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14 PRINCIPLES OF MANAGEMENT
                     -HENRI FAYOL




             By
             RAHUL KR SINGH
             MBA(HOSPITAL ADMINISTRATION)
             MMHRC,MADURAI
INTRODUCTION
    A principle refers to a fundamental truth.
    It establishes cause and effect relationship between
          two or more variables under given situation.
    They serve as a guide to thought & actions.
These principles are derived: -
          •On the basis of observation and analysis
          •By conducting experimental studies
14 PRINCIPLES OF MANAGEMENT DESCRIBED
                                BY HENRI FAYOL
    Division of Labor
   Party of Authority & Responsibility
   Principle of One Boss
   Unity of Direction
   Equity
   Order
    Discipline
14 PRINCIPLES OF MANAGEMENT DESCRIBED
                           BY HENRI FAYOL
   Initiative
   Fair Remuneration
   Stability of Tenure
   Scalar Chain
   Sub-Ordination of Individual Interest to General Interest
   Espirit De’ Corps
   Centralization & De-Centralization
DIVISION OF LABOUR
  stressed on the specialization of jobs

  work of all kinds must be divided and allotted to various
   persons
  simpler and results in efficiency

  helps the individual in acquiring speed, accuracy in his
   performance
  Specialization leads to efficiency & economy in spheres of
   business
Party of Authority & Responsibility
  co-existing
  Authority is given to a person, he should also be
     made responsible.
    He should also have concerned authority, if anyone is made
     responsible.
    Authority refers to the right of superiors. responsibility means
     obligation for the performance of the job assigned.
    Should be a balanced.
    Authority- Responsibility = Irresponsible Behavior
    Responsibility- Authority= Ineffective
Principle of One Boss
 A sub-ordinate should receive orders and be accountable to only boss at
  a time.
 a sub-ordinate should not receive instructions from more than one
  person
 Dual sub-ordination should be avoided
 The enterprise a disciplined, stable & orderly existence
 Harmonious relationship between superiors and sub-ordinates
 a sub-ordinate should not receive instructions from more than one
  person
UNITY OF DIRECTION

  One head one plan

  Related activities should be grouped together

  Efforts of all the members of the organization should be

   directed towards common goal

  Without unity of direction, unity of action cannot be achieved.

  Unity of command is not possible without unity of direction.
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
Discipline
 Sincerity, Obedience, Respect of Authority & Observance of
    Rules and Regulations of the Enterprise.
   subordinate should respect their superiors and obey their order.
   smooth running of the enterprise
   subordinates but also on the part of management.
    Discipline can be enforced if -
                 -Good superiors
                - Clear & fair agreements with workers
                - Sanctions are judiciously applied
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

 Enjoy working in the organization because it adds to their
  zeal and energy

 Suggest improvement in formulation & implementation of
  place
Fair Remuneration
 Paid to the workers should be fair of the efforts

 Satisfaction to both employer and the employees

 Determined on the basis of cost of living, work assigned
  etc,
 Provision of other benefits such as free education, medical
  & residential facilities to workers
 Management creates harmonious relationship and pleasing
  atmosphere of work.
Stability of Tenure
  Employees should not be moved frequently from one
     job position to another
    Once they are appointed their services should be
     served
    Time is required for an employee to get used to a new
     work –fayol
    Money spent on training the worker will go waste
    Stability of job creates team spirit& a sense of
     belongingness among workers
                 -ultimately increase the quality as well as
     quantity of work
Scalar Chain

 The chain of superiors ranging from the ultimate
    authority to the lowest
   Every orders, instructions etc. has to pass through
    Scalar chain.
   For the sake of convenience & urgency, this path can be
    cut this short cut -Gang Plank
   Temporary arrangement between two different points
    to facilitate quick & easy communication
   Modified as per the requirements of situations.
Sub-Ordination of Individual Interest to
General Interest
  An organization is much bigger than the individual
  As far as possible, reconciliation should be achieved
   between individual and group interests.
  Case of conflict, individual must sacrifice for bigger
   interests
  In order to achieve this attitude
               - Employees should be honest & sincere.
               - Proper & regular supervision of work.
               - Reconciliation of mutual differences
Espirit De’ Corps
  It refers to team spirit
  Inspires workers to work harder
  Interest of the undertaking in the long run.
  The managers should infuse team spirit &
   belongingness
 Espirit De’ Corps following steps should be undertaken
     proper co-ordination
     should be encouraged to develop informal relations among themselves.
     create enthusiasm and keenness among subordinates
     employees should be rewarded
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
 Increases the role of subordinate is decentralization & Decreases
  the role of subordinate is centralization
 It is not feasible, organization should strike to achieve a lot
  between the two.
IT’S QUERY TIME
THANK YOU

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14 Principles Of Management

  • 1. 14 PRINCIPLES OF MANAGEMENT -HENRI FAYOL By RAHUL KR SINGH MBA(HOSPITAL ADMINISTRATION) MMHRC,MADURAI
  • 2. INTRODUCTION A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more variables under given situation. They serve as a guide to thought & actions. These principles are derived: - •On the basis of observation and analysis •By conducting experimental studies
  • 3. 14 PRINCIPLES OF MANAGEMENT DESCRIBED BY HENRI FAYOL Division of Labor Party of Authority & Responsibility Principle of One Boss Unity of Direction Equity Order  Discipline
  • 4. 14 PRINCIPLES OF MANAGEMENT DESCRIBED BY HENRI FAYOL Initiative Fair Remuneration Stability of Tenure Scalar Chain Sub-Ordination of Individual Interest to General Interest Espirit De’ Corps Centralization & De-Centralization
  • 5. DIVISION OF LABOUR  stressed on the specialization of jobs  work of all kinds must be divided and allotted to various persons  simpler and results in efficiency  helps the individual in acquiring speed, accuracy in his performance  Specialization leads to efficiency & economy in spheres of business
  • 6. Party of Authority & Responsibility  co-existing  Authority is given to a person, he should also be made responsible.  He should also have concerned authority, if anyone is made responsible.  Authority refers to the right of superiors. responsibility means obligation for the performance of the job assigned.  Should be a balanced.  Authority- Responsibility = Irresponsible Behavior  Responsibility- Authority= Ineffective
  • 7. Principle of One Boss  A sub-ordinate should receive orders and be accountable to only boss at a time.  a sub-ordinate should not receive instructions from more than one person  Dual sub-ordination should be avoided  The enterprise a disciplined, stable & orderly existence  Harmonious relationship between superiors and sub-ordinates  a sub-ordinate should not receive instructions from more than one person
  • 8. UNITY OF DIRECTION  One head one plan  Related activities should be grouped together  Efforts of all the members of the organization should be directed towards common goal  Without unity of direction, unity of action cannot be achieved.  Unity of command is not possible without unity of direction.
  • 9. 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
  • 10. Discipline  Sincerity, Obedience, Respect of Authority & Observance of Rules and Regulations of the Enterprise.  subordinate should respect their superiors and obey their order.  smooth running of the enterprise  subordinates but also on the part of management.  Discipline can be enforced if - -Good superiors - Clear & fair agreements with workers - Sanctions are judiciously applied
  • 11. 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  Enjoy working in the organization because it adds to their zeal and energy  Suggest improvement in formulation & implementation of place
  • 12. Fair Remuneration  Paid to the workers should be fair of the efforts  Satisfaction to both employer and the employees  Determined on the basis of cost of living, work assigned etc,  Provision of other benefits such as free education, medical & residential facilities to workers  Management creates harmonious relationship and pleasing atmosphere of work.
  • 13. Stability of Tenure  Employees should not be moved frequently from one job position to another  Once they are appointed their services should be served  Time is required for an employee to get used to a new work –fayol  Money spent on training the worker will go waste  Stability of job creates team spirit& a sense of belongingness among workers -ultimately increase the quality as well as quantity of work
  • 14. Scalar Chain  The chain of superiors ranging from the ultimate authority to the lowest  Every orders, instructions etc. has to pass through Scalar chain.  For the sake of convenience & urgency, this path can be cut this short cut -Gang Plank  Temporary arrangement between two different points to facilitate quick & easy communication  Modified as per the requirements of situations.
  • 15. Sub-Ordination of Individual Interest to General Interest  An organization is much bigger than the individual  As far as possible, reconciliation should be achieved between individual and group interests.  Case of conflict, individual must sacrifice for bigger interests  In order to achieve this attitude - Employees should be honest & sincere. - Proper & regular supervision of work. - Reconciliation of mutual differences
  • 16. Espirit De’ Corps  It refers to team spirit  Inspires workers to work harder  Interest of the undertaking in the long run.  The managers should infuse team spirit & belongingness Espirit De’ Corps following steps should be undertaken proper co-ordination should be encouraged to develop informal relations among themselves. create enthusiasm and keenness among subordinates employees should be rewarded
  • 17. 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  Increases the role of subordinate is decentralization & Decreases the role of subordinate is centralization  It is not feasible, organization should strike to achieve a lot between the two.

Editor's Notes

  1. By N.VIDIVARASI 1ST MBA
  2. INTRODUCTION
  3. InitiativeFair RemunerationStability of TenureScalar ChainSub-Ordination of Individual Interest to General InterestEspirit De’ Corps (can be achieved through unity of commandCentralization & De-Centralization
  4. InitiativeFair RemunerationStability of TenureScalar ChainSub-Ordination of Individual Interest to General InterestEspirit De’ CorpsCentralization & De-Centralization
  5. proper co-ordination should be encouraged to develop informal relations among themselves. create enthusiasm and keenness among subordinates employees should be rewarded
  6. Centralization