Introduction:

Henri Fayol was born in Istanbul in 1841. When he was 19, he began working as an engineer at a
large mining company in France. He eventually became the director, at a time when the mining
company employed more than 1,000 people.
Through the years, Fayol began to develop what he considered to be the 14 most important
principles of management. Essentially, these explained how managers should organize and
interact with staff.
In 1916, two years before he stepped down as director, he published his "14 Principles of
Management" in the book "Administration Industrielle et Gnrale." Fayol also created a list of
the six primary functions of management, which go hand in hand with the Principles.
Fayol's "14 Principles" was one of the earliest theories of management to be created, and remains
one of the most comprehensive. He's considered to be among the most influential contributors to
the modern concept of management, even though people don't refer to "The 14 Principles" often
today.
Considering title of assignment we have select an organization of Caritas Bangladesh. In our
assignment we present management practice in Caritas Bangladesh in the light of Fayol's "14
Principles.

About Caritas Bangladesh (CB):

Caritas was founded in 1967 as the eastern branch of Caritas Pakistan. Following the cyclone of
November 1970 it was re-organized and became known as CORR (Christian Organization for
Relief and Rehabilitation) and took on the character of a national organization on January 13,
1971. The name Caritas was re-introduced in 1976.
Caritas Bangladesh has its Central Office in Dhaka. There are eight Regional (or Diocesan)
Offices in Barisal, Chittagong, Dhaka, Dinajpur, Khulna, Mymensingh,Rajshahi and Sylhet. In
all these places Caritas is operational in Integrated Development, Disaster Management and
Human Resource Development, under a central management. Caritas restricts itself at present to
208 upazilas (sub-districts) for integrated human development work. During emergencies, such
as natural disasters, Caritas is operational in any part of the country.
Caritas Bangladesh is a member of the Caritas Internationalism, a confederation of 165 Caritas
Member Organizations over 200 countries and territories.
Caritas Bangladesh (CB) is a national organization of the Catholic Bishops' Conference of
Bangladesh (CBCB) to carry out the activities of the social welfare and human development. The
CBCB approves the mandate for Caritas Bangladesh and guide the General Body to take all
major decision of Caritas.
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Vision:
In the light of the Social Teachings of the Church, Caritas Bangladesh envisions a society which
embraces the values of freedom, justice, peace and forgiveness allowing all to live as a
communion and community of mutual love and respect.

Mission:
Caritas Bangladesh tries to function in partnership with people especially the poor and
marginalized, with equal respect for all to attain integral development, to live a truly human
life in dignity and to serve others responsibly and with love.

GENERAL BODY:
The General body is the highest policy making body of Caritas Bangladesh consisting of 31
members representing the CBCB, Diocese and Regions drawn from cross section of people,
professional and social workers. The GB makes organizational policies, approves annual budget
and audit, appoints auditors and elects the executive Board. The President of Caritas Bangladesh
is the Most Rev. Theotonius Gomes, CSC.
Executive Board (EB) is the decision making body consisting of 11 members elected by the GB.
EB approves and reviews the projects and activities as well as budget and audit reports to the
GB. The Chairperson of EB is Dr. Benedict Alo D'Rozario, Executive Director of Caritas
Bangladesh.
Executive office: Executive office consist of the Executive Director, Administrative Director, the
Development Director, the Director, Disaster & Management and Director, Caritas Development
Institute who are appointed by the General body at its AGM as recommended by the CBCB.
Executive office is the implementation and decision making body for the project management as
well as the organizational management.

Organogram of Caritas Bangladesh:

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Implication Henry Fayol's Principle in Caritas Bangladesh:

Today's managers have access to an amazing array of resources which they can use to improve
their skills. But what about those managers who were leading the way forward 100 years ago?
Managers in the early 1900s had very few external resources to draw upon to guide and develop
their management practice. But thanks to early theorists like Henri Fayol (1841-1925), managers
began to get the tools they needed to lead and manage more effectively. Fayol, and others like
him, are responsible for building the foundations of modern management theory.

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1. Division of Work:
When employees are specialized, output can increase because they become increasingly
skilled and efficient.
According to Henry Fayol under division of work, "The worker always on the same post,
the manager always concerned with the same matters, acquire an ability, sureness and
accuracy which increases their output. In other words, division of work means
specialization. According to this principle, a person is not capable of doing all types of
work. Each job and work should be assigned to the specialist of his job. Division of work
promotes efficiency because it permits an organizational member to work in a limited
area reducing the scope of his responsibility. Fayol wanted the division of work not only
at factory but at management levels also.
Caritas Bangladeshs Practice: Caritas Bangladesh recruits staffs in following areas:

Department of DMD
Department of Development
Department of Administration and HR
Every department has separate Director to implements designed activities
separately. Departmental directors recruits staff complying Administrative and
HR policy through HR department based on requirement.

2. Authority and Responsibility:

Managers must have the authority to give orders, but they must also keep in mind that
authority comes from responsibility.
Authority and responsibility go together or co-existing. Both authority and responsibility
are the two sides of a coin. In this way, if anybody is made responsible for any job, he
should also have the concerned authority. Fayol's principle of management in this regard
is that an efficient manager makes best possible use of his authority and does not escape
from the responsibility. In other words when the authority is exercised the responsibility
is automatically generated.
Caritas Bangladeshs Practice:
For instance - An employee of a Caritas Bangladesh is entrusted with confidential/insider
information. He shall not use or proliferate information that is not available to the
investing public. By doing this, the company provides authority to its employees of
holding such information. At the same time, responsibility is exacted by the employees
that this information will remain confidential throughout their term with the company.
Such insider information might include - raising of finances, restructuring plans, Asset
revaluations, financial information such as profits, earnings and dividends etc.
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3. Discipline:
Discipline must be upheld in organizations, but methods for doing so can vary.
According to Henry Fayol discipline means sincerity about the work and enterprise,
carrying out orders and instructions of superiors and to have faith in the policies and
programs of the business enterprise, in other sense, discipline in terms of obedience,
application, energy and respect to superior. However, Fayol does not advocate warming,
fines, suspension and dismissals of worker for maintaining discipline. These punishments
are rarely awarded. A well-disciplined working force is essential for improving the
quality and quantity of the production.
Caritas Bangladeshs Practice:
Caritas Bangladesh has developed its own Code of Conduct to guide the behavior of its
employees. Highlights of this Code of Conduct: Every employee of a Caritas Bangladesh, including full-time directors and the executive
Director, shall exhibit culturally appropriate department in the countries they operate in,
and deal on behalf of the company with professionalism, honesty and integrity, while
conforming to high moral and ethical standards.
Every employee of Caritas Bangladesh shall preserve the human rights of every
individual and the community, and shall strive to honor commitments.
Every employee shall be responsible for the implementation of and compliance with the
Code in his / her environment. Failure to adhere to the Code could attract severe
consequences, including termination of employment.

4. Unity of Command:
Employees should have only one direct supervisor. A subordinate should take order from
only one boss and he should be responsible and accountable to him. Further he claimed
that if the unit of command is violated, authority is undermined, disciplined in danger,
order disturbed and stability threatened. The violation of this principle will face some
serious consequences. In this way, the principle of unity of command provides the
enterprise disciplined stable and orderly existence. It creates harmonious relationship
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between officers and subordinates, congenial atmosphere of work. It is one of the Fayol's
important essential principles of management.
Caritas Bangladeshs Practice:
The Management team for each department within Caritas Bangladesh has been clearly
defined. Each employee under his/her respective department should receive orders from
the managers, coordinators of the respective department.

5. Unity of direction:
Teams with the same objective should be working under the direction of one manager,
using one plan. This will ensure that action is properly coordinated.
Fayol advocates "One head and one plan" which means that group efforts on a particular
plan be led and directed by a single person. This enables effective co-ordination of
individual efforts and energy. This fulfills the principles of unity of command and brings
uniformity in the work of same nature. In this way the principle of direction create
dedication to purpose and loyalty. It emphasizes the attainment of common goal under
one head.
Caritas Bangladeshs Practice:
Caritas Bangladesh cooperates with Regional Offices and Caritas trust by sharing
knowledge and physical, human and management resources, to achieve common goals
and objectives. The entire organization seems as a family has a single direction. Also, as
mentioned in the code of conduct, Caritas Bangladesh shall recommend to its board of
directors the adoption of policies and guidelines periodically formulated.
This provides an example of how a policy framework laid down by the superior body
guides and directs the companies to a common objective.

6. Subordination of individual interests to general interests:

The interests of one employee should not be allowed to become more important than
those of the group. This includes managers.
The interest of the organization ought to come before the interests of the praise individual
workers. In other words, principle of management states that employees should surrender
their personnel interest before the general interest of the organization. Sometimes the
employees due to this ignorance, selfishness, laziness, carelessness and emotional
pleasure overlook the interest of the organization. This attitude proves to be very harmful
to the organization.
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Caritas Bangladeshs Practice:

The Code of Conduct of Caritas Bangladesh clearly states that an employee or director of
the organization shall always act in the interest of the organization.
He/she should ensure that any business or personal association which he / she may have
does not involve a conflict of interest with the operations of the organization and his / her
role therein. The Code of Conduct cites 3 areas of actual or potential conflict of interests.
One of the highlights warns employees that the interest of the organization or group
cannot be compromised. Any personal interest that may potentially influence organization
interest should be disclosed. Failure to do so can lead to suitable disciplinary action.

7. Fair Remuneration to employees:

Employee satisfaction depends on fair remuneration for everyone. This includes financial
and non-financial compensation
According to Fayol wage-rates and method of their payment should be fair, proper and
satisfactory. Both employees and ex-employers should agree to it. Logical and
appropriate wage-rate and methods of their payment reduces tension and differences
between workers and management, create harmonious relationship and a pleasing
atmosphere of work. Further Fayol recommends that residential facilities be provided
including arrangement of electricity, water and facilities.

Caritas Bangladeshs Practice:

Caritas Bangladesh follows this principle. Every three years later every Employee of
Caritas Bangladesh provided by COLA- Cost of living adjustment. Besides this employee
gets long survives which contain a sum of compensation with a certificate who continue
his job up to 10 years, 15 years, 20 years and 25 years with Caritas Bangladesh.

8. Centralization and Decentralization:

This principle refers to how close employees are to the decision-making process. It is
important to aim for an appropriate balance.
There should be one central point in the organization which exercises overall direction
and control of all the parts. But the degree of centralization of authority should vary
according to the needs of situation. According to Fayol there should be centralization in
small units and proper decentralization in big organization. Further, Fayol does not favor
centralization or decentralization of authorities but suggests that these should be proper
and effective adjustment between centralization and decentralization in order to achieve
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maximum objectives of the business. The choice between centralization and

decentralization is made after taking into consideration the nature of work and the
efficiency, experience and decision-making capacity of the executives.
Caritas Bangladeshs Practice:
Caritas Bangladesh has its National Office in Dhaka. There are Eight Regional (or
Diocesan) Offices in Barisal, Chittagong, Dhaka, Dinajpur, Khulna, Mymensingh,
Rajshahi and Sylhet. In all these places Caritas is operational in Integrated Development,
Disaster Management and Human Resource Development, under a central management.
Eight Regional has separate administration to implement the works.

9. Scalar chain:
Employees should be aware of where they stand in the organization's hierarchy, or chain
of command.
The scalar chain is a chain of supervisors from the highest to the lowest rank. It should be
short-circuited. An employee should feel the necessity to contact his superior through the
scalar chain. The authority and responsibility is communicated through this scalar chain.
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.
Caritas Bangladeshs Practice:
According to the Caritas Bangladesh Code of Conduct Every employee of a Caritas
Bangladesh shall promptly report to the management.
Employees shall be encouraged to notify their leaders/managers/supervisors if the
principles of the code are violated. If no action is taken, violations of the code should be
communicated to the higher authority of the organization. If violations of the code, and
particularly the principle related to rejection of corruption, can be proven and verified,
the employee and/or other concerned person (s) to this code should consider making the
information publicly known. Employees reporting such violations, shall be protected
against any reprisals by the organ that is signatory to the code.

10. Order:
The workplace facilities must be clean, tidy and safe for employees. Everything should
have its place.
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According to Fayol there should be proper, systematic and orderly arrangement of

physical and social factors, such as land, raw materials, tools and equipments and
employees respectively. As per view, there should be safe, appropriate and specific place
for every article and every place to be used effectively for a particular activity and
commodity. In other words, principles that every piece of land and every article should be
used properly, economically and in the best possible way. Selection and appointment of
the most suitable person to every job. There should be specific place for everyone and
everyone should have specific place. This principle also stresses scientific selection and
appointment of employees on every job.
Caritas Bangladeshs Practice:
According to the Code of Conduct, Caritas Bangladesh shall maintain its Financial reports
in an orderly manner. Internal accounting and audit procedures shall reflect, fairly and
accurately, all of the organizations business transactions and disposition of assets. All
required information shall be accessible to organizations auditors and other authorized
parties and government agencies. No employee shall make, authorise, abet or collude in
an improper payment, unlawful commission or bribing.

11. Equity:
Managers should be fair to staff at all times, both maintaining discipline as necessary and
acting with kindness where appropriate.
The principle of equality should be followed and applicable at every level of
management. There should not be any discrimination as regards caste, sex and religion.
An effective management always accords sympathetic and human treatment. The
management should be kind, honest and impartial with the employees. In other words,
kindness and justice should be exercised by management in dealing with their
subordinates. This will create loyalty and devotion among the employees. Thus, workers
should be treated at par at every level.
Caritas Bangladeshs Practice:
Caritas Bangladesh promises to provide equal opportunities to all its employees. According

to the Code of Conduct, Human resource policies shall promote diversity and equality in
the workplace, as well as compliance with labour laws, while encouraging the adoption
of international best practices. Everyone has the right to be heard and equal opportunity is
provided to those eligible and decisions are based on merit.

12. Stability of use of personnel:

Managers should strive to minimize employee turnover. Personnel planning should be a
priority.
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Principle of stability is linked with long tenure of personnel in the organization. This
means production being a team work, an efficient management always builds a team of
good workers. If the members of the team go on changing the entire process of
production will be disturbed. It is always in the interest of the enterprise that its trusted,
experienced and trained employees do not leave the organization. Stability of job creates
a sense of belongingness among workers who with this feeling are encouraged to
improve the quality and quantity of work.
Caritas Bangladeshs Practice:
Caritas Bangladesh believes in Concurrent Employment. Accordingly, the company bar

its employees to accept any other form of employment or a position of responsibility,

paid or unpaid, unless an official permission has been furnished by the company itself.
This keeps the Employees associated with the organization on a long term basis and helps
the organization extract long term service. This saves the organization the cost of
recruiting and training fresh employees.

13. Initiative:
Employees should be given the necessary level of freedom to create and carry out
plans.
Under this principle, the successful management provides an opportunity to its employees
to suggest their new ideas, experiences and more convenient methods of work. The
employees, who has been working on the specific job since long discover now, better
alternative approach and technique of work. It will be more useful, if initiative to do so is
provided to employees. In simple, to ensure success, plans should be well formulated
before they are implemented.
Caritas Bangladeshs Practice:
Caritas Bangladesh always give freedom to department wise work independently with
own initiative. Caritas Bangladesh arrange family day every year. In that day provide
award to best implementer.

14. Spirit of Co-operation (Spirit de crops):

Organizations
should
strive
to
promote
team
spirit
and
unity.
In order to achieve the best possible results, individual and group efforts are to be
effectively integrated and coordinated. Production is a team work for which the wholehearted support and co-operation of the members at all levels is required. Everyone
should sacrifice his personal interest and contribute his best energies to achieve the best
results. It refers to the spirit of loyalty, faithfulness on the part of the members of the
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group which can be achieved by strong motivating recognition and importance of the
members for their valuable contribution, effective coordination, informal mutual social
relationship between members of the group and positive and constructive approach of the
management towards workers' welfare.
Caritas Bangladeshs Practice:
Caritas Bangladesh offers its employees the following to encourage and promote team

spirit.

A work culture which stimulates innovation, team work & freedom to excel.
Reward & Growth that is performance-driven.
Most contemporary perks & other amenities.
Continuous training and development opportunities at all levels.

Conclusion:
Caritas Bangladesh is working only by its funding from donor organization for that reason no
permanent scope for continuing the job. Majority positions are project basis. If project fund
available then job continuing up to service age 30. Caritas Bangladesh should ensure selffinancing sources so that without donor fund Caritas can continue their activities. In this regard
Caritas can take special fund raising approach internally through utilization of resources. When
dependency on donor fund diminish then Fayol's "14 Principles" would be implement smoothly.

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