Airtel-Henri Fayol Principles
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Airtel-Henri Fayol Principles

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Airtel-Henri Fayol Principles Airtel-Henri Fayol Principles Presentation Transcript

  • The Fourteen Principles of Management- Henri Fayol Batch:2014 Roll #: 731 Course code:50121106 Course: Principles of management
  •  Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.  Authority. The right to issue commands, along with which must go the balanced responsibility for its function.  Discipline. Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership.  Unity of Command. Each worker should have only one boss with no other conflicting lines of command.  Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of direction does not exist without unity of command but does not necessarily flow from it.  Subordination of individual interest (to the general interest). Management must see that the goals of the firms are always paramount.  Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.  Centralization (or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel.  Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as
  •  Stability of Tenure of Personnel. Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.  Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of „personal vanity‟ on the part of many managers.  Esprit de Corps. Management must foster the morale of its employees. He further suggests that: “real talent is needed to coordinate effort, encourage keenness, use each person‟s abilities, and reward each one‟s merit without arousing possible jealousies and disturbing harmonious relations.”  Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.  Equity. In running a business a „combination of kindliness and justice‟ is needed. Treating employees well is important to achieve equity.
  •  Bharti airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. Bharti Airtel has been ranked among the six best performing technology companies in the world by business week. Bharti Airtel has 200 million customers across its operations.
  •  Being a telecommunications company that covers almost all the aspects of communication, it makes it important to have skilled employees in each department that perform one particular task with complete commitment. eg a department for broadband under which there would be sub-departments for technical, customer relations, marketing etc. Under each department every employee is given a particular job to which they have to be completely loyal. This is the form of system of labour that Bharti Airtel follows.
  •  In Bharti Airtel authority is passed down to managers of different departments who are responsible to control the activities of their departments. These managers can themselves create sub-departments and pass down authority provided they think this will enable the task at hand to be achieved more effectively.
  •  Bharti Airtel does not carry out a authoritarian form of management but follows a democratic yet organized form of leadership which creates a form of discipline among its employees without the use of force. This shows how good leadership leads to automatic discipline.
  •  Airtel follows a system of specific departments for specific aspects of the company. This means that each department has its own head to which they are answerable. There is no criss cross of networks.  However all these departments, despite being different work towards the same main goal which creates a Unity of Direction.
  •  At Airtel, the ultimate goal and vision is always given importance to and is something that they are proud of. Their vision itself is something that every employee would want to work towards because more than a corporate aspect it touches the emotional aspect too.  The Airtel vision is: “by 2015 Airtel will be the most loved brand enriching the lives of millions”.
  •  Airtel as of now has not been criticised for their payment systems. They follow all the common payment methods of salary, bonus awards and also fringe benefits depending on the post.
  •  Bharti Airtel follows a Decentralised way of management. Rather than focusing all the company aspects to one main office and individual, the company is split into many branches, outlets and even joint ventures and also high amount of delegation is carried out.
  •  The above chart shows the top line of authority ie. the top level managers. Under these corporates fall the middle level and low level managers followed by the general employees.  This shows the a system of hierarchy within Airtel, but this does not mean that communication is only top-down. Horizontal communication also takes place provided it does not harm overall
  •  Airtel follows a strict code of conduct which each of its employees are expected to follow. There is a system of rules and regulations which ensure overall order whether in relation to a certain business process or in terms of social order.
  •  Airtel maintains a know discrimination policy and as mentioned before has a strict code of conduct which ensures that no member of Airtel faces any form of unjust behaviour.
  •  Airtel does not experience a large employee turnover except in departments where a large number of young part time workers are employed.  Overall Airtel maintains a working environment apt enough for workers to be satisfied with their jobs for long periods. Also Airtel ensures a form of job security and career appraisal which creates a sense of security around.
  • Airtel believes in motivating the workforce by encouraging them to continuously improve and increase their skills and also creating a sense of importance for their work. Airtel also is involved in many social activities such as the Bharti Foundation for the underprivileged which also creates a sense of pride for the employees as they belong to an organisation that