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14 PRINCIPLES OF MANAGEMENT #HENRI FAYOL PRINCIPLES OF MANAGEMENT

14 Principles of Management - Henri Fayol 



 Henri Fayol gave the principles for administrative management. He wanted to increase the effectiveness and efficiency of the employees by these principles of management. He is also known as the father of General Management

  1. Division of work - According to this principle, the work has been divided between different workers. The same worker will do the same work every time. Thus, the worker will become specialised in doing that work. This will lead to specialisation of work and increases efficiency and effectiveness of the employees or workers in the organisation.
  2. Authority and responsibility- Authority refers to the concentration of power and responsibility refers to the obligation of doing the task. There should be a balance between authority and responsibility. If authority is more than responsibility then the manager may misuse it and if the responsibility is more than authority then he/she may feel burdened or frustrated from the work.
  3. Discipline- Discipline refers to the obedience and respect for rules and regulations of the business organisation. Discipline should be followed strictly by superiors as well as subordinates. It is required at all levels and every superior must judge the employees according to their work and not by liking or disliking the employees personally. 
  4. Unity of command- According to this principle, there should be one and only one boss for every employee in an organisation. This means that a subordinate should be accountable to only one superior and only obey his orders. This is because if an employee will receive orders from two superiors at the same time then this will lead to confusion and disturbed stability.
  5. Unity of direction- There are different departments in an organisation. All the departments should be moving or working towards the same goals through coordinated efforts. Each department must have one head and one plan. For example, if a company is producing cars and trucks then it should have two separate divisions for both of them.
  6. Subordination of individual interest to general interest-  According to this principle, the interest of an organisation should be more important when compared with the individual interest. Every person in the organisation has joined it because of some individual objectives. In every situation the interest of the organisation goal must be given the priority over the individual goals. 
  7. Remuneration of employees- The amount paid to the employees or workers as salary or wages should be fair enough for both the employees as well as the organisation. The employees should be paid enough money so that they can achieve at least a reasonable standard of living and  it should also be in the paying capacity of the organisation. This will help the managers to create good relation with the workers and the functioning of the organisation will remain smooth and efficient. 
  8. Centralisation and decentralisation- In centralisation, the decision making power is in one hand and in decentralisation the decision making power is distributed among more than one person. According to this principle,  there should be a balance subordinate participation in the organisation through decentralisation. In most cases,  large organisations follow the concept of decentralisation and small organisations follow the concept of centralisation.
  9. Scaler chain- According to this principle, the hierarchy of authority from highest to lowest level refers to the scaler chain. Every organisation have superiors as well as subordinates. This principle states that an organisation must have a chain of authority and communication and information that goes from top to the bottom. This should be properly followed by  the managers and subordinates. But in case of emergency, a ‘Gang Plank’ should be formed. This is a shorter route to communicate and is provided to the organisation so that communication is not delayed. 
  10. Order- According to this principle, there should be a systematic way of keeping everything.  A place for everyone and everything. This refers to orderliness, if in an organisation,  there is a specific place for everything and it is kept on its place then it will be found when required. There will be no delay in doing the task due to the lost material or anything.  This will help the organisation to increase its productivity and efficiency and goals will be achieved on time. 
  11. Equity- According to this principle, there should be no discrimination against anyone on the basis of caste, creed, sex, religion, language, nationality, opinion, colour, etc. There should be kindness and justice by managers towards the employees. This will motivate the workers to do the work effectively and efficiently.  Also, it will create a discrimination free environment in the organisation. A good environment will surely help the organisation in its growth and development. 
  12. Stability of Personnel-  According to this principle, the employees tenure in the organisation should be increased to maintain organisational productivity.  Employees absentism and turnover should be minimised. Turnover refers to the frequency of leaving the organisation. Employees should be selected and appointed after critical and complex procedure and they should be kept at their post for at least a minimum fixed period. If this is not done then the training cost of the organisation will be high.
  13. Initiative- Initiative refers to taking the first step. In an good organisation employees should always be encouraged to present their suggestions for improvements, development and innovation.  Thus, an organisation should have an Employee Suggestion Scheme in which initiatives by the employees with self motivation are welcomed. This will result to innovation in the company. If an initiative results in great innovation, time reduction or reduced cost than the employee should be rewarded.
  14. Esprit de corps- It refers to team work. All the members of the organisation come from different background and they have to work together as a team to accomplish the goals of the organisation. 

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