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 To To To improve efficiency crystalline the nature of management improve research 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, control) organizing, command, coordination and

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.

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

1.Division of work-

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. Employees must receive instruction only from one person. Reporting to more than one manager results to conflicts in instruction and confusion of authority.

Unity of Command

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. CentralizationWe 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 L M N O P F E D C B

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 CorpsTeamwork is fundamentally important to an organization. Work teams and extensive face to face verbal communication encourages team work.

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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