PRINCIPLE OF MANAGEMENT

HENRY FAYOL
Henri Fayol (29 July 1841 19 November 1925) was a mining engineer & director of
mines who developed a gen theory of business administration. Fayol’s work was
one of the first comprehensive states of a general theory of management.

Fayol was a successful mining engineer and senior execute prior to publishing his
principle of administrative science was not primarily a theorist, but rather a
successful ser successful senior manager who sought to bring order to personal
experiences.

Fayal’s five principle roles of management are still actively practiced today he has
found *Plan, Organize, command, co-ordinate and control" written on more than
one manager's whiteboard during his career.

Fayal ideas had a major effect on how management functions in most established
organization in many ways, they are the bible of mgt and the source of idea is
even today is certainly used by all managers
 RELINCE INDUSTRIES

RELIANCE FRESH is the convenience store format which forms part of

the retail business of Reliance Industries of India which is headed by
Mukesh Ambani, The company already has in excess of 1000 reliance
fresh outlets across the country. These stores sell fresh fruits and
vegetables, staples, groceries, fresh juice, bars and dairy products.

Reliance Fresh stores are already selling over 1000 tones of fresh
products and 250 categories. Reliance fresh is aggressively working on
introducing a pan-India network of retail stores with world class
environment, state of technology and seamless supply chain.

MANAGEMENT

Management is a universal phenomenon. It is a very popular widely

used term. All organizations whether social or political are involved in
management as it helps and direct the various efforts towards a
definite purpose. It is an art of creating an environment in which can
perform and individual can co-operate towards attainment of group
goals. "Acco. To H.Fayol, Management is To forecast, to plan, to
organize, to command, to coordinate and to control.

It establishes cause and effect relationship between two or more

variables under given state. They serve as a guide to thoughts and
actions. Therefore principle based 4 ma statement fundamental truth
logic provides guide decision making and actions. Hence we can say
that good mgt includes both being efficient Le, fitting square pegs in
square holes and rand ones in round.
Principles Of Management
1) DIVISION OF WORK

2) AUTHORITY AND RESPONSIBILITY

3) DISCIPLINE

4) UNITY OF COMMAND

5) UNITY OF DIRECTION

6) SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST

7) REMUNERATION OF EMPLOYEES

8) CENTRALISATION AND DECENTRALISATION

9 SCALAR CHAIN

10) ORDER

11) EQUITY

12) STABILITY OF PERSONNEL

13) INITIATIVE

14) ESPIRIT DE CORPS

1. Division of work

According to this principle, the whole work must be divided into small
task or units and instead of assigning the whole work to one person.
One task or job should be assigned to one person according to the
capability, qualification and experience of the person.

When a person is performing a part of job again and again he will

become perfect and specialized in that job and efficiency will improve.
This principle is very useful for any organization be it private or public.
It enhances overall performance of an organization because specialists
perform consistently.

For example an organization having different departments.

2.Authority And Responsibility

Authority means power take decision. Responsibility means obligation

to comply job on time. So according to principle there should balance
and parity b/w a and responsibility. Excess of authority may bring
negative results and Ecess responsibility will not allow the worker to
complete the work on time.

Balance b/w both of them will result in no misuse of authority and it

also helps in meeting responsibility on tie without any delay.

3.Discipline

Discipline refers to general rules, regulation for systematic working of

an organ It doesn't mean only rules and regulation but it also means
developing, in the employees towards organization. It also means
obedience to organist rules that are necessary for functioning of an
organization. It includes -

 Good supervision at all level

 Clear and fair agreement
 Application of penalties judiciously
Employees must honor the commitment made by them and
management must meet its promises. On one hand it enforces
orderliness and motivates on other side.

4.Unity of Command

There should be one & only one boss for every individual employees
working in an organisation. If employees get order from 2 superiors at
same time then they wget confused and not able to understand that
whose orders must be executed.
Thus unity of command avoids confusion and conflicts. It also helps in
harmoniou relations and fixation of responsibility. If this principle is
violated then there we ego clashes as employees should receive order
from one boss only. this principl helps to create peace in same level
and to subordinate.

5.Unity of Direction

Efforts of all the members and employees of an organisation must be

directs towards one direction that is achievement of common goal. This
helps in bringing unity of action and coordination in an organisation.
Each department and groups having common objective must have one
head and one plan only.

All the units of an organisation should be moving towards the same

objectives through coordinated and focused efforts. Positive effects are
-
  Achievement of organisation goal
 Efforts of all the employees get unified towards one direction
only.

6. Subordination of individual interest to general interest.

The interest of an organization should take priority over the interest of

any individual employee. If objectives of both organization and
individual are in different directions then managers must try to
reconcile individual interest with organization goal and if it is not
possible then individual goal must be sacrificed for achieving
organizational goal.
Employees are required to give up carelessness, selfishness, lethargy
and personal interest. it ensures no ego clashes as credit goes to group
and coordination between individual and organization.

7.Remuneration of employees

The overall pay and compensation should be fair to employees and

workers to give them at least a reasonable standard of living.
Remuneration paid to employees must be fair because if employees
are unpaid they will not be satisfied and an unsatisfied person can
never contribute his maximum. Dissatisfaction will lead to increase in
employees turnover.

This ensures congenial atmosphere b/w the management and workers.

In healthy atmosphere, workers put there best effortsto contribute
maximum. it ensures smooth functioning and motivates them.

8.Centralisation & Decentralisation

Centralisation refers to concentration of authority in few hands at the

top level. Decentralisation means evenly distribution of power at every
level of management. According to fayol, a company must not be
completely centralised or completely decentralised but there must be
both depending upon the nature and size of the organisation. A
company must be properly balanced i.e.; it should not be completely
centralised or decentralised. This principle leads to positive effect that
are --

I. Fast decision at operational level and strict control by top level

II. Benefits of centralisation as well as decentralisation.

9.Scalar Chain

Scalar chain means line of authority or chain of superiors from highest

to lowest rank. Organisation should have a chain of authority and
responsibility that runs from top to bottom and should be followed by
manager.

Every info. must pass through every key of this chain, no skipping of
any one key should be allowed. In case of emergency when information
has to be passed so fayol has permitted a short cut in the chain which is
called " gang - plank". Gang plank permits direct communication
between the employees working at the same level of authority without
following scalar chain. It leads to systematic flow of chain.

10.Order
People and material must be in suitable place at appropriate time for
maximum efficiency. In other words, there must be orderliness in the
organisation

a) Material order - arrangement of things is called material order. It

ensures proper & fixed place for various materials, tools, and
equipments.

b) Social order - arrangement of people is referred to as social order. It

ensures proper & fixed place for each employee in an organisation.

It results in increase in productivity and efficiency and smoothly

functions without hindrance.

11.Equity
Good sense and experience are needed to ensure fairness to all
employees, who should be treated as fairly as possible.

Equity means to be kind, fair, and just treatment to employees

Employees will put the maximum efforts when they are treated with
kindness and justice. This will ensure loyalty and devotion.

There should be no discrimination against anyone on a/c of sex,

religion language caste, belief or nationality. If a manager is biased in
dealing with employees then the will get dissatisfaction and will not
contribute to their maximum capacity Employee seek to become loyal
and devoted if equally treated.

12.Stability of Personnel
Employees turnover should be minimized to maintain organisational
efficiency. In an organisation the employees should be selected and
appointed after following a due and rigorous procedure. Once they are
appointed they should be for fixed period. Management must provide
the feeling of job security among the employees because with the
feeling of insecurity they can't contribute to maximum. Frequent
turnover of employees is bad for organisation and should be done
when necessary. Not only turnover but frequent transfer or rotation
should be avoided as it takes some time for a person to learn and settle
for the job and it also reduces wastage of time and money

13.Initiative
Workers should be encouraged to develop and carry out their plans for
improvement Initiative means first step with self motivation. Fayol said
that employees must be given an opportunity to take some initiative in
making and executing a plan. so managers must welcome the
suggestion and ideas of employees before framing plan. Employees
must be given freedom to come ahead and use their skills to achieve
expected goal. Positive effects are-

i. Develops feeling of belongingness in employees.

ii. Employees achieve target on time if they are set up with their
consultation.

14.Espirit De Corps
Management should promote a team spirit of unity and harmony
among employees. In order to achieve organisational goal, mgt should
promote team work and coordination. Espirit De Corps means union is
strength. Fayol suggested that every employee in the organisation
must consider him as a part of a team and try to achieve team goal
because team contribution is always better than individual. The feeling
of "I" should be replaced with "WE". It helps to develop a feeling of
mutual trust and understanding and achieve goal with efficiency and
effectiveness.

Conclusion :
Reliance Industries Limited (RIL) is a global player in various industries,
including refining, petrochemicals, oil and gas exploration, and retail.
The company has a rich history of growth and innovation, driven by the
visionary leadership of its founder, Dhirubhai Ambani, and his
successors.