14 PRINCIPLES

OF
MANAGEMENT
PRESENTED BY ABHISHREE
CHETTIAR
XII-G
120802
INTRODUCTION 

An organisation can be defined as a group of people who collectively undertake

certain actions such as planning, arranging, coordination, structuring,
administration, organizing, management, logistics, and the like, in order to
achieve a pre-determined goal.

Hence, an organisation can be a business or a government department. In other

words, organisations can be private or public; small, medium or large-scale;
profit or non-profit oriented. They can also specialize in different endeavours
such as manufacturing, repackaging, sales, services, and so on
• All Organisations require management to succeed. America led to the postulations
of several management principles, also called theories or philosophies. However,
popular among the several management principles postulated by the management
forerunners is Henri Fayol’s ‘14 principles of management
14 PRINCIPLES OF
MANAGEMENT BY
HENRI FAYOL
 • Henry Fayol’s first principle for
management states that staff perform
better at work when they are assigned
jobs according to their specialties.
Hence, the division of work into
smaller elements then becomes
  DIVISION  paramount. Therefore, specialisation is
important as 60 staff perform specific
 OF WORK tasks not only at a single time but as a
routine duty also. This is good to an
extent.
• Efficiency and Effectiveness of work are
better achieved if one staff member is
doing one thing at a time and another
doing a different thing, but all leading to
the same collective goal, at the same
time. By this, work output can be
increased at the end of a given time,
especially in a complex organisation
where different kinds of outputs
altogether count for the general
productivity of the organisation
 • This principle suggests the need
for managers to have authority
in order to command
subordinates to perform jobs
AUTHORITY while being accountable for their
AND actions.
RESPONSIBILI
TY
• The formality is in the organisational
expectations for the manager (his
responsibilities), whereas the informality (the
authority) can be linked to the manager’s
freedom to command, instruct, appoint,
direct, and ensure that his or her
responsibilities are performed successfully.
Again, the two are like checks and balances
on the manager: he must not abuse power
(authority). He must use it in tandem with the
corresponding responsibility. Thus, Fayol
believed that since a manager must be
responsible for his duties, he should as well
have authority backing him up to accomplish
his duties. This is correct and quite crucial to
organisational success
 • This principle advocates for clearly-
defined rules and regulations aimed at
achieving good employee discipline
and obedience. Fayol must have
observed the natural human tendencies
to lawlessness. He perceived the level
DISCIPLIN of organisational disorder that may
erupt if employees are not strictly
E guided by rules, norms, and regulations
from management. This is true and has
all along resulted in staff control in
organisations.
• Workers unions and staff groups are
getting stronger and stronger every day
and have ethics guiding them. In
organisations where they are allowed to
thrive, management tends to have little or
nothing to do towards staff control.
•  The use of staff groups or unions is an
informal control system. It can help
organisations to maintain discipline. One
hidden advantage managements that
adopt this system have is that they save
cost and time ab-initio allotted to
managerial discipline.
 • This principle states that employees
should receive orders from and report
directly to one boss only. This means
that workers are required to be
accountable to one immediate boss or
superior only
 UNITY OF •  Fayol was not explicit to show if it
COMMAND means that only one person can give
orders or whether two or more persons
can give instructions/directives to
employees but not at the same time.
• For instance, the head of a Finance
Department can give instructions to
staff relating to finance; the Electrical
Department head can do the same to
the staff also relating to power and
vice-versa.
• Thus, in large and small organisations,
it is not unusual for a staff member to
receive instructions from superiors
outside his/her immediate
units/sections or department.
 • This principle proposes that there
should be only one plan, one objective,
and one head for each of the plans.
•  Fayol meant is that an organisation
will naturally have central objectives
UNITY OF which need to be followed and as well
DIRECTIO departmental and unit goals which also
need to be reached in order to meet the
N unified objective
 • The interests of the organisation supersede
every other interest of staff, individuals, or
groups. Imperatively, employees must
sacrifice all their personal interests for the
SUBORDINATION good of the organisation.
•  In other words, organisations should not
OF INDIVIDUAL tolerate any staff that are not committed to
INTERESTS TO the organisation’s objectives and order
ORGANISATION'S even if it is to the detriment of personal
and family interests. This is one hard way
INTERESTS of pursuing organisational or corporate
success.
• one of the fastest ways to get staff
to adapt and comply with
organisational changes is to invest
in the staff. Thus, staff training and
retraining, which is at most times
cost-effective for management, is
not only an investment in the staff
for the organisation to reap but also
a commitment to staff personal
development.
 • Payment of staff salaries should be as
deserved. The salary should be
reasonable to both staff and
management and neither party should
be short-changed. The salary of every
staff member must be justifiable.
RENUMERATIO •  A supervisor should receive more pay
N than line staff. Thus, whosever
management appoints to be supervisor
takes more than the subordinates by
virtue of his or her responsibilities. 
•  It does not really matter whether a
subordinate works harder and is more
productive than the supervisor. As long as
management does not promote the
subordinate he continues to receive lesser
pay to what his boss gets even as he
works more than his boss.
 • This principle suggests that decision-
making should be centralised.
• This means that decision-making and
dishing-out of orders should come
from the top management (central) to
the middle management, where the
CENTRALISATION decisions are converted into strategies
and are interpreted for the line staff
who execute them (decentralisation)
 • This principle is a product of the
formal system of organisation. It is also
known as the hierarchy principle. It
asserts that communication in the
organisation should be vertical only
• It insists that a single uninterrupted
    SCALAR    chain of authority should exist in
    CHAIN organisations. Horizontal
communication is only allowed when
the need arises and must be permitted
by the manager
•  It is possible to describe scalar chains as the formal chain of authority following a
straight line from the highest to the lowest level. It defines the path through which
data needs to be communicated to the designated authority. 
•  Fayol defines scalar chain as “the chain of superiors ranging from the ultimate
authority to the lowest rank.” The flow of information between management and
workers is a must. Business opportunities must be immediately avoided of. so we
must make direct contact with the concerned employee. Business problems need
immediate solution, so we cannot always depend on the established scalar chain.
It requires that direct contact should be established.
 • Henri Fayol’s order principle of
management refers to the organisation
of all resources in a well defined and
systematic manner.
• A place for everything and everyone
and everything and everyone should be
         ORDER in its designated place. People &
material must be in suitable places at
appropriate time for maximum
efficiency.
 • Another word for equity is fairness. 
• The management principle of equity
often occurs in the core values of an
organization. According to Henri
Fayol, employees must be treated
kindly and equally. Employees must be
EQUITY in the right place in the organization to
do things right. Managers should
supervise and monitor this process and
they should treat employees fairly and
impartially.
 STABILITY OF PERSONNEL TENURE

In this principle, Fayol expresses the need to

recruit the right staff and train them on the
job with a hope to retain them for long. The The idea is that work can be very productive
basis of this principle is the belief that such from the start and afterwards the staff can be
staff with a secured tenure will put back into trained to improve on what they already
the organisation the knowledge and know how to do
experience which they may have garnered in
the course of working for the organisation
INITIATIVE

• A good manager must be one who can be

creative to initiate new ideas and also be
able to implement them. Fayol was direct
to managers at this point. 
•  Management stood the importance of
good ideas to the growth and success of
organisations. But, on the contrary, he did
not foresee the situation of today where
staff are becoming the idea-banks of
organisations
 • This is a French phrase which means
enthusiasm and devotion among a
group of people. Fayol is of the view
that organisations should enforce and
also maintain high morale and unity
among their staff. This is imperative as
ESPIRIT the existence of an organisation is a
result of the coming together of men
DE CORPS and women under a collective interest.
• Thus, understanding, love for each other,
unity, peace, and common determination
is paramount to their success. The saying
that united we stand, divided we fall is
equally applicable in any organisations.
THANK YOU