TOPIC

Henry Fayols 14 Principles of Management

INTRODUCTION

Henry Fayol

was born in France in 1841. He joined as junior executive in 1860 in a mining company. He made great contributions and his contributions are generally termed as Administrative Management. He is the person who has given the functions and principles of management for the first time in a systematic manner. He has formulated the general principle of management early in the 20th century. For the efficient and smooth running of business, Fayol has suggested 14 principles of management. These principles are

14 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.Fair remuneration. 8.Centralization. 9.Scalar chain. 10.Order. 11.Equity. 12.Stability. 13.Intitative. 14.Espiirit de corps.

1.DIVISION OF WORK
Division of work implies division of task in order to reduce the burden of task and promote specialization. Specialization leads to better efficiency and maximum output. Only small part of work should be given to a worker in which he become specialist.

2. AUTHORITY AND RESPONSIBILITY

Authority is the right to command to get the work done. Responsibility is the accountability of authority so that the authority is not misused. This principle states that authority and responsibility should go side by side.

3. DISCIPLINE
Discipline means obedience, application, energy, behavior and observation of established rules by employers and employees. Discipline is essential for smooth running of the business. Without it no business can prosper

4. UNITY OF COMMAND
Unity of command implies that one person should get orders and instructions from only one head or supervision. One person should be accountable to only one person. If one person is under more than one person than subordinate may fail to understand.

5. UNITY OF DIRECTION
Unity of direction implies that there should be one head and one plan for a group of activities having the same objective. Each group of activities having the same objective must have one plan of action and must be under the control of one manager or superior.

6. SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST

This principle implies harmony of personal interest and common interest. Fayol was of the view that the interest of one employ should not prevail over the interest of the enterprise. When the individual interest and common interest differs it is the duty of the management to reconcile them

7. FAIR REMUNERATION
Fayol was of the view that remuneration paid to workers should always be just, fair and should provide maximum satisfaction. Management must ensure fair reward for the work. Fayol was also in favour of non-financial benefit.

8.CENTRALISATION
Centralization means concentration of authority in the hands of few i.e. is top management. Everything which goes to increase the importance of subordinates role is decentralization and everything which goes to reduce it is called centralization.

9. SCALAR CHAIN
There should be a scalar chain of the personnel resources or we can say the authority and responsibility from top management to the lowest levels should be in a scalar form or in a line. It will be always helpful in commanding as well as communication.

10. ORDER
According to this principle there should be material as well as social order in the enterprise. Material order means a proper place for every thing and everything in its right place.

11. EQUITY
Equity means justice and kindliness. There should be neither nepotism nor favoritism. Fayol was of the view that to encourage workers management should deal with equity based on kindliness and justice. Application of equity requires good sense and experience.

12. STABILITY
Employee turnover should be minimized. Long-term commitment should be encouraged. A very high rate of labour turnover creates a bad name for the organization. It causes instability and in security in the minds of the workers.

13.INITITATIVE
Initiative implies the power of thinking out a plan and ensuring its successful implementation. Initiative is a powerful motivator. Subordinates should be encouraged to initiate new ideas and carry out their plans.

14. ESPIRIT DE CORPS

Espirit de corps means the spirit of loyalty and devotion to the group. The manager should encourage espirit de corps among his employees. The employees should work as a team and management should promote this team spirit.

CONCLUSION
Henry fayols principles of management are valid for most of the . organizations. They are applicable to both private as well as government organizations. These are flexible and capable of adaptation. These can be used at levels of management with minor modifications according to the needs of the organization

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