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    BUSINESS STUDIES PROJECT

    FAYOLS 14 PRINCIPLES OF MANAGEMENT

    Henri Fayol (Istanbul, 29 July 1841 Paris, 19 November 1925) asa Fren!"minin# en#ineeran$ $ire!tor o% mines "o $evelo&e$ a #eneral

    t"eory o% business a$ministration t"at is o%ten !alle$ Fayolism' He an$ "is!ollea#ues $evelo&e$ t"is t"eory o% s!ienti%i! mana#ement'

    Fayols or as one o% t"e %irst !om&re"ensive statements o% a #eneral

    t"eory o% mana#ement' He &ro&ose$ t"at t"ere ere si* &rimary %un!tions o%

    mana#ement an$ 14 &rin!i&les o% mana#ement'Fayols si* &rimary %un!tions

    o% mana#ement, "i!" #o "an$ in "an$ it" t"e Prin!i&les, are as %ollos+

    1' Fore!astin#

    2' Plannin#

    ' -r#ani.in#

    4' /omman$in#

    5' /oor$inatin#

    0' /ontrollin#

    In 1910, to years be%ore "e ste&&e$ $on as $ire!tor, "e &ublis"e$ "is 14Prin!i&les o% ana#ement in t"e boo 3$ministration In$ustrielle etenerale' Fayol also !reate$ a list o% t"e si* &rimary %un!tions o%mana#ement, "i!" #o "an$ in "an$ it" t"e Prin!i&les'Fayols &rin!i&les are

    liste$ belo+1' ivision o% 6or2' 3ut"ority' is!i&line4' 7nity o% /omman$5' 7nity o% ire!tion0' ubor$ination o% In$ivi$ual Interests to t"e eneral Interest' :emuneration8' /entrali.ation9' !alar /"ain1;' -r$er

    11'

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    !om&any is a subsi$iary o% AumB Cran$s, a restaurant !om&any t"at alsoons t"e Pi..a Hutan$ >a!o Cell!"ains'

    @F/ as %oun$e$ byHarlan$ an$ers, an entre&reneur "o be#an sellin#%rie$ !"i!en %rom "is roa$si$e restaurant in /orbin,In e!ember 2;1, t"ere ere 01 @F/ outlets in In$ia' 3s ell as t"estan$ar$ @F/ o%%erin#s, t"e !"ain sells a !"i!&eabur#er, a&aneerbur#er, "ot

    in#s it" !"illi lemon s&rinles an$ ot"er !ountryDs&e!i%i! &ro$u!ts' 3 maEor%ran!"ise "ol$er is : Cran$s () Hol$in#s, "i!" o&erate$ 20 outlets as o%2;12'

    an$ers -ri#inal :e!i&e o% 11 "erbs an$ s&i!es is one o% t"e most%amous tra$e se!retsin t"e !aterin# in$ustry' >"e re!i&e is not &atente$,be!ause &atents eventually e*&ire, "ereas tra$e se!rets !an remaint"e intelle!tual &ro&ertyo% t"eir "ol$ers in &er&etuity'

    >"e %in#er li!in #oo$ slo#an as use$ %rom 1950, an$ ent on to be!omeone o% t"e bestDnon slo#ans o% t"e tentiet" !entury' In 2;11, t"e %in#er

    li!in #oo$ slo#an as $ro&&e$ in %avour o% o #oo$, to be rolle$ outorl$i$e'

    1$ DI%ISION OF &ORKeanin# + 3!!or$in# to t"is &rin!i&le, as %ar as &ossible t"e "ole or s"oul$be investi#ate$, s"oul$ be $ivi$e$ into small &arts an$ ea!" in$ivi$ual s"oul$be assi#ne$ only one &art o% t"e or a!!or$in# to "is ability an$ teste$

    re&eate$ly so t"at t"e bene%its o% s&e!ialisation may be a!"ieve$'6"enem&loyees are s&e!iali.e$, out&ut !an in!rease be!ause t"ey be!omein!reasin#ly sille$ an$ e%%i!ient'

    -bservations+ urin# t"e !ourse o% &ersonal observation re#ar$in# t"e&rin!i&le o% $ivision o% labour "atever as observe$ in t"e !om&any may be$es!ribe$ as %ollos+

    1' In %ront o% t"e entry #ate, t"e sellin# an$ billin# !ounter is lo!ate$'2' >"e or$er is #iven to t"e salesman stan$in# at t"e !ounter an$ t"e bill

    is #enerate$' >"e money is &ai$ by t"e !ustomer an$ t"e bill isre!eive$'

    ' >"e or$er is t"en &asse$ to t"e it!"en $e&artment "i!" &re&ares t"e%oo$'

    4' >"e %oo$ t"en #oes to &a!a#in# $e&artment' Here, t"e %oo$ is

    &a!a#e$ an$ sent to t"e billin# !ounter a#ain'5' >"e %oo$ is !olle!te$ by t"e !ustomer a%ter t"at'

    /on!lusion+ >"e above %a!ts in$i!ate t"at t"e !om&any "as $ivi$e$ t"e totalor into many &arts' 3ll t"e em&loyees &er%orm a &arti!ular Eob re&eate$ly'>"ere%ore, it !an be sai$ t"at t"e &rin!i&le o% $ivision o% or is a!tually bein#%olloe$ meti!ulously'

    '$ AUT(ORITY AND RESPONSIBILITYeanin#+ 3!!or$in# to t"is &rin!i&le, aut"ority an$ res&onsibility s"oul$ #o

    "an$ in "an$' ana#ers must "ave t"e aut"ority to #ive or$ers, but t"ey

    must also ee& in min$ t"at it" aut"ority !omes res&onsibility'

    -bservations+

    http://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/Pizza_Huthttp://en.wikipedia.org/wiki/Taco_Bellhttp://en.wikipedia.org/wiki/Harland_Sandershttp://en.wikipedia.org/wiki/Corbin,_Kentuckyhttp://en.wikipedia.org/wiki/Chickpeahttp://en.wikipedia.org/wiki/Paneerhttp://en.wikipedia.org/wiki/Trade_secrethttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Yum!_Brandshttp://en.wikipedia.org/wiki/Pizza_Huthttp://en.wikipedia.org/wiki/Taco_Bellhttp://en.wikipedia.org/wiki/Harland_Sandershttp://en.wikipedia.org/wiki/Corbin,_Kentuckyhttp://en.wikipedia.org/wiki/Chickpeahttp://en.wikipedia.org/wiki/Paneerhttp://en.wikipedia.org/wiki/Trade_secrethttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/Intellectual_property
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    7-N+ o you "ave all t"e aut"ority !onne!te$ it" your orG3N+ Aes'

    "ey in$ul#e$ in lon#!onversations over t"e tele&"one in a Eoy%ul moo$' ometimes, even t"e!ustomers ere seen bein# i#nore$'

    /on!lusion+ >"e above %a!ts "i#"li#"t t"e im&ortant as&e!t o% t"eir !on$u!t' Its"os t"at t"e em&loyees are not %ul%illin# t"eir !ommitment it" t"e !om&anyto or "onestly %or it' >"ere%ore, it !an be sai$ t"at t"is &rin!i&le o%mana#ement is bein# violate$ in t"e !om&any'

    4$ UNITY OF COMMANDeanin#+ 3!!or$in# to t"is &rin!i&le, t"ere s"oul$ be one an$ only one boss%or every in$ivi$ual em&loyee' "e mana#er re&lie$ t"at $ualsubor$ination e*iste$ i'e' s"e re!eive$ or$ers %rom more t"an one boss'

    /on!lusion+ It !learly states t"at unity o% !omman$ is not bein# im&lemente$in t"e or#anisation'

    *$UNITY OF DIRECTION

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    eanin#+ 3!!or$in# to t"is &rin!i&le, Teams with the same objectiveshould be working under the direction of one manager, usingone plan. This will ensure that action is properly coordinated.

    -bservations+1' >"e store as $ivi$e$ in t"ree se!tions or $e&artmentsD -&erations,

    >rainin# an$ Human :esour!e evelo&ment (H:)'

    2' 3ll t"e t"ree units ere "ea$e$ by t"ree $i%%erent in$ivi$uals'' "ere%ore, it is !lear t"at ea!" is "ea$e$ by a $i%%erent in$ivi$ual an$ "eis &lannin# an$ re#ulatin# t"e a!tivities o% "is on unit in "is on ay' >"issituation tells us t"at t"e &rin!i&le o% 7nity o% ire!tion is bein# im&lemente$ int"e !om&any'

    +$ SUBORDINATION OF INDI%IDUAL INTEREST TO GENERAL INTERESTeanin#+ 3!!or$in# to t"is &rin!i&le, t"e interest o% an or#anisation s"oul$

    tae &riority over t"e interest o% any one in$ivi$ual em&loyee' >"e interestso% one em&loyee s"oul$ not be alloe$ to be!ome more im&ortant t"ant"ose o% t"e or#anisation'

    -bservations+7I-N+ o you #ive to& &riority to t"e interest o% t"e !om&anyG3N' Aes'

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    -$ CENTRALISATION AND DECENTRALISATIONeanin#+ 3!!or$in# to t"is &rin!i&le, t"e su&eriors s"oul$ a$o&t e%%e!tive!entralisation instea$ o% !om&lete $e!entralisation'

    :esults+7I-N 1+ 3re t"e $aily $e!isions ma$e by t"e &erson !on!erne$G3N+ Aes

    7I-N 2+ 3re t"e maEor $e!isions taen only by t"e "i#"er aut"oritiesG3N+ Aes

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    2' 6"enever t"e materialL#oo$s #ot s!attere$ be!ause o% t"e rus" o%!ustomer, it as imme$iately restore$ in its &ro&er &la!e'

    ' 3ll t"e em&loyees ere observe$ to be orin# in t"eir $e!i$e$ &la!eo% or'

    /on!lusion+ >"e above $es!ri&tion maes it !lear t"at all #oo$s are &la!e$ int"eir $e!i$e$ &la!e' imilarly, all t"e em&loyees or only on t"e &reD

    $etermine$ &la!e o% $uty' >"ere%ore, it !an be sai$ t"at t"e &rin!i&le o% or$er isbein# observe$ in t"e !om&any'

    11$ E0UITYeanin#+ 3!!or$in# to t"is &rin!i&le, t"e mana#ers s"oul$ treat t"eirsubor$inates as %airly as &ossible' o t"at t"ey $evelo& a %eelin# o% $e$i!ation

    %or t"eir or' Cot", maintainin# $is!i&line an$ a!tin# it" in$ness isa&&ro&riate'

    -bservations+7I-N+ oes your !om&any #ive e=ual remuneration to all t"e

    em&loyees $oin# a similar EobG3N+ Aes

    "ere%ore, t"e !om&any "as to tae !areo% t"e stability o% t"e &ersonnel in its on interest'

    1)$ INITIATI%Eeanin#+ 3!!or$in# to t"is &rin!i&le, em&loyees in t"e or#anisation must be#iven an o&&ortunity in main# an$ e*e!utin# &lans'

    -bservations+7I-N+ oes your boss #ive im&ortan!e to your su##estionG

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    3N+ Aes

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    ' oes your !om&any #ive e=ual remuneration to all t"e em&loyees $oin# asimilar EobG3ns' Aes

    8' Have you serve$ t"is !om&any %or more t"an one yearG3ns' No'

    9' oes your boss #ive im&ortan!e to your su##estionG3ns' Aes

    1;' o you #et or$ers %rom more t"an one bossG3ns' Aes

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