Learn CBSE Business Studies Index Terms for Class 12, Chapter 2 Including Definitions and Meanings
1. Functional Foremanship – A foreman refers to a person who is in charge of the operational level workers. Taylor suggested that to increase efficiency, the performance of the foreman should be improved. That is, Taylor focussed on the importance of the foreman in an organisation. Taylor observed and identified a few qualities, such as intelligence, tact, judgement, etc., that a foreman should have. He found that no single person can have all the required qualities. Thus, he suggested that instead of a single person, there should be eight persons through which the functions of a foreman should be accomplished. This technique was given the name Functional Foremanship. According to this, the planning and the production functions should be separated. That is, under the manager, there would be one planning incharge and one production incharge.
Functional foremanship is a factory administration system that supports possessing numerous foremen in separate, functional roles. Classically, factories had just one manager who would manage operations. This manager or the foreman was the only contact for factory employees. Frederick Winslow Taylor, the distinguished engineer who transformed scientific management during the end of the 19th century, discovered a significant defect in this practice. When he recorded all of the features a successful supervisor would require, he discerned that no one person could probably have every single one. Therefore, the idea of working foremanship was born.
2. Standardisation of Work – Standardisation of work implies the method of establishing standards for every industry activity; it can be standardisation of manner, time, raw material, machinery, product, processes, or operating situations. These examples are the benchmarks that must be adhered to throughout the production.
3. Simplification of Work – Simplification of work points to erasing unnecessary types, sizes, and dimensions, while standardisation intends to devise new types rather than the existing ones. Simplification points to eliminating a redundant variety of products. It results in savings on the cost of machines, tools, and labour. It means controlled inventories, complete utilisation of supplies, and boosting turnover.
4. Time Study – It circumscribes the conventional time taken to complete a well-defined job. Time regulating devices are used for each part of the task. The standard time is set for the entirety of the task by taking different readings. The course of time study will rely upon the frequency and volume of the task, the cycle time of the process, and time measurement costs.
5. Motion Study – Motion study pertains to the study of movements like putting objects, lifting, changing positions and sitting, etc., which are moved while doing a conventional job. Random movements are solicited to be reduced to take less time to perform the job effectively.
6. Fatigue Study – A person is obliged to feel tired mentally and physically if the employee does not relax while working. The rest periods will assist one in recovering vitality and working again with the same capacity. This will result in improved potency. A fatigue study tries to define the amount and regularity of rest intervals in accomplishing a task.
7. Method Study – The purpose of the method study or outlined study is to find out one vigorous way of performing the job. There are different ways of performing the job. To ascertain the best way, there are diverse parameters. Right from the obtainment of raw materials until the ultimate product is presented to the consumer, every pursuit is part of method research. Taylor devised the idea of the assembly line by applying the method study.
8. Differential Piece Wage System – The fundamental principle of this framework is to punish a sluggish labourer by paying him a low piece rate for low production and to remunerate an effective worker by giving him a higher piece rate for higher production. Taylor developed the technique of differential piece wage system in order to differentiate between efficient and inefficient workers and then reward efficient workers.
According to differential piece wage systems, workers should be rewarded based on their efficiency. Workers who produce less than the standard number of pieces are paid wages at a lower rate than the prevailing rate, i.e. the worker is penalised for inefficiency.
9. Mental Revolution – Mental revolution implies changing the attitude of the workers and the managers. Mental revolution aimed at improving the thinking of both to create a better working environment. The workers and the manager should change their attitude, and each one should realise the other’s importance. Both should work towards the common goals of the organisation. Management should take care of the needs of the workers and share the benefits with them. On the other hand, workers should put in their best efforts. Thus, the concept of mental revolution enunciated cooperation and mutual trust between the workers and the managers.
10. Unity of Command – Unity of command means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion.
11. Scalar Chain and Gang Plank – Fayol on principles of management highlights that the hierarchy steps should be from the top to the lowest. This is necessary so that every employee knows their immediate senior, and also, they should be able to contact any if needed.
In other words, the scalar chain refers to the chain of authority and communication that runs from top to bottom and should be followed by managers and their subordinates. Gang plank refers to an arrangement in which two managers working at the same level can communicate with each other directly for quick communication.
12. Esprit De Corps – It is the responsibility of the management to motivate their employees and be supportive of each other regularly. Developing trust and mutual understanding will lead to a positive outcome and work environment.
This principle of management is used to manage an organisation and is beneficial for prediction, planning, decision-making, organisation and process management, control, and coordination.
13. Initiative – In the 14 principles laid by Henry Fayol, the initiative states that the management should support and encourage the employees to take the initiative in an organisation. It will help them to increase their interest and make them worth it.
14. Stability – In the 14 principles laid by Henry Fayol, stability states that an employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees.
15. Equity – In the 14 principles laid by Henry Fayol, equity states that all employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination.
16. Order – In the 14 principles laid by Henry Fayol, the order states that a company should maintain a well-defined work order to have a favourable work culture. A positive atmosphere in the workplace will boost positive productivity.
17. Centralisation – In the 14 principles laid by Henry Fayol, centralisation states that in an organisation, the management or any authority responsible for the decision-making process should be neutral. However, this depends on the size of an organisation. Henri Fayol stressed the point that there should be a balance between the hierarchy and division of power.
18. Remuneration – In the 14 principles laid by Henry Fayol, remuneration states that it plays an important role in motivating the workers of a company. Remuneration can be monetary or non-monetary. However, it should be according to an individual’s efforts they have made.
19. Subordination of Individual Interest – In the 14 principles laid by Henry Fayol, the subordination of individual interest states that the indication of a company to work unitedly towards the interest of a company rather than personal interest. Be subordinate to the purposes of an organisation. This refers to the whole chain of command in a company.
20. Unity of Direction – In the 14 principles laid by Henry Fayol, the unity of direction states that whoever is engaged in the same activity should have a unified goal. This means all the people working in a company should have one goal and motive which will make the work easier and achieve the set goal easily.
21. Discipline – In the 14 principles laid by Henry Fayol, the discipline states that without discipline, nothing can be accomplished. It is the core value of any project or any management. Good performance and sensible interrelation make the management job easy and comprehensive. Employees’ good behaviour also helps them smoothly build and progress in their professional careers.
22. Authority and Responsibility – In the 14 principles laid by Henry Fayol, authority and responsibility state that these are the two critical aspects of management. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership.
23. Division of Work – In the 14 principles laid by Henry Fayol, the division of work states that segregating work in the workforce amongst the workers will enhance the quality of the product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy, and speed of the workers. This principle is appropriate for both the managerial as well as a technical work levels.
We hope that the offered Business Studies Index Terms for Class 12 with respect to Chapter 2: Principles of Management will help you.
Related Links:
- Class 12 Business Studies Index Terms – Chapter 1: Nature and Significance of Management
- Class 12 Business Studies Index Terms – Chapter 3: Business Environment
- Class 12 Business Studies Index Terms – Chapter 4: Planning
- Class 12 Business Studies Index Terms – Chapter 5: Organising
- Class 12 Business Studies Index Terms – Chapter 6: Staffing
- Class 12 Business Studies Index Terms – Chapter 7: Directing
- Class 12 Business Studies Index Terms – Chapter 8: Controlling
- Class 12 Business Studies Index Terms Part II Chapter 1: Financial Management
- Class 12 Business Studies Index Terms Part II Chapter 2: Consumer Protection
