TAYLOR & FAYOL THEORies

AND CONCEPT OF
ORGANISING
SUBMITTED TO : DR. LALITA YADAV
SUBMITTED BY : VANSHIKA
VANSHIKA SAPRA
V. PREETHI
SUHANI AKURA
PALAK CHANDELA
COURSE : BBA - C
INDEX :
 BACKGROUND AND HISTORY OF HENRI FAYOL
 PRINCIPLE OF MANAGEMENT DEVELOPED BY
FAYOL
 BACKGROUND AND HISTORY OF FREDERICK
WINSLOW TAYLOR
 PRINCIPLES OF TAYLOR
 CONCEPT OF ORGANISING
• Meaning
• Process
• Importance
FAYOL’S
THEORY
BACKGROUND AND
HISTORY OF FAYOL
 Henri Fayol was born in France in 1841. He got degree in
mining engineering in 1860 and started working as engineer in
a Coal Mining Company.

 In 1888, he was promoted as the Managing Director of the

company. At that time, the company was in the situation of
insolvency. He accepted the challenge and applied his
managerial techniques to bring out the company from this
situation and he succeeded.

 When he retired after 30 years, the company was a leading

coal- steel company with strong financial background.
PRINCIPLE OF MANAGEMENT DEVELOPED BY
FAYOL

I. Division of work : Work is divided in small tasks and each work is done by a
trained specialist which leads to greater efficiency, specialization, increased
productivity.

II. Authority and Responsibility : Authority means power to take decisions and
responsibility means obligation to complete the job assigned on time. Authority and
responsibility should go hand in hand.

III. Discipline : It is the obedience to organizational rules by the subordinates.

Discipline requires good supervisors at all levels, clear and fair agreements

IV. Unity Of Command : It implies that every worker should receive orders and
instructions from one superior only, otherwise it will create confusion, conflict,
disturbance and overlapping of activities.

V. Unity Of Direction : Each group of activities having the same objective must
have one head and one plan. This ensures unity of action and coordination.
VI. Subordination of individual interest to general interest : The interest
of an organization should take priority over the interest of any one individual
employee.

VII. Remuneration of employees : The overall pay compensation should

be fair to both employees and the organization. The wages should
encourage the workers to work more and better.

VIII. Centralization and Decentralization : Centralization means

concentration of decisions making authority in few hands at top level.
Decentralization means evenly distribution of power at every level of
management .

IX. Principle of Scalar Chain : The formal lines of authority between

superiors and subordinates from the highest to the lowest ranks is known as
scalar chain.

X. Principle of order : A place for everything and everyone and should be

in its designated place. People and material must be in suitable places at
appropriate time for maximum efficiency.
XI. Principle of Equity : The working environment of any organization should
be free from all forms of discrimination (religion, language, caste, sex, belief)
and principles of justice and fair play should be followed. No worker should
be unduly favoured or punished.
XII. Stability of tenure of personnel : company must offer job security for
the employees because with the feeling of insecurity they will not contribute
their maximum in the organization.
XIII. Initiative : The management should support and encourage the
employees to take initiatives in an organization. It helps them to increase their
motivation and morale.
XIV. Esprit De Corps : It is the responsibility of the management to motivate
their employees by developing trust and mutual understanding that will lead
to positive environment.
Taylor’s theory
 BACKGROUND AND
HISTORY OF TAYLOR
• Taylor was born in 1856 to a Quaker family in German town, Philadelphia. He
was widely known for his methods to improve industrial efficiency.

•He was one of the first management consultants. In 1909,Taylor summed up his
efficiency techniques in his book The Principles of Scientific Management.

• Frederick W. Taylor was the first man in recorded history who deemed work
deserving of systematic observation and study.

• He retired at the age of 45 to focus on promoting the scientific methods.

TAYLOR’S
PRINCIPLES :
 Science, not a thumb rule
 Cooperation, not individualism

 Harmony, not discord

 Development of each and every

person to his/her greatest efficiency
SCIENCE, NOT RULE OF
THUMB
This rule focuses on increasing the efficiency
of an organization through scientific analysis
of work and not with the 'Rule of Thumb'
method. Taylor believed that even a small
activity like loading paper sheets into boxcars
can be planned scientifically. This will save
time and also human energy.

EXAMPLE : Sorting the different types of books

based on their size, colour, standard etc.
COOPERATION, NOT
INDIVIDUALISM

It is similar to 'Harmony, not Discord' and believes

in mutual collaboration between workers and the
management. Managers and workers should
have mutual cooperation and confidence and a
sense of goodwill. The m purpose is to substitute
internal competition with cooperation.

EXAMPLE : Grouping similar minded people in

groups to prevent chaos.
 HARMONY, NOT
DISCORD
 Taylor emphasized that the managers and the workers
should maintain a harmonious work environment. They
should realize their interdependence and work in amity.
He was well acquainted with the fact that friendly working
environment will help in developing the relations between
them. He introduced this principle to maintain a peaceful
kinship between people.

 EXAMPLE : If a worker is having a problem with the working hours, he

should talk to the manager about it, instead of letting it affect production
(by going on a strike
DEVELOPMENT OF EACH AND EVERY PERSON
TO HIS/HER GREATEST EFFECIENCY

 Any organization should focus on the

development of its workers along with the
company's growth. This is because if the
workers will have higher proficiency, then they
will be able to increase their contribution to the
organization's development.

 EXAMPLE : Training the staff according to their

interests so that they can be efficient at completing their
task with least resources used.
CONCEPT OF
ORGANIZING
MEANING
 Organizing is a management function that
forms the step after planning.
 Managers allocate resources,
departmentalize work, demarcate
authority, and distribute responsibilities
through the firm.
 Managers need to focus on the particular
skills and strengths of the workers while
dividing work.
PROCESS
 Identification of activities
 Classification of activities
 Assignment of Duties
 Delegation of Authority
 Creation of responsibility
 Coordinating authority and
responsibility relationships
IMPORTANCE
 Benefits of specialization
 Clarity in working relationships
 Optimum utilization of resources
 Adaptation of changes
 Effective administration
 Development of personnel
 Expansion and growth
SOURCES
 www.topper.com
 www.unacademy.com
 www.Wikipedia.org
 RK Singhla business studies text book
 www.youtube.com
THANK YOU