this slide covers general principles of management given by Henri Fayol.

1. P R E S E N T E D B Y :
M O H D I Z H A R U L I S L A M
( 1 9 M B A I B - 1 2 )
A D E E L A K H T A R
( 1 9 M B A I B - 1 0 )
E X A M I N E D B Y :
P R O F . P A R V A I Z T A L I B
C H A I R M A N
D E P T . O F B U S I N E S S
A D M I N I S T R A T I O N
A L I G A R H M U S L I M U N I V E R S I T Y ,
A L I G A R H
GENERAL PRINCIPLES OF
MANAGEMENT -BY HENRI FAYOL

2. HENRI FAYOL
( 1841-1925)
• Engineer in mining company.
• He wrote a book entitled, General
and lndustrial Management.
• It is now considered as one of the
classics of management literature.
• Henri Fayol is claimed to be the
real father of modern
management.
• This book mainly covers :
 Principles of management (five
functions of management)
 Process of management

3. Principles of Management
 Division of work
 Authority & Responsibility
 Discipline
 Unity of command
 Unity of Direction
 Sub-Ordination of Individual Interest to General Interest
 Remuneration
 Centralization & De-Centralization
 Scalar Chain
 Order
 Equity
 Stability of Tenure of personnel
 Initiative
 Espirit De’ Corps

4. Division Of Work
 Stressed on Specialization of jobs
 work of all kinds must be divided in small jobs
 Specific small job assigned to specific individual.
 helps the individual in acquiring speed, accuracy and
specialisation.
 Specialization leads to efficiency & effectiveness.

5. Authority & Responsibility
 Concerned authority must be given, if anyone is
made responsible.
 Authority refers to power in the hand.
 Responsibility means obligation for the performance
of the job assigned.
 Should be a balanced ( Authority = Responsibility)
 Authority > Responsibility = Misuse of Authority
 Responsibility > Authority= Delay in Work

6. DISCIPLINE
 Respect of Authority, Sincerity, Obedience &
Observance of Rules and Regulations.
 subordinate should respect & obey their superiors.
 smooth running of the enterprise
 Discipline can be enforced if –
- Good superiors
- Clear & fair agreements
- Sanctions (penalties) are judiciously applied

7. Unity of command
 A sub-ordinate should receive orders and be
accountable to only one boss at a time.
 Harmonious relationship between superiors and
sub-ordinates.
 Results
- no overlapping of work
- effectiveness
- peace of mind etc

8. Unity of Direction
 One head for one target or goal.
 Related activities should be grouped together.
 efforts of all the members of the group should be
directed towards common goal.
 Unity of command is not possible without unity of
direction.
 Essential for unity in Action.

9. Sub-Ordination of Individual Interest to
General Interest
 As far as possible, reconciliation should be achieved
between individual and group interests.
 Individual interest can be achieved after
organizational interest only.
 Feeling of belongingness
 Means of affecting it are –
- Firmness and good example on the part of Superior
- Agreements as fair as possible.
- Constant supervision.

10. REMUNERATION
 Paid to the workers should be fair.
 Satisfaction to both employer and the employees
 Provision of Fringe benefits e.g.: free education,
medical & residential facilities to workers.
 Determined on the basis of cost of living, work
assigned etc.
 Modes or methods of payment :
- Time rates
- Job rates
- Piece rates

11. 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
 Decentralization- Increases the role of subordinate
 Centralization -Decreases the role of subordinate
 There must be combination of both.

12. SCALAR CHAIN  The chain of superiors ranging
from the ultimate authority to the
lowest.
 Every information has to pass
through Scalar chain.
 For the sake of convenience &
urgency, this path can be cut this
short cut - Gang Plank
 Modified as per the requirements
of situations.

13. 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.

14. EQUITY
 All employees should be treated equally.
 No biasness on the basis of caste, religion, language,
sex, region etc.
 Should be treated with kindness, fairness and justice.
 Similar treatment with similar level of personnel
 Necessary for cordial relations between superior and
sub-ordinates.

15. STABILITY OF TENURE OF PERSONNEL
 Employees should not be moved frequently from one
job position to another
 Once they are appointed their services should be
served.
 Money spent on training the worker will go waste if
quits frequently.
 Stability of job creates team spirit & a sense of
belongingness.
 Increase the quality as well as quantity of work.

16. 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.
 Must be rewarded.
 Suggest improvement in formulation &
implementation of any procedure or method or plan.

17. Espirit De’ Corps
 Espirit De’ Corps means “Union is strength”
 It refers to team spirit.
 Inspires workers to work harder
 The managers should infuse team spirit &
belongingness.
 For this, following activities must be avoided :
- Divide and rule
- Abuse of Written communication

18. THANK YOU