Henry Fayol Principles

7/27/2019 Henry Fayol Principles

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TOPICHenry Fayol’s 14

Principles of Management



INTRODUCTION



Henr y Fayol was bor n in France in 1841. He

joined as junior executive in 1860 in a m ining comp any.He made great contributions and his contributions aregenerally termed as Administrative Mana gement.

He is the person w ho has given the functions andprinciples of m anageme nt for the first time in asystematic manner.

He has formu lated the general principle of m anagem ent

early in the 20th

centur y. For the efficient and sm oothrunning of business, Fayol has suggested 1 4 principlesof m anagem ent. These principles are



14 Principles of Management:

1 . Division of work.2.Authority and responsibility.3.Discipline.4.Unity of command.5.Unity of direction.6.Subordination of individual interest to general

interest.7.Fair remuneration.8.Centralization.9.Scalar chain.

10.Order.

11.Equity.12.Stability.13.Intitative.14.Espiirit de corps.



3. DISCIPLINE

Discipline means obedience, application, energy, behavior andobservation of established rules by employers and employees.Discipline is essential for smooth running of the business. Without it nobusiness can prosper

4. UNITY OF COMMAND

Unity of command implies that one person should get orders andinstructions from only one head or supervision. One person should beaccountable to only one person. If one person is under more than oneperson than subordinate may fail to understand.



5. UNITY OF DIRECTION

Unity of direction implies that there should be one head and one planfor a group of activities having the same objective. Each group of activities having the same objective must have one plan of action andmust be under the control of one manager or superior.

6. SUBORDINATION OF INDIVIDUALINTEREST TO GENERAL INTEREST

This principle implies harmony of personal interest and commoninterest. Fayol was of the view that the interest of one employ shouldnot prevail over the interest of the enterprise. When the individualinterest and common interest differs it is the duty of the managementto reconcile them



7. FAIR REMUNERATION

Fayol was of the view that remuneration paid to workers shouldalways be just, fair and should provide maximum satisfaction.Management must ensure fair reward for the work. Fayol was also infavour of non-financial benefit.

8.CENTRALISATION

Centralization means concentration of authority in the hands of fewi.e. is top management. Everything which goes to increase theimportance of subordinate’s role is decentralization and everythingwhich goes to reduce it is called centralization.



9. SCALAR CHAIN

There should be a scalar chain of the personnel resources or we can

say the authority and responsibility from top management to thelowest levels should be in a scalar form or in a line. It will be alwayshelpful in commanding as well as communication.

10. ORDER According to this principle there should be material as well as socialorder in the enterprise. Material order means a proper place for everything and everything in its right place.



11. EQUITY

Equity means justice and kindliness. There should be neithernepotism nor favoritism. Fayol was of the view that to encourageworkers management should deal with equity based on kindliness and

justice. Application of equity requires good sense and experience.

12. STABILITY

Employee turnover should be minimized. Long-term commitmentshould be encouraged. A very high rate of labour turnover creates abad name for the organization. It causes instability and in security inthe minds of the workers.



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CONCLUSION

Henry fayol’s principles of management are valid for most of theorganizations. They are applicable to both private as well asgovernment organizations. These are flexible and capable of adaptation. These can be used at levels of management with

minor modifications according to the needs of the organization

Henry Fayol Principles

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