14 PRINCIPLES OF MANAGEMENT -HENRI FAYOL

By RAHUL KR SINGH MBA(HOSPITAL ADMINISTRATION) MMHRC,MADURAI

INTRODUCTION
A principle refers to a fundamental truth. It establishes cause and effect relationship between

two or more variables under given situation.

They serve as a guide to thought & actions. These principles are derived: -

On the basis of observation and analysis

By conducting experimental studies

14 PRINCIPLES OF MANAGEMENT DESCRIBED BY HENRI FAYOL Division of Labor

Party of Authority & Responsibility Principle of One Boss Unity of Direction Equity Order

Discipline

14 PRINCIPLES OF MANAGEMENT DESCRIBED BY HENRI FAYOL

Initiative

Fair Remuneration Stability of Tenure Scalar Chain

Sub-Ordination of Individual Interest to General Interest

Espirit De Corps

Centralization & De-Centralization

DIVISION OF LABOUR
stressed on the specialization of jobs work of all kinds must be divided and allotted to various

persons
simpler and results in efficiency helps the individual in acquiring speed, accuracy in his

performance
Specialization leads to efficiency & economy in spheres of

business

Party of Authority & Responsibility

co-existing
Authority is given to a person, he should also be

made responsible. He should also have concerned authority, if anyone is made responsible. Authority refers to the right of superiors. responsibility means obligation for the performance of the job assigned. Should be a balanced. Authority- Responsibility = Irresponsible Behavior Responsibility- Authority= Ineffective

Principle of One Boss

A sub-ordinate should receive orders and be accountable to only boss at

a time.
a sub-ordinate should not receive instructions from more than one

person
Dual sub-ordination should be avoided The enterprise a disciplined, stable & orderly existence

Harmonious relationship between superiors and sub-ordinates

a sub-ordinate should not receive instructions from more than one

person

UNITY OF DIRECTION
One head one plan Related activities should be grouped together Efforts of all the members of the organization should be

directed towards common goal

Without unity of direction, unity of action cannot be achieved. Unity of command is not possible without unity of direction.

Order

Concerned with proper & systematic arrangement of

things and people.

Arrangement of things is called material order Placement of people is called social order. Material order-should be safe, appropriate and specific place for every article Social order-Selection and appointment of most suitable person on the suitable job

Discipline
Sincerity, Obedience, Respect of Authority & Observance of

Rules and Regulations of the Enterprise. subordinate should respect their superiors and obey their order. smooth running of the enterprise subordinates but also on the part of management. Discipline can be enforced if -

-Good superiors - Clear & fair agreements with workers - Sanctions are judiciously applied

INITIATIVE
Encouraged to take initiative in the work assigned to them

Initiate actions without being asked to do

Management should provide opportunity to its employees Helps in developing an atmosphere of trust Enjoy working in the organization because it adds to their

zeal and energy

Suggest improvement in formulation & implementation of

place

Fair Remuneration
Paid to the workers should be fair of the efforts
Satisfaction to both employer and the employees Determined on the basis of cost of living, work assigned

etc,
Provision of other benefits such as free education, medical

& residential facilities to workers

Management creates harmonious relationship and pleasing

atmosphere of work.

Stability of Tenure
Employees should not be moved frequently from one

job position to another Once they are appointed their services should be served Time is required for an employee to get used to a new work fayol Money spent on training the worker will go waste Stability of job creates team spirit& a sense of belongingness among workers -ultimately increase the quality as well as quantity of work

Scalar Chain
The chain of superiors ranging from the ultimate

authority to the lowest Every orders, instructions etc. has to pass through Scalar chain. For the sake of convenience & urgency, this path can be cut this short cut -Gang Plank Temporary arrangement between two different points to facilitate quick & easy communication Modified as per the requirements of situations.

Sub-Ordination of Individual Interest to General Interest

An organization is much bigger than the individual
As far as possible, reconciliation should be achieved

between individual and group interests. Case of conflict, individual must sacrifice for bigger interests In order to achieve this attitude
- Employees should be honest & sincere. - Proper & regular supervision of work. - Reconciliation of mutual differences

Espirit De Corps
It refers to team spirit

Inspires workers to work harder

Interest of the undertaking in the long run. The managers should infuse team spirit &

belongingness Espirit De Corps following steps should be undertaken

proper co-ordination should be encouraged to develop informal relations among themselves. create enthusiasm and keenness among subordinates employees should be rewarded

Centralization & De-Centralization

Centralization-concentration of authority at the top level

De-centralization-disposal of decision making authority to all the

levels of the organization

Increases the role of subordinate is decentralization & Decreases

the role of subordinate is centralization

It is not feasible, organization should strike to achieve a lot

between the two.

ITS QUERY TIME

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