Fayol's Principles of Management

Fayol's Principles of Management

Division of Labor: Division of labor leads to specialization which increases the efficiency of individual employees. Fayal recommended that work of all kinds must be subdivided and allocated to a number of persons. Subdivision makes each tasks simpler and results in greater efficiency. By repeating a small part of work the individual acquires speed and accuracy in its performance. This principle is applicable to both technical as well as managerial work.

Parity of Authority and Responsibility: Authority refers to the right of a superior to give orders to subordinates, take decision on specified matters, use resources of the organization, and guide and regulate the behavior of subordinates. Responsibility on the other hand. Includes obligation with respect to the performance of functions and achieving goals in a satisfactory manner. The principle of parity suggests that there must be parity between authority and responsibility. Giving authority and responsibility. Giving authority without corresponding responsibility can lead to arbitrary and unmindful use of authority. Similarly, if a person is given some responsibility he must also be given adequate authority. Lack of necessary authority will make the individual ineffective.

Discipline: Discipline in the context of management means obedience, proper conduct in relations to others, and complying with the rules and regulations of the organizations. Smooth running of business requires discipline. Discipline is required not only on the part of workers but also on the part of management. It is facilitated if there are good supervisors at all levels, rules are clear, and penalties are imposed with fairness.

Unity of Command: This principle states that a subordinate should receive orders and be accountable to one and only superior. No employee therefore should receive instructions from more than one person. The principle is necessary to avoid confusion and conflict.  

Unity of Direction: According to this principle the efforts of all the members of the organization should be directed towards common goals. The principle seeks to ensure unity of action coordination of strength and focusing of effort. For this purpose there should be one head and one plan for a group of activities having the same objectives. For example the production department should have single plan and all mist work to achieve specified goals in terms of quantity and importance of common goals being pursued. Thus the principle of unity of direction emphasizes the importance of common goals being pursued by all in a group activity under the direction of one head.     

Subordination of individual interest to general interest: What is in the interest of the organization as a whole must take precedence over the interest of individuals. Generally the effort should be to bring about convergence of general and individual interest. But in case of conflict individuals must sacrifice in the larger interest.   

Fair remuneration to employees: In Fayola's view remuneration of employees should be fair and reasonable. To be fair to the employee's wages should be determined on the basis of work assigned cost of living financial position of the business and average wage rates for similar work in the industry. While basic wages may be fixed according to the work done there should be provision for allowances based on changes in cost of living.

 Centralization and Decentralization: Centralization is said to exist of top management retains most of the decision- making authority. It is less if such authority is shared with mangers at lower levels of management. Sharing authority downwards leads to decentralization. Fayal says that an organization should strive to achieve a balance between complete centralization and decentralization. In small organization where the range of activities is general small, greater centralization is possible. But In large organizations, the degree of centralization should be less. 9) Scalar Chain: Fayal defines scalar chain as the chain of superiors ranging from the top management to the lowest ranks. The chain also determines the line of authority. The mangers are linked together in their positions from highest to the lowest level. Each manger is superior to a manager below him but he is also subordinate to his own superior. Thus, all mangers are linked step- wise through a chain. The principle of scalar chain suggests that there should be a clear line of authority from top to bottom linking mangers at all levels. The scalar chain serves as a chain of command as well as a chain of communication. It is regarded as a chain of command because orders or instructions issued at higher levels flow through intermediate managers before reaching lower levels. The scalar chain also functions as a chain of communication because all communications, written or oral are required to flow through the chain in the hierarchy. If a supervisor writes a report for the head of the department, the report must be communicated by the supervisor to his immediate superior who in turn will pass it on to his superio0r, and so on, up to the head. 

Order:   This is a principle relating to the arrangement of things and people. In material order, there should be a place for everything and every thing should be in its place. Similarly, in social order, there should be right man in the right place. This kind of order demands precise knowledge of the human requirements and resources of the organization and a constant balance between these requirements and resources. Normally, bigger is the size of the organization, more difficult this balance is.

Equity:  the principle of equity suggests that similar treatment is assured to people in similar positions. For example, workers performing similar jobs should be paid the same wage rate. The equity principle implies that managers should be fair and impartial while dealing with their subordinate. They should not give undue favors to some and neglect others. They should not judge the performance and conduct of employees of the same category on different basis. 

Stability of Tenure: Fayola emphasized that employees should not be moved from their position frequently. The period of service in a position should be fixed. It often takes time to get used to work. AN employee cannot render useful service if he is removed before he gets accustomed to the work assigned to him.

Initiative: Employees at all levels should be allowed to take initiative in work related matters. Initiative means eagerness to initiate action without being asked to do so. However, it does not imply freedom to do whatever people like. They must observe discipline.

Esprit de corps: It refers to team spirit that is harmony in work group and mutual understanding among workers. Managers must take steps to develop a sense of belonging among the members of a work group. If there is team spirit, everyone comes forward to help others. It helps develop an atmosphere of mutual trust and understanding.

   Related Questions in Biology

©TutorsGlobe All rights reserved 2022-2023.