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Business Studies Project: Fayol 'S 14 Principles of Management
Business Studies Project: Fayol 'S 14 Principles of Management
Forecasting
Planning
Organizing
Commanding
Coordinating
Controlling
In 1916, two years before he stepped down as director, he published his "14
Principles of Management" in the book "Administration Industrielle et
Generale." Fayol also created a list of the six primary functions of
management, which go hand in hand with the Principles. Fayol's principles
are listed below:
1. Division of Work
2. Authority
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interests to the General Interest
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps
QUESTON: Do you have all the authority connected with your work?
ANS: Yes.
Explanation: About the principle of management Authority and Responsibility,
the shift manager was asked to give her opinion to the question indicated
above. The shift manager replied in favour of the principle as she had the
authority to take decision. She was responsible for the performance of the
workers. Therefore, a balance of authority and responsibility was maintained.
Conclusion: By the interview with the shift manager, it is clear that the
employees have got the authority as well as the responsibility regarding the
work entrusted upon them. It can be said that this principle is implemented in
this company.
3. DISCIPLINE
Meaning: According to this principle, the organisational rules and
employment agreement should be obeyed by both the superiors and
subordinates which are necessary for the successful working of the
organisation. Discipline must be upheld in the organization.
Observations: During the course of personal observation regarding the
principle of Discipline, the following facts were observed:
It was observed that the employees usually got into personal conversation the
moment they found any opportunity of doing so. They indulged in long
conversations over the telephone in a joyful mood. Sometimes, even the
customers were seen being ignored.
Conclusion: The above facts highlight the important aspect of their conduct. It
shows that the employees are not fulfilling their commitment with the company
to work honestly for it. Therefore, it can be said that this principle of
management is being violated in the company.
4. UNITY OF COMMAND
Meaning: According to this principle, there should be one and only one boss
for every individual employee. Employees should have only one direct
supervisor.
Observations:
QUESTION: Do you get orders from more than one boss?
ANS: Yes
Explanations: The shift manager of the company was asked to respond about
the principle of unity of command. The manager replied that dual
subordination existed i.e. she received orders from more than one boss.
Conclusion: It clearly states that unity of command is not being implemented
in the organisation.
5. UNITY OF DIRECTION
Meaning: According to this principle, 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.
Observations:
1. The store was divided in three sections or departments- Operations,
Training and Human Resource Development (HRD).
2. All the three units were headed by three different individuals.
3. Every head kept a watch over the activities of his own unit.
Conclusion: The above facts state that clearly the company has mainly three
units. Therefore, it is clear that each is headed by a different individual and he
is planning and regulating the activities of his own unit in his own way. This
situation tells us that the principle of Unity of Direction is being implemented in
the company.
6. SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST
Meaning: According to this principle, the interest of an organisation should
take priority over the interest of any one individual employee. The interests
must be clean, tidy and safe for employees. Everything should have its place.
Observations: During the course of our investigation regarding the principle of
order, the following facts were observed:
1. It was observed that all the units had arranged their goods in a proper
and orderly manner.
2. Whenever the material/goods got scattered because of the rush of
customer, it was immediately restored in its proper place.
appropriate.
Observations:
QUESTION: Does your company give equal remuneration to all the
employees doing a similar job?
ANS: Yes
Explanation: Regarding this principle, the question given above was put to the
shift manager. She responded positively i.e. equal wages were given to
people doing similar jobs. But appraisal was given to the person whose
performance was the best.
Conclusion: It can be said that the company is conscious about observing this
principle of management.
12. STABILITY OF PERSONNEL
Meaning: According to this principle, there should be a stability of tenure of
the employees so that the work continues efficiently. Managers should strive
to minimize employee turnover. Personnel planning should be a priority.
Observations:
QUESTION: Have you served this company for more than one year?
ANS: No.
Explanation: The shift manager was asked the question given above
regarding this principle and she responded negatively.
Conclusions: The above analysis indicates that labour turnover in the
company is on the higher side. In other words, the employees do not continue
to be in the service of the company for a long period. This situation reflects
poor management in the company. Therefore, the company has to take care
of the stability of the personnel in its own interest.
13. INITIATIVE
Meaning: According to this principle, employees in the organisation must be
given an opportunity in making and executing plans.
Observations:
QUESTION: Does your boss give importance to your suggestion?
ANS: Yes
QUESTIONNAIRE
Q1. Do you give top priority to the interest of the company?
Ans. Yes
Q2. Do you get reasonable remuneration?
Ans. No.
Q3. Do you have all the authority connected with your work?
Ans. Yes.
Q4. Does the boss of your boss directly communicate with you?
Ans. No.
Q5. : Are the daily decisions made by the person concerned?
Ans. Yes
Q6. Are the major decisions taken only by the higher authorities?
Ans. Yes
Q7. Does your company give equal remuneration to all the employees doing a
similar job?
Ans. Yes
Q8. Have you served this company for more than one year?
Ans. No.
Q9. Does your boss give importance to your suggestion?
Ans. Yes
Q10. Do you get orders from more than one boss?
Ans. Yes