Henri Fayol proposed 14 principles of management that provide guidance for managers. The principles include: division of labor, authority and responsibility, unity of command, unity of direction, discipline, remuneration, centralization and decentralization. Fayol believed specialization through dividing work improves efficiency. Managers should balance authority given to subordinates with the responsibilities required of their roles. An organization functions best when workers receive direction from one boss and work is grouped into coordinated activities focused on common goals.
1. 14 PRINCIPLES OF MANAGEMENT
-HENRI FAYOL
By
RAHUL KR SINGH
MBA(HOSPITAL ADMINISTRATION)
MMHRC,MADURAI
2. INTRODUCTION
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
3. 14 PRINCIPLES OF MANAGEMENT DESCRIBED
BY HENRI FAYOL
Division of Labor
Party of Authority & Responsibility
Principle of One Boss
Unity of Direction
Equity
Order
Discipline
4. 14 PRINCIPLES OF MANAGEMENT DESCRIBED
BY HENRI FAYOL
Initiative
Fair Remuneration
Stability of Tenure
Scalar Chain
Sub-Ordination of Individual Interest to General Interest
Espirit De’ Corps
Centralization & De-Centralization
5. DIVISION OF LABOUR
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
6. Party of Authority & Responsibility
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
7. Principle of One Boss
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
8. UNITY OF DIRECTION
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.
9. Order
• 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
10. Discipline
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
11. INITIATIVE
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
12. Fair Remuneration
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.
13. Stability of Tenure
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
14. Scalar Chain
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.
15. Sub-Ordination of Individual Interest to
General Interest
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
16. Espirit De’ Corps
It refers to team spirit
Inspires workers to work harder
Interest of the undertaking in the long run.
The managers should infuse team spirit &
belongingness
Espirit De’ Corps following steps should be undertaken
proper co-ordination
should be encouraged to develop informal relations among themselves.
create enthusiasm and keenness among subordinates
employees should be rewarded
17. Centralization & De-Centralization
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.
InitiativeFair RemunerationStability of TenureScalar ChainSub-Ordination of Individual Interest to General InterestEspirit De’ Corps (can be achieved through unity of commandCentralization & De-Centralization
InitiativeFair RemunerationStability of TenureScalar ChainSub-Ordination of Individual Interest to General InterestEspirit De’ CorpsCentralization & De-Centralization
proper co-ordination should be encouraged to develop informal relations among themselves. create enthusiasm and keenness among subordinates employees should be rewarded