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.