14 PRINCIPLES OF MANAGEMENT

-HENRI FAYOL

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

INTRODUCTION

Management is an “art” of getting things done through and with people in

formally organized groups.

Functions of management is Planning Organizing Staffing Directing/leading Controlling

Division of Labor

Party of Authority & Responsibility

Principle of One Boss

Unity of Direction

Equity

Order

Discipline

Initiative

Fair Remuneration

Stability of Tenure

Scalar Chain

Sub-Ordination of Individual Interest to General Interest

Espirit De’ Corps

Centralization & De-Centralization

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

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

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

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.

Equity means combination of fairness, kindness and justice. The employees should be treat with kindness and equity if devotion is expected of them.

• 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

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

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

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.

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

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.

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

It refers to team spirit Inspires workers to work harder Interest of the undertaking in the long run. The managers should infuse team spirit &

belongingnessEspirit De’ Corps following steps should be

undertaken

should be encouraged to develop informal relations among themselves.

employees should be rewarded

create enthusiasm and keenness among subordinates

proper co-ordination

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.

As we all know that a building cannot attain stability without proper foundation . An organization also cannot be stable in it’s long run and achieve it’s long term goal without following these 14 principles of management.

Organization and these principle are like complimentary goods which completes each other, like car and petrol.