Henri Fayol was a French mining engineer and director who is considered the father of modern management. He proposed 14 principles of management in his book including division of work, authority and responsibility, unity of command, subordination of individual interests, and order. Other principles were centralization, scalar chain, discipline, equity, initiative, remuneration, stability of tenure, and esprit de corps. Fayol emphasized the importance of specialization, coordination, and efficiency in organizations.

1. PRINCIPLES OF
MANAGEMENT
TOPIC: 14 PRINCIPLES
OF MANAGEMENT

2. HENRI FAYOL (1841-1925):
 Father of modern
management thought.
 Mining engineer,
director of mines,
management and
industrial theorist.
 Writer of the book
“Administration
Industrialle et
Genrelle.”

3. DIVISION OF WORK:
 Dividing the total work into small
convenient components.
 This brings in specialization and enables
better concentration.
 Division of work is very essential along
with expansion in the size and activities of
an organization.
 Fayol suggested such division to all types
of work: managerial, technical, general.

4. AUTHORITY AND
RESPONSIBILITY:
 According to Fayol, authority should be
equal to responsibility.
 If one is given authority, he should take
the responsibility that follows and vice
versa.
 Person with authority should willingly take
required responsibility.
 There should be a proper balance
between authority and responsibility.

5. UNITY OF COMMAND:
 Henry Fayol suggested that an
employee should get orders from one
superior only.
 If two superiors exercise their authority
on the same employee, there will be
disorder and confusion.
 In fact, dual command is always
dangerous.

6. UNITY OF DIRECTION:
 Fayol suggested that there should be one
head and one plan for a group of
activities having the same objective.
For example:
The HRD department should have
only one HRD manager with a specified
plan for personnel's to all departments.

7. SUBORDINATION OF
INDIVIDUAL INTEREST :
 This principle states that the general
interest of the organisation is more
important than the interest of one
employee or a group of employees .
 This can be achieved by certain
measures. These are as follows:

8. a) A superior setting good
example to his
subordinates,
b) Fair and just
agreements with the
employees, and
c) Continuous supervision
on employees.

9. CENTRALISATION-
Concentration of authority in few hands at top level.
There should be proper balance between centralisation &
decentralisation.
The degree of centralisation or decentralisation depends
upon –
Size of the organisation.
Capacity of subordinates.
Nature of organisational structure.

10. REMUNARATION-
Means the wages and salaries paid to employee. It should be fair & must be paid on
time.
It satisfy both employee & employer .
It should be decided on-
Work allotted.
 cost of living.
Ability of organisation to pay.
Prevailing wages rate.etc
With this it is important that there should be proper working condition & other
facilities including canteen, recreation & welfare facility.

11. SCALAR CHAIN
 What does scalar chain refers to?
- Scalar chain principle refers to the line
of authority or command for the purpose of
communication from the top level to the
lowest level of executives.

13. GANGPLANK
In organization communication should be
quick to prevent delay as regards follow-up
actions. Quick communication within the
organization is possible by using
“Gangplank "or direct contact. Fayol
suggested that “Gangplank” should be
used to prevent the delay of action.

14. EXPLANATION :
In this diagram, A to G and A to P are the
scalar chains.
 A is the head of the whole organization
while B and K are heads at the next level
of management .
 B is immediate superior to C while k is
immediate superior to L and so on.
 If F and O need to communicate each
other for some purpose the scalar chain
principle will be followed.

15.  This means F will move to E, E to D, D to
C, C to B, B to A and thereafter A to K and
finally to O.
 This route is lengthy and time consuming
It would be time consuming if he had to
climb upto the level of A who would then
pass
an order down to O.
As an alternative, F and O can establish a
direct
communication but with the approval of E
and N.

16. This is possible with the help of
gangplank (FO).
shown by dotted line in the figure.
 Scalar chain brings direct
communication between superior and
subordinate .
 This facilitates quick decisions, easy
communication and delegation also.

17. ORDER
 Proper order is necessary in every
organisation.
According to Fayol, there should be place
for everything and everything should be in
its place.
 Misplacement of any kind is undesirable
as it leads to disorder.

18. DISCIPLINE:
Obedience and respect shown by
employees.
Discipline means observation of certain
rules and regulations by an employee in
an organization.

19. EQUITY:
 Principle of equity relates to the treatment of
the subordinates.
 Subordinates must be treated with kindness
and justice.
 Subordinates are human beings and their
loyalty and devotion depends on the
treatment given to them at the time of
promotions, transfers and salary payments.

20. STABILITY OF TENURE:
Managers as well as subordinates need
some time to learn and understand the
jobs assigned to them.
They will adjust with the work within a
short period.
Stability of personal is necessary which
also means security of job.

21. INITIATIVES:
 Eagerness to do something.
 Preparing plans and executing them.
 It motivates the employees to make
suggestions.
 It creates sense of participation in the
minds of the employee.

22. ESPRIT DE CORPS:
 It means that create a team spirit or union
is strength.
 Developed an atmosphere of mutual trust
and understanding.
 Create a sense of belonging employees
 It bring a loyalty, dedication and
commitment to the group.