Henri Fayol’s Principles of Management

Henri Fayol’s principles of management

For downloadable Notes Click :- Henri Fayol's Principles of Management

(Note :- In order to remember the 14 principles ,I tried to make a small Acronym which will not let you forget any one of them and you can easily recall them at the time of exam.

(DAD U C USSR?....O I SEE) which means that there are D -DIVISION OF WORK, A- AUTHORITY AND RESPONSIBILITY , D - DISCIPLINE And so on..

1.  Division of work -In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas (from generalist to specialist). Personal and professional developments support this. Work should be divided among individuals and groups to ensure  that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization and specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed.The division of work is the course of tasks assigned to, and completed by, a group of workers in order to increase efficiency. Division of work, which is also known as division of labour, is the breaking down of a job so as to have a number of different tasks that make up the whole. This means that for every one job, there can be any number of processes that must occur for the job to be complete.

2. Authority and Responsibility -The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility. In other words, Authority is the right to give orders and obtain obedience, and responsibility is the corollary of authority.

3.  Discipline - It is often a part of the core values of a mission and vision in the form of good conduct and respectful interactions. This management principle is essential and is seen as the oil to make the engine of an organization run smoothly.A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.  Employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership.

4.  Unity of command - Workers should receive orders from only one manager. In other words, Every employee should receive orders from only one superior.  If tasks and related responsibilities are given to the employee by more than one manager, this may lead to confusion which may lead to possible conflicts for employees.

5. Unity of direction - The entire organization should be moving towards a common objective in a common direction. Each group of organizational activities that have the same objective should be directed by one manager using one plan for achievement of one common goal.

6. Subordination of individual interests to the general interests - The interests of one person should not take priority over the interests of the organization as a whole. In other words, The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole. The primary focus is on the organizational objectives and not on those of the individual. This applies to all levels of the entire organization, including the managers.

7. Remuneration -Motivation and productivity are close to one another as far as the smooth running of an organization is concerned. All Workers must be paid a fair wage for their services. Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay.    

8. Centralization - Centralization refers to the degree to which subordinates are involved in decision making. Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.

9. Scalar chain - The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.  

10. Order - this principle is concerned with systematic arrangement of men, machine, material etc. there should be a specific place for every employee in an organization. For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible. 

11. Equity - Managers should be kind and fair to their subordinates and all employees should be treated as equally as possible.

12.Stability of tenure of personnel - High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.

13.Initiative - Employees who are allowed to originate and carry out plans will exert high levels of effort. Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. 

14.Esprit de corps - Promoting team spirit will build harmony and unity within the organization. Management should encourage harmony and general good feelings among employees. The management principle ‘esprit de corps’ of the 14 principles of management stands for striving for the involvement and unity of the employees. Managers are responsible for the development of morale in the workplace; individually and in the area of communication. Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.