14 Principles of Management by Henry Fayol

Henri Fayol, who was the first to provide a conceptual framework of management, evolved the following fourteen principles of management. Henry Fayol - Famous French Industrialist (1841-1925) 1. Division of labour: A complicated work is divided into many small jobs and each small job is allocated to individuals. When the individual does the job again and again he becomes expert in it and this leads to specialization.

Advantages

1. Specialization results in efficiency. 2. It leads to better work with the same effort. 3. It increases productivity, quality and quantity of output.

Disadvantages work.

1. Worker suffers boredom because of repletion of the same type of 2. Difficult to reschedule if any worker is absent. 2. Authority and responsibility:

Authority is the legal right to command over others to do an act or not to do an act. In the other words it is the power given to a person to extract work from his subordinates. Responsibility crops up with authority. It is the obligation of a person to perform his duties towards a job. Authority may be delegated where as responsibility cannot be delegated. For example: The production manager is answerable to the General Manager if the production is very less. He cannot say that he has delegated the responsibility to the production engineer. People often seek of authority but fear of responsibility. The fear of responsibility spoils initiative and destroys other good qualities. Authority without responsibility and responsibility without Authority are the major defects of any organization. Therefore, management should clearly arrange and distribute the Authority and Responsibility.

3. Discipline: Discipline is very much essential for the smooth running of any organization. Discipline is respect for agreements, sincere effort for completing a given task and outward marks of respect. The essence of discipline is obedience, diligence, correct attitude and outward mark of respects, with in the limits fixed by the agreement between management and its employees.

Maintenance of discipline requires: 1. 2. 3. 4. Good supervisors at all levels. Clear and fair agreements. Judicial application of penalty and Effective communication.

4. Unity of Command:

A subordinate should receive orders and instructions from one superior only. But it does not mean that a superior should have only one sub-ordinate. If it is not followed, there will not be any discipline. A sub-ordinate needs to receive orders only from one superior because multiple commands will cause confusions and conflicts. Therefore a sound management should avoid dual commands.

5. Unity of Direction: One head One Plan. This means that there should be one head and one plan for each group of activities having the same objectives. Similar activities should be grouped together under one manager. Only then all efforts could be directed towards the common goal. Unity of command cannot function without unity of direction. 6. Sub ordination of individuals interest to the common interest:

Individuals who work for an organization should sacrifice their interest for the benefit of the organization i.e. the common interest. The interest of an organization is more important than the interest of an employee. It is necessary to maintain unity and to avoid friction among the employees. In any industry, an employee interest is to earn money to meet his personal needs whereas the organization interest is to maximize the production and develop the factory. The supervisors should set the following to others to maintain general interest: Fair agreements, effective supervision and good example.

7. Remuneration of personnel: Remuneration is the money paid to the employees for their physical and mental efforts in carrying out a work. Fair and equitable remuneration should be provided to employees to ensure better production and satisfaction. It should be fair and satisfy for both the employees and employers.

8. Centralization:

If the power and responsibilities are retained at top level management, the organization is centralized. Only the top executive at the centre takes all the decisions. It has more span of control. When the power is being dispersed/delegated then it is called de-centralization. It has a shorter span of control. In an organization for certain important decisions power should be centralized. For Quick and Routine decisions, power should be decentralized. For effective management, decentralization is necessary.

9. Scalar Chain:

Scalar chain means line of authority Instructions and orders should be sent from top level to the bottom level only through the line of authority. There should be an unbroken line of power and command from top level to bottom level. Over lapping any one in the organization structure will spoil the performance of the management system.

10. Order:

Arrangement of things and persons. Order is of two types: Material order and Social order. A place for everything and everything in its place material order and a place for every one and everyone in his place is called social order Scientific Selection, training and placement are necessary so that materials can be easily taken out and men can be easily located.

11. Equity:

Every one in an organization should be treated equally fair play and justice. This would help to improve the employees morale, sincerity and loyalty. There will not be any friction among the employees.

12. Stability of tenure of personnel:

People who work in an organization should not be allowed to move out quite frequently because stable and secure work force is an asset to any organization. It is better to keep a manager of average ability than a very efficient manager who merely comes and goes. The management should create favorable working conditions by providing good salary, promotion opportunities, welfare facilities etc.

13. Initiative:

Initiative is the power of thinking and executing any task with enthusiasm voluntarily. Everyone should be given an equal opportunity to use their creativity and come out with better ideas of doing the work. When employees come forward with new ideas, new methods etc., they must be encouraged. It improves good morale among the employees.

14. Espirit de corps:

It is a French word, which means feeling of harmony and union among personnel of an organization. Union is strength. Team spirit and a sense of unity and togetherness should be fostered and administrated. Management should avoid the policy of divide and rule.

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