Legendary Management Guru, Business Administrator and Great Philosopher , HENRY FAYOL about his very important 14 Principles of Management

1. HENRI
FAYOL’S
14
Principles
of
Management
Puttu Guru Prasad
My Blog:
puttuguru.blogspot.in

2. HENRY FAYOL

3. Fayol was born in 1841 in a suburb of Constantinople (current Istanbul). His father
(an engineer) was in the military at the time and was appointed superintendent of
works to build Galata Bridge, which bridged the Golden Horn. The family returned
to France in 1847, where Fayol graduated from the mining academy "École
Nationale Supérieure des Mines" in Saint-Étienne in 1860.
When he was 19, he began working as an engineer at a large mining company in
France. He eventually became the director, at a time when the mining company
employed more than 1,000 people.
Through the years, Fayol began to develop what he considered to be the 14 most
important principles of management. Essentially, these explained how managers
should organize and interact with staff.
Fayol's "14 Principles" was one of the earliest theories of management to be
created, and remains one of the most comprehensive. He's considered to be
among the most influential contributors to the modern concept of management,
even though people don't refer to "The 14 Principles" often today.

6. 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
I N T R O D U C T I O N

7. 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

8. 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

9. 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

11. 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

13. 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

15. 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.

17. 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

19. 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

22. 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

25. 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.

27. 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

30. 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.

32. 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

34. All employees should be treated
as equally as possible.
EQUITY:

35. 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

38. 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.

40. IT’S QUERY TIME

41. THANK YOU