14 principls by henri fayol


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14 principls by henri fayol

  2. 2. 14 Principles of Management by Henri FayolHenri Fayol was a French miningengineer.He was born in Istanbul in 1841 andpassed away in Paris in 1925.Later he turned out to be a leading industrial andsuccessful manager.He wrote a monograph in French in 1916 titled“General and Industrial Administration”.He is considered as the Father of AdministrativeManagement Theory.
  3. 3. He presented 14 principles of management as general guides to the management process and management practice. They are as follows:-Division of Work Work should be divided among individuals and groups. It produces more and better work with the same effort. Fayol said that work specialization is the best way to use the human resources of the organisation.
  4. 4. Authority and Responsibility Authority is the right to give orders and the power to exact obedience. A manager may exercise formal authority and also personal power. Formal authority is derived from his official position and personal power is the result of intelligence, experience, moral worth, ability to lead, etc. Responsibility is closely related to authority and it arises wherever authority is exercised. Whoever assumes authority also assumes responsibility.
  5. 5. Discipline Discipline means obedience to authority, observance of the rules and norms of performance, respect for agreements, sincere efforts for completing the given job, respect for the superiors and the organization, etc. The best means of maintaining discipline are good supervisors at all levels, clear and fair agreements between the employees and the employer, and judicious application of penalties.
  6. 6. Unity of Command Each employee should receive instructions about a particular work from one superior only. If there were to be more than one superiors, the employee would be confused due to conflict in instructions.Unity of Direction The entire organization should be moving towards a common objective in a common direction. There should be complete identity between individual and organizational goals.
  7. 7. Subordination of Individual Interest to General Interest An individual is always interested in maximizing his own satisfaction through more money, recognition, status, etc. It is very often against the general interest of the organisation. The interests of an individual should not take priority over the interests of the organization as a whole.Remuneration Employees should receive fair payment for their services.
  8. 8. It should be based on general business conditions, cost of living, productivity of the concerned employees, and the capacity of the firm to pay. Fair remuneration increases workers’ efficiency and boost their morale. It also plays a vital role in making the relations of the employees and the management better.Centralization Centralization means lowering the role and importance of the subordinates, and decentralization means increasing it.
  9. 9. The degree of centralization or decentralization of authority is decided by the management. It is decided on the basis of the nature of the circumstances, size of the organization, the type of activities and the nature of the organizational structure.Scalar Chain It means the hierarchy of authority from the highest executive to the lowest one for the purpose of communication. The information should pass through proper channels of authority along the scalar chain.
  10. 10. But in case of emergency when swift action is required, proper channels of authority may be short-circuited by making direct contact with the concerned authority.Order There should be an orderliness in work through suitable organization of men and materials. The principle of “right place for everything and for every man” should be observed by the management. For this, there is need for scientific selection of competent personnel, and correct assignment of duties to personnel.
  11. 11. Equity Management should treat all its employees as equally as possible. Managers should be free from all prejudices, personal likes or dislikes. It ensures healthy industrial relations between management and labour.Stability of Tenure of Personnel Workers should be assured of the security of job by the management. This is important to motivate them and extract better work from them.
  12. 12. If they fear for job security, their morale will be low and they cannot give efficient work. Also, they will not have any sense of attachment to the organization and they will always be on the lookout for a job elsewhere.Initiative Initiative is one of the most important satisfactions for an intelligent man to experience. Managers are advised to give their employees sufficient scope to show their initiative. Employees should be encouraged to make all kinds of suggestions to conceive and carry out their plans, even when some mistakes result.
  13. 13. Esprit de Corps This term means team spirit. Harmony and unity among the employees is a great source of strength to the organization. To achieve this, the motto of divide and rule should be avoided. And, verbal communication should be used for removing misunderstandings, since differences grow more bitter when cleared through written communication.
  14. 14. REFERENCES Wikipedia managementinnovations.wordpress.com Principles of Management, 2nd edition – By P. C. Tripathi and P. N. Reddy