This document summarizes Henri Fayol's principles of management. It begins by providing biographical information about Henri Fayol, noting that he was an engineer who wrote one of the classics of management literature. The document then outlines and describes 14 of Fayol's principles of management, including division of work, authority and responsibility, discipline, unity of command, and centralization vs decentralization. It provides a concise definition and example for each principle.

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