Class 12 BST Chapter 2 Principles of Management

August 19, 2025

So you’ve reached the topic principles of management, and it instantly sounds… serious. Like something you'd hear in a boardroom, right? But it’s actually pretty chill once you get what it’s really about.

These are just basic rules that help people manage work better - simple, practical stuff. No big theories, just ideas that make things at work flow smoothly. And once you get a hang of it, this becomes one of the easiest scoring topics in Business Studies.

If you’re going through your principles of management class 12 notes and still scratching your head, don’t worry - we’re about to make it all make sense.

Principles of Management Notes

Let’s be real - no one wants to waste time jumping between 10 tabs. If you’re looking for proper, exam-ready principles of management class 12 notes without the boring textbook talk, this is it.

We’ve got you covered with quick definitions, easy examples, smart tricks to remember Fayol’s principles, and clean revision tips. Everything you actually need - no extra drama, just scroll and revise everything. 

S.No Principles of Management Notes
1. What is a Principle?
2. What are the Principles of Management?
3. Nature and significance of Principles of Management
4. Who was Henri Fayol & his 14 Principles of Management?
5. Taylor’s Principles of Scientific Management
6. What Techniques Did Taylor Use?
7. Fayol vs Taylor: What’s the Difference?
8. What are Fayol’s 5 Management Functions?
9. Conclusion

What is a Principle?

A principle is a basic truth, rule, or guideline that helps explain how things usually work. Whether it’s in science or business, principles act like roadmaps - they show what actions usually lead to good results.

In management, principles help avoid confusion and bring clarity to decision-making. They are not strict laws, but they guide you in doing things the right way, based on logic and past experience.

What are the Principles of Management”?

Principles of Management are general rules that managers follow to run a business effectively. They help in planning, organising, leading, and controlling - the core functions of management.

These principles were developed through years of observation, experiments, and practical experience. They improve work quality, employee behaviour, and business results. The two most important contributors to these principles are Henri Fayol and F.W. Taylor.

Nature and significance of Principles of Management

The principles of management aren’t random rules - they have specific features that make them reliable and useful in real business situations. Here's what makes them stand out:

Nature of Principles of Management

  • Universal

These principles can be applied to all types of organisations - business or non-business, big or small.

  • General Guidelines

They don’t tell you exactly what to do, but offer flexible directions based on logic and experience.

  • Formed by Experience and Observation

These principles were developed through years of practical management and real-life examples.

  • Flexible

Managers can adjust and apply them as per the situation - they’re not strict like scientific laws.

  • Behavioural in Nature

They mainly deal with managing people at work and improving human relationships in an organisation.

  • Cause and Effect Relationship

They help managers predict the likely result of a particular action and avoid trial-and-error.

  • Contingent

Their application depends on the situation - what works in one case may not in another.

Significance of Principles of Management

  • Provides Direction

They guide managers to take clear, consistent decisions and avoid confusion or random actions.

  • Improves Efficiency

Using them saves time, reduces mistakes, and ensures better use of resources and effort.

  • Ensures Discipline and Order

They promote professionalism, smooth functioning, and a more organised workplace.

  • Helps in Scientific Decision Making

Decisions are based on logic, data, and experience - not guesswork or emotions.

  • Provides Insight into Management

They simplify complex situations and give clarity while solving business problems.

  • Encourages Teamwork

They help build coordination between departments and reduce conflicts in teams.

  • Helps in Managerial Training

These principles are like a toolkit that new managers can learn and follow confidently.

Who was Henri Fayol & his 14 Principles of Management?

Henri Fayol was a French management expert who introduced a systematic approach to managing organisations. He believed that management is a skill that can be taught and improved. Fayol studied how businesses work and developed 14 principles that help managers plan, organise, lead, and control better. 

His ideas focus on improving coordination, discipline, and efficiency within a team. He is known as the father of general management and his principles are still used in business studies and real-world management today.

Henri Fayol & his 14 Principles of Management

1. Division of Work

When everyone focuses on one task, they get better at it. Like—don’t make one person do 10 things. Divide the work = more efficiency.

2. Authority and Responsibility

Managers should have the right to give orders, but they also have to take responsibility if things go wrong. Power + accountability go hand in hand.

3. Discipline

No chaos please. Rules, good behaviour, and mutual respect keep the organisation running smoothly.

4. Unity of Command

One employee = one boss. Getting orders from multiple people? Recipe for confusion.

5. Unity of Direction

Everyone should work towards the same goal. If teams have different goals, the company loses focus.

6. Subordination of Individual Interest

The team’s interest is bigger than personal goals. If everyone thinks “me first,” nothing works.

7. Remuneration

People should be paid fairly for the work they do. Simple. Fair pay = happy and loyal employees.

8. Centralisation

Some decisions stay at the top (boss-level), and some can be taken at lower levels. It’s all about finding the right balance.

9. Scalar Chain

There should be a clear chain of command - from top to bottom. But if there’s an urgent issue? People can use a shortcut called 'Gang Plank' to communicate directly.

10. Order

Everything and everyone should be in the right place. Like, don’t keep files in the pantry or HR in the garage.

11. Equity

Be fair and kind. Managers should treat everyone equally - this builds trust.

12. Stability of Personnel

Don’t keep changing employees every few months. Let people stay, learn, and grow. It’s good for the company too.

13. Initiative

Let employees share ideas and make small decisions. It keeps them motivated and involved.

14. Esprit de Corps

Fancy French term for “team spirit.” Encourage bonding and unity - it boosts morale and performance.

Taylor’s Principles of Scientific Management

1. Science, Not Rule of Thumb

Don’t just guess how to do things. Instead, figure out the best way to do a job through scientific methods. Test and study how things can be improved.

2. Harmony, Not Discord

Instead of fighting or having tension between workers and management, create harmony. Everyone should work together towards a common goal—when that happens, productivity goes up.

3. Cooperation, Not Individualism

It’s not “every man for himself.” Workers and managers should cooperate, share knowledge, and help each other out. Working as a team leads to better results for the company.

4. Development of Each Person to His/Her Greatest Efficiency and Prosperity

Make sure everyone is working at their best and happiest. It’s all about training and developing employees so that they are not just productive but also satisfied with their work.

5. Maximum Output with Minimum Effort

Taylor believed that workers should produce as much as possible with as little effort as necessary. By finding the most efficient way to work, companies can save time and resources.

6. Scientific Selection and Training of Workers

Don’t just hire anyone. Carefully select and train workers for the job. The right person in the right role leads to better performance.

What Techniques Did Taylor Use?

Frederick Winslow Taylor introduced methods to make work more systematic and productive, crucial for your principles of management notes:

  • Specialized Bosses & Standardization: Instead of one general manager handling everything, Taylor suggested having different experts for different tasks. He also figured out the best way to do each job and made sure everyone followed that method - no more guesswork!
  • Work-Study (The Detective Work!): Taylor loved investigating how work was done to find better ways. He looked at how people moved, how long tasks took, and even when they needed breaks to stay productive. This is an important concept in management studies.
  • Pay for Performance: His idea was simple - reward hard work! If workers did their jobs efficiently and hit their targets, they earned more money per piece of work. He also emphasized hiring the right people and giving them proper training to help them succeed.

Fayol vs Taylor: What’s the Difference?

1. Taylor's Focus: Efficiency on the Shop Floor (Scientific Management)

Taylor, being an engineer, was all about what he called Scientific Management. His big thing was making individual tasks and every worker as efficient as humanly possible, right there on the factory floor.

  • He looked at the 'micro' level: Think about perfecting how a single person does their job – the exact movements, the right tools, how much time it should take. He wanted to find the "one best way" to perform specific tasks.
  • His goal: Maximize productivity and output by streamlining work processes and ensuring workers get fair pay for their effort (like his differential piece-rate system).
  • Best for: Tasks that are repetitive and measurable, usually in production or operational settings. This is a big part of your principles of management class 12 chapter on scientific management.

2. Fayol's Focus: Managing the Whole Organization (General Administration)

Fayol, on the other hand, was a CEO who ran a huge company. His ideas were about General Administration, meaning how to manage the entire organization effectively, from the very top down.

  • He looked at the 'macro' level: He was concerned with the overall structure, leadership, and coordination of the whole company. He wasn't detailing how a worker shovels coal, but how the departments should communicate, or how a manager should give orders.
  • His goal: Provide universal principles that any manager, in any type of organization, could use to lead and organize effectively. These are your famous 14 Principles of Management that you'll see in your principles of business management notes.

Best for: Providing a blueprint for overall management, applicable across all levels and types of businesses. This makes him super important for your class 12 ch 2 bst notes.

What are Fayol’s 5 Management Functions?

After learning about Fayol and his broader view of management, you'll find that he basically broke down a manager's job into five core functions. These are super important for understanding how a whole organization runs efficiently, and they're a big part of your principles of management notes.

1. To Plan (Planning):

This is all about looking ahead and setting a path. It involves forecasting the future, setting goals, and deciding on the best ways to achieve them. It's like drawing the map before you start your journey. This initial step is vital in principles of management class 12.

2. To Organize (Organizing):

Once you have a plan, you need to set up the resources! Organizing means structuring the enterprise, identifying necessary activities, grouping them, assigning duties to individuals, and providing the necessary resources. It's about building the team and giving them the tools.

3. To Command (Directing/ Commanding):

This function involves guiding and motivating the employees to achieve the organizational goals. It includes leadership, communication, and decision-making to ensure everyone is working towards the same objective. Fayol believed in a clear direction.

4. To Coordinate (Coordinating):

Think of this as bringing everyone together! Coordinating means harmonizing the different activities of the organization to facilitate its working. It's about ensuring smooth cooperation among departments and individuals so they all work as one unit, avoiding conflicts or overlaps.

5. To Control (Controlling):

This is the "checking" function. Controlling involves monitoring performance, comparing it against the planned goals, and taking corrective actions if there are any deviations. It ensures that everything happens according to the plan and that objectives are being met. 

Conclusion

And that’s a wrap! No need to dig through 10 different guides or stress yourself out. This blog has already done the job – your Principles of Management Class 12 notes are all sorted for you in one clean scroll.

Just breathe, revise these key points once more, and you’re totally good to go. Remember, exams aren’t just about remembering everything; they’re about writing what you truly understand. And now, you definitely get it. Good luck!

FAQs 

Q1. What's the main difference between Fayol's and Taylor's ideas? 

Ans. Taylor focused on shop-floor efficiency; Fayol looked at overall administration for the whole organization.

Q2. Why are management principles called "flexible" or "contingent"? 

Ans. They are adaptable to different situations and their application depends on specific circumstances, unlike strict rules. 

Q3. What's 'Unity of Command' vs. 'Unity of Direction'? 

Ans. Unity of Command means reporting to one boss. Unity of Direction means one plan for activities with the same objective.

Q4. What is "Mental Revolution" according to Taylor? 

Ans. It's a change in attitude where management and workers cooperate for prosperity, shifting from competition to partnership in class 12 principles of management notes.

Q5. How do management principles help in decision-making? 

Ans. They provide managers with guidelines to analyze problems and make informed choices, equipping them for complex situations in principles of management class 12 pdf.

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