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FAYOL’S 14 PRINCIPLES OF

MANAGEMENT
PRINCIPLES OF MANAGEMENT

A principles may be defined as fundamentals statement of basic truth that


provides a guide to thought and action.
Principles of management originate and grow as a result of past experience
and accomplishments.

NEED OF PRINCIPLES OF MANAGEMENT

To improve efficiency
To crystalline the nature of management
To improve research
To attain social goals
According to fayol defination of management, all industrial activities fall in
six groups:

1.Techinical activities (production, manufacturing, adaption)

2.Commercial activities (buying, selling, exchange)

3.Finacial (search for optimum use of capital)

4.Security (protection of property and personnel)

5.Accounting (balance sheet, costs, statistics)

6.Managerial activities (planning, organizing, command, coordination and


control)
HENRI FAYOL(1841-1925)
-A French mining engineer, developed 14 principles of management based on his
management experience.

-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.
1.Division of work-
There is an efficient result in the operational level when tasks
are distributed to qualified and competent workers, or when people
do specialize.

2. Authority-
With formal authority, managers have the right to command, and
give orders to their subordinates.

3. Discipline-
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.
4. Unity of Command -
Employees must receive instruction only from one person.
Reporting to more than one manager results to conflicts in
instruction and confusion of authority.
5. Unity of Direction-
Operations within any organization having the same objective must be

directed by only one manager using one plan. In a department for example,
there should not be two or more supervisors, each having different policy
to follow.

6. Subordination-of the Individual Interest to


General interest-
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.

7. Renumeration-
Compensation for work done should be fair to both employees and employers.
8. Centralization-
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.
9. Scalar chain-
The line of authority in any organization turns in the order of rank from top

management to the lowest level of the enterprise.

 
A
B
L
C
M
D
N
E
O
F
P
10. Order-
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.

11. Equity-
Equity is combination of justice and kindness. Equity in treatment and
behaviour is liked by everyone and it brings loyalty in the organisation. This
brings cordial relation between the management and labour.

12. Stability of Staff-


Employees work better if job security and career progress are assured to
them.
A high employee turnover rate will effect the organization
13. Initiative-
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. Fayols describes initiative as one of the keenest
satisfactions for an intelligent man to experience.

14. Esprit de Corps-


Teamwork is fundamentally important to an organization. Work teams and
extensive face to face verbal communication encourages team work.
ELEMENTS OF MANAGEMENT
1.PLANNING
2.ORGANIZING
3.COMMAND
4.COORDINATION
5.CONTROL

Fayol conclusion could be faulted in two major points,

1.He assumed that all organizations at the stage of development should have
some functional
division of work and,
2. The number of employees was the main determination of the general form of
organisation.
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