principles of management

PRINCIPLES OF MANAGEMENT

TOPIC: 14 PRINCIPLES OF MANAGEMENT

HENRI FAYOL (1841-1925):

Father of modern management thought.

Mining engineer, director of mines, management and industrial theorist.

Writer of the book “Administration Industrialle et Genrelle.”

DIVISION OF WORK:

Dividing the total work into small convenient components.

This brings in specialization and enables better concentration.

Division of work is very essential along with expansion in the size and activities of an organization.

Fayol suggested such division to all types of work: managerial, technical, general.

AUTHORITY AND RESPONSIBILITY:

According to Fayol, authority should be equal to responsibility.

If one is given authority, he should take the responsibility that follows and vice versa.

Person with authority should willingly take required responsibility.

There should be a proper balance between authority and responsibility.

UNITY OF COMMAND:

Henry Fayol suggested that an employee should get orders from one superior only.

If two superiors exercise their authority on the same employee, there will be disorder and confusion.

In fact, dual command is always dangerous.

UNITY OF DIRECTION:

Fayol suggested that there should be one head and one plan for a group of activities having the same objective.

For example:

The HRD department should have only one HRD manager with a specified plan for personnel's to all departments.

SUBORDINATION OF INDIVIDUAL INTEREST :

This principle states that the general interest of the organisation is more important than the interest of one employee or a group of employees .

This can be achieved by certain measures. These are as follows:

a) A superior setting good example to his subordinates,

b) Fair and just agreements with the employees, and

c) Continuous supervision on employees.

CENTRALISATION-Concentration of authority in few hands at top level.

There should be proper balance between centralisation & decentralisation.The degree of centralisation or decentralisation depends upon –

Size of the organisation.

Capacity of subordinates.

Nature of organisational structure.

REMUNARATION-Means the wages and salaries paid to employee. It should be fair & must be paid on time.

It satisfy both employee & employer .

It should be decided on-

Work allotted.

cost of living.

Ability of organisation to pay.

Prevailing wages rate.etc

With this it is important that there should be proper working condition & other facilities including canteen, recreation & welfare facility.

SCALAR CHAIN What does scalar chain refers to?

- Scalar chain principle refers to the line of authority or command for the purpose of communication from the top level to the lowest level of executives.

GANGPLANK

In organization communication should be quick to prevent delay as regards follow-up actions. Quick communication within the organization is possible by using “Gangplank "or direct contact. Fayol suggested that “Gangplank” should be used to prevent the delay of action.

EXPLANATION :

In this diagram, A to G and A to P are the

scalar chains. A is the head of the whole organization

while B and K are heads at the next level

of management . B is immediate superior to C while k is immediate

superior to L and so on. If F and O need to communicate each other for

some purpose the scalar chain principle will be followed.

This means F will move to E, E to D, D to C, C to B, B to A and thereafter A to K and finally to O.

This route is lengthy and time consuming

It would be time consuming if he had to

climb upto the level of A who would then pass

an order down to O. As an alternative, F and O can establish a direct

communication but with the approval of E and N.

This is possible with the help of gangplank (FO).

shown by dotted line in the figure. Scalar chain brings direct communication

between superior and subordinate . This facilitates quick decisions, easy

communication and delegation also.

ORDER Proper order is necessary in every

organisation.

According to Fayol, there should be place for everything and everything should be in its place.

Misplacement of any kind is undesirable as it leads to disorder.

DISCIPLINE:

Obedience and respect shown by employees.

Discipline means observation of certain rules and regulations by an employee in an organization.

EQUITY:

Principle of equity relates to the treatment of the subordinates.

Subordinates must be treated with kindness and justice.

Subordinates are human beings and their loyalty and devotion depends on the treatment given to them at the time of promotions, transfers and salary payments.

STABILITY OF TENURE:

Managers as well as subordinates need some time to learn and understand the jobs assigned to them.

They will adjust with the work within a

short period.

Stability of personal is necessary which also means security of job.

INITIATIVES:

Eagerness to do something.Preparing plans and executing them.It motivates the employees to make

suggestions.It creates sense of participation in the

minds of the employee.

ESPRIT DE CORPS:

It means that create a team spirit or union is strength.

Developed an atmosphere of mutual trust and understanding.

Create a sense of belonging employees It bring a loyalty, dedication and

commitment to the group.