrimination against anyone on account of sex, religion, language, or belief to ensure loyalty and devotion.

Difficulty: Moderate

Answer: (b) Unity of Direction

Explanation: It ensures all activities with the same objective are directed by a single manager using a single plan to achieve coordination.

Difficulty: Easy

Step 1: Method Study. This technique aims to find the "one best way" of doing a job. It involves analyzing all activities from procurement of raw materials to the final product delivery to maximize efficiency and minimize production costs.

Step 2: Time Study. This technique determines the standard time required by an average worker to perform a well-defined job. It is conducted using a stopwatch and helps in setting a fair day's work, determining the number of workers needed, and framing incentive schemes.

Step 1: Not Rigid. Management principles are called 'flexible' because they are not rigid rules like those of pure science. They are general guidelines.

Step 2: Adaptable. They can be modified and adjusted by managers depending on the specific situation, the changing business environment, the scale of operations, and the unpredictable nature of human behavior.

Difficulty: Moderate

Step 1: Define the System. Introduced by F.W. Taylor, this system is a wage payment technique that differentiates between efficient and inefficient workers.

Step 2: Explain the Mechanism. It involves paying a higher wage rate per unit to workers who produce at or above the standard target, and a lower rate to those who produce below the standard. This strongly motivates workers to improve their efficiency.

Difficulty: High

1. Provides useful insights to managers: Helps managers learn from past mistakes and make better, more informed decisions by improving their understanding of managerial situations.
2. Optimum utilization of resources: Reduces wastage of physical, financial, and human resources through systematic planning, organization, and execution.
3. Scientific decision-making: Promotes decisions based on facts, logic, and objective assessment rather than blind faith or intuition.
4. Meeting changing environment requirements: Though universal, the principles are flexible enough to be modified and adapted to modern business challenges and a dynamic environment.
5. Fulfilling social responsibility: Principles like 'Equity' and 'Fair Remuneration' ensure that business takes care of its employees and society, contributing to its social obligations.

Difficulty: High

• Perspective: Fayol focused on top-level management (administrative), whereas Taylor focused on the shop-floor level (factory workers). Fayol's perspective was top-down; Taylor's was bottom-up.
• Focus: Fayol aimed at improving overall administration and management functions. Taylor's primary aim was increasing worker productivity and efficiency.
• Applicability: Fayol's principles are universally applicable to all types of organizations. Taylor's techniques are mostly applicable to specialized manufacturing and production settings.
• Unity of Command: Fayol was a strict proponent of this principle (one boss per employee). Taylor's technique of Functional Foremanship violated it by suggesting 8 specialist bosses.

Difficulty: High

Step 1: Define Centralization. Centralization refers to the concentration of decision-making authority at the top level of management.

Step 2: Define Decentralization. Decentralization means the systematic dispersal of authority to lower levels of management.

Step 3: Explain Fayol's View. Fayol advised that no organization can be completely centralized or decentralized. There must be a balance between the two, depending on the size of the organization, the competence of subordinates, etc.

Step 4: Provide an Example. A large company may keep strategic decisions (like launching a new product line or a merger) centralized with the CEO and Board of Directors. However, it can decentralize routine operational decisions (like buying office stationery or granting leave) to department managers to ensure faster and more effective functioning.

Difficulty: Moderate

Answer: The principle of Order is violated.

Explanation: Fayol's principle of 'Order' states there should be a fixed and appropriate place for every material (Material Order) and every person (Social Order). If tools have a specific, designated place, workers won't waste time searching for them, leading to increased efficiency and productivity.

Difficulty: Moderate

Answer: The principle of Stability of Personnel.

Explanation: Fayol suggested that employees should be kept at their positions for a reasonable tenure so they can settle down, understand their job, and show results. Frequent transfers or rotation causes job insecurity, high employee turnover, and inefficiency, as employees do not get enough time to become proficient.

Difficulty: High

Answer: The management is at fault for violating the principle of Authority and Responsibility.

Explanation: Parity (balance) must exist between authority and responsibility. The manager was given the responsibility to sell 1000 units but not the matching authority (e.g., to grant necessary discounts) to fulfill that responsibility. Responsibility without authority is meaningless and leads to ineffectiveness.

Difficulty: High

Answer: Both A and R are true, and R is the correct explanation of A.

Explanation: Functional Foremanship applies the concept of division of work and specialization to the shop floor to its fullest extent, by dividing the work of a single foreman into eight specialized roles.

Difficulty: Moderate

Answer: A is false, but R is true.

Explanation: Management principles are flexible general guidelines, not exact or rigid like principles of pure science, precisely because they deal with complex and unpredictable human behavior.

Difficulty: Easy

Answer: Both A and R are true, and R is the correct explanation of A.

Explanation: Mental revolution is a key part of Taylor's philosophy where both sides stop seeing each other as adversaries and work in cooperation, understanding that their prosperity is linked.

Difficulty: Moderate