This document provides an overview of Henri Fayol and his contributions to management theory. It discusses that Fayol was a French mining engineer and director who developed 14 principles and 5 functions of management that form the basis of classical management theory. The document then summarizes Fayol's 14 principles of management and 5 functions of management. It also provides examples of how major Indian companies like Dabur, Aditya Birla Group, and ITC have implemented Fayol's principles in their management approaches.
Fayol's 14 Principles and 5 Functions of Management
1. A
PRESENTATION
ON
“HENRI FAYOL”
Presented By:
Group No: 2
- Chetan Narkhede.
- Anurag Singh.
- Anmol Dabriwal.
- Indu bala.
- Mayur Deshmukh.
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2. ABOUT HENRI FAYOL:
Henri Fayol (Istanbul, 29 July 1841 – Paris, 19
November 1925).
He was a French Mining Engineer ES Director of
mines who developed a general theory of business
administration that is often called FAYOLISM.
He was one of the most influential contributors to
modern concepts of Management.
He stated 14 Principles and 5 Functions of
management
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3. 14 PRINCIPLES OF MANAGEMENT
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1. DIVISION OF WORK 8. CENTRALIZATION
2. AUTHORITY 9. SCALAR CHAIN
3. DISCIPLINE 10. ORDER
4. UNITY OF COMMAND 11. EQUITY
5. UNITY OF DIRECTION 12. STABILITY OF TENURE OF
PERSONNEL.
6. SUBORDINATION OF INDIVIDUAL
INTERESTS TO THE GENERAL
INTERESTS
13. INITIATIVES
7. REMUNERATION 14. ESPRIT DE CORPS
4. 1. DIVISION OF WORK:
Work should be divided among individuals and groups to ensure
that effort and attention are focused on special portions of the
task. Fayol presented work specialization as the best way to use
the human resources of the organization.
2. AUTHORITY:
Managers must be able to give orders. Authority gives them this
right. Note that responsibility arises wherever authority is
exercised. There must be balance between authority and
responsibility.
3. DISCIPLINE:
Employees must obey and respect the rules that govern the
organization. Good discipline is the result of effective leadership,
a clear understanding between management and workers
regarding the organization's rules, and the judicious use of
penalties for infractions of the rules.
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5. 4. UNITY OF COMMAND:
Every employee should receive orders from only one superior.
5. UNITY OF DIRECTION:
Each group of organizational activities that have the same objective
should be directed by one manager using one plan. All the efforts of
the employees must be directed in one way in achievement of one
common goal.
6. SUBORDINATION OF INDIVIDUAL INTERESTS
TO THE GENERAL INTERESTS:
The interests of any one employee or group of employees should
not take precedence over the interests of the organization as a
whole.
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6. 7. REMUNERATION:
Workers must be paid a fair wage for their services.
8. CENTRALIZATION:
Centralization refers to the degree to which subordinates are
involved in decision making. Whether decision making is
centralized (to management) or decentralized (to subordinates) is a
question of proper proportion. The task is to find the optimum
degree of centralization for each situation.
9. SCALAR CHAIN:
The line of authority from top management to the lowest ranks
represents the scalar chain. Communications should follow this
chain. However, if following the chain creates delays, cross-communications
can be allowed if agreed to by all parties and
superiors are kept informed. 6
7. 10. ORDER
This principle is concerned with systematic arrangement of men,
machine, material etc. there should be specific place for every
employee in organization
11. EQUITY:
Managers should be kind and fair to their subordinates.
12. STABLITY OF TENURE OF PERSONNELS:
High employee turnover is inefficient. Management should provide
orderly personnel planning and ensure that replacements are
available to fill vacancies.
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8. 13. INITIAVTIES:
Employees who are allowed to originate and carry out
plans will exert high levels of effort.
14. ESPRIT DE CORPS:
Promoting team spirit will build harmony and unity within
the organization.
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9. 5 FUNCTIONS OF MANAGEMENT:
PLANNING:
Managers must plan for future conditions, develop strategic
objectives and secure the achievement of future goals.
ORGANIZING:
Managers must organize the workforce in an efficient manner
and structure and align the activities of the organization.
COMMANDING:
Managers must supervise subordinates in their daily work, and
inspire them to achieve company goals. Likewise it is the
responsibility of managers to communicate company goals and
policies to subordinates.
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10. CO-ORDINATING:
Managers must harmonize the procedures and activities
performed by the company, meaning that every activity of each
organizational unit should complement and enrich the work of
another.
CONTROLLING:
Managers must control that company activities are in line with
general company policies and objectives. It is also the
responsibility of the manager to observe and report deviations
from plans and objectives, and to make initiatives to correct
potential deviations.
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11. DABUR
Dabur (Dabur India Ltd.) is India's largest Ayurvedic
medicine manufacturer.
Dabur was founded in 1884 by Dr. SK Burman, a
physician in West Bengal, to produce and dispense
Ayurvedic medicines.
Dr. Burman designed Ayurvedic medication for
diseases such as cholera and malaria.
Sustainable Development Society (Sundesh), a
non-profit organisation started by Dr. Burman, aims
to carry out welfare activities in the spheres of
health care, education and other socio-economic
activities.
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13. MISSION AND VISION
MISSION:
"Being a leader in the natural foods
Beverages Industry and aims in offering quality
products and distributors higher returns to Stake
Holders“
VISION:
"Dedicated to the health and well being of
every Household"
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14. VALUES
Ownership
We accept personal responsibility, and accountability to meet business needs.
Passion For Winning
We all are leaders in our area of responsibility, with a deep commitment to deliver
results.
People Development
People are our most important asset. We add value through result driven training, and
we encourage & reward excellence.
Consumer Focus
We have superior understanding of consumer needs and develop products to fulfill
them better.
Team Work
We work together on the principle of mutual trust & transparency in a boundary-less
organization.
Innovation
Continuous innovation in products & processes is the basis of our success.
Integrity
We are committed to the achievement of business success with integrity. 14
15. ADITYA BIRLA GROUP
Aditya Birla group was established in 1857.
Shiv Narayan Birla started cotton trading operations
in the small town of Pilani in Rajasthan.
Company Headquaters in Mumbai.
Operates in 33 countries with more than 1,33,000
employees worldwide.
Largest Cement Player in India.
Among top 3 Mobile Telecom Companies.
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18. MISSION & VISION:
MISSION:
To be premium global conglomerate with a
clear focus on each business.
VISION:
To deliver superior value to our customers,
shareholders, employees and social at large.
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20. ITC COMPANY
ITC was incorporated on August 24, 1910 under the
name Imperial Tobacco Company of India
Limited.
Later Named as Indian Tobacco Company Limited.
Chairman of ITC - Y C Deveshwar.
Its diversified business includes five segments: Fast
Moving Consumer Goods (FMCG), Hotels,
Paperboards & Packaging, Agri Business &
Information Technology.
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22. MISSION AND VISION
MISSION:
To enhance the wealth generating capability of
the enterprise in a globalising environment, delivering
superior and sustainable stakeholder value.
VISION:
Sustain ITC's position as one of India's most
valuable corporations through world class
performance, creating growing value for the Indian
economy and the Company's stakeholders.
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23. VALUES
Trusteeship
Customer Focus
Respect For People
Excellence
Innovation.
Nation Orientation
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