Principles of Management
HenryFayol(1841-1925), a French industrialist, is the chief architect and the father of the administrative management theory. He presented the following 14 principles of management as general guidelines for management practice:
Division of Labour: Specialisation in the nature of work leads to division of labour. This results inefficiency in the use of labour.
Authority and Responsibility: These are directly related. Responsibility flows from authority. This authority is derived from the official position in the organisation and the personal factors such as intelligence, work attitude, personal traits, experience and the moral worth of the person holding the position.
Discipline: It is the respect for following laid down norms for achieving obedience, application, involvement as well as an outward mark of respect. Without discipline no unit can function properly. Authority,discipline and personality are closely related.
Unity of Command: This means that employees should receive orders from one superior authority only,i.e., accountability to one authority only.This authority is distributed among various levels in the hierarchy of positions in the organisation.
Unity of Direction: Activities in an enterprise must be organised to achieve set goals. Each group of activities with the same objective must have one authority and one plan.
Subordination of Individual to Organisational Interest: If this is not so it results in the malfunctioning of the organisation and gives rise to conflicts.
Remuneration: Employees work for remuneration; therefore, remuneration must be fair. It is an important motivating factor.
Distribution of Authority: This determines the extent of centralisation and dispersion of authority in the organisation. It depends on the philosophy and perception of individual organisations.
Scalar Chain: Positions in an organisation follow a "chain of superiors" from the highest -- to the lowest rank. Authority flows through the chain. This chain should not be short circuited unless-following it is detrimental to the organisation. Such cases are not normal.
Order: Organisation of activities, materials and persons must be so arranged and related to make the organisation structure effective and efficient.
Equity: Kindness and fair playshould be the basis of management in dealing with subordinates This helps in commanding loyalty and devotion from the
Stability of Tenure: Frequent changeof persons affects an organisation badly.A high turnover of people constitutes boththecause and effect of bad management. Job insecurity affects the morale of employees.
Initiative: It is the keenness with which employees think and carryout a plan. Curbing initiative demoralises people and deprives them of job satisfaction.
Esprit de Corps: This fosters brotherhood among, employees and forms a key factor in raising employees' stake inthe growth of an organisation. This is an extension of the principle of unity of command.