Henri Fayols Principles of Management

Submitted by:
Varun Gusain & Shilpi Sharma

 A French mining engineer developed 14 principles of management based on his management experience in 1916.

He pioneer in the field of management education.

He has been rightly called as father of management process school. He was first person who laid emphasis on the process of management.

Henri Fayols 14 Principles of Management

Division of work Authority and Responsibility Discipline Unity of Command Unity of direction Subordination of individual interests to general interests

 Fair Remuneration to employees

Centralization and Decentralization

Scalar chain
Order

Equity
Stability of use of personnel Initiative Esprit de Corps(spirit of co-operation)

 To improve efficiency.
To crystalline the nature of management. To improve research. To attain social goals.

 There is an efficient result in the operational level when

tasks are distributed to qualified and competent workers or when people do specialize.
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.

 Authority and Responsibility are the two sides of a coin. With formal authority managers have the right to

command and give orders to their subordinates.

An efficient manager makes best possible use of his

authority and does not escape from the responsibility.

When authority is exercised the responsibility is

automatically generated.

 Members in any organization have to respect the rules

and agreements governing it.

Respect and obedience to rules is embodied in the

conduct of good life and discipline.

A well disciplined working force is essential for

improving the quality and quantity of the production.

 Employees must receive instruction only from one person. Reporting to more than one manager results to conflicts in instruction and confusion of authority. It provides the enterprise disciplined, stable and orderly existence.

It creates harmonious relationship between officers and subordinates, congenial atmosphere of work.

 Operations within any organization having

the same objective must be directed by only one manager using one plan In a department.
There should not be two or more supervisors

each having different policy to follow.

It emphasizes the attainment of common

goal under one head.

 Individual interest must be subordinate to general interest

when there is conflict between the two.

The agreement between the employers and the employees

should be fair and there should be constant vigilance and supervision.

The employees should surrender their personnel interest

before the general interest of the enterprise.

 Compensation for work done should be fair to both

employees and employers.

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.

We have this approach by decreasing the role of subordinates in decision making.

Managers should retain their final responsibility while at the same time give their subordinates enough authority to do their jobs properly.
There should be centralization in small units and proper decentralization in big organization. The choice between centralization and decentralization be made after taking into consideration the nature of work and the efficiency, experience and decision-making capacity of the executives.

 The line of authority in any organization turns in the

order of rank from top management to the lowest level of the enterprise.
Authority and Responsibility is communicated through

the scalar chain.

Business problems need immediate solution, so we

cannot always depend on the established scalar chain.

 Either material or human resources should be in the

right place at the right time.

People should be in the jobs or positions they are suited

to
There should be specific place for every one and every

one should have specific job.

 Equity is combination of justice and kindness.

Equity in treatment and behavior is liked by everyone

and it brings loyalty in the organization.

Management should be kind, honest and impartial with

the employees, which brings cordial relation between the management and labor.
Create loyalty and devotion among the employees.

 Employees work better if job security and career progress

are assured to them.

Production being a team work, an efficient management

always builds a team of good workers.

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.

 Managers should encourage their employees for taking

initiative with in limits of authority and discipline.

Initiative increases the zeal and energy on the part of human

beings.
Fayol describes initiative as one of the keenest satisfactions

for an intelligent man to experience.

To ensure success, plans should be well formulated before

they are implemented.

 Teamwork is fundamentally important to an

organization.
Work teams and extensive face to face verbal

communication encourages team work.

Individual and group efforts are to be effectively

integrated and coordinated.

THANK YOU