all about nature and Henry Fayol's 14 principles of management

1. Principles
of
Management
-Presented by
Miss Rupali Burad

3. What is mean by Principles?
Principles are those which provides guidelines to manager to conduct all
organisational activities on specific basis. It helps manger to take effective decision and
help manager.
What is Management?
Management is an art of getting things done through and with the people in formally
organized groups. It is an art of creating an environment in which people can perform
and individuals and can co-operate towards attainment of group goals.

4. The Nature/Features/Characteristics of Management Principles
1. Universal application:
The principles of management are universal in nature that means they can be applied
to all types of organisations irrespective of their size and nature.
2. General guidelines
A management principle gives guidelines to solve the problems. These principles do
not provide readymade solution for all the problems.
For example, the principle of fair remuneration insists on fair salary to employee but
what amount of salary is fair depends upon the nature, size and financial capacity of
the company.
3.Formed by practice and experiments:
The management principles are developed only after deep and thorough research
work. They are not developed overnight. Proper observations and experiments are
conducted before developing them.

5. 4. Flexibility:
Management principles can be applied differently under different conditions. Some
changes can be made in application of principles according to the requirement of the
company. These are not set of rigid statements. These can be modified by the managers
who are using them.
5. Behavioural in nature:
Management principles are formed to guide and influence the behaviour of employees.
These principles insist on improving relationship between superior, subordinates and all
the members of organisation.
6. Based on cause and effect relationship:
Management Principles are based on cause and effect that means these principles tell
us if a particular principle is applied in a situation, what might be the effect.
7. All principles are of equal importance.
All managerial principles are of equal importance and hence result can be achieved by
practising them continuously.

6. Henry Fayol
Henry Fayol a French industrialist is now
recognised as the Father Of Modern
Management . In the year 1916
Fayol wrote a book entitled
“ Industrial and General Administration”.
In this book he gave 14 Principle of
Management. These 14 principles
of management are universally
accepted and used even today.
According to Henry Fayol Management
must follow these 14 Principle.

8. 1. Principle of Division of Work
The principle of ‘Division of Work’ means to divide a given activity or work into
small pieces or parts so that each part is handled with great ease and efficiency.
This principle states that every work should be divided into the smallest possible
part and each such part is to be performed by an individual person. Before
assigning the task to anyone it must be assured that he posses the required
knowledge, skill, and capability.

9. 2. Principal of Authority and responsibility
Authority is the power to give orders and get it obeyed.
Responsibility means state of being accountable or answerable or, in other words
it means obligation to complete a job assigned on time and in best way. Authority
always comes with the responsibility.
Eg: if a person is given responsibility to produce 100 units in one week time but he
is not given authority to purchase the raw materials. If there is no raw material
available, he could not complete the target of producing 100 units on time.

10. 3. Principle of Discipline
Discipline means obedience, respect for authority,
and observance of established rules.
Fayol has emphasized that a sense of discipline should
be present in all employees of the organization at all level
so that the organization can perform and achieve its
objectives in the best possible way.
Discipline helps to achieve goals in the organisation.

11. 4. Principle of Unity of Command
It says that each member of the organisation should receive orders from
one manager/head and that the employee should be answerable to that
manager/head only. This principle helps in managing conflicts and solving
the disputes among the members and even avoiding the confusion.

12. 5. Principle of Unity of Direction
This principle states ‘One Head One Plan’. It means that all the employees having
same objective must be directed towards the achievement of the common goal
and thus must have one head and one plan. This principle makes it necessary
that there should be unity of action.

13. 6. Principle of Subordination of Individual Interest to
Organisational Interest.
This principle states that organisation interest is superior to the
individual interest. And the manager must try to integrate the
individual goal with the organizational goal in such a manner so that
the objectives are accomplished with efficiency and effectiveness.

14. 7. Principle of Centralisation
Centralization means that top management retains most of the decision-making
authority. Decentralization means that decision-making is distributed among all levels of
the organization.
This is decided on the basis on size and
activity of the organisation.
The bigger the organisation ,
decentralisation takes place and
smaller the organisation,
centralisation become possible.

15. 8. Principle of Remuneration
According to this principle every employee in the organization should receive
fair remuneration. The principle of remuneration, says that when the employees
are given a fair remuneration they work with enthusiasm and show more
productivity which results in more output. The wages or salary must be in equality
with the work done by him so that he gets satisfied and can perform better.
Remuneration should be given by taking into consideration skill, expertise,
knowledge , market trend, etc

16. 9. Principle of Scalar Chain
Scalar chain is the formal line of authority which moves from highest to lowest rank in a
straight line. This chain specifies the route through which the information is to be
communicated to the desired location/person.
Though this principle is very effective and clear, but it consumes a lot of time. In case of
emergency, information will take a lot of time to reach the desired position which may
delay the action as well as decision.
For overcoming this limitation of scalar chain, fayol introduced the concept of ‘Gang
Plank’. According to this concept, two executives of the organization of different
department at the same level can communicate directly in case of emergency.
Here, F ad N can communicate directly in case of emergency.

17. 10. Principle of Order
Order does not mean any command but is used in different context. “Order” means
right arrangement of things and activities. In other words, order is a normal, correct, or
fit condition.
Fayol, in his principle states that there should be a proper order for everything. He is of
the view that in every organization there should be a fixed place for everything to
facilitate smooth working and avoid wastage of resources.

18. 11. Principle of Equity
Equity means combination of fairness, kindness & justice. In other words, It means
the applicability of same rules and regulations for all employees in the organization
irrespective of their religion, sex, caste, colour, creed,, grade, position etc. The
employees should be treated with kindness & equity if devotion is expected of them.
It implies that managers should be fair and impartial. Similar treatment is to be given
for people of similar position.
This principle is based on the basic thought that “all employees of the organization
are equal”.

19. 12. Principle of Stability of Tenure
STABILITY' means no frequent change, termination and transfer etc. It means that, in
an organisation whenever an employee is appointed for a job, he/she shouldn't be
removed from that position frequently. When one feels secure at his job, he/she
contributes maximum of his capability towards the organisational objectives. Stability
plays very important role in creating belongingness among the employees.

20. 13. Principle of Initiative
According to Fayol, under this principle,
successful management provides an
opportunity to its employees to suggest
new ideas, experiences and more
convenient methods of work.
Fayol believed that employees
should be encouraged to take
the initiative in the work assigned to them.

21. 14. Principle of Esprit de Corps( Team Work)
'ESPIRIT DE CORPS' here means team spirit and team work. This principle
emphasizes on team work. 'UNITY IS STRENGTH' is the essence of this principle.
Fayol suggested that there should be a team spirit in the organisation and all the
employees must consider themselves as member of the organisation.

22. Trick to Remember
DAD U C USSR???? O I SEE
D : Division of Work
A : Authority and Responsibility
D : Discipline
U : Unity of Command
C : Centralisation
U : Unity of Direction
S : Subordination of Individual interest to Organisation Interest
S : Scalar Chain
R : Remuneration
O : Order
I : Initiative
S :Stability of Tenure
E : Equity
E : Esprit de corps