Principles of Management?
Heneri Fayol (French Industralist):( 1841-1925)
He attempts to systematize the practice of management to provide guidance and direction to manager.
He was the first to focus on management as function: planning, organizing, leading, and controlling, and believed as the core management process. Developed 14 principles of management.
1) DIVISION OF WORK: 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. This is because a division of work leads to specialization, and specialization increases efficiency, and efficiency improves the productivity and profitability of the organization.
2) AUTHORITY: 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. According to Henri Fayol, there should be a balance between Authority (Power) and Responsibility (Duties). Authority must be equal to Responsibility. If the authority is more than responsibility then chances are that a manager may misuse it. If responsibility is more than authority then he may feel frustrated. (Delegation of authority)
3) DISCIPLINE: A successful organization requires the common effort of workers regarding obedience and respect. Penalties should be applied judiciously to encourage this common effort. Discipline means a respect for the rules and regulation of the organization. Discipline may be Self-discipline, or it may be Enforced discipline. Self-discipline is the best discipline. However, if there is no self-discipline, then discipline should be enforced through penalties, fines, etc. No organization can survive without discipline.
4) UNITY OF COMMAND: Workers should receive orders and instruction from only one manager. According to this principle, a subordinate (employee) must have only one superior (boss or manager). A subordinate must receive orders from only one superior. In other words, a subordinate must report to only one superior. According to Fayol, if one subordinate receives orders from more than one superior then there will be disorder. This will affect the discipline, efficiency, productivity and profitability of the organization.
5) UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction. All activities which have the same objective must be directed by one manager, and he must use one plan. This is called Unity of Direction. For example, all marketing activities such as advertising, sales promotion, pricing policy, etc., must be directed by only one manager. He must use only one plan for all the marketing activities. Fayol advocates "One head and one plan" which means that group efforts on a particular plan be led and directed by a single person. This enables effective co-ordination of individual efforts and energy. This fulfils the principles of unity of command and brings uniformity in the work of same nature. In this way the principle of direction create dedication to purpose and loyalty. It emphasizes the attainment of common goal under one head.
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 an organization, there are two types of interest, viz., the individual interest of the employees, and the general interest of the organization. The individual interest should be given less importance, while the general interest should be given most importance.
7) REMUNERATION: Remuneration is the price for services received. 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. Fairness in remuneration must be assured in accordance with their contribution. This policy should give maximum satisfaction to both employer and employees. It should include both financial and non-financial incentives.
8) CENTRALIZATION: 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. The optimum balance must be found for each organization.
9) SCALAR 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. Scalar Chain is a line of authority. This line joins all the members (managers and employees) from top to bottom. Every member must know who is his superior. He must also know who is his subordinate. Scalar Chain is necessary for good communication. Scalar Chain must not be broken in norm circumstances. However, if quick action is necessary, then this chain can be broken.
10) ORDER: 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 and should be in their proper place. Misplacement will lead to misuse and disorder Putting right thing in right place so that it can be used in right time to get the right output.
11) EQUITY: All employees should be treated as equally as possible. The managers should use the equity while dealing with the employees. Equity is a combination of kindness and justice. There should not be any discrimination as regards caste, sex and religion. An effective management always accords sympathetic and human treatment. The management should be kind, honest and impartial with the employees. In other words, kindness and justice should be exercised by management in dealing with their subordinates. Equity creates loyalty and devotion in the employees.
12) STABILITY OF TENURE OF PERSONNEL: 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. An employee needs time to learn his job and to become efficient. Therefore, he should be given time to become efficient. When he becomes efficient, he should be made permanent. In other words, the employees should have job security.
12) STABILITY OF TENURE OF PERSONNEL: 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. An employee needs time to learn his job and to become efficient. Therefore, he should be given time to become efficient. When he becomes efficient, he should be made permanent. In other words, the employees should have job security.
13) INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. Management should encourage initiative. That is, they should encourage the employees to make their own plans and to execute these plans. This is because an initiative gives satisfaction to the employees and brings success to the organization. Under this principle, the successful management provides an opportunity to its employees to suggest their new ideas, experiences and more convenient methods of work in respect of employee empowerment
14) ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees. Esprit de Corps means "Team Spirit". Therefore, the management should create unity, co-operation and team-spirit among the employees. They should avoid the divide and rule policy
Others:
15. Span of control: The number of subordinate under the immediate supervision of one manger should be limited to manageable number.
16. Management by exception: Focus on selectivity in work and priority in decisions.
17. Shortest decision path: the decisions must be made as closely as possible in time and place to the object of the decision and to those affected by it.
a) Division of work:Focus towards specialization.
ReplyDeleteb)Authority:authority-power,responsibility.
c)Discipline:Following/ Respect rules and regulation.
d)Unity of command:Every employee must take order from only one superior.
e)Unity of direction:Focus towards common objectives in common direction.
f)Remuneration:Basic salary.
g)Centralization:Optimum balance/Decision making power.
Learn more on Division of Work principle.
DeleteThere are three basic principles for management. These are: technical skill, human skill, and conceptual skill. These involve directing, controlling, planning, and organizing effectively.
ReplyDeleteI found that people don't refer to "The 14 Principles" often today because there are other modern and scientific management theories. It used to be in practice in 90's when managers had to any access of resources for improving their skills.
ReplyDeleteAlthough the 14 Principles aren't widely used today, they can still offer guidance for today's managers. Many of the principles are now considered to be common sense, but at the time they were revolutionary concepts for organizational management.
according to Heneri Fayol these 14 management functions are the systematic practice of management which gives guidance and direction to the manager and its the core management process of planning, organizing, leading and controlling.
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ReplyDeleteHenri Fayol’s general principles of management are applicable to organizations regardless of their size. For example, consider authority and responsibility and equity. Although some of them can be discussable, it should be noted that Fayol’s attempt to provide these principles was one of the first endeavors in those days.
ReplyDeleteDifferent management experts have explained different principles on the basis of their research. Henry Fayol, a famous industrialist of France, has described fourteen principles of management in his book General and Industrial Management.
ReplyDeleteExplaining the difference between ‘principles’ and ‘elements’ he makes it clear that the principles of management are fundamentally true and establish a relationship between cause and effect, while the ‘elements’ of management point towards its functions.
While presenting the principles of management Fayol has kept two things in mind. Firstly, the list of the principles of management should not be long but should be suggestive and only those principles should be explained which become applicable in most of the situations.
Secondly, the principles of management should be flexible and not rigid so that changes can be made in them in case of need. The fourteen principles given by Fayol are as under:
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.remuneration to employees
8.centralisation and decentralisation
9.scalar chain
10.order
11.equity
12.stability of personnel
13.initiative
14.esprit de corps
Heneri Fayol,who is known as tha father of modern management, developed 14 principles of management which was one of the earliest theory of management to be created, and remain one of the most comprehensive.The fourteen principles given by Fayol are as follows:
ReplyDeleteDivision of Work: This is the principle of specialization, which is very well expressed by economists as being a necessary factor for efficiency in the utilization of labor.
Authority and Responsibility: In this principle, Fayol conceives authority as a combination of official authority deriving from a manager’s official position and personal authority, which is compounded of intelligence, experience, moral worth, past services etc.
Discipline: Holding the notion that discipline is ‘respect for agreements which are directed as achieving obedience, application, energy and the outward marks of respect’, Fayol declares that discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.
Unit of Command: This is the principle, which states that on employee should receive orders from one superior only.
Unity of Direction: According to Fayol, the unity of direction principle implies that each group of activities having the some objectives must have one head and one plan. As distinguished from the principle of unity of command, Fayol perceives unity of direction as related to the functioning of personnel.
Subordination of Individual Interest to General Interest: In any group, the interest of the group should supersede that of the individual. When the interests differ, it is the function of the management to reconcile them.
Remuneration of employees: Fayol perceives that remuneration and methods of payment should be fair and also should be able to afford the maximum satisfaction to employee and employer.
Centralization: Although Fayol does not use the term, Centralization of Authority, his principle definitely refers to the extent to which authority is concentrated or dispersed in on enterprise. Individual circumstances determine the degree of centralization that gives the best over all yields.
Scalar Chain: Fayol thinks of the scalar chain as a line of authority, a chain of superiors from the highest to the lowest ranks. And, because it is an error of a subordinate to depart needlessly from the lines of authority, the chain should be short-circuited.
Order: Breaking this principle into material order and social order, Fayol thinks of it as a simple edge for everything. This organization is the principle, which refers to arrangement of things and persons in an organization.
Equity: Fayol perceives this principle as one of eliciting loyalty and devotion from personnel with a combination of kindliness and justice in managers while dealing with subordinates.
Stability of Personnel: Finding that instability is both the cause and effect of bad management, Fayol points out the dangers and costs of unnecessary turnover.
Initiative: Initiative is conceived as the process of thinking out and executing a plan. Since it is one of the keenest satisfactions for an intelligent man to experience, Fayol exhorts managers to sacrifice personal vanity in order to permit subordinates to exercise it.
Esprit de corps: This principle implies that union is strength and an extension of the principle of unity of command. Fayol here emphasizes on the need for teamwork and the importance of communication in obtaining it.
The other theories are:
-Span of control
-Management by exeption
-Shortest decision path
Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.
ReplyDeleteAuthority. The right to issue commands, along with which must go the balanced responsibility for its function.
Discipline. Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership.
Unity of Command. Each worker should have only one boss with no other conflicting lines of command.
Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.
Subordination of individual interest (to the general interest). Management must see that the goals of the firms are always paramount.
Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.
Centralization (or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel.
Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels.
Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.
Equity. In running a business a ‘combination of kindliness and justice’ is needed. Treating employees well is important to achieve equity.
Stability of Tenure of Personnel. Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.
Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity’ on the part of many managers.
Team Spirit (Esprit de Corps). Management must foster the morale of its employees. He further suggests that: “real talent is needed to coordinate effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relations.”
Heneri Fayol’s Administrative Management Theory
ReplyDelete1. Division of work: division of work is the distribution of the right work to the right person. This leads to develop the concept of specialization and efficiency among the workers. The development of specialization ensures simplicity and accuracy in performance.
2. Discipline: Discipline is concerned with abdicate to the supervisor and to follow the rules, regulations and procedures. This principle is applicable to both management and subordinates because all are within the rules of the organization. In Fayol’s view, superior can reasonably expect discipline of subordinates only when they are disciplined.
3. Unity of Command: Unity of command is one of the most important and useful principle of management. This principle says that a subordinate should get order and instruction from only one superior at a time. If many superiors command and instruct at a time then the subordinate will get puzzled and cannot perform his/her work properly.
4. Feeling of Authority and Responsibility: Authority and Responsibility are two interrelated terms in management. This principle of Fayol emphasizes that there must be balance between authority and responsibility. Authority without proper responsibility can make a person irresponsible. Similarly, responsibility without authority makes a person ineffective.
5. Unity of Direction: Unity of direction means similar to guidance. It implies that there should be one head and one plan for a group of activities having the common activities. This principle emphasizes that each group of activities having the same objective must have one head and one plan.
6. Subordination of Individual Interest to General Interest: Individual interest means fulfillment of employee’s objective whereas general interest means attainment of organizational objectives. This principle says that the first emphasis should be given to organizational objectives rather than individual objectives.
7. Remuneration of Personnel: Remuneration is the price payable to the employees for their service towards the achievement of the organizational objectives. The remuneration to the personnel should be such that it is acceptable to both organization and the employees. Fair wages is essential for the smooth performance of the organization.
ReplyDelete8. Centralization: Centralization means to reserve the decision making authority t the top level of management. Generally, in small scale organization where the range of activities is limited can maintain centralization. Similarly, in large scale organizations where the range of activities is huge, the degree of centralization should be minimum. In such organizations, the top level authority should delegate some of their authority to the middle level and lower level managers on the basis of their responsibilities.
9. Scalar Chain: In an organization, there may be various level of authority from top level to the bottom level. The scalar chain refers to the unbroken chain of relation ranking from the top level to the lower level. It means each information should be communicated through successive level of chain either from lower level to the top level or vice versa.
10. Order: Order refers to the systematic arrangements of the available resources such as human resource, physical resource etc. Fayol has classified order into two types:
a) Material Order: The placement of material, machines and other physical things in proper place and quantity is material order.
b) Social Order: The placement of right person to the right job is social order.
11. Equity: this principle concentrates on kindness and justice to all the members of the organization. This is the only principle which would make all the workers loyal and devoted to the organization. The management has to realize that loyalty and devotion can be extracted from the employees only through kindness and justice.
12. Stability of Tenure: This principle is concerned to job security and long term existence of workers in the organization. It is most significant that employees must work in the organization for a long period of time. This is essential maintain and develop working efficiency of the organization.
13. Initiative: This principle emphasizes to provide freedom and preferences to subordinates to think out a plan and its execution. This initiative principle of management provides the sense of self-motivation among the workers and makes them more dedicated and loyal towards the organization.
14. ESPIRIT DE CORPS: ESPIRIT DE CORPS is the proverb that union is strength. It refers to strength associated with group or team spirit. It is possible only through harmony and mutual understanding among the workers of the organization. This principle of management suggests the managers to take necessary steps to promote spirit among the group and develop feeling of harmony to each other.
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ReplyDeleteManagement Principles developed by Henri Fayol:
ReplyDelete1. DIVISION OF WORK: 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.
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.
3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.
4. UNITY OF COMMAND: Workers should receive orders from only one manager.
5. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction.
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.
7. REMUNERATION: 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: 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: 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. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.
10. ORDER: 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: All employees should be treated as equally as possible.
12. STABILITY OF TENURE OF PERSONNEL: 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: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.
14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.
Principles are fundamental truths. Management principles have been developed to facilitate, guide and simplify managerial work systems. Heneri Fayol (French Industralist) attempted to systematize the practice of management to provide guidance and direction to manager.
ReplyDeleteHe developed 14 principles of management. They are as follows:
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. Remuneration to employees
8. Centralization and decentralization
9. Scalar chain
10. Order
11. Equity
12. Stability of personnel
13. Initiative
14. esprit de corps
This principle have wider application and relevance for management system.they are generally accepted as guidelines.these principles are ever changing and emerges through practical experiences and scientific research.
ReplyDeletePRINCIPLES OF MANAGEMENT
ReplyDelete-division of work
-discipline
-unity of command
-authority and responsibility
-unity of direction
-subordination of individual interest to general interest
-remuneration of personnel
-centrization and decentrization
-scalar chain
-order
-equity
-stability of tenure
-initiative
-esprit de corps
The 14 Management Principles from Henri Fayol (1841-1925) are:
ReplyDeleteDivision of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.
Authority. The right to issue commands, along with which must go the balanced responsibility for its function.
Discipline. Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership.
Unity of Command. Each worker should have only one boss with no other conflicting lines of command.
Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.
Subordination of individual interest (to the general interest). Management must see that the goals of the firms are always paramount.
Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.
Centralization (or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel.
Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels.
Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.
Equity. In running a business a ‘combination of kindliness and justice’ is needed. Treating employees well is important to achieve equity.
Stability of Tenure of Personnel. Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.
Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity’ on the part of many managers.
Team Spirit (Esprit de Corps). Management must foster the morale of its employees. He further suggests that: “real talent is needed to coordinate effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relations.”
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ReplyDeleteaccording to henri fayol 14 principle of management are as follows:
ReplyDeleteDivision of work. 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.
Authority. Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised.
Discipline. Employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organization's rules, and the judicious use of penalties for infractions of the rules.
Unity of command. Every employee should receive orders from only one superior.
Unity of direction. Each group of organizational activities that have the same objective should be directed by one manager using one plan.
Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.
Remuneration. Workers must be paid a fair wage for their services.
Centralisation. Centralisation refers to the degree to which subordinates are involved in decision making. Whether decision making is centralized (to management) or decentralized (to subordinates) is a question of proper proportion. The task is to find the optimum degree of centralisation for each situation.
Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However, if following the chain creates delays, cross-communications can be allowed if agreed to by all parties and superiors are kept informed.
Order. this principle is concerned with systematic arrangement of men, machine, material etc. there should be specific place for every employee in organization
Equity. Managers should be kind and fair to their subordinates.
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.
Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort.
Esprit de corps. Promoting team spirit will build harmony and unity within the organization.
"principle of management"
ReplyDelete- subordination of individual interest to general interest
- remuneration to employees
- centralization and decentralization
- scalar chain
- division of work
- authority and responsibility
- discipline
- unity of command
- unity of direction
Heneri Fayol,who is known as tha father of modern management, developed 14 principles of management which was one of the earliest theory of management to be created, and remain one of the most comprehensive.The fourteen principles given by Fayol are as follows:
ReplyDelete1. 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. Remuneration to employees
8. Centralization and decentralization
9. Scalar chain
10. Order
11. Equity
12. Stability of personnel
13. Initiative
14. Esprit de corps
fayol's fourteen principles of management are listed below:-
ReplyDeleteDivision of work
Authority
Disciplne
Unity of command
Unity of Direction
Subordination of individual interest
Remuneration
Centralisation
Scalar Chain
Order
Equity
Stability of tenure of personnel
Initiative
Esprit de corps
Fourteen principle of management by fayol's are;
ReplyDelete1.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.remuneration to employees
8.centralisation and decentralisation
9.scalar chain
10.order
11.equity
12.stability of personnel
13.initiative
14.esprit de corps
Nice work on principles of management
ReplyDelete