Fayol's Principles of Management

Fayol's Principles Of Management

About Henry Fayol :

Henry Fayol (1841-1925) got degree in Mining Enois neering and joined French Mining Company in 1860 as an Engineer. He rose to the position of Managing Director in 1988. When the company was on the verge of bankruptcy. He accepted the challenge and by using rich and broad admin. istrative experience, he turned the fortune of the company. For his contributions he is well known as the "Father of General Management".

Principles Of Management Developed By Fayol

1.   Division of work : 

Work is divided in small tasks/job and each work is done by a trained specialist which leads to greater efficiency, specialisation increased productivity and reduction of unnecessary wastage and movements.

2.   Authority and Responsibility :

Authority means power to take decisions and responsibility means obligation to complete the job assigned on time Authority and responsibility should go hand in hand. Mere responsibility without authority, makes an executive less interested in discharging his duties. Similarly giving authority without assigning responsibility makes him arrogant and there is fear of misuse of power.

3.   Discipline :

It is the obedience to organizational rules by the subordi- nates. Discipline requires good supervisors at all levels, clear and fair agreements and judicious application of penalties.

4.   Unity of Command : 

It implies that every worker should receive orders and instructions from one superior only, otherwise it will create confusion conflict, disturbance and overlapping of activities.

5.   Unity of direction:

Each group of activities having the same objective must have one head and one plan this ensure unity of action and coordination.

6. Subordination of Individual Interest to General Interest :

The interest of an organization should take priority over the interest of any one individual employee. 

6.   Remuneration of Employees :

The overall pay and compensation should be, fair to both employees and the organization. The wages should en- courage the workers to work more and better.

8. Centralisation And Decentralisation:

Centralisation means concentration of decisions making authority in few hands at top level. Decentralisation means evenly distribution of power at every level of management. Both should be balanced as no organization can be completely centralised or compietely decentralised.

9. Scalar Chain :

The formal lines of authority between superiors and subordinates from the highest to the lowest ranks is known as scalar chain. This chain should not be violated but in emergency employees at same level can contact through Gang Plank by informing their immediate superiors.

10. Order :

A place for everything and everyone and everything and every- one should be in its designated place. People & material must be in suitable places at appropriate time for maximum efficiency.

11. Equity:

The working environment of any organization should be free from all forms of discrimination (religion, language, caste, sex, belief or nationality) and principles of justice and fair play should be followed no workers should be unduly favoured or punished.