Introduction: -Henry
Fayol was a French mining engineer. He worked as the director of mines also.
After conducting many experiments in management, he developed 14 principles of
management. These principles are explained in his famous book 'General and Industrial
Administration'. Due to his contribution to management, he is called 'the father of Modern Management'.
The Principles laid down by Fayol
are explained below:
1.
Principle of
Division of Work: -According to this
principle the total work should be divided into small sub parts. The divided
work should be assigned to different employees, as per their capacities, skills
and interests. Fayol says division of
work leads to specialization.
2.
Principle of
Authority and Responsibility: -When the work is
assigned to a person, he should be given proper authority to carry out that
work. E.g. a manager should be given authority is always accompanied by
responsibility. When a person is given the authority, he should be held
responsible for the same task. Authority and responsibility always go hand in
hand. If the manager is given the authority to complete the task within a given
time, he should be held responsible if he does not do that in time.
3.
Principle of
Discipline: -According to Fayol,
discipline is the most essential thing in the organization. Employees must obey
and respect the rules that govern the organization. Discipline helps to achieve
the goals set in the organization. Good discipline is the result of effective
leadership. For that there must be a clear understanding between the management
and workers regarding the organization's rules.
4.
Principle of
Unity of Command: -In any organization
every employee should receive orders from the superior (boss) only. This is
applicable from top management to bottom. The principle of unit of command
tries to avoid confusion. If an employee receives orders from more than one
superior he will be confused and will not be able to work with concentration.
The work will not be performed properly. Whereas if he gets orders from only
one person, he will finish his work accurately.
5.
Principle of
Unity of Direction: -Unity of command
explains about single person getting directions from a single person. But unity
of direction explains about a group working with the same objective under the
directions of a single person. According to this principle each group in the
organization should have the same objective. The group should be directed by
one manager using one plan. Thus this principle explains about group working in
the organization.
6.
Principle of
subordination of individual interest to general interest: -According to this principle the interest
of an individual must be given less importance than the interest of the whole
organization. While taking decision in the organization the manager should
always consider the interest of the whole group rather than the interest of a
single employee. Similarly the employee should also protect the interest of the
organization and consider his interest subordinate. If the organization prospers
automatically the employee will prosper.
7.
Principle of
Remuneration: -This Principle
states that the employees must be paid a fair wage for their services. While
paying remuneration the skill, expertise, knowledge, tenure etc. of the
employee should be taken into account. When the employees are paid fair
remuneration they show greater productivity and give more output.
8. Principle of Centralization: -Centralization refers to the
concentration of power or authority. In some organizations this power is vested
in one hand or few hands. This situation occurs in the small organizations. But
if the size of the organization is large then centralization becomes difficult.
According to this principle there must be a proper balance between
centralization and decentralization in the organization. This is to be done
according to the size of the organization, nature of the activity etc.
9. Principle of
Scalar Chain: -Usually in the
organization there is a particular system of communication. It is through a
chain, e.g. the manager will inform about a decision to the departmental head,
the departmental head will inform the supervisor, the supervisor will inform
the foreman and the foreman will inform the workers. On the other hand the
communication can flow from the worker to the manager in the upward direction
also. It is known as scalar chain.
However
this type of communication is very time consuming. Therefore sometimes cross
communication i.e. communication not exactly following the chain, should be
allowed. This is known as 'Gang Plank'. It avoids delays; Gang Plank must be
done with proper permission of the authorities.
10. Principle of Order: -According to this principle people and
materials should be in the right place at the right time. It means there must
be proper arrangement of material. It must have right place. Similarly there
must be proper placement of personnel. They must be appointed to do right work
at right place. This principle emphasizes on the proper utilization of physical
and human resources.
11.
Principle of
Equity: -This principle
is about fair and equal treatment to all employees. Managers should be kind and
fair to their subordinates. There should not be any discrimination between the
employees. E.g. the employees working on the same level but in different
department should be paid same wages. their wages should not depend on the
department but the level at which they are working.
12.
Principle of
Stability of Tenure: -While appointing an
employee the manager should assure the stability of tenure or job security to
the employee. This creates a sense of belonging among the employees. There should
not be any uncertainty in the mind of the employees regarding the stability of
the job.
13.
Principle of
Initiative: -Initiative refers to taking
the first step. It also means thinking of new ideas. According to this
principle the manager should encourage the employees to take initiative. The
employees should come up with the new ideas and the manager should welcome
their ideas. This principle creates sense of belonging about the organization
in the minds of the employees.
14. Principle
of Esprit de Corps: -Esprit de corps means union is strength. Management is a group activity.
Human resource is the great asset of the organization. The manager should
create a spirit of team work among the employees. Manager should build a sense
of togetherness among the employees. If the workers work with unity the goal
can be achieved easily.
