Principal of Management

Assignment on application of Henri Foyal’s 14

principals on Legend Financial and Tax Advisers.

Submitted to
Mr Ashad Hafeez
 Group Members

 Zahid Latif 181090022

 Adnan Akhtar 181090045
 Mehvish Hayyat 181090060
 Arafa Saleem 181090018
 Saqib Ali 181090027
 Hafiz Waqar 181090019
 M. Ramzan Ali 181090044
 Introduction of LFTA

• LFTA is accountancy firm, which offers different

services like TR, CT, VAT, Payroll, Management
accounts.
 Henri Fayol’s principals

• 14 principles of Management are statements that are

based on a fundamental truth. These principles of
management serve as a guideline for decision-making
and management actions.
 1- Division of work

• LFTA divide their job • In future organisation

in differebnts tasks want to change this
1. Bookeeping division to client vise.
Every person will
2. Checking responsible for all
3. Finalize matters related to some
specific clients.
4. Approval from client
5. Send to related body
 2- Authority

• Top and middle managers have competence

authorities but director did not allow to anyone for
some more important decisions like to hire or fire
someone.
Top and middle manager has authority to assign tasks
or to move from a person to another.
Adnan Akhtar
 3- Discipline

• Of course LFTA has some rules to maintain

discipline.
• For on and off time. It consider to be a off, if
anyone be late for three days in a month.
• Or if any employee show negligence with his task. It
might be a unpaid holiday or depended on situation.
 4- Unity of Command

• Command is delivered by only one person

• Every service has different hierarchy.
• Its depend on service, so junior will get command
from related expert person or senior.
Mehvish Abdul Sittar
 5- Unity of Direction

• Entire organization has a common rout to

communicate client’s financial statement fairly, make
satisfy client as well as the regulatory body on the
same time.
• The main purpose is to maximize profit.
 6- Subordination of Individual
Interests to the General Interest
• As they have a proper command system, unity in
direction. In this environment this point cannot
apply on it.
Arafa Saleem
 7- Remuneration

• Legend Financial and Tax Advisers strongly believe

on it.
• And there is a proper salary scale and incentive
system to pay them real amount which they really
deserve.
• Organisation has arrange a training session so that
everyone has a chance to promote by their abilities.
 8- Centralization

• LFTA has centralization and decentralization term.

• For some specific decisions it obey centralization but
for common and to arrangement of task its
decentralization.
Sana Javed
 9- Scalar Chain

• There is hierarchy or line for authority.

• First line supervisor response to lower level managers. And
they keep upper level.
 10- Equity

• There is no any type of favouritism, may be the

reason its not a big organization yet. As company has
high number of employees and diversity, it is difficult
to maintain equity.
Hafiz Waqar
 11- ORDER

• As LFTA is a service base organization there is no

need to make order for materials but for jobs and
tasks.
• In future, they are going to change order
12- Esprit de Corps
Saqib Ali
 13- Initiative

• Although how managers are trained or experienced

but ultimately mostly work is done by the labour or
lower level managers. So they me be stuck for some
time by facing any critical situation.
On that time employees should have initiative ability
to tackle the situation.
 14- Stability of Tenure of
Personal
• LFTA a believes that an employee could be a
productive or make them able to be productive.