14 principles according to Henri fayol 1. Division of work - Division of work means specialization.

This division of work promotes efficiency because it permits an organizational number to work in a limited area reducing his responsibility. 2. Authority - The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline - Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership. 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 Interest 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 workers rate of pay.

8. The Degree of 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.

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 productreject 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. Esprit de Corps Management should encourage harmony and general good feelings among employees.

MAX WEBER German sociologist and political economist best known for his thesis of the Protestant ethic, relating Protestantism to capitalism, and for his ideas on bureaucracy. Webers profound influence on sociological theory stems from his demand for objectivity in scholarship and from his analysis of the motives behind human action.

Bureaucracies and its characteristics 1. A formal hierarchical structure. Each level controls the level below and is controlled by the level above. A formal hierarchy is the basis of central planning and centralized decision making. 2. Management by rules. Controlling by rules ...allows decisions made at high levels to be executed consistently by all lower levels. 3. Organization by functional specialty. Work is to be done by specialists, and people are organized into units based on the type of work they do or skills

they have. 4. An "up-focused" or "in-focused" mission. If the mission is described as "upfocused," then the organization's purpose is to serve the stockholders, the board, or whatever agency empowered it. If the mission is to serve the organization itself, and those within it, e.g., to produce high profits, to gain market share, or to produce a cash stream, then the mission is described as "in-focused." 5. Purposely impersonal. The idea is to treat all employees equally and customers equally, and not be influenced by individual differences. 6. Employment based on technical qualifications. The bureaucratic form, according to Parkinson, has another attribute. 7. Predisposition to grow in staff "above the line." Weber failed to notice this, but C. Northcote Parkinson found it so common that he made it the basis of his humorous "Parkinson's law." Parkinson demonstrated that the management and professional staff tends to grow at predictable rates, almost without regard to what the line organization is doing

14 principles of management according to henri fayol 1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. 2. Authority. The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline. Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership. 4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command. 5. 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. 6. Subordination of individual interest (to the general interest). Management must see that the goals of the firms are always paramount. 7. 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. 8. Centralization (or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel. 9. 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 toomany levels.

10. 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. 11. Equity. In running a business a combination of kindliness and justice is needed. Treating employees well is important to achieve equity. 12. 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. 13. 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. 14. 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 persons abilities, and reward each ones merit without arousing possible jealousies and disturbing harmonious relations. -Max weber German sociologist and political economist best known for his thesis of the Protestant ethic, relating Protestantism to capitalism, and for his ideas on bureaucracy. Webers profound influence on sociological theory stems from his demand for objectivity in scholarship and from his analysis of the motives behind human action. Bureaucracies and its characteristics 1. A formal hierarchical structure. Each level controls the level below and is controlled by the level above. A formal hierarchy is the basis of central planning and centralized decision making. 2. Management by rules. Controlling by rules ...allows decisions made at high levels to be executed consistently by all lower levels. 3. Organization by functional specialty. Work is to be done by specialists, and people are organized into units based on the type of work they do or skills they have.

4. An "up-focused" or "in-focused" mission. If the mission is described as "upfocused," then the organization's purpose is to serve the stockholders, the board, or whatever agency empowered it. If the mission is to serve the organization itself, and those within it, e.g., to produce high profits, to gain market share, or to produce a cash stream, then the mission is described as "in-focused." 5. Purposely impersonal. The idea is to treat all employees equally and customers equally, and not be influenced by individual differences. 6. Employment based on technical qualifications. The bureaucratic form, according to Parkinson, has another attribute. 7. Predisposition to grow in staff "above the line." Weber failed to notice this, but C. Northcote Parkinson found it so common that he made it the basis of his humorous "Parkinson's law." Parkinson demonstrated that the management and professional staff tends to grow at predictable rates, almost without regard to what the line organization is doing.

Who is max weber? Max weber - was a German sociologist and political economist who profoundly influenced social theory, social research and the discipline of sociology itself.

Bureaucracies and its following Characteristics 1. A formal hierarchical structure. Each level controls the level below and is controlled by the level above. A formal hierarchy is the basis of central planning and centralized decision making. 2. Management by rules. Controlling by rules ...allows decisions made at high levels to be executed consistently by all lower levels. 3. Organization by functional specialty. Work is to be done by specialists, and people are organized into units based on the type of work they do or skills they have. 4. An "up-focused" or "in-focused" mission. If the mission is described as "upfocused," then the organization's purpose is to serve the stockholders, the board, or whatever agency empowered it. If the mission is to serve the organization itself, and those within it, e.g., to produce high profits, to gain market share, or to produce a cash stream, then the mission is described as "in-focused." 5. Purposely impersonal. The idea is to treat all employees equally and customers equally, and not be influenced by individual differences. 6. Employment based on technical qualifications. The bureaucratic form, according to Parkinson, has another attribute. 7. Predisposition to grow in staff "above the line." Weber failed to notice this, but C. Northcote Parkinson found it so common that he made it the basis of his humorous "Parkinson's law." Parkinson demonstrated that the management and professional staff tends to grow at predictable rates, almost without regard to what the line organization is doing.