PRINCIPLES OF MANAGEMENT
Principles of Management (Fayol's 14 Principles of Management):
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| Henry Fayol |
1. Authority and Responsibility
2. Equity
3. Discipline4. Centralization
5. Division of work6. Subordination of individual interest to group interest
7. Initiative8. Remuneration
9. Teamwork10. Unity of direction
11. Unity of command12. Stability
13. Scalar chain14. Esprit De Corps
1. Authority:
● Position, designation, seniority defines authority.
● Authority is reflected as a power in managing the work.
● If authority is used in good sense and in a positive manner, the system works smoothly.
● Meaning of authority is right to command.
● Authority is the power to act.
● Authority helps the seniors to get work done from the juniors.
● Higher the post, higher is the authority.
● There should be no confusion about the authority. It should be clearly known to everybody that who is authorized for what.
● To have controls on the work, authority plays an important role.
● Authority is also useful in directing efforts towards completing the task.
● Authority can be delegated.
Responsibility:
● Responsibility is the other side of coin.
● If there is authority, the same weightage of responsibility automtically comes with it.
● There is nobody with only authority and having no responsibility.
● Higher authorities have higher responsibilities.
● Top level managers have unlimited authorities, but at the same time they are responsible for all the happenings in the organization.
● At the same time, bottom level managers have limited authorities in organization but they have defined responsibilities only.
● It is a kind of accountability of a designated person.
● Status of responsibility must be clear and there should not be any confusion.
● Responsibility can not be delegated.
● A sense of responsibility helps to finish the task with all its expectations.
2. Equity:
● Management should not forget equity and humanity.
● Partialism, variation in treatments among the employees of the same organization creates disintegration and segmentation in them.
● Now-a-days, many organizations have maintained equity in canteen facilities, dress code, pickup facilities, medical facilities etc. for all the employees without any differentiation.
● This equity principle creates family like environment which definitely reflects in output of the organization.
● It gives dignity to each individual.
● Equity does not mean equal wages. But it means no discrimination in treatment.
● There is no bias nature of behaviour.
● Rules play important role in following equity.
● Kindness and justice is expected from seniors.
● Due to equity, employees feel like a family in the organization.
● Equity is a good characteristic feature of work culture.
3. Discipline:
● Any organization needs discipline for its smooth functioning.
● Discipline of time, behaviour, work quality, obedience are important in any management.
● Following the rules and regulations, being honest, trustworthy and following protocols of the system are expected as discipline requirements.
● Management will be successful if they have disciplined work culture with them.
● Discipline starts from top management.
● Discipline has no excuses.
● Discipline of time helps to finish the task in time with better perfection.
● Discipline of behaviour, creates good working culture.
● Discipline is the solution for many ills, e.g. accidents can be minimized by discipline, work losses can be avoided by disciplined team work etc.
● Lack in discipline leads to loss of control and vice versa.
Point : Negative Discipline → Positive DisciplineCONCEPT : It is adherence to established norms and it is the creation of a conducive climate in regulations, out of fear of punishment. → It is the creation of a conducive climate in an organization so that employees willingly confirm to the established rules.
CONFLICT : Employees do not perceive the corporate goals as their own. → There is no conflict between individual and organizational goals.
4. Centralization:
● Uniformity in the way of functioning is possible by centralization.
● Centralization gives power in the hands of centre.
● Controls are concentrated at the centre.
● Centralization may not be successful if the span of work is more.
● Many times centralization do not take into consideration the local level issues.
● Centralization is the tendency of management to restrict delegation of decision making.
● A high degree of authority is held at the top level in the organization.
5. Division of Work:
● It is also called as delegation of work.
● When work is complicated, huge and difficult it must be divided among the different teams.
● Due to division of work, people get less variation in work.
● Skilled people make effective concentration on their allotted work.
● Extra pressure of work on very few' is avoided and this divide the work.
● It gets completed in time with better quality
● So for effective management, division of work is very essential principle.
● Big task completion can be effectively possible by dividing the work among the team members.
● Monopoly in skills by few is reduced.
● Many employees understand one or other aspects of the given work.
● Absenteeism of any one employee, will not affect the completion of work.
● Ultimate utilization of human resources is possible.
7. Initiative:
● To start with enthusiasm is called as 'initiative'.
● Difficult things are not possible if there is no initiative from anybody.
● For getting success in difficult or complicated work, someone should start at initial level.
● Good manager is always enthusiastic to initiate things whenever there is difficult situation in front of the organization.
● Good initiative is always followed by support and team work by the others.
● Initiative leads into new horizons of work.
● Initiative from subordinates helps the top management to proceed enthusiastically.
● Top level initiatives leads to progress of the organization.
● Nothing is possible, if there is no initiative from anybody.
● Employees having good initiative, need less motivating efforts from others.
● Initiative must be supported by the others, so that it will go ahead with success.
● Complicated problems and big tasks can be finished easily and in less time if there is quick initiativ and support to that initiative by others.
8. Remuneration:
● People must be satisfied by paying them satisfactorily.
● Many people work for better remuneration.
● Few work for mental, psychological and work related satisfaction.
● But it is the need that all of them must be paid as per their inputs.
● Qualification, designation, responsibility, dedication, performance, experience should be counted while giving remuneration.
● Good remuneration keep employees satisfied.
● It should be in time.
● Remuneration is the reward to the employees.
● Higher the post, higher is the remuneration.
● There should not be any discrimination based on remuneration.
9. Teamwork:
● Good teamwork is always better than the best individual performance! Organization is busy in many types of work.
● Completion of these work in time, with quality, with minimum wastages are the expectations from the employer.
● Single individual has limitations on many fronts.
● But it many individuals with different skills come together co-ordinate each other great achievements are possible through this teamwork.
● Industries always believe in teamwork rather than isolated efforts of individuals.
● Team work reduces workload on an individual person.
● There is contribution from many.
● It creates good work culture.
● Talent of each team member is utilized in team work.
● Big task is impossible without teamwork.
● Coordination is expected to have success in team.
10. Unity of Direction:
● In giving direction to the subordinates, there must be uniqueness of direction.
● There should not be any confusion due to different directions every time.
● If directions of work are fixed, then efforts can be taken effectively which will definitely give desired results.
● It is the responsibility of the management.
● It will save time and help to get good results.
● Experience always leads to unity of direction.
● There is no necessity of trial and error.
● Everybody is crystal clear about the goals.
● Deviation direction from the defined path is prevented due to unity of direction.
11. Unity of Command:
● It may be called as one boss principle.
● When higher authorities are more than one then there is possibility of different guidelines to the subordinates.
● This may create misunderstanding and fiasco at work. Unity of command gives better results in work.
● It leads into foxed way of working
● In case of change in command in future there is no cross questioning by others.
● It avolds unnecessary discussions and brainstorming.
● Subordinates have to be loyal with the command.
12. Stability
● Management must provide stability of tenure to employees.
● This creates secure feelings among them which allows them to work with more concentration.
● Stability helps growth of organization also.
● Concentration in work is possible by stability.
● Insecurity is less in stability.
● Stability gives uniform growth.
● Stability improves maturity in the organization.
● Stability is concerned with economic stability, work load stability work area stability, team stability work place stability, policy stability etc
13. Scalar Chain:
● Fayol thinks of the scalar chain as a line of authority
● It is a chain as a line of authority
● It is a chain of superiors from the highest to the lowest ranks.
● This chain should be short-circuited.
● This chain should be continuous line of authority.
● This chain is thoughtout all the levels of organization.
14. Esprit de Corps:
● It is concerned with team work.
● Team with harmony and proper understanding is expected.
● Co-ordination and communication are necessary for success in team.
