Fayol's Principles of Management

Henry Fayol concentrated on analysis of managerial activities and suggested 14 principles of management.
•    Division of work suggests the division of whole work into different tasks among individuals who are competent and trained to perform that particular task.
•    Authority and responsibility principle suggests a proper balance  between authority  and responsibility of individuals.
•    Discipline essentially suggests of discipline- obedience of organisational rules and employment agreement for successful work performance.
•    Unity of command suggests that each participant in an organisation should receive orders from and be responsible to only one superior.
•    Unity of direction suggests that all units of an organisation should work with coordinated and focused efforts towards same objectives.
•    Subordination of individual interest to general interest suggests that interest of an organisation should take priority over the interest of any one individual employee.
•    Remuneration of employees suggests that an organisation’s overall pay and compensation should be just and equitable to both employees and the organisation.
•    Centralisation and decentralisation suggests that ratio of Centralisation and decentralisation of decision making authority in an organization differs according to the circumstances in which it operates.
•    Scalar chain suggests establishment of a scalar chain in an organisation among its superiors and subordinates.
•    Principle of order suggests that positioning of right person and right thing at the right place for maximum efficiency  and productivity.
•    Principle of equity suggests equitable treatment of employees by the managers to ensure loyalty and devotion.
•    Stability of personnel suggests that there should be minimum employee turnover to maintain organisational efficiency and reduction of recruitment and training costs.
•    Principle of initiative suggests encouragement of initiative among employees to develop and carry out improvement plans for benefit of organisation.
•    Espirit de corps suggests promotion of team spirit, unity and harmony among employees to achieve organisational objectives.
Principles of Fayol are different from principles of Scientific Management given by Taylor. Basic principles of management are applicable in all types of organisations and only the application of principles varies. Fayol’s principles are relevant even in today’s modern business scenario, however they may require some modifications to suit business situations.

 

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  • Q1

    Mr. Mukesh is employed in ABC Ltd. for the last six months. He has been transferred to five departments in that period and he is not happy about this. Which of the Fayol's principles of management is being violated here?

    Marks:1
    Answer:

    The principle of ‘Stability of Tenure of Personnel’ is being violated here.

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  • Q2

    If a worker gets orders from two bosses, which of the Fayol’s management principles is being violated here?

    Marks:1
    Answer:

    Getting orders from two bosses is a violation of the principle of ‘Unity of Command’.

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  • Q3

    Mr. Sunil works in a factory as an accountant looking after the cash & bank transactions. He also takes care of warehouse & its records. Which of the Fayol’s principles of management is being violated here?

    Marks:1
    Answer:

    The principle of ‘Division of Work’ is being violated here.

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  • Q4

    A sales executive was promised a promotion if he achieved his targets for two consecutive years. The executive achieved his targets successfully and was awarded a promotion. Which principle of management is being talked about?

    Marks:1
    Answer:

    It is the principle of ‘Discipline’ as both the executive and the management have honoured their commitments.

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  • Q5

    What is ‘Scalar Chain’?

    Marks:1
    Answer:

    ‘Scalar Chain’ is the formal line of authority from the highest to the lowest ranks of the organisation.

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