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management to guide the managers who in his time didn’t use a scientific
should interact with the employees. Fayol’s theory provided a broad and
Industrielle et Generale" in the year 1916 A.D. The book was later translated
management are:
Planning: Planning is forecasting the future and making a structural plan of action and
determining the goals and objectives of the action. Fayol considers planning as most
essential function.
Commanding: The process of giving direction and orders by the superior to the subordinate
is known as commanding.
source:www.toolshero.com
(Shrestha-pg. 53-54)
identified six major activities in which industrial activities can be divided. They
are:
Commercial activities: This activity is concerned with the marketing dealing with sales,
purchase, and distribution of goods and services.
Financial activities: This activity is related to the creation of necessary capital and its
optimum use for development and growth.
(Neupane Surendra; Parajuli , Ram Prasad; Jha, Deepak Kumar; Chhetri, Tuk
Fayol has focused on the role of a manager. He believes that anyone cannot
Physical qualities: This quality is concerned with the good health, well-maintained dress
and outlook and high energy level of the manager.
Mental qualities: To become a good manager they must possess the quality to learn and
understand, judge and adapt to the problems and should have the mental energy to focus.
Educational qualities: To become a sound manager, one needs to have a general
understanding of the subject matter of the basic functioning of the organization.
Moral qualities: To become a good manager, one needs to have high energy level,
willingness to take responsibilities, loyal to action, tactful and feeling of dignity.
Technical qualities: One needs to have technical knowledge regarding what are the
procedures to carry out the action in an organization.
Even though the principles were not created on a basis of experiments, they
were created by the experience of Henri Fayol. These principles are universal
Fayol suggests that these principles are not rigid but they are flexible and
manager on how they use the above to suit the organization and to manage
Division of work:
This principle implies that the overall action of management should be divided
into a compact job and employees should be allocated certain jobs viewing
their interest and skills. This principle helps in specialization and helps to
make the workers more effective and efficient. Division of work is important in
operation.
Authority is the right to give the command and make decisions. Responsibility
without power will lead to poor utilization of human and another resource.
Discipline:
discipline. But it depends on the need and policies of the organization on how
to maintain discipline.
Unity of Command:
An employee must get orders from only one immediate supervisor. And the
the confusion and will make the employee loyal to the activity.
Unity of Direction:
According to this principle, there should be only one manager under the
guidance and plan of which the groups having same goals and objectives
should move forward. This principle suggests that one department, section,
the division should only get instruction from one head. This helps in
There are two types of interests. One is interest of the individuals and the
more priority as doing good for the organization will bring rewards for the
individuals.
Remuneration of Personnel:
and satisfactory.
Centralization:
This principle implies that the top most level of authority should be centralized
subordinate but the power to make the important decisions in the organization
Scalar Chain:
flows from the top to the bottom through this chain of authority of superiors.
Order:
This principle states that every material and manpower should be given a
proper place in the organization. The right man for the right job is essential in
and put them in proper order with the limited human and other resources.
Equity:
This principle implies that all the members of the organization should be
Stability of tenure:
Any employee can work to the fullest if they have secured job. So an
employee must be provided with job security which will help them to be
efficient. This will also benefit the organization as it lowers the labor turnover
Initiative:
employee to carry out the plans without forcing them or ordering them. This is
Esprit de Corps:
This principle implies that “union is strength” and team spirit. So the
organization must integrate all its actions towards a single goal and objective.
If the action is not unified then they cannot achieve their desired objectives.
These principles have helped in making the management more efficient and
helped managers to develop necessary skills. But the principle has also been
References
Neupane Surendra; Parajuli , Ram Prasad; Jha, Deepak Kumar; Chhetri, Tuk Bahadur;
Dulal, Gopal Prasad;. "Business Studies class: XII." Kathmandu: Nawakala Publications,
2011 A.D. 33.48.
Sharma, Surendra Raj; Jha, Surendra Kumar;. "Business Studies Grade XII." Kathmandu:
Sakuntala Pustak Bhawan, 2011 A.D. 41-46.
Shrestha, Kul Narsingh. "Business Organization and Management." Kathmandu: Nabin
Publication, 2065 B.S. 53.
team, Mind tool editorial. www.mindtools.com/pages/article/henri-fayol.htm. n.d.
<https://www.mindtools.com/pages/article/henri-fayol.htm>.
FROM: https://www.kullabs.com/classes/subjects/units/lessons/notes/note-detail/4439