Father of Modern Management: Henry Fayol

Principles of Management

Unity of Command: Each employee should have only one direct supervisor or manager to avoid
confusion and conflicting instructions.

Division of Labor: Tasks and responsibilities should be divided among individuals or groups to
increase efficiency and specialization.

Authority and Responsibility: Managers should have the necessary authority to carry out their
responsibilities, and they should be held accountable for their actions.

Scalar Chain: There should be a clear and formal chain of command, or hierarchy, in the organization,
which helps in the flow of communication and decision-making.

Unity of Direction: All activities and efforts within an organization should be aligned towards a
common goal or purpose.

Subordination of Individual Interest to Common Interest: The interests of individual employees or

groups should be subordinated to the overall interests and goals of the organization.

Remuneration: Employees should be compensated fairly and equitably for their work, taking into
account factors such as skills, effort, and market conditions.

Centralization and Decentralization: The degree of decision-making authority should be balanced

between central management and lower-level employees, depending on the situation and
organization's needs.

Scalar Chain: The flow of communication and authority should follow a clear and formal chain of
command.

Order: There should be a place for everything, and everything should be in its place. This principle
emphasizes the importance of organization and efficiency.
Equity: Managers should treat employees with fairness and justice, ensuring that bias and
discrimination are minimized.

Stability of Tenure: Employees should have a reasonable level of job security to reduce turnover and
improve morale.

Initiative: Employees should be encouraged to take the initiative and contribute their ideas and
creativity to improve the organization.

Esprit de Corps: Building team spirit and a sense of unity and cohesion among employees is essential
for organizational success.

SCIENTIFIC MANAGEMENT

Father of Scientific Management: F.W.Taylor

Principles of Scientific Management:

1. Science, not the Rule of Thumb:

This rule focuses on increasing the efficiency of an organisation through scientific analysis of work
and not with the ‘Rule of Thumb’ method. This decision should be based on scientific analysis and
cause and effect relationships rather than ‘Rule of Thumb’.

2. Harmony, Not Discord:

 Taylor indicated and believed that the relationship between the workers and management should be
cordial and completely harmonious.

3. Development of Every Person to his Greatest Efficiency:

The effectiveness of a company also relies on the abilities and skills of its employees. Thus,
implementing training, learning best practices and technology, is the scientific approach to brush up
the employee skill.

4. Cooperation, not Individualism:

It is similar to ‘Harmony, not discord’ and believes in mutual collaboration between workers and the
management.

Tall vs Flat Structure

Tall structure is an organizational structure with many Flat structure is an organizational structure with
levels of hierarchy. a limited number of levels of hierarchy.

Span of Control

A narrow span of control is seen in a tall structure. In a flat structure, the span of control is wide.

Structure

More time is taken to make decisions in a tall structure Speed of decision making high in flat structures
since there are many levels of personnel to consider. due to the wide span of control.

Costs

Cost of managing a tall structure is costly since there are Costs related to a flat structure is relatively low
more layers of staff compared to a tall structure.

Opportunity

Opportunity for promotion is high in a tall structure. Limited opportunities are available for
promotion in a flat structure.

ORGANIZATIONAL STRUCTURE: Organizational structure (OS) is the systematic arrangement of

human resources in an organization so as to achieve common business objectives.
at is the difference between Tall and Flat Structure?