Henry Fayol’s Principles of

Management.

Presented by-
Samir kumar paul
IM&EE
17TC1418
Introduction
• Henry Fayol, also known as the ‘father of modern
management theory’ gave a new perception of the concept of
management.
• He introduced a general theory that can be applied to all
levels of management and every department.
• The Fayol theory is practiced by the managers to organize and
regulate the internal activities of an organization. He
concentrated on accomplishing managerial efficiency.
The fourteen principles of management created by Henry Fayol
are explained below:
1. Division of Work
• Henry believed that segregating work in the workforce
amongst the worker will enhance the quality of the product.
Similarly, he also concluded that the division of work
improves the productivity, efficiency, accuracy and speed of
the workers. This principle is appropriate for both the
managerial as well as a technical work level.

2. Authority and Responsibility

• These are the two key aspects of management. Authority
facilitates the management to work efficiently, and responsibility
makes them responsible for the work done under their guidance
or leadership. Authority & responsibility are co-existing. If
authority is given to a person, he should also be made responsible.
3. Discipline
According to Fayol, “Discipline means sincerity, obedience,
respect of authority & observance of rules and regulations of the
enterprise”.
• Discipline can be enforced if -
• There are good superiors at all levels.
4. Unity of Command
This means an employee should have only one boss and follow
his command. If an employee has to follow more than one boss,
there begins a conflict of interest and can create confusion. In
other words, a sub-ordinate should not receive instructions from
more than one person because -
• It undermines authority
• Weakens discipline
Therefore, dual sub-ordination should be avoided.
5. Unity of Direction
• According to this principle, efforts of all the members of the
organization should be directed towards common goal. This means all
the persons working in a company should have one goal and motive
which will make the work easier and achieve the set goal easily.
6. Subordination of Individual Interest to General Interest
• This indicates that a company should work unitedly towards the
interest of a company rather than personal interest. In order to have
an organization function well, Henry Fayol indicated that personal
interests are subordinate to the interests of the organization.
7. Remuneration of Personnel
• This management principle argues that the remuneration should be
sufficient to keep employees motivated and productive. There are two
types of remuneration namely non-monetary (a compliment, more
responsibilities, credits) and monetary (compensation, bonus or other
financial compensation).
8. The Degree of Centralization
• Management and authority for decision-making process must be
properly balanced in an organization. This depends on the
volume and size of an organization including its hierarchy. Henry
Fayol stressed on the point that there should be a balance
between the hierarchy and division of power.
9. Scalar Chain
• Fayol defines scalar chain as ’the chain of superiors ranging from
the ultimate authority to the lowest”. Every orders, instructions,
messages, requests, explanation etc. has to pass through Scalar
chain. But, for the sake of convenience & urgency, this path can
be cut short and this short cut is known as Gang Plank.
10. Order
• A company should maintain a well-defined work order to have a
favorable work culture. The positive atmosphere in the
workplace will boost more positive productivity. This principle is
concerned with proper & systematic arrangement of things and
people.
  
11. Equity
• According to Henry Fayol, employees must be treated kindly and
equally. It’s the responsibility of a manager that no employees face
discrimination. Equity means combination of fairness, kindness &
justice.
12. Stability of Tenure of Personnel
• An employee delivers the best if they feel secure in their job. It is
the duty of the management to offer job security to their
employees. Management strives to minimize employee turnover
and to have the right staff in the right place. Focus areas such as
frequent change of position and sufficient development of
personnel must be managed well.
13. Initiative
• The management should support and encourage the employees to
take initiatives in an organization. It will help them to increase
their interest and make then worth. Henry Fayol argued that
employees should be allowed to express new ideas.
 14. Esprit De’ Corps (Team Spirit)
• It refers to team spirit i.e., harmony in the work groups and
mutual understanding among the members. Espirit De’ Corps
inspires workers to work harder. The managers should infuse
team spirit & belongingness. . To inculcate Espirit De’ Corps
following steps should be undertaken
• There should be proper coordination of work at all levels
• Subordinates should be encouraged to develop informal
relations among themselves.
Questions:
1. What does the chosen topic mean?
Ans: The principles of management allows managers to understand
how to run an organisation. It also helps them to accomplish tasks
and manage situations as and when they arise in the organisation.
2. How are the concepts of chosen topic applied in real life examples?
Ans: some examples in real life are
Division of work: dividing the work equally between employees in
ay organization.
Authority:  giving the authority of decision making to too many
people

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