The Fourteen Principles of
Management- Henri Fayol
Roll #: 731
Division of Work. Specialization allows the individual to build up
experience, and to continuously improve his skills. Thereby he can be more
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
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
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
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
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
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
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
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