14 PRINCIPLES OF MANAGEMENT

-HENRI FAYOL

By
RAHUL KR SINGH
MBA(HOSPITAL ADMINISTRATION)
MMHRC,MADURAI
INTRODUCTION
A principle refers to a fundamental truth.
It establishes cause and effect relationship between
two or more variables under given situation.
They serve as a guide to thought & actions.
These principles are derived: -
•On the basis of observation and analysis
•By conducting experimental studies
14 PRINCIPLES OF MANAGEMENT DESCRIBED
BY HENRI FAYOL
Division of Labor
Party of Authority & Responsibility
Principle of One Boss
Unity of Direction
Equity
Order
 Discipline
14 PRINCIPLES OF MANAGEMENT DESCRIBED
BY HENRI FAYOL
Initiative
Fair Remuneration
Stability of Tenure
Scalar Chain
Sub-Ordination of Individual Interest to General Interest
Espirit De’ Corps
Centralization & De-Centralization
DIVISION OF LABOUR
 stressed on the specialization of jobs

 work of all kinds must be divided and allotted to various

persons
 simpler and results in efficiency

 helps the individual in acquiring speed, accuracy in his

performance
 Specialization leads to efficiency & economy in spheres of
business
Party of Authority & Responsibility
 co-existing
 Authority is given to a person, he should also be
made responsible.
 He should also have concerned authority, if anyone is made
responsible.
 Authority refers to the right of superiors. responsibility means
obligation for the performance of the job assigned.
 Should be a balanced.
 Authority- Responsibility = Irresponsible Behavior
 Responsibility- Authority= Ineffective
Principle of One Boss
 A sub-ordinate should receive orders and be accountable to only boss at
a time.
 a sub-ordinate should not receive instructions from more than one
person
 Dual sub-ordination should be avoided
 The enterprise a disciplined, stable & orderly existence
 Harmonious relationship between superiors and sub-ordinates
 a sub-ordinate should not receive instructions from more than one
person
UNITY OF DIRECTION

 One head one plan

 Related activities should be grouped together

 Efforts of all the members of the organization should be

directed towards common goal

 Without unity of direction, unity of action cannot be achieved.

 Unity of command is not possible without unity of direction.

Order

• Concerned with proper & systematic arrangement of

things and people.
• Arrangement of things is called material order
• Placement of people is called social order.
• Material order-should be safe, appropriate and specific place
for every article
• Social order-Selection and appointment of most suitable
person on the suitable job
Discipline
 Sincerity, Obedience, Respect of Authority & Observance of
Rules and Regulations of the Enterprise.
 subordinate should respect their superiors and obey their order.
 smooth running of the enterprise
 subordinates but also on the part of management.
 Discipline can be enforced if -
-Good superiors
- Clear & fair agreements with workers
- Sanctions are judiciously applied
INITIATIVE
 Encouraged to take initiative in the work assigned to them

 Initiate actions without being asked to do

 Management should provide opportunity to its employees

 Helps in developing an atmosphere of trust

 Enjoy working in the organization because it adds to their

zeal and energy

 Suggest improvement in formulation & implementation of

place
Fair Remuneration
 Paid to the workers should be fair of the efforts

 Satisfaction to both employer and the employees

 Determined on the basis of cost of living, work assigned

etc,
 Provision of other benefits such as free education, medical
& residential facilities to workers
 Management creates harmonious relationship and pleasing
atmosphere of work.
Stability of Tenure
 Employees should not be moved frequently from one
job position to another
 Once they are appointed their services should be
served
 Time is required for an employee to get used to a new
work –fayol
 Money spent on training the worker will go waste
 Stability of job creates team spirit& a sense of
belongingness among workers
-ultimately increase the quality as well as
quantity of work
Scalar Chain

 The chain of superiors ranging from the ultimate

authority to the lowest
 Every orders, instructions etc. has to pass through
Scalar chain.
 For the sake of convenience & urgency, this path can be
cut this short cut -Gang Plank
 Temporary arrangement between two different points
to facilitate quick & easy communication
 Modified as per the requirements of situations.
Sub-Ordination of Individual Interest to
General Interest
 An organization is much bigger than the individual
 As far as possible, reconciliation should be achieved
between individual and group interests.
 Case of conflict, individual must sacrifice for bigger
interests
 In order to achieve this attitude
- Employees should be honest & sincere.
- Proper & regular supervision of work.
- Reconciliation of mutual differences
Espirit De’ Corps
 It refers to team spirit
 Inspires workers to work harder
 Interest of the undertaking in the long run.
 The managers should infuse team spirit &
belongingness
Espirit De’ Corps following steps should be undertaken
proper co-ordination
should be encouraged to develop informal relations among themselves.
create enthusiasm and keenness among subordinates
employees should be rewarded
Centralization & De-Centralization
 Centralization-concentration of authority at the top level

 De-centralization-disposal of decision making authority to all the

levels of the organization
 Increases the role of subordinate is decentralization & Decreases
the role of subordinate is centralization
 It is not feasible, organization should strike to achieve a lot
between the two.
IT’S QUERY TIME
THANK YOU