MANAGEMENT

• Management is the art of getting work done through people with satisfaction
for employer, employees and public.
• Management is the process of effectively utilizing resources like manpower,
money, materials and machinery to achieve goals of enterprise through
proper methods.
• Management may be called an Art as well as Science

Ruchira Patil
(TYCO)
21
Henri Fayol
 He was a French mining engineer.

 He is regarded as Father of general management.

 He is known as founder of modern management

 He contributed fourteen management principles, accomplishing managerial

efficiency.

 It is based on general theory of management.

 It is mainly concentrated on top-level management

 Its approach is based on top to downward.

 Authority
Authority
Equity
Equity

Division
Division Of
Of Espirit
Espirit De
De
Work
Work Corps
Corps

Centreliastion
Centreliastion Discipline
Discipline
 HENRY FAYOL’S
Order
Order Initiative
Initiative
14 PRINCIPLES OF
MAMAGEMENT.
Scalar
Scalar Chain
Chain Remuneartion
Remuneartion

Unity
Unity of
of Unity
Unity of
of
Direction
Direction Command
Command

Stability
Stability of
of
Subordination
Subordination Tenure
Tenure ofof
of
of Intrests
Intrests
Personnale
Personnale
1. DIVISION OF WORK
 Work should be divided among workers
according to their personal aptitude and
skills.
 Division of work leads to specialization
which is necessary for efficient utilization
of labour. This will result in increased
efficiency and productivity.
This principle guarantees specialization,
efficiency and maximum production with
minimum time and least efforts.
 2. AUTHORITY AND
   

RESPONSIBILITY :
       The right to issue the commands, along with which to
fix up the  responsibility  for its function

 Authority  is the right way of commanding subordinates,

issuing orders and instructions, and exacting obedience
from the team.

 Responsibility is the obligation of a subordinate to

perform the tasks assigned.

 Authority and Responsibility should go hand in hand and

must be related to one another.  An executive can do
justice to his responsibility 
     only when he has authority.

 Responsibility without Authority or vice versa is

meaningless.  
 3. DISCIPLINE:
 Discipline is absolutely necessary for
efficient functioning of all sections of
an organization.
 Discipline means sincerity, obedience,
respect of authority & observance of
rules and regulations of the
enterprise.
 Discipline requires good superiors at
all levels, clear and fair agreement
and judicious application of penalties
 subordinate should respect their
superiors and obey their order.
4. UNITY OF COMMAND:
 This principle relates to the functioning of
personnel.
 According to this principle, an employee
should receive orders and instructions from
one superior only.
 This principle is useful to avoid confusions,
mistakes and delays in work.
 Means an employee is responsible to only one
supervisor, who in turn is responsible to only
one supervisor, and so on up the organizational
hierarchy. 
5.UNITY OF DIRECTION 6. SUBORDINATION OF INDIVIDUAL
INTEREST TO GENERAL INTEREST:
 This is a broader concept than unity of  This is a broader concept than unity of command.
command.
 It deals with the functioning of the body corporate.
 It deals with the functioning of the
 According to this principle, each group of activities
body corporate.
having the same objective must have one head and
 According to this principle, each group one plan. “
of activities having the same objective
must have one head and one plan. “
 7. REMUNERATION OF
PERSONNEL:
 Remuneration is the price paid by the
organization to its employees for the services
rendered by them.
 The remuneration and methods of payment
should be fair and provide maximum
satisfaction to employee and employer.
8. CENTRALIZATION:
 Centralization means the concentration of authority with
top management.
 In a centralized organization, power is held by head office or
a small number of managers, whereas decentralized
organizations allow departments and individuals to make
decisions.
 According to Fayol, it is important to have a balance
between centralization and decentralization for proper
working.
 The appropriate level of centralization will depend on the
organizational structure and objectives.
9. SCALAR CHAIN:
 The unbroken line of authority from the highest
level to the lowest level is called scalar chain.
 Managers are regarded as ‘Chain of Superiors”
from the highest to the lowest ranks and the
unbroken line of command and authority should
be maintained.
 However the chain may be short-circuited when
scrupulous following of it would be detrimental for
the organization
10. ORDER:
 According this principle,
everything(material)and everyone (human
being), has a specific place in the
organization.
 They should be arranged such that right
material/right person should be located at the
right place for effective functioning.

11. EQUITY:
 According to this principle, managers
should treat all employees/subordinates
with fairness, kindness and justice.
 This will make the employees to be more
loyal and devoted towards the
organization.
12. STABILITY OF TENURE
OF PERSONNEL:
 Stable and secure work force is an asset to an
enterprise.
 Stability of tenure means ensuring that
employees do not leave the company.
 Instability is a result of bad management and
increases the costs of unnecessary labour
turnover.
13. INITIATIVE:
 Initiative is conceived as thinking and execution of a
plan. It is one of the keenest satisfactions for an
intelligent employee.
 Managers should encourage and motivate the
employees to take initiative which will help the
organization to improve.
 Employee initiative can include employee suggestions,
new ideas, solutions to a problem and dealing with
situations without being asked to do so
14. ESPRIT DE CORPS:
 This principle of management
emphasizes the need for team work,
i.e. harmony and understanding
among the employees and shows the
importance of communication in
obtaining such team work.
 “Union is strength” is the essence of
this principle.
“ There were five primary functions of management and
fourteen principles of management.

Henri Fayol 
”
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