Question

State any 'five principles of Henry Fayol.

Explain in detail any five principles of management given by Henry Fayol.

Explain any four principles of management of Henry Fayol.

Discuss Henry Fayol's 14 Principles of Management.

Answer 1

1.  Principle of Division of Work: According to this principle, the work is divided into different kinds such as technical, financial, commercial, security operations, accounting and managerial. It is assigned to employees as per their qualities and capabilities. It helps improve employees' efficiency and expertise, which ultimately turns into the expected productivity level.
2. Principle of Authority and Responsibility: Authority is the right to take decisions. It is necessary to get the things done appropriately from subordinates. Authority always comes with responsibility. If the manager is given the authority to complete a task within a given time, he should be held responsible if he does not complete the work in the given time. Managers should have proper authority to make managerial decisions on their own with respect to the goal.
3. Principle of Discipline: According to Fayol, discipline is essential in the organization. Employees must obey and respect the rules that govern the organization. Discipline helps to achieve the goals in the organization. Good discipline is the result of effective leadership. There must be a clear understanding between the management and workers regarding the organization's rules. Basic discipline should be observed at all levels of management.
4. Principle of Unity of Direction: This principle states that 'there should be one head and one plan' in every organization. Each group in the organization should have the same objective, and the group should be directed by one manager using a single plan.
5. Principle of Remuneration: Appropriate remuneration to staff or employees is the principle to keep them satisfied financially and retain them for a long time within the organization. Fair remuneration affects productivity and efficiency levels in total. The remuneration should be fixed by taking into consideration the skill, expertise, knowledge, tenure, cost of living, market trend, the profitability of the organization, etc.
6. Principle of Unity of Command: Each member of the organization should receive orders from only one superior. This principle helps in managing conflicts and solving disputes among people in an organization. It also helps in avoiding confusion. If an employee receives commands from more than one authority, he will get confused and unable to and will not be able to take decisions about whose orders should be followed. This is the wrong approach. For this, organizational hierarchy should be well defined. Each employee should know his immediate superior and should receive orders from him only.
7. Principle of Subordination of Individual Interest to Organisational Interest: According to this principle, the interest of an individual must be given less importance than the organisation's interest. While making decisions in the organisation, the manager should always consider the whole group's interest rather than a single employee's. Similarly, the employee should protect the organisation's interest first, and his personal interest should be subordinated. For example, in every game, the players are always thinking about winning the match as a team rather than their individual records.
8. Principle of Centralization: Centralization refers to the concentration of powers and authorities. In some organizations, this power is vested in one hand or a few hands. This situation occurs in small organisations. But if the size of the organization is large, then there is a decentralization of the power or authority. According to this principle, there must be a proper balance between centralization and decentralization in the organisation. This is to be done according to the organisation's size, nature of the activity, etc.
9. Principle of Scalar Chain: Scalar chain means the hierarchy of authority from the top to the lower level for communication. This helps to ensure the orderly flow of information and communication. Traditionally, organizations used to frame large scalar chains, which is time-consuming. For example, a General Manager informs the decision to the respective Functional Manager, then Functional Manager will pass it on to the supervisor, the supervisor will inform the foreman, and so on according to level of authority. For avoiding this longer chain and to take speedy decisions, cross or direct communication is followed by various organizations known as Gang Plank. For direct communication, proper permission of the authorities is necessary.
10. Principle of Order: This principle is based on 'A place for everything and everything in its place'. Human resources and materials should be in the right place at the right time for maximum efficiency. Human resources should be placed at the right place and on the right job. The principle focuses on the proper utilization of physical and human resources.
11. Principle of Equity: Management should be fair as well as friendly to the subordinates. While dividing the work, delegating the authorities, deciding the monetary terms, etc., there should not be any discrimination between the employees. It is also suggested that the remuneration should depend not on the department but on the level at which subordinates work. The employees working at the same level but in different departments should be paid the same wages. This equity will help in avoiding conflicts in the organisation.
12. Principle of Stability of Tenure: When recruiting employees, the management should assure them about tenure or job security stability. It plays a very important role in creating a sense of belongingness among the employees. Insecurity in the job always affects employees' efficiency adversely, whereas job security minimizes employee turnover ratio.
13. Principle of Initiative: Initiative refers to volunteering to do the work in an innovative way. The freedom to think and work on new ideas encourages employees to take initiative while working on given tasks. The manager should welcome this initiative through discussion on the new ideas. It also helps in creating a healthy organizational culture.
14. Principle of Esprit de Corps: Henry Fayol has given emphasis on teamwork. Esprit de corps means union is strength. Running any organization is a group activity and human resources are the valuable asset of the organization. If all employees are working as a union and with mutual trust, the difficulties can be solved quickly. Therefore, as a leader, the manager should create a spirit of teamwork and understanding among employees to easily achieve organisational goals.