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14 Principles Of Management

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14 Principles Of Management

  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 15. Sub-Ordination of Individual Interest toGeneral 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. 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. 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.
  18. 18. IT’S QUERY TIME
  19. 19. THANK YOU