Topic
Principles of Management
Presented By
Ghulam Fatima Zahra
[Link]: S22-35529
CONTENT
Introduction
Division of Work
Authority and Responsibility
Discipline
Unity of Command
Unity of Direction
Subordination of Individual Interest Remuneration
The Degree of Centralization
Scalar Chain
Order
Equity
Stability of Tenure of Personnel
Initiative
Esprit de Corps
Conclusion
INTRODUCTION
In the last century, organizations already had
to deal with management in practice. In the
early 1900s, large organizations, such as
production factories, had to be managed too.
At the time there were only few (external)
management tools, models and methods
available. Thanks to scientists like Henri
Fayol (1841-1925) the first foundations were
laid for modern scientific management.
These first concepts, also called principles
are the underlying factors for successful
management. Henri Fayol explored this
comprehensively and, as a result, he
synthesized the 14 principles of management.
Henri Fayol ‘s principles of management and
research were published in the book ‘General
and Industrial Management’ (1916).
1. DIVISION OF WORK:
Work should be divided among individuals
and groups to ensure that effort and
attention are focused on special portions of
the task. Fayol presented work specialization
as the best way to use the human resources
of the organization.
2. AUTHORITY:
The concepts of Authority and responsibility
are closely related. Authority was defined by
Fayol as the right to give orders and the
power to exact obedience. Responsibility
involves being accountable, and is therefore
naturally associated with authority. Whoever
assumes authority also assumes
responsibility.
3. DISCIPLINE:
A successful organization requires the
common effort of workers. Penalties should
be applied judiciously to encourage this
common effort.
4. UNITY OF COMMAND
Workers should receive orders from only one
manager.
5. UNITY OF DIRECTION:
The entire organization should be moving
towards a common objective in a common
direction.
6. SUBORDINATION OF INDIVIDUAL
INTERESTS TO THE GENERAL INTERESTS
The interests of one person should not take
priority over the interests of the
organization as a whole.
7. REMUNERATION
Many variables, such as cost of living, supply
of qualified personnel, general business
conditions, and success of the business,
should be considered in determining a
worker’s rate of pay.
8. CENTRALIZATION:
Fayol defined centralization as lowering the
importance of the subordinate role.
Decentralization is increasing the
importance. The degree to which
centralization or decentralization should be
adopted depends on the specific organization
in which the manager is working.
9. SCALAR CHAIN:
Managers in hierarchies are part of a chain
like authority scale. Each manager, from the
first line supervisor to the president,
possess certain amounts of authority. The
President possesses the most authority; the
first line supervisor the least. Lower level
managers should always keep upper level
managers informed of their work activities.
The existence of a scalar chain and
adherence to it are necessary if the
organization is to be successful.
10. ORDER:
For the sake of efficiency and coordination,
all materials and people related to a specific
kind of work should be treated as equally as
possible.
11. EQUITY:
All employees should be treated as equally as
possible.
12. STABILITY OF TENURE OF PERSONNEL:
Retaining productive employees should
always be a high priority of management.
Recruitment and Selection Costs, as well as
increased product-reject rates are usually
associated with hiring new workers.
13. INITIATIVE
Management should take steps to encourage
worker initiative, which is defined as new or
additional work activity undertaken through
self direction.
14. ESPIRIT DE CORPS:
Management should encourage harmony and
general good feelings among employees.
THE IMPORTANCE OF THE PRINCIPLES
Having a clear management structure in
place is vital for any successful organization.
Efficient and well intentioned management
sets the tone for the rest of the staff. It is
common for the attitude approach of
managers to filter through the entire
organization, so having managers working in
an exemplary way is an excellent example for
employees to follow
CONCLUSION
The 14 principles of management can be used to
manage organizations and are useful tools for
forecasting, planning, process management,
organization management, decision-making,
coordination and control.
Although they are obvious, many of these matters
are still used based on common sense in current
management practices in organizations. It
remains a practical list with focus areas that are
based on Henri Fayol ’s research which still
applies today due to a number of logical
principles.
REFERENCE
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THANKS