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FAYOL AND

 ADMINISTRATIVEMANAGEMENT

Prof. Saptarshi Mukherjee

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 Administrative Management2

Henry Fayol is known as the pioneer of “Administrative theory” and father of “Principles Of Management”.

The administrative theory is concerned with theentire range of managerial performances.

In administrative theory, major functions and

basic principles of management are universal incharacter.

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FAYOL AND ITSPRINCIPLES

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Henry Fayol4

He is popularly known as “Father of ModernManagement Theory” 

He suggested 14 principles of management forrunning the business efficiently.

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14 Principles5

Division of Work 

 Authority and Responsibility 

Discipline

Unity of Command

Unity of Direction

Subordination of Individual Interest to GeneralInterest

Fair Remuneration to Workers

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Contd…. 6

Effective centralization

Scalar Chain

Order

Equity 

Stability of tenure of workers

Initiative

Esprit de corps

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Division of Work 7

Total task into compact jobs and allocating

these compact jobs to different individuals. ToFacilitate specialization, improve efficiency,higher productivity, better performance ispossible.

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 Authority and Responsibility 8

 Authority is the right to give orders and powerto exert obedience. Responsibility impliesobligations to perform the work in the mannerdesired and directed.

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Discipline9

It means obedience and outward marks of respect. Clarity of rules, good supervisionensures it.

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Unity of Command10

1 subordinate should receive orders from 1superior only.

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Unity of Direction11

There should be 1 plan for a group of activitieshaving the same objective.

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Individual Interest to general Interest12

Individual Interest should be discarded andgeneral interest must be maintained.

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Fair remuneration to Workers13

Fair, equitable, reasonable, and satisfactory remuneration should be given.

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Scalar Chain14

It refers to the chain of superiors ranging fromthe top rank to the lowest rank in management.

It determines the clear line of authority from topto bottom linking managers at all levels.

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Effective Centralization15

Centralization means concentration of authority for decision making especially at the

top level management. Balance has to be therefor centralization and decentralization.

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Order16

Systematic arrangement of materials and peoplein the organization. Right man in the right job

and right materials in the right place foreffective utilization of resources.

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Equity 17

It signifies management must treat employees with justice and equity based kindliness. No

favoritism. Fair treatment to everyone.

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Stability of tenure of workers18

Every employee should feel that his job will not

be terminated without any substantial cause. Itpromotes team work, loyalty, team work,minimizes labor turnover.

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Initiative19

It means eagerness to initiate action in work related matters without being asked to do so.

Initiative is a powerful motivator of humanbehaviour.

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Esprit de Corps20

It is based on 2 principles. unity is strength andteam spirit is most essential .

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