14 principles of management suggested by Fayol

14 principles of management suggested by Fayol:

1. Authority and Responsibility:

Authority and Responsibility are related. Fayol stressed that who keeps authority must take the responsibility for the performances. He wrote that ‘Generally speaking responsibility is feared as much as authority is sought after’.

Authority should be delegated to people who take responsibility. Dale viewed that as ‘if a man is responsible for the results of a given operation he should be given enough authority to take the actions necessary to ensure success’.

2. Unity of Command:

This principle states that multiplicity of control should be avoided and one employee should receive orders from one superior.

3. Unity of Direction:

This shows that all managerial functions which have the same objective should have one head one plan’. This means, the same function in an organization can be split into groups under various heads.

4. Scalar Chain:

An organization is tied down by superior subordinate chain which is called as ‘scalar chain’. Communication cannot reach easily at the lower level from the top. To avoid this Fayol suggests ‘gang plank’ to prevent communication delays. They can be allowed to contact their superior’s supervisors.

5. Division of work:

This is nothing but the specialization of work. Fayol wrote that ‘specialization belongs to the natural order. The worker always on the same part, the manager concerned always with the same matters, acquire an ability, sureness, and accuracy which increases their output.

Each change of work brings in its train an adaptation which reduces output. Yet division of work has its limits which experience and a sense of proportion teach us may not be exceeded’.

6. Discipline:

This is essential for the smooth and successful functioning of an organization. Fayol puts it as ‘discipline is what leaders make it. Experience and fact on the part of a manager are put to the proof in the choice and degree of sanctions to be used, such as warnings, fines, suspensions, demotion, and dismissal. Individual people and attendant circumstances must be taken into account’.

The best means of maintaining discipline, he said, are to have (a) good superiors at all levels, (b) agreement (made either with the individual employees or with a union, as the case might be) that are as clear and fair as possible (c) penalties judiciously applied.

7. Subordination of Individual Interest to General Interest:

Fayol states that, ‘the interest of one employee or group of employees should not prevail over that of the concern’. He added that, to ensure that there must be firmness and good example on the part of superiors, agreements that are as fair as possible and constant supervision.

8. Remuneration:

The employees must be paid adequately. But they should not be over paid ‘going beyond reasonable limits’. He was in favour of non-financial incentives like good working conditions, housing etc.

9. Centralization:

Fayol feels that the question of centralization or decentralization is a question of proportion. In small organizations centralization is possible but in large concerns, orders and communications have to go through number of intermediaries.

He says that, ‘What appropriate share of initiative may be left to intermediaries depends on the personal character of the manager, on his moral worth, on the reliability of his subordinates and also on the condition of the businesses’.

10. Order:

By order, Fayol meant appointing right man for the right job, a place for everyone and every one for a place. He believed that this kind of order, ‘demands precise knowledge of the human requirements and resources of the concern and a constant balance between these requirements and resources’.

11. Equity:

This implies the fair treatment of labour. Fayol defined this as ‘justice tempered with kindness’.

12. Stability of Tenure of Personnel:

Through this principle Fayol states that incompetent must be removed and the efficient must be promoted:

13. Initiative:

The manager must inspire his subordinates to take initiative which must result in the success of the organization.

14. Esprit De Corps:

Team spirit is very important to achieve the desired goals. Fayol cautioned that managers may be tempted to (a) divide and rule and (b) abuse of written communication.