2. HENRI FAYOL'S PRINCIPLES OF
MANAGEMENT
Henri Fayol (29 July 1841 – 19 November 1925) was a French mining
engineer, mining executive, author and director of mines who
developed general theory of business administration that is often
called Fayolism.
Henri Fayol suggested 14 principles as the general principles
management:
3.
4. DIVISION OF
WORK:
This is the principle of specialization, which is very well expressed by
economists as being a necessary factor for efficiency in the utilization
of labor.
Division of Work means to divide or break up a single complicated job
into different smaller specialized tasks.
When all smaller tasks complete as expected, they all together help to
accomplish the single complicated job.
5. AUTHORITY
AND
RESPONSIBILIT
Y:
These are the two key things in management. They work hand in
hand. While authority enables the management to delegate work,
responsibility makes them accountable for any work done under
their leadership.
Henri Fayol said that the power of authority accompanying
responsibility gives the management the right to order subordinates
along with a duty to be liable for acts of their subordinates.
6. DISCIPLIN
E
Nothing good was ever achieved without discipline. The third
principle propagated by Henri Fayol was discipline. It is one of the
core values in any system. Good behavior and civilized interactions
make the management work smoothly and efficiently. Good conduct
by employees also helps them smoothly progress in their careers.
7. UNITY OF
COMMAND
It basically means following a chain of command. A person should
ideally answer to just one boss. If an employee is given work from
more than one boss, there arises a conflict of interest. This can lead
to confusion among the employees and hard to pin accountability.
Thus, it is very crucial to follow unity o command.
8. UNITY OF DIRECTION
For any manager to prosper, there must be a unified goal. This
principle is crucial as it incorporates the idea of a workforce working
a singular direction with a unified aim. The responsibility of planning
falls on the manager and he also must monitor the progress towards
said goal.
9. SUBORDINATION OF INDIVIDUAL
INTEREST
The standard rule for any organization is the work on the collective
interest of the organization as a whole rather than personal interest
of an individual. This principle states that the interest of an individual
will be subordinate to the objectives of the organization. This applies
to the entire chain of command in the organization.
10. REMUNERA
TION
We all love an appreciation for our efforts. Remuneration in an
organization play as a motivational force that keeps the employees
fuelled to do well. This remuneration should be in tandem with the
efforts that they put in. Remuneration may be monetary or non-
monetary. At the end, the employee must feel that he was
appropriately rewarded for his efforts.
11. CENTRALIZATION
Centralization refers to the practice of having decision making
authority at the top management or the executive board level.
Henry Fayol explained the process of sharing this decision making
authority with the lower levels of management as decentralization.
Now, how big or small the organization, there must be a balance
between the two forms of decision making.
12. SCALAR CHAIN
Every organization must possess a clear cut hierarchy starting from
the senior management to the lowest level in the organization. There
should be a clear line in the area of authority from the top level to the
bottom.
This way, each employee must be able to contact a manager at the
top-level without challenging the hierarchy.
13. ORDER
According to this principle, there should be a proper order for everything.
The right resources for the employees help them to function properly in an
organization. In addition to the responsibility of the managers, there must
be a safe, clean and tidy working environment.
According to Fayol in every organization two different orders are necessary.
Material Order: This order specifies that there should be a proper place for
all physical resources.
Social order: This order specifies that there should be a proper place for all
human resources in accordance with their designations.
14. EQUITY:
This principle says that the managers should treat their subordinates
in a just and kind manner so that they develop a feeling of dedication
and attachment for their work. All the employees should be treated
equally and impartially.
Managers should be fair to staff at all times, both maintaining
discipline as necessary and acting with kindness where appropriate.
15. STABILITY OF TENURE OF
PERSONNEL
This Principle of management represents deployment and managing
of personnel and this should be in balance with the service that is
provided from the organization.
Management strives to minimize employee turnover and to have the
right staff in the right place. Focus areas such as frequent change of
position and sufficient development must be managed well.
16. INITIATIVE
According to Fayol, “Workers should be encouraged to develop and
carry out their plans for improvement”. Initiative refers to the first
step taken by the employees towards their self motivation.
This principle states that employees at all levels should be given
freedom to some extent so that they can come forward and use their
skills to achieve expected goals.
17. ESPIRIT DE
CORPS:
According to Fayol, “Management should promote a team spirit of
unity and harmony among employees.” In order to achieve
organisational objectives, management should promote team work
and coordination.
The feeling of ‘I’ should be replaced with ‘We’ in the managers while
having a conversation with the workers.
Espirit de corps refers to team spirit i.e. harmony in work group and
mutual understanding among workers. It helps to develop an
atmosphere of mutual trust and understanding. It also concentrates
on the famous saying ‘union is strength’.