[Commerce Class Notes] on Evolution of Management Thought Pdf for Exam

There is a long history behind the evolution of management thought. Management is considered as the significant feature of economic life of mankind throughout ages. Management thought is regarded as an evolutionary concept. It has developed along with it and in line with social, cultural, economic and scientific institutions. Management thought has its origin in ancient times. It is developed along with other socio economic development. The contributors to management theory include management philosophers, management practitioners, and scholars. Modern management is based on the strong foundation laid down by the management thinkers from the past events.

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What Does Management Thought Means?

Management thought refers to the theory that guides management of people in the organization. Initially management theories were developed out of the practical experience of the managers in the industrial organization. Later on, managers borrowed ideas from several other fields of study like science, sociology, anthropology, etc.

The Concept of Evolution of Management Thought 

To understand the entire concept of evolution of the management thought, the topic is divided into 4 major stages, which are as follows:

  • Pre-scientific management period

  • Classical theory

  • Neo-classical theory ( or behavior approach)

  • Bureaucratic Model of Max Weber 

Pre-Scientific Management Period

As the industrial revolution occurred in the 18th century, there was a huge impact on management. The scenario changed the method of raising capitals, organizing labor, and goods’ production for the individuals and businesses. Entrepreneurs then had access to production factors like land, labor, and capital. The final step was only to make some effort to combine these factors to achieve the target successfully.

But, after the industrial revolution, the newer dimension taken by management is because of the involvement of certain notable personalities who introduced some effective ideas and approaches for giving management an acceptable and precise direction. Here is a brief on some of the personalities and their theories:

 

Professor Charles Babbage of United Kingdom (1729 to 1871)

Prof. Babbage was a renowned Mathematics professor at Cambridge University. He discovered that manufacturers rely on guessing and suggesting and advised them for utilizing science and mathematics to be more productive and accurate.

 

Robert Owens of United Kingdom (1771 to 1858)

Sir Robert is often regarded as personnel management’s father as his approach focuses on employee welfare. He also introduced cooperation and trade unions. He mainly believed that employee welfare might determine the performance to a larger extent. Sir Robert also encouraged the workers’ training, children’s education, ensuring canteens in the workplaces, shorter working durations, and others. 

 

The Classical Theory

Robert Owens, Charles Babbage, and other prominent personalities are regarded as management’s pioneers. However, their contribution to the evolution of management is lower. Further, by the last decade of the 19th century, the science of management began, and with it, some professionals like H. L. Grant, F. W. Taylor, Emerson, and others entered for the establishment of scientific management.

 

Further, during the classical period, management thought focused on standardization, job content, labor division, and scientific approaches for the organization. It also related closely to the industrial revolution and the rise of large-scale enterprises. 

The Neo-Classical Theory

This duration of the evolution of management thought is a better version of classical theory. It is a modified version of classical theory with several improvements. The classical theory focused mainly on the areas of job including physical resources and their management, but Neoclassical theory focuses on employee relationships in the work ecosystem. 

 

The Bureaucratic Model

Max Weber, a German sociologist, proposed the bureaucratic model. This includes a system of labour division, rules, authority hierarchy, and employees’ placement based on their technical capabilities. 

 

Evolution of Management Theories

Organizations were shaped effectively and the writings of some prominent writers consisted of the management and governance of various kingdoms. These descriptions formed the literature that helped develop the management theories. Several heads of religions, political affairs, and military also gave the management models. For example, the books like Sun Tzu’s “The Art of War” and Chanakya’s Arthashastra used some managerial purposes and the governance of the kingdom concerning the policy formulations respectively. 

 

The Evolution of Management Science

Management evolution started with civilization, and the evolution of management science is the entire concept involving several theories behind it. Whatever we presently have gets refined and improved as management thoughts and theories. This helps people in improving the knowledge of the process and utilizes the management principles for enhancing the overall organization.

[Commerce Class Notes] on Features of BRS Pdf for Exam

Suppose if you made a transaction in the bank no matter how small or big that is but you need to keep a record of the transaction that you have done and for that this BRS or more precisely this Bank Reconciliation Statement will play its role. A bank reconciliation statement records the difference between the bank statement and a general ledger. Now what is this ledger? Whenever any transaction is made in a bank it is recorded in the journal. After the statement is recorded in the journal it gets recorded in the principle book that is known as ledger.

There can be some cases in which the amount that is specified in the bank statement that a bank issues is different from the one that is mentioned in the accounting book of the company that is made by the charter accountant . So this bank reconciliation statement just checks the entities on the monthly basis so that there may not be any issued in the future for the company. In simple language you can regard this bank reconciliation statement or BRS to be a matching record for the cash account entry in correspondence to the statement issued by the bank. Bank Reconciliation Statement is going to check the differences that will be between them and then it will make the appropriate changes that are required. In this article you are going to get this brief information about Bank Reconciliation Statement,  it’s importance, the features that bank reconciliation statements have, and the reason why there are different cash books and bank’s passbooks, how to make a bank reconciliation statement and other important points. Let’s just have a look at all of them.

The record book or transactions of a bank account is known as a bank reconciliation statement. This statement allows the bank holders to keep a track of their funds and update transaction records they have made. In other words, the bank reconciliation statement is the bank’s passbook. The balance given in the bank passbook statement should ally with the balance given in the cash book. In the statement, all the deposits shown in the credit column should be shown in a deposit column as well. 

However, if the withdrawal is more than the deposits, it will show a debit balance (overdraft). Generally, saving’s bank account holder is given a passbook whereas current account business is given a Bank Statement. 

Importance of Bank Reconciliation Statements

In most of the comparisons between the bank balance and the company’s cash book, the balance figure doesn’t tally. Therefore, it is important to know the reason for the difference and show it in the bank reconciliation statement and then tally the two balances. This statement reveals the cause of differences in funds in the bank balance and the company’s cash book. This also helps to understand the characteristics of bank reconciliation statements.  

What are the Features of a Bank Reconciliation Statement?

A business entity or firm records the deposits of a bank on the debit side of the bank column in the cash book and withdrawals on the credit side of the bank column in the cash book. Likewise, all these transaction details are registered by the bank in their books. It is a little different as the bank records deposits on the customer’s credit side and withdrawals on the customer’s debit side. 

The Features of a Bank Reconciliation Statement

The features of the bank reconciliation statement are given below:

  • The bank reconciliation statement (as the name suggests) is a statement.

  •  It is not any type of account and doesn’t include part of the account’s process. 

  • A firm can prepare it any time of the financial year when they require it. 

  • The bank reconciliation statement is prepared on a particular day. 

  • An individual or firm may prepare it to reconcile the reasons for the differences between the bank balance according to the passbook or bank balance according to the cash book.

Reasons for Differences Between Cashbook and Bank’s Pass Book

The main reason for the differences between the cash book and the bank’s passbook is the time in recording the transactions. There are many things that cause a difference in timing.

  •  The cheque was paid in the bank but is not yet cleared. 

  • The cheque is bank-issued but not yet deposited for payment.

  • Direct debit made by the bank from the customer’s side.

  •  Interest and Dividends collected by the bank.

  • Direct deposition of an amount/ cheque in a bank account. 

  • Bills discounted/ cheques deposited dishonoured. 

  • Errors made by the bank or by the company.

In a few instances, the error in two balances can be made on the company’s cash book or from the bank side. The errors are as follows:

Types of Bank Reconciliation Statement

There are two processes in which a bank reconciliation statement can be prepared:

Steps Involved in Making Bank Reconciliation Statement

  • At first, the statement’s record date is noted. 

  • After this, the balance mentioned in the cash book is recorded in the statement. Sometimes, the balance mentioned in the bank’s passbook is recorded.

  •  The deposited cheques that are not collected are removed.

  •  Then the cheque is issued but deposited for payment, and the amount directly deposited in the bank account is noted. 

  • It deducts all the transactions like amounts debited by the bank and overdraft interests not recorded in cash books, bills discounted, and cheques. 

  •  All the profits and credits collected by the firm and deposited in the bank directly gets added.

  •  Adjustments related to errors and mistakes are made.

After implementing these steps, the balance between the cash book and bank statement should be the same.

Did You Know?

When the total debit column of the cash book exceeds the total credit column of the cash book, it is called a debit balance. This debit balance is also termed as a favourable balance. For an account holder, a favourable balance is an asset. Favourable balance explains a situation when an account holder has an abundance of deposits over withdrawals.

Conclusion

From the above article we can easily conclude that it is necessary to have a bank reconciliation statement. There can occur faults in the bank statements and at that time these BRS are going to be a great help for you. If you are looking to make huge transactions or even for making an Income Tax return statement, bank statements are going to be helpful for you. This bank statement is the basic medium of transaction in any bank. If the basic documents are having problems then it is obvious for the other ones to have some issues so it is necessary for any organisation to justify the basics.

Reconciliation statement is going to make the bank statement error free and along with this any additional charges will be cleared. Therefore before closing accounting the reconciliation is going to check whether the statement is safe and error free.

[Commerce Class Notes] on Financing Decisions Pdf for Exam

The Financing Decision is a crucial decision that is to be made by the financial manager, the decision is about the financing-mix of an organization. Financing Decision is focused on the borrowing and allocation of funds required for the investment decisions of the firm. We will learn in detail about these various financing decisions in the upcoming section.

 

The financing decision comes from two sources from where the funds can be raised – first is from the company’s own money, such as the share capital, retained earnings. Second is from borrowing funds from the outside the corporate in the form debenture, loan, bond, etc. The objective of the financial decision is to balance an optimum capital structure.

What are the Basic Financial Decisions?

Basic Financial Decisions that financial managers need to take:

  • Investment Decision

  • Financing Decision and

  • Dividend Decision

Investment Decision

Also known as the Capital Budgeting Decisions. A company’s assets and resources are very rare and thus must be put to use with much analysis. A firm should pick those investments where he can gain the highest conceivable returns. Investment decision involves careful selection of the assets where funds will be invested by the corporates. 

Financing Decision

Financial decision is the utmost important decision which is to be made by business individuals. These are wise decisions indeed that are to be chalked out with proper analysis. He decides when, where and how should the business acquire the fund. An organization’s increase in share is not only a sign of development for the firm but also to boost the investor’s wealth. 

Dividend Decision

Dividend decisions relate to the distribution of profit that are earned by the organization. The main criteria in this decision are whether to distribute to the shareholders or to retain the earnings. Dividend decisions are affected by the earnings of the business, dependency on earnings.

Importance of Financial Decision Making

  1. Long-term Growth and Effect:

Financial decisions are concerned with the long-term use of assets. These assets are very helpful in the process of production. Profit is also earned by selling the goods that are produced. This can, therefore, be accurate decisions. The greater the growth of business in the long run, the more effective the decision needs to be. In addition to that, these affect the future prospect of the business.

  1. Large Amount of Funds Involved:

Funds are the base of this business decision. Decisions regarding the fixed assets are included in the context of capital budgeting. Huge capital is invested in these assets. If these decisions turn out to be a flaw, then it will cause heavy loss of capital which is indeed a scarce resource.

  1. Risk Involved:

Capital budgeting decisions come with risks. There are two reasons for the risk factor to be involved in it. First, these decisions are analysed for a long period, and thus the expected profits for several years are to be anticipated which even lead to fluctuations. These are human estimations which may turn out to be wrong. Secondly, as a heavy investment is involved, it is very difficult to change the decision once it has been taken.

  1. Irreversible Decisions:

Nature of these decisions is irreversible, once taken it cannot be reformed. For instance, if soon after setting up a sugar mill, the owner thought of changing it, then the old machinery used for the purpose and other fixed assets will have to be sold at a loss. In doing this, the heavy loss will have to be incurred by the owner.

 

A business constitutes two major things: money and the decision through which the business runs efficiently. Without money, the survival of the company could be impossible and without decisions, survival of money could be impossible. The lifetime of the company completely depends on the countless decisions an administration makes. Probably, the most important things are regarding money. The money decisions related are called ‘Financing Decisions.’

Financial managers take three kinds of decisions they are,

  • Investment Decision

  • Financing Decision and

  • Dividend Decision

Investment Decision

Investment Decision is also referred to as Capital Budgeting Decisions. The assets and resources of the company are rare and must be put into utmost utilization. In order to gain the highest conceivable returns, a firm should pick where to invest.  Funds will be invested based on the careful selection of assets by the firms. In procuring fixed assets and current assets, the firm funds are invested. If the choice is taken with respect to a fixed asset it is called a capital budgeting decision.

Factors Affecting Investment Decision

  • Cash flow of the venture: If an organization starts a venture it begins to invest a large amount of capital at the initial stage. Though, the organization expects at least a source of income to meet daily expenses. Hence, within the venture, there must be some regular cash flow to sustain.

  • Profits: The fundamental criteria to start a venture is to generate income but moreover profits. The most crucial criteria in choosing the venture involve the rate of return for the organization with respect to its profit nature. For example: if venture A  gets 10% return and venture В gets 15% return then project B must be preferred.

  • Investment Criteria: Various Capital Budgeting procedures are used for a business to assess various investment propositions. Most importantly, they are based on calculations with respect to investment, interest rates, cash flows, and rate of returns associated with propositions. These are applied to the investment proposals to make a decision on the best proposal.

Financing Decision

Financial decision is significant in decision-making on when, where, and how a business acquire funds. When the market estimation of an organization’s share expands the firm tends to gain more profit, it is not only a sign of development of the firm but also fastens investors’ wealth. 

Factors Affecting Financing Decisions

  • Cost: Financing decisions are based on the allocation of funds and cost-cutting. The cost of fundraising from different sources differs a lot and the most cost-efficient source should be chosen.

  • Risk: The dangers of starting a venture with funds differ based on various sources. Borrowed funds have a larger risk compared to equity funds. 

  • Cash flow position: Cash flow is the daily earnings of the company. A good cash flow position gives confidence to the investors to invest funds in the company.

  • Control: In this case where existing investors hold control of the business and raise finance through borrowing money, however, equity can be utilized for raising funds when they are prepared for diluting control of the business.

  • Condition of the market: The condition of the market plays a major role in financing decisions. Issuance of equity is in majority during the boom period, but debt of a firm is used during a depression. 

[Commerce Class Notes] on Forms of Organizing Public Sector Pdf for Exam

A public sector enterprise is a government company which, as per section 2(45) of the Companies Act (2013), is any company in which the central government (or any state government or governments) holds paid-up share capital of 51% or more. It could be either totally by the central government or in parts by central and state governments. It also includes a company which is a government subsidiary company.

Introduction to Forms of Organizing Public Sector 

The public sector meaning or concept is a broad one that may include or overlap with not-for-profit or private sector companies. It is a ring of organizations, which keeps expanding with the core government at the centre of it. It is followed by agencies and public enterprises. This ring has grey zones where lies the publicly-funded contractors or publicly owned businesses, that might, or might not be part of the public sector.

The public sector owes the responsibility of fabricating the infrastructure of different sectors of the economy and providing goods and services which are vital for the company. In the initial stages of the development of public sector companies, the five-year plan gave them a lot of significance.

Levels of Public Sector Organizations

The public sector organization may exist at different levels which are:

  • International – Multi-State entities or partnerships.

  • National – This encompasses an individual state.

  • Regional – Its area is a province or state within the national state.

  • Local – This is a body at the municipal level for example a county.

Different Forms of Organizing Public Sector Companies

An organizational framework is needed for the government to participate in the economic and business sectors of the country. 

The public sectors can have the below forms of organization:

Departmental Undertaking 

In this form, the public sector is run as a department within a government setting. It is directed by the concerned minister. Few of the departmental undertakings in the public sector are:

Following are the main features of a departmental undertaking:

  • Formation – They are part of the government and linked with a specific ministry.

  • Control – They are under the direct control of the minister concerned and are a major subdivision of the ministry of government.

  • Appointments – The employees of this public sector undertaking are appointed by the Union public service commission and staff selection board. 

  • Management – IAS (Indian administrative services) officers and civil servants manage it.

  • Audit – CAG (Controller and auditor general of India) audits the accounts of these undertakings.

  • Finance – These companies are directly funded by the government treasury and the revenue from these undertakings goes into the government treasury too.

  • Autonomy – They are not autonomous but have a lot of political interference.

  • Accountability – They are accountable directly to the concerned ministry.

Statutory Cooperation  

They are also called public corporations and are created by either the state legislature or through a special act of parliament. The powers, functions, and roles of such companies are determined by the act that creates it. These are corporate bodies backed by the government. They enjoy considerable flexibility and have a separate legal existence of their own. The entire capital for these corporations comes from the government, and they can even borrow from the public. Some of the major statutory corporations in India are:

  • IDBI (Industrial Development Bank of India).

  • LIC (Life insurance corporation of India).

  • ONGC (Oil and Natural Gas commission).

  • RBI (Reserve bank of India).

  • UTI (Unit trust of India).

  • ESIC (Employee state insurance corporation).

  • FCI (Flood corporation of India).

Listed below are the main features of public corporations:

  • Formation – These are formed by state legislatures or special parliament act. The act defines the objectives and privileges of such corporations.

  • Control – They are controlled by either the central or the state government. The government owns the full authority to appropriate profits or bear losses. These corporations are completely accountable to the government. 

  • Appointments – They can appoint and fix remunerations of their employees by themselves. The employees of these corporations are not government employees and the board of directors frames their service conditions. The service conditions of the employees of this organization are also listed in the act that created the corporation. 

  • Management – IAS (Indian administrative services) officers and civil servants manage it.

  • Audit – CAG (Controller and auditor general of India) department audits the accounts of these undertakings. A professional CA (chartered accountant) does their audit like in any other establishments.

  • Finance – These companies are mostly funded by the government and they can also raise money through public borrowings. The management of profits from sales and goods lies in complete control of the corporation.

  • Body corporate – They exist as a separate legal entity and have the right to purchase properties in their names, enter into third-party contracts, can sue and be sued, etc.

  • Not bound by the government budgetary provision – They prepare their budgets and are not concerned or governed by the government budgets.

  • Free from government interference – Government does not interfere with the day to day activities of these autonomous bodies. Directors of these kinds of undertakings are appointed based on the act which formed the company.

Government Companies  

These are established as per the Indian Companies Act of 2013. They are established for business purposes and are eligible to compete with other companies in the private sector. The government holds the most shares in these companies and has full control over the paid-up capital of such companies. The shares of such corporations are bought in the name of the President of India. There are two types of government companies:

  • Wholly owned – In these government companies, the entire paid-up capital is held by the government.

  • Partly owned – In these companies major part of the capital is provided by the government but they are jointly owned by the government and the public.

Few examples of government agencies are:

  • Steel Authority of India Ltd. (SAIL)

  • State Trading Corporation (STC) etc.

  • Hindustan Machine Tools Ltd (HMT)

  • Gas Authority of India Ltd (GAIL)

  • Bharat Heavy Electricals Ltd (BHEL)

The government companies are characterized by the following features:

  • Formation – They are formed as per the provision under the Indian Companies Act, 2013.

  • Control – Since more than 51% of paid-up capital is by central government or state government, the government can wholly own these kinds of companies where the government has all the shares.

  • Appointments – These companies can appoint their employees as per their own rules and regulations. These rules are part of its articles of association and memorandum. They contain the objectives and internal rules and regulations of the company as well.

  • Management -The board of directors manages these companies. They are appointed by shareholders or nominated by the government.

  • Audit – The government appoints an auditor based on the recommendation of the CAG (Controller and auditor general of India) department. The annual report of this audit is presented in the parliament.

  • Finance – These companies get their capital from government shareholdings and also private shareholders. These companies can also raise funds from the share market.

  • A legal entity on its own – These companies can enter into third-party contracts, can sue and be sued, and hold property in their names.

  • Relaxations – If the parliament authorizes, these companies can get relaxation from the rules under the Companies Act.

  • Registration – It is registered with the registrar of companies like any other joint-stock company.

[Commerce Class Notes] on Global Integration and Business Environment Pdf for Exam

Global Integration

A major aspect for supervisors settling on a worldwide business procedure is the tradeoff between worldwide reconciliation and nearby responsiveness. The business condition in India has gone through a colossal change over the most recent couple of years. In spite of the fact that there are a few variables liable for this, worldwide reconciliation is one of the most significant ones. Liberalization, Privatization, and Globalization (LPG) are three pivotal parts of this factor.

Global Integration Strategy Definition

Global Integration meaning is how much the organization can utilize similar items and techniques in different nations. Nearby responsiveness is how much the organization must modify their items and techniques to meet different nations’ conditions. The two measurements bring about four essential worldwide business systems: send out, normalization, multi-domestic, and transnational. 

The picture above represents the advantages of global integration. It shows how global integration connects different parts of the world.

International Integration Definition 

International integration is a monetary idea wherein nations have an ever more prominent number of budgetary exchanges, speculations, and interests outside their fringes. Through monetary coordination, countries become progressively monetarily associated.

Background of Global Integration

The economy of India has grown since autonomy from the British guideline. The administration’s needs following 1947 were to zero in on social upliftment of individuals and killing destitution. The economy back then was, to a great extent, agricultural, and enterprises were scant. Steadily, the administration began setting up its ventures. A few public part companies were working in numerous enterprises. The legislature guaranteed that they prospered by making monopolistic business sectors. Consequently, privately owned businesses were vigorously directed and controlled. 

This methodology didn’t keep going long because the legislature wound up with equalization of installment emergencies in 1991. At the point when India moved toward worldwide organizations like the World Bank for help, they requested that the administration open up its economy. 

Therefore, India embraced revolutionary measures to incorporate its economy with that of different countries. These measures, consequently, are comprehensively named as worldwide incorporation of the Indian business condition.

Advantages of Global Integration

There are three major advantages of Global Integration, widely know as the LPG: Liberalisation, Privatisation, and Globalization. There are a few advantages of global integration. For instance, numerous new business sectors like protection, transportation, and banking administrations have become because of it. Besides, individuals presently approach more decisions and worldwide brands as a result of streamlined commerce between nations.

Liberalization 

Each legislature forces limitations in transit to its residents’ direct business exercises. One method of doing this is by making it necessary for individuals to acquire a few licenses and consents for business. Advancement essentially alludes to the expulsion of these limitations. This happens when the administration eliminates pointless permit necessities, permits more direct business opportunities, weakens guidelines, and lessens charges. Another approach to do it is by making imports and fares simpler. 

Progression has been liable for a few enormous MNCs coming to India. The legislature has had the option to pull in crores of Rupees as unfamiliar capital as a result of it. 

Privatization 

Privatization implies permitting private players and organizations to direct business. This didn’t occur ordinarily before 1991 in light of the fact that the administration controlled numerous businesses. It additionally infers withdrawal of the state’s obstruction in business. The primary targets of Privatization are to diminish the weight on citizens, support private rivalry, encourage capital inflow, and so on. Some normal modes by which a legislature enjoys Privatization incorporate disinvestment, diversifying, public-private organizations, and liquidation of public area endeavors. 

Because of Privatization, there are not many government organizations staying in India now. The ones that remain despite an imposing business model. Government organizations like Air India, ONGC, LIC, and HAL need to rival privately owned businesses and MNCs. Subsequently, India’s economy has gotten more various and development situated. 

Globalization 

The limited idea of India’s economy before 1991 had made it over-dependent on neighborhood organizations. Indian firms just contended among one another. Unfamiliar organizations, in this way, couldn’t consider working here. This, at long last, changed when India received Globalization. Globalization, in straightforward words, implies developing between reliance between nations concerning business and exchange. Current methods for correspondence and transportation innovation have made this conceivable. Indeed, even worldwide associations and arrangements between nations have assumed a major function in Globalization.

[Commerce Class Notes] on Henri Fayol’s Principles of Management Pdf for Exam

Henri Fayol explains management as a process of forecast followed by planning, organization, command, coordination and control of activities of others. In simpler terms, management refers to proper organization and delegation of work along with ensuring its completion. Vitally, this simple concept is the basis for Fayol’s principle of management.

Notably, be it a corporate set up or a simple business enterprise, efficient management is vital to ensure smooth functioning, which in turn generates significant revenue. Keeping this in mind, there have been quite a few theorists who have attempted to theorize the management’s role and function. In this regard, principles of management offered by Henri Fayol are a remarkable success. 

Understanding Henry Fayol’s Principles of Management

Management as a subject of study has developed in recent years. Various scholars have contributed significantly to developing these subjects as a course of study that is taught in high schools and colleges as a professional career. 

Henry Foyal is one of such famous academicians who has given his famous 14 principles of management. He had proposed these theories in the early 20th century that hold very true and are important in the management in business settings of the world today. In industries or manufacturing units many individuals are employed for the production of the final product. It has been observed in such settings that the employees or laborers are not efficient in every department of the work division. 

This observation of Henry Foyal led to his first conclusion that it is very important to segregate the employees according to their domain of expertise. This method of division of labor increases the efficiency of workers and benefits the enterprise or business unit as a whole. This method also assures for the accuracy of the work and its speedy completion. Authority and responsibility are also the major factors for the success of a business unit or any other organization and go hand in hand. Authority without responsibility or responsibility without authority can be a disastrous affair to be dealt with. 

Likewise, Henry Floyed has suggested and described very crucial and fundamental factors of managing the workforce or human resources of anybody or organization. As a student of commerce, understanding these basic principles of management will not only help you in exams but also be very useful ordereir future professional life.