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📘 DGMS Mine Management 

 1. Evolution of Management 

(a) Classical School

1. F.W. Taylor – Scientific Management
   • Focus: Efficiency through standardization, specialization, and time/motion study.
   • Principles:
     • Science, not rule-of-thumb
     • Harmony, not discord
     • Cooperation, not individualism
     • Maximum output
     • Development of workers
   • Tools: Time study, motion study, standard task, incentive wage plans.
   • Mining context: Standard cycle times for drilling, loading, haulage; incentive-based bonus for coal output.
2. Henri Fayol – Administrative Management
   • Functions: Planning, Organizing, Commanding, Coordinating, Controlling (POCCC → later evolved into POSDCORB).
   • 14 Principles: Unity of command, unity of direction, scalar chain, stability of tenure, division of work, discipline, remuneration, initiative, esprit de corps, etc.
   • Mining context: Clear chain of command in an underground mine; stability of tenure reduces accident risks.
3. Max Weber – Bureaucratic Management
   • Features: Rules, hierarchy, impersonality, merit-based recruitment, division of labor.
   • Advantages: Predictability, fairness, discipline.
   • Limitations: Rigid, slow to adapt, excessive paperwork.
   • Mining context: Safety and compliance require rules/hierarchy, but over-bureaucratization delays decision-making.

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(b) Human Relations / Behavioral School

1. Elton Mayo – Hawthorne Studies
   • Finding: Productivity improves due to social attention and group belongingness (Hawthorne effect).
   • Mining context: Safety committees and participatory teams reduce accidents.
2. Abraham Maslow – Hierarchy of Needs
   • Levels: Physiological → Safety → Social → Esteem → Self-Actualization.
   • Mining context:
     • Physiological: Wages, canteen.
     • Safety: PPE, roof supports.
     • Social: Team cohesion.
     • Esteem: Recognition for safe production.
     • Self-actualization: Career growth.
3. Douglas McGregor – Theory X & Y
   • Theory X: Assumes workers dislike work, need control.
   • Theory Y: Assumes workers are self-motivated, seek responsibility.
   • Mining context: Supervisors applying Theory Y improve morale and safety.
4. Rensis Likert – Leadership Styles
   • Systems 1–4: Exploitative autocratic → Benevolent → Consultative → Participative.
   • Mining context: Participative system improves safety culture.

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(c) Quantitative / OR School

• Origin: World War II operations research.
• Tools: Linear programming, inventory control, queuing models, CPM/PERT.
• Mining context: Scheduling of drilling, transport optimization, manpower allocation.

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(d) Systems Approach

• Mines = open systems with subsystems (Production, HR, Finance, Safety, Environment).
• Requires coordination and feedback.
• Exam tip: Always relate management subsystems to mining enterprises.

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(e) Contingency Approach

• “No one best way.” Management style depends on task, technology, and environment.
• Mining context: Open-cast vs underground mines require different organizational structures.

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2. Core Management Topics in DGMS Syllabus (a) Work Study & Productivity

• Work Study = Method Study + Work Measurement.
• Used for setting time standards and improving efficiency.
• Formula:
  • Productivity = Output / Input.
  • Man-shift productivity = Output per man-shift.
• Mining context: Number of tons of coal produced per miner per shift.

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(b) Production Planning & Scheduling

• Short-term: Daily/weekly mine schedules.
• Long-term: Mine life plan, equipment scheduling.
• Tools: Gantt charts, CPM, PERT.
• Exam tip: Questions often ask differences between CPM and PERT.

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(c) Financial Management

• Capital Budgeting Tools:
  • Payback Period = Time to recover investment.
  • IRR (Internal Rate of Return) = Discount rate that gives NPV = 0.
• Break-Even Point (BEP):

$$BEP = \frac{Fixed\ Costs}{Selling\ Price - Variable\ Cost}$$

• Mining context: Decide whether to purchase new equipment based on IRR/payback.

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(d) Leadership Styles

• Autocratic: Quick decisions, low morale.
• Democratic: Participation, better safety compliance.
• Laissez-faire: Freedom, but risk of indiscipline.
• Exam tip: Case-based MCQs often test this.

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(e) Motivation Theories

• Maslow’s Hierarchy.
• Herzberg’s Two-Factor Theory → Motivators (achievement, responsibility) vs Hygiene factors (salary, policy).
• McGregor’s Theory X/Y.

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(f) Industrial Accidents & Safety

• Accident Frequency Rate (AFR):

$$AFR = \frac{N \times 200,000}{H}$$

• Severity Rate (SR):

$$SR = \frac{D \times 200,000}{H}$$

• LTIFR (Lost Time Injury Frequency Rate): Per 1,000,000 man-hours.
• Exam tip: Numericals on AFR/SR are very common.

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(g) Materials Management

• ABC Analysis: A (vital), B (moderate), C (trivial).
• ERP: Integrated software linking HR, production, finance, materials.
• Mining context: Explosives → Category A; spare parts → Category B; stationery → Category C.

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(h) Environment & CSR

• EIA (Environmental Impact Assessment): Study of impacts before project.
• EMP (Environmental Management Plan): Mitigation measures.
• Mine Closure Plan: Progressive + Final closure.
• CSR (Corporate Social Responsibility): Welfare of project-affected people.
• Exam tip: Short notes like “Steps in EIA” or “Objectives of EMP.”

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3. Quick Comparisons PERT vs CPM

Aspect	PERT	CPM
Basis	Probabilistic	Deterministic
Orientation	Event-oriented	Activity-oriented
Focus	Time	Time–cost trade-off
Use	R&D, uncertain projects	Mining, construction, repetitive jobs

Theory X vs Theory Y

Theory X	Theory Y
People dislike work	Work is natural
Must be controlled	Self-directed
Avoid responsibility	Accept responsibility
Motivated by money	Motivated by growth & achievement

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4. Exam-Focused Tips

• Always link theory to mining examples (DGMS expects mining context).
• Prepare formulas (AFR, SR, BEP, IRR, Payback).
• Revise short notes: Fayol’s 14 principles, Taylor’s principles, Hawthorne effect.
• Practice numericals: BEP, CPM/PERT, productivity ratios, accident indices.
• Prepare for short notes (3–5 marks): ERP, ABC analysis, EIA steps, CSR in mines.
• Balanced study across management + legislation + safety numericals is critical.

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Evolution of Management & Principles 

Q1. Who is regarded as the “Father of Scientific Management”?
A) Henry Gantt
B) F.W. Taylor
C) Henri Fayol
D) Max Weber
Answer: B) F.W. Taylor
Taylor introduced time study, motion study, and incentive systems. 

Q2. “Unity of Direction” in Fayol’s principles means:
A) Each worker reports to one boss
B) Similar activities should be grouped under one plan
C) Top management controls everything
D) Workers must follow rules strictly
Answer: B) Similar activities should be grouped under one plan 

Q3. Max Weber’s bureaucracy is based on:
A) Informal groups
B) Strict rules and hierarchy
C) Worker incentives
D) Personal charisma of leaders
Answer: B) Strict rules and hierarchy 

Q4. The Hawthorne experiments emphasized:
A) Financial incentives only
B) Social factors and group morale
C) Job specialization
D) Strict supervision
Answer: B) Social factors and group morale Q5. McGregor’s Theory Y assumes workers are:
A) Lazy and need close control
B) Only motivated by salary
C) Self-motivated and responsible
D) Resistant to change
Answer: C) Self-motivated and responsible

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Work Study, Productivity & Production Mgmt Q6. Work study is a combination of:
A) Method study and work measurement
B) Job evaluation and training
C) Standard costing and budgeting
D) Scheduling and routing
Answer: A) Method study and work measurement 

Q7. Productivity is defined as:
A) Output ÷ Input
B) Output × Input
C) Input ÷ Output
D) Output – Input
Answer: A) Output ÷ Input 

Q8. Which tool is used for scheduling in mines?
A) SWOT analysis
B) CPM/PERT
C) Brainstorming

D) Hawthorne study

Answer: B) CPM/PERT 

Q9. Which chart is most suitable for daily mine operations planning?
A) Flow chart
B) Gantt chart
C) Pie chart
D) Histogram
Answer: B) Gantt chart 

Q10. In productivity measurement, OMS stands for:
A) Overall Mine Safety
B) Output per Man-Shift
C) Operation Management System
D) Output Measurement Standard
Answer: B) Output per Man-Shift

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Financial Management & Numericals 

Q11. Break-Even Point is where:
A) Fixed cost = Total cost
B) Total revenue = Total cost
C) Profit is maximum
D) Variable cost = Fixed cost
Answer: B) Total revenue = Total cost 

Q12. Payback period refers to:
A) Time to recover initial investment
B) Average annual profit of project
C) Time to reach BEP
D) None of these
Answer: A) Time to recover initial investment Q13. Internal Rate of Return (IRR) is:
A) Interest on working capital
B) Rate at which NPV = 0
C) Rate of dividend
D) Depreciation rate
Answer: B) Rate at which NPV = 0 

Q14. In DGMS exams, BEP is mostly calculated in terms of:
A) Units of output
B) Value of sales
C) Both A & B
D) Only contribution margin
Answer: C) Both A & B 

Q15. Contribution = Selling Price – _________ ?
A) Fixed cost
B) Total cost
C) Variable cost
D) Overhead cost
Answer: C) Variable cost

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Leadership, Motivation & OB 

Q16. Autocratic leadership style is most effective when:
A) Workers are highly skilled
B) Quick decisions are required
C) Team participation is essential
D) Long-term planning is needed
Answer: B) Quick decisions are required 

Q17. Herzberg classified salary as:
A) Motivator
B) Hygiene factor
C) Self-actualization factor
D) Growth factor
Answer: B) Hygiene factor 

Q18. Which leadership style gives complete freedom to subordinates?
A) Democratic
B) Autocratic
C) Laissez-faire
D) Bureaucratic
Answer: C) Laissez-faire 

Q19. According to Maslow, job security belongs to:
A) Physiological needs
B) Safety needs
C) Esteem needs
D) Social needs
Answer: B) Safety needs 

Q20. POSDCORB, given by Gulick, stands for:
A) Planning, Organizing, Staffing, Directing, Coordinating, Reporting, Budgeting
B) Planning, Operating, Supervising, Directing, Coordinating, Recording, Balancing
C) Process of Standardized Data Collection and Reporting Bureau
D) None of the above
Answer: A) Planning, Organizing, Staffing, Directing, Coordinating, Reporting, Budgeting

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Safety, Environment & Materials 

Q21. Accident Frequency Rate (AFR) is based on:
A) Number of accidents per million hours
B) Lost days per 1000 hours
C) Number of accidents per 200,000 man-hours
D) Production per man-hour
Answer: C) Number of accidents per 200,000 man-hours 

Q22. Severity Rate (SR) measures:
A) Number of accidents per year
B) Man-days lost due to accidents
C) Cost of accidents
D) Number of workers absent
Answer: B) Man-days lost due to accidents Q23. ABC analysis in materials management classifies items based on:
A) Usage frequency
B) Storage cost
C) Annual consumption value
D) Safety impact
Answer: C) Annual consumption value 

Q24. In mining CSR stands for:
A) Corporate Social Responsibility
B) Critical Safety Regulations
C) Coal Safety Rules
D) Community Safety Ratio
Answer: A) Corporate Social Responsibility Q25. Environmental Impact Assessment (EIA) is conducted:
A) During mine closure only
B) Before starting a mining project
C) After accidents occur
D) After production begins
Answer: B) Before starting a mining project