The Fourteen Principles of

Management- Henri Fayol

And
Bharti Airtel Limited
Batch:2014
Roll #: 731
Course
code:50121106
Course:
Principles of

The Fourteen Principles Of

Management
Division

of Work. Specialization allows the individual to build up experience, and to

continuously improve his skills. Thereby he can be more productive.
Authority. The right to issue commands, along with which must go the balanced responsibility
for its function.
Discipline. Employees must obey, but this is two-sided: employees will only obey orders if
management play their part by providing good leadership.
Unity of Command. Each worker should have only one boss with no other conflicting lines of
command.
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 direction does not exist without unity of command but does not necessarily flow from it.
Subordination of individual interest (to the general interest). Management must see that
the goals of the firms are always paramount.
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.
Centralization (or Decentralization). This is a matter of degree depending on the condition of
the business and the quality of its personnel.
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
too-many levels.

Continued

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.
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.
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.
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.
Equity. In running a business a combination of kindliness and justice
is needed. Treating employees well is important to achieve equity.

Bharti Airtel Limited

Bharti airtel limited is a leading global

telecommunications company with operations
in 19 countries across Asia and Africa. The
company offers mobile voice & data services,
fixed line, high speed broadband, IPTV, DTH,
turnkey telecom solutions for enterprises and
national & international long distance services
to carriers. Bharti Airtel has been ranked among
the six best performing technology companies
in the world by business week. Bharti Airtel has
200 million customers across its operations.

Division of Labour

Being a telecommunications company that

covers almost all the aspects of communication,
it makes it important to have skilled employees
in each department that perform one particular
task with complete commitment. eg a
department for broadband under which there
would be sub-departments for technical,
customer relations, marketing etc. Under each
department every employee is given a particular
job to which they have to be completely loyal.
This is the form of system of labour that Bharti
Airtel follows.

Authority
In

Bharti Airtel authority is passed

down to managers of different
departments who are responsible to
control the activities of their
departments. These managers can
themselves create sub-departments
and pass down authority provided
they think this will enable the task at
hand to be achieved more
effectively.

Discipline
Bharti

Airtel does not carry out a

authoritarian form of management
but follows a democratic yet
organized form of leadership which
creates a form of discipline among
its employees without the use of
force. This shows how good
leadership leads to automatic
discipline.

Unity of Command and

Direction
Airtel

follows a system of specific

departments for specific aspects of
the company. This means that each
department has its own head to
which they are answerable. There is
no criss cross of networks.
However all these departments,
despite being different work towards
the same main goal which creates a
Unity of Direction.

Subordination of Individual
Interest
At

Airtel, the ultimate goal and vision

is always given importance to and is
something that they are proud of.
Their vision itself is something that
every employee would want to work
towards because more than a
corporate aspect it touches the
emotional aspect too.
The Airtel vision is: by 2015 Airtel
will be the most loved brand

Remuneration
Airtel

as of now has not been

criticised for their payment systems.
They follow all the common payment
methods of salary, bonus awards and
also fringe benefits depending on the
post.

Centralisation or
Decentralisation
Bharti

Airtel follows a Decentralised

way of management. Rather than
focusing all the company aspects to
one main office and individual, the
company is split into many branches,
outlets and even joint ventures and
also high amount of delegation is
carried out.

Scalar Chain(Line of
Authority)

Line Of Authority
The

above chart shows the top line

of authority ie. the top level
managers. Under these corporates
fall the middle level and low level
managers followed by the general
employees.
This shows the a system of hierarchy
within Airtel, but this does not mean
that communication is only topdown. Horizontal communication

Order
Airtel

follows a strict code of conduct

which each of its employees are
expected to follow. There is a system
of rules and regulations which
ensure overall order whether in
relation to a certain business process
or in terms of social order.

Equity
Airtel

maintains a know
discrimination policy and as
mentioned before has a strict code
of conduct which ensures that no
member of Airtel faces any form of
unjust behaviour.

Stability of Tenure of
Personnel
Airtel

does not experience a large

employee turnover except in
departments where a large number
of young part time workers are
employed.
Overall Airtel maintains a working
environment apt enough for workers
to be satisfied with their jobs for long
periods. Also Airtel ensures a form of
job security and career appraisal

Initiative and Esprit De

corps
Airtel believes in motivating the
workforce by encouraging them to
continuously improve and increase
their skills and also creating a sense
of importance for their work.
Airtel also is involved in many social
activities such as the Bharti
Foundation for the underprivileged
which also creates a sense of pride
for the employees as they belong to