Question

Principles of Taylor and Fayol are mutually complementary. One believed that the management should share the gain with the workers while the other suggested that employees compensation should depend upon the earning capacity of the company and should give them a reasonable standard of living. Identify and explain the principles of management by Taylor and Fayol referred to in para.

Answer 1

Taylor believed, ‘Management should share the gains with workers’. This has been emphasised by the principle of ‘harmony, not discord’, which is also emphasised by ‘mental revolution’.

Harmony, not discord The interests of the employer and employees should be fully harmonised, so as to create a good relationship. Taylor emphasised that there should be complete harmony between the management and workers. This requires a transformation in the thinking of both, which can be achieved through mental revolution. Thus, management should share the gains of the company with the workers.

At the same time workers should work and embrace changes. Taylor believed, that prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity of the employees, and vice-versa. In the same way, Fayol’s principle of ‘remuneration of employees’ suggested that the employees compensation should depend on the earning capacity of the company and should give the employees a reasonable standard of living.

Remuneration of employees According to Fayol, the quantum and methods of remuneration payable to employees should be fair and reasonable. It should be satisfactory to both employers and employees. Thus, we can say that Taylor’s and Fayol’s principles are mutually complementary.