INTRODUCTION
Management principles are the
statements of fundamental truth based on logic which provides guidelines for
managerial decision making and actions.
statements of fundamental truth based on logic which provides guidelines for
managerial decision making and actions.
A principle means a fundamental
truth on the basis of reasoning, a primary element of general law.
truth on the basis of reasoning, a primary element of general law.
HENRY FAYOL has given the
fourteen principles of management. He has made a distinction between management
principles and management elements. Management principles is a fundamental
truth and establish cause-effect relationships while management element
denotes the function performed by a merger.
fourteen principles of management. He has made a distinction between management
principles and management elements. Management principles is a fundamental
truth and establish cause-effect relationships while management element
denotes the function performed by a merger.
Define Management
“Management is the process of
designing & maintaining an environment in which individuals, working in
groups, efficiently accomplish selected aims”.
designing & maintaining an environment in which individuals, working in
groups, efficiently accomplish selected aims”.
HISTORY: HENRI FAYOL
HENRI FAYOL (1841 – 1925) was a
French coal-mine engineer, director of mines and modern management
theoretician. His scientific management theory forms the base for business
administration and business management. In the academic world, this is also
known as fayolism. HENRI FAYOL provided one of the most influential modern
management concepts of his time. He is the founder of the 14 principles of
management and the five functions of management.
French coal-mine engineer, director of mines and modern management
theoretician. His scientific management theory forms the base for business
administration and business management. In the academic world, this is also
known as fayolism. HENRI FAYOL provided one of the most influential modern
management concepts of his time. He is the founder of the 14 principles of
management and the five functions of management.
FAYOL’S 14 PRINCIPLES
OF MANAGEMENT
(1) DIVISION OF WORK
The work is divided in such a
way that it promotes specialization and one person does only one thing rather
than doing everything himself
way that it promotes specialization and one person does only one thing rather
than doing everything himself
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.
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) PARITY BETWEEN
AUTHORITY AND RESPONSIBILITY
The concepts of authority and
responsibility are closed related. Authority was defined by Fayol as the right
to give orders and the power to exact obedience. Responsibility involves being
accountable and is therefore naturally associated with authority. Whoever assumes
authority also assumes responsibility.
responsibility are closed related. Authority was defined by Fayol as the right
to give orders and the power to exact obedience. Responsibility involves being
accountable and is therefore naturally associated with authority. Whoever assumes
authority also assumes responsibility.
Authority and responsibility go
side by side and should be commensurate to each other.
side by side and should be commensurate to each other.
(3) DISCIPLINE
A successful organization
requires the common effort of workers. Penalties should be applied judiciously
to encourage this common effort.
requires the common effort of workers. Penalties should be applied judiciously
to encourage this common effort.
Discipline id obtained through
judicial applications of penalties. Limites of acceptable behavior are
absolutely necessary to define if everyone in the organization knows what
can and can not be done.
judicial applications of penalties. Limites of acceptable behavior are
absolutely necessary to define if everyone in the organization knows what
can and can not be done.
(4) UNITY OF COMMAND
Unity
of command provides that an employee
is responsible for only one supervisor, who in turn is responsible for only one
supervisor, and so on up the organizational hierarchy. This is true even if the
top of the organization is led by a group of people. For example, imagine you
are the CEO of a technology firm in Silicon Valley. While the board of
directors of your company govern the policy-making and strategic planning,
under the concept of the unity of command, you do not answer to all members of the
board, but only the chairman of the board.
of command provides that an employee
is responsible for only one supervisor, who in turn is responsible for only one
supervisor, and so on up the organizational hierarchy. This is true even if the
top of the organization is led by a group of people. For example, imagine you
are the CEO of a technology firm in Silicon Valley. While the board of
directors of your company govern the policy-making and strategic planning,
under the concept of the unity of command, you do not answer to all members of the
board, but only the chairman of the board.
(5) UNITY OF DIRECTION
The entire organization should
be moving towards a common objective in a common direction.
be moving towards a common objective in a common direction.
There should be one head and
one plan for a group of activities having the same objectives.
one plan for a group of activities having the same objectives.
(6) SUBORDINATION OF
INDIVIDUAL INTEREST TO GENERAL INTEREST
The interests of one person
should not take priority over the interests of the organization as a whole.
should not take priority over the interests of the organization as a whole.
Fayol was of the opinion that
the interest of one employee or a group of employees should not prevail the
interest of the enterprise as a whole.management should make efforts to reconcile
individual interests with common interests.
the interest of one employee or a group of employees should not prevail the
interest of the enterprise as a whole.management should make efforts to reconcile
individual interests with common interests.
(7) REMUNERATION
Many variables, such as cost of
living, supply of qualified personnel, general business conditions, and success
of the business, should be considered in determining a worker’s rate of pay.
living, supply of qualified personnel, general business conditions, and success
of the business, should be considered in determining a worker’s rate of pay.
Fayol wanted the remuneration
to be paid to employees to be just and fair and should afford maximum
satisfaction to both employees and the employer.
to be paid to employees to be just and fair and should afford maximum
satisfaction to both employees and the employer.
(8) EFFECTIVE
CENTRALIZATION
Fayol defined centralization as
lowering the importance of the subordinate role. Decentralization is increasing
its importance. the degree to which centralization or decentralization should be
adopted depends on the specific organization in which the manager is working.
lowering the importance of the subordinate role. Decentralization is increasing
its importance. the degree to which centralization or decentralization should be
adopted depends on the specific organization in which the manager is working.
(9) SCALAR CHAIN
Manager in hierarchies is part
of a chain like authority scale. Each manager, from the first line supervisor
to the president, possess certain amounts of authority. The president possesses
the most authority; the first line supervisor the least. Lower-level managers
should always keep upper-level managers informed of their work activities. The existence
of a scalar chain and adherence to it is necessary it the organization is to
be successful.
of a chain like authority scale. Each manager, from the first line supervisor
to the president, possess certain amounts of authority. The president possesses
the most authority; the first line supervisor the least. Lower-level managers
should always keep upper-level managers informed of their work activities. The existence
of a scalar chain and adherence to it is necessary it the organization is to
be successful.
(10) ORDER
It means the right man in the
right job and the right material in the right place. Material order means a
proper place for everything and everything in its right place.
right job and the right material in the right place. Material order means a
proper place for everything and everything in its right place.
(11) EQUITY
All employees should be treated
as equally as possible.
as equally as possible.
It means justice and kindness. Fayol
was the opinion that to encourage workers to fulfill their duties with devotion
and loyalty, management should deal with the workers with equity-based on
kindness and justice.
was the opinion that to encourage workers to fulfill their duties with devotion
and loyalty, management should deal with the workers with equity-based on
kindness and justice.
(12) STABILITY OF TENURE OF
PERSONNEL
Retaining productive employees
should always be a high priority for management. Recruitment and selection
costs, as well as increased product-reject rates, are usually associated with
hiring new workers.
should always be a high priority for management. Recruitment and selection
costs, as well as increased product-reject rates, are usually associated with
hiring new workers.
(13) INITIATIVE
Employees should be given the
chance and opportunity in taking initiative in deciding and implementing the
plans.
chance and opportunity in taking initiative in deciding and implementing the
plans.
Management should take steps to
encourage worker initiative, which is defined as new or additional work
activity is undertaken through self-direction.
encourage worker initiative, which is defined as new or additional work
activity is undertaken through self-direction.
(14) ESPIRIT DE CORPS
It refers to harmony and mutual
understanding among the member of the organization.
understanding among the member of the organization.
Management should encourage
harmony and general good feelings among employees.
harmony and general good feelings among employees.