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Lecture 5

This document outlines Henry Fayol's principles of management. It introduces Fayol as the "father of modern management theory" who developed 14 general principles of management that can be applied to all levels and departments. These principles include division of work, authority and responsibility, discipline, unity of command, centralization, and esprit de corps. The document provides a brief explanation of each principle and emphasizes that while the principles can be generally applied, organizations have flexibility in adopting and adapting them as needed.

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Sandhya Darshan Das
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41 views

Lecture 5

This document outlines Henry Fayol's principles of management. It introduces Fayol as the "father of modern management theory" who developed 14 general principles of management that can be applied to all levels and departments. These principles include division of work, authority and responsibility, discipline, unity of command, centralization, and esprit de corps. The document provides a brief explanation of each principle and emphasizes that while the principles can be generally applied, organizations have flexibility in adopting and adapting them as needed.

Uploaded by

Sandhya Darshan Das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Management Theory and Practices

2nd Semester BBA

Topic : Principles of Management

Presented By:
Kalyani Senapati
Asst. Professor
We will learn…

• Principles of Management by Henry Fayol


Introduction

–Henry Fayol, also known as the ‘father of modern

management theory’ gave a new perception of the concept of

management. He introduced a general theory that can be

applied to all levels of management and every department.

–The Fayol theory is practiced by the managers to organize

and regulate the internal activities of an organization. He

concentrated on accomplishing managerial efficiency.


Principles of Management

The fourteen principles of management created by Henri Fayol are:


1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of Direction
6. Subordination of individual to general interest
7. Remuneration
8. Centralization
Principles of Management

9. Scalar Chain

10. Order

11. Equity

12. Stability of Tenure

13. Initiative

14. Esprit de Corps


Division of work

• This principle suggests that work should be assigned to a person

for which he is best suited.

• Work should be divided up to that stage where it is optimum

and just.

• This division of work can be applied at all levels of the

organization.
Authority and responsibility

•Responsibility means the work assigned to any person, and authority


means rights that are given to him to perform that work.
•It is necessary that adequate authority should be given to discharge
the responsibility.
•Authority includes official authority and personal authority. Official
authority is derived from the manager‘s position and personal
authority is derived from the personal qualities.
•In order to discharge the responsibility properly, there should be
parity of authority and responsibility.
Discipline:

• This principle emphasizes that subordinates should respect


their superiors and obeys their orders.
• On the other hand, superiors behaviour should be such that
they make subordinates obedient.
• If such discipline is observed, there will be no problem of
industrial disputes. Discipline is obedience, application, energy,
behavior and outward mark of respect shown by employees.
Unity of Command

• Subordinates should receive orders from one superior only. If he


receives orders from more than one person, he can satisfy none.
• The more completely an individual has a reporting relationship to a
single superior, the less is the problem of conflict in instructions and
the greatest is the feeling of personal responsibility for results
Unity of Direction

• Each group of activities having the same objective must have


one head and one plan.
• In the absence of this principle, there may be wastage, over
expenditure and useless rivalry in the same organisation.
Subordination of individual to
general interest:

• While taking any decision, the general interest, i.e., the


interest of the organization as a whole should be preferred to
individual interests.
• Individual interest must be subordinate to general interest
when there is a conflict between the two.
• Superiors should set an example in fairness and goodness.
Remuneration

• Management should try to give fair wages to the employees


and employees should have the satisfaction of being rightly
paid.
• Remuneration must give satisfaction to both the employers
and employees.
Centralization

• Everything which goes to increase the importance of subordinate‘s


role is decentralization and everything which goes to reduce it is
centralization. When a single person controls the affairs of an
organization, it is said to be complete centralization.
• Thus centralization is more in small concerns and it is less in big
concerns. Fayol‘s opinion was that the degree of centralization
should be fixed on the basis of capabilities of the persons.
Scalar Chain

• This is the chain of superiors from the highest to the lowest ranks.
• The order of this chain should be maintained when some
instructions are to be passed on or enquiries are to be made It
suggests that each communication going up or coming down must
flow through each position in the line of authority.
• It can be short circuited only in special circumstances when its rigid
following would be detrimental to the organization.
Order:

• This is a principle relating to the arrangement of things and people.


• In material order, there should be a place for everything and
everything should be in its place.
• In social order, there should be right man in the right place.
Placement of men and materials should be properly made.
Equity

• This principle requires the managers to be kind and just so that


loyalty can be won from the subordinates.
• Equity is a combination of justice and kindness.
• The application of equity requires good sense, experience, and good
nature for soliciting loyalty and devotion from subordinates.
Stability of Tenure

• Employees should be selected on the principles of stability of


employment.
• They should be given necessary training so that they become
perfect.
• There should not be frequent termination of employees.

• Stability of tenure is essential to get an employee accustomed to


new work and succeeding in doing it well.
Initiative:

• Within the limits of authority and discipline, managers would


encourage their employees for taking initiative.
• Initiative is concerned with thinking out and execution of a plan.
• Initiative increases zeal and energy on the part of human beings
Esprit de Corps:

• This is the principle of Union is strength and extension of

unity of command for establishing team work.

• Managers should infuse the spirit of team work in their

subordinates.
Summary
Fayol made it clear that these principles can be applied to most
organizations, but these are not absolute principles.
Organizations are at liberty to adopt those which suit them or
to delete a few according to their needs.
Stuff for next class

• Contingency Approach to Management


Thank You

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