FAYOL’S FAYOL’S PRINCIPLES OF MANAGEMENT PRINCIPLES OF MANAGEMENT

AND AND FUNCTIONS OF MANAGEMENTFUNCTIONS OF MANAGEMENT

By- NITEEN.PB.com 1st SemRoll no. 305

Fourteen Principles of as one of the classical

organization theory that is PRINCIPLES OF

MANAGEMENT were developed by Henri Fayol and

have been considered universally applicable to every

type of organization.

HENRI FAYOL (1841-1925)

PRINCIPLES OF MANAGEMENT PRINCIPLES OF MANAGEMENT

DIVISION OF WORK OR SPECIALIZATION

AUTHORITY AND RESPONSIBILITY

DISCIPLINE

UNITY OF COMMAND

UNITY OF DIRECTION

SUBORDINATION OF INDIVIDUAL TO GENERAL

REMUNERATION

CENTRALIZATION

LINE OF COMMAND/SCALAR CHAIN

ORDER

EQUITY

STABILITY OF TENURE

INITIATIVE

ESPRIT DE CORPS

DIVISION OF WORK OR SPECIALIZATION

Division of work makes a man specialist. The

reason is that division of work helps to specialize in

an activity which increases the output with

perfection. It also avoids wastage of time. Division

can be applied to both technical and managerial

kind of work.

AUTHORITY AND RESPONSIBILITY

Management is getting things done by others. A

superior gives direction to his sub-ordinates to

perform the job. Then the super-visor may exercise

his authority. The post he holds invests him with

this authority. Authority is closely connected with

responsibility. Responsibility is shouldered

whenever authority is exercised . Responsibility is

essential to perform a job correctly.

DISCIPLINE

Discipline is essential in all levels of management.

Discipline is obtained through judicial application of

penalties. Limits of acceptable behavior are

absolutely necessary to define, so that everyone in

an organization knows what can and cannot be

done. Often this principle is difficult for a supervisor

to apply impartially.

UNITY OF COMMAND

An employee should receive orders from only one

supervisor. Yet, because of a number of

interacting variables in any job situation, line and

staff as authority become opposed to line and

staff as function

UNITY OF DIRECTION

There should be only one plan, and the person

should be responsible for supervising it; all

activities have the same objective, should be

supervised by one person.

SUBORDINATION OF INDIVIDUAL TO GENERAL

The individual should subordinate self-interest to

the general good. It is incumbent upon management

to reduce conflict between the individual and the

general well being wherever possible.

REMUNERATION

Remuneration for work must be fair and accurate,

affording maximum satisfaction for both employee

and employer. The manager must examine tasks,

identify responsibilities, and decide upon a just level

of compensation.

CENTRALIZATION

Fayol thought centralization of authority to be

desirable, at least for overall control. Certainly,

both formulation of policy and the generation of

basic rules and procedures ought to be

centralized.

LINE OF COMMAND/SCALAR CHAIN

Organizations need a formalized hierarchy that

reflects the flow of authority and responsibility. Fayol

suggested that a chain of command is necessary

most of the time, but, at times, it is best ignored.

The communication flows to top to bottom or bottom

to top. It should be proper.

ORDER

It is applied to both material and men. The

material should be kept in order in the place

where it is necessary. The personnel are

selected scientifically and assigned duties

according to there qualification and ability.

EQUITY

Employees must be seen as persons, not things to

be manipulated. If managers hope to create a

good working environment, they must treat

everyone fairly and with equity. Equity refers to a

combination of fairness, kindness and justice.

STABILITY OF TENURE

The management should ensure stability or

security of job to every employee of the

undertaken.

INITIATIVE

The power of thinking out, proposing and executing.

Management should encourage employees to

originate and carry out plans. This urging tends to

boost levels of effort.

ESPRIT DE CORPS

This means union is strength or Team Spirit. He felt

that all successful organizations survive only when

a feeling of unity pervades the group and that

viable organizations cleat with crises as a team.

Fayol's six primary functions of management,

which go hand in hand with the Principles, are as

follows:

Forecasting.

Planning.

Organizing.

Commanding.

Coordinating.

Controlling.

FUNCTIONS OF MANAGEMENT

REFERENCES

notes

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