FAYOL’S 14 PRINCIPLES OF MANAGEMENT

PRINCIPLES OF MANAGEMENT

A principles may be defined as fundamentals statement of basic truth that .provides a guide to thought and action Principles of management originate and grow as a result of past experience

.and accomplishments

NEED OF PRINCIPLES OF MANAGEMENT

To improve efficiency To crystalline the nature of management To improve research To attain social goals

, According to fayol defination of management all industrial activities fall in :six groups

. ( , , )1 Techinical activities production manufacturing adaption

. ( , , )2 Commercial activities buying selling exchange

. ( )3 Finacial search for optimum use of capital

. ( )4 Security protection of property and personnel

. ( , , )5 Accounting balance sheet costs statistics

. ( , , , 6 Managerial activities planning organizing command coordination and)control

( - ) HENRI FAYOL 1841 1925

- , A French mining engineer developed 14 principles of management based on his .management experience

- .He pioneer in the field of management education

- “ .He has been rightly called as father of management process school

- .He was first person who laid emphasis on the process of management

. 1 Division of work- There is an efficient result in the operational level when tasks

, are distributed to qualified and competent workers or when people .do specialize

. 2 Authority- , , With formal authority managers have the right to command and

. give orders to their subordinates

. 3 Discipline- Members in any organization have to respect the rules and

. agreements governing it Respect and obedience to rules is embodied .in the conduct of good life and discipline

. 4 Unity of Command- . Employees must receive instruction only from one person

Reporting to more than one manager results to conflicts in .instruction and confusion of authority

. 5 Unity of Direction- Operations within any organization having the same objective must be

. ,directed by only one manager using one plan In a department for example

, there should not be two or more supervisors each having different policy .to follow

. 6 - Subordination of the Individual Interest to General interest- Individual interest must be subordinate to general interest when there is

. conflict between the two The agreement between the employers and the employees should be fair and there should be constant vigilance and. supervision

. 7 Renumeration- .Compensation for work done should be fair to both employees and employers

. 8 Centralization- We have this approach by decreasing the role of subordinates in decision

. , making Managers should retain their final responsibility while at the same .time give their subordinates enough authority to do their jobs properly

. 9 Scalar chain- The line of authority in any organization turns in the order of rank from top

.management to the lowest level of the enterprise

  A B L C M D N E O F P G Q

. .

. 12 Stability of Staff- Employees work better if job security and career progress are assured to

.them A high employee turnover rate will effect the organization

. 11 Equity- . Equity is combination of justice and kindness Equity in treatment and

. behaviour is liked by everyone and it brings loyalty in the organisation This . brings cordial relation between the management and labour

. 10 Order- Either material or human resources should be in the right place at the right

. time .People should be in the jobs or positions they are suited to

. 14 Esprit de Corps- . Teamwork is fundamentally important to an organization Work teams and .extensive face to face verbal communication encourages team work

. 13 Initiative- Managers should encourage their employees for taking initiative with in limits

. of authority and discipline Initiative increases the zeal and energy on the . part of human beings Fayols describes initiative as one of the keenest

.satisfactions for an intelligent man to experience

ELEMENTS OF MANAGEMENT

.1 PLANNING

.2 ORGANIZING

.3 COMMAND

.4 COORDINATION

.5 CONTROL

,Fayol conclusion could be faulted in two major points

.1 He assumed that all organizations at the stage of development should have some functional

,division of work and. 2 The number of employees was the main determination of the general form of

. organisation

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