This document outlines Henry Fayol's principles of management and concepts in planning, organizing, and decision making. It discusses 14 principles of management established by Fayol, including division of work, authority and responsibility, discipline, unity of command, and remuneration. It also describes the steps in planning like identifying goals, collecting information, developing alternatives, and follow up. Key concepts in organizing discussed include departmentation, span of control, and delegation of authority.

1. Management

2. 14 Henry Fayol POM
 Division of Work.
 Authority & responsibility.
 Discipline.
 Unity of Command. Each worker should have only one boss
 Unity of Direction. People engaged in the same kind of activities must have the
same objectives in a single plan.
 Subordination of individual interest (to the general interest).
 Remuneration.
 Centralization (or Decentralization).
 Scalar chain (Line of Authority).
 Order.
 Equity.
 Stability of Tenure of Personnel. Employees work better if job security and
career progress are assured to them.
 Initiative.
 Esprit de Corps.

3. Planning & decision making
 Planning
 Organising (departmentation, span of control,
delegation of authority)
 Staffing (manpower required)
 Leading- instructing people to do work in right
manner
 Coordinating
 Controlling
 Motivating
 Communicating (exchange of facts, ideas)

4. Features
 Primary function
 Pervasive function
 Intellectual & realistic process
 Objective oriented
 Continuous function
 Flexibility
 Raises accuracy
 Link between past, present & future
 Future oriented

5. Types
 STANDING PLANS are used over and over
again because they focus on organizational
situations that occur repeatedly.
 SINGLE USER PLANS are used only once,
or at most, couple of times, because they
focus on unique or rare situations within the
organization.

6. Standing plans Single user plans
Mission Budgets
Objectives Programmes
Procedures Projects
Methods Schedules
Rules
Strategies

7. Steps
 Need for planning
 Identification of goals
 Collecting complete information & data (analyzing the
present situation)
 Analyzing & classifying the information
 Establishing planning premises( forecast or assumptions
about the future which provides base for planning in future)
 Development of alternative course of action
 Evaluate & Selecting course of action
 Follow-up

8. Business plan
 Discovery of business opportunity
 Size of business unit / plant
 Location
 Machinery, equipment & layout
 Form of organisation
 Financial planning
 Physical facilities
 Legal formalities
 Tax planning
 Organisation structure
 Manpower requirement
 Launching the enterprise

9. A decision is a course of action which is
consciously chosen for achieving a desired
result.
Considers the fact.

10. Recognizing the problem
Deciding priorities among problem
Diagnosing/analyse the problem
Developing alternative solutions
Selecting the best solution
Convert decision into action & follow-up
action.

11. Advantages
- Better performance
- More performance
- Less mistakes
Disadvantages
- Time consuming
- Creates chaos
- More competition

12. Organising
 Form of every human association for
attainment of a common purpose
 Importance:
-