14 Principals of Henry Fayol

8/3/2019 14 Principals of Henry Fayol

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PPT BY

SUMAN CHANDOK

BBA-BM


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14 PRINCIPALSDivision of workAuthority and

responsibility

Discipline

Unity of comandUnity of direction

Subordination ofindividual interest togeneral interest

Remuneration toemployees

Centralisation anddecentralisation

Scolar chail

(i)Meaning of scolar

chain(ii)Fayols opinion

(iii)Fayols ladder

(iv)Utility

(v)Gang plan

Order

EquityStability ofpersonnelInitiative

Esprit decrops


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Division of workThis principal of Fayol tells us that as far as possible the

whole work should be divided into different parts andeach part should be assigned only one part of the workaccording to his ability and taste rather than giving thewhole work to one person. When a particularindividual performs the same job repeatedly, he willbecome an expert in doing that particular part of thewhole job. Consequently, the benefits of specializationwill become available.


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Authority and responsibilityAccording to this principal, authority and responsibility

should go hand in hand. It means that when aparticular individual is given a particular work and heis made responsible for the results, this can be possibleonly when he is given sufficient authority to dischargehis responsibility. It is not proper to make a personresponsible for any work in the absence of authority.


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DISCIPLINEDiscipline is essential for any successful work

performance. Fayol considers discipline to meanobedience, respect for authority, and observance ofestablished rules. Discipline can be established byproviding good supervision at all levels, clearlyexplaining the rules, and implementing a system ofreward and punishment. A manager can present agood example to his subordinates by disciplininghimself.


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Unity of commandAccording to the principal the unity of command, an

individual employee should receve orders from onlysuperior at a time and that employee should beanswerable only to that superior. If there are manysuperiors giving orders to the same employee, he willnot be able to decide as to which order is to be givenpriority.


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Unity of directionUnity of direction means that there should be one plan

for a group of activities having the same objective. Inother words, there should be one plan of action for a

group of activities having the same objective and thereshould be only one manager to control them. It isnecessary to distinguish between the meaning of unityof command and unity of action. Unity of command

means there should be one manager at a time to givecommand to an employee, while the unity of directionmeans that there should be only one managerexercising control over all the activities activitieshaving the same objective.


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Subordination of individual

interest to general interestThe principal can be named priority to general interest

over individual interest. According to this principal,the general interest of the organization is above toeverything. If one is asked to place individual interestand the general interest will be placed individualinterest and the general interest in order of priority,definitely the general interest will be placed at the firstplace.


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Remuneration to employeesFayol is the opinion that the employees should get a fair

remuneration so that the employees and the ownersfind equal amount of satisfaction. It is the duty of themanager to ensure that everybody is being paidremuneration according to their work. If however, theyare not paid properly for there work, they will not dothere work with perfect dedication, honesty andcapacity.


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Scolar chainIt refers to a formal line of authority which moves from

highest to the lowest ranks in a straight line.

Fayol opinion: this chain must be followed in a strictmanner. It means communication must move from topto bottom and vise verse in a straight line. Theimportant condition here is that no step (post) shouldbe over load during communication principal.

Fayol ladder: Fayol has explained this principal with withthe help of ladder or double chain as shown in thediagram.


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Utility: Due to more clear system of authority and

command, problems can be solved faster.Gang plan: It is the exception of the principal of scolarchain. This concept was develop to establish a directcontact with the employee of equal rank in case of

emergency to avoid delay in communication.

Scolar chail


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OrderAccording to the principal of order, a right person

should be placed at a right job and a right thing shouldbe placed at a right place.


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EquityThis principal tells that the managers should treat their

subordinates in a just and kind manner so that theydevelop a feeling of dedication and attraction for theirwork. All the employees should be treated equally andimpartially .fayol tells us in a connection with thisprincipal that there should not be any equality oftreatment between a person whose work is really good

and a person who is a shirker by nature.


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Stability of personnelFrom the point of view of management it is absolutely

harmful to change the employees frequently as it is areflection of inefficient management. Therefore,according to this principal there should be stability oftenure of the employees so that the work continuesefficiently. Fayol thinks that instability in the tenure ofemployees is a cause of poor management and results.

High rate of labour turnover.


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InitiativeInitiative means the capacity to work while expressing

ones thought. According to Fayol it is the duty ofmanager to encourage the feeling of initiative amonghis employees for doing some work or taking somedecisions but with in the limits of authority anddiscipline.


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Esprit de cropsAs per this principal, a manager should continuously

make efforts to develop a team spirit among thesubordinates. To do this, he/she should use the wordWe instead of I during the conversation withsubordinates.


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14 Principals of Henry Fayol

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