Henry Fayol, a French industrialist is known as
father of modern management theory. He gave
fourteen principles of management six industrial
activities and five functions of management.
Principle is a fundamental truth and establishes
cause effect relationship. General principles
are as follows.
Division of Work: There should be division of work to take advantage of specialization.
The organization should be set up in such a way
that every individual should be assigned a duty
according to his skill and qualification. The
person should continue the same work to become
expert in the work and increase efficiency.
Authority and Responsibility: In order to discharge given duty or assigned responsibility
there should be equality of authority and
responsibility. The authority and responsibility
are related to each other. Official authority is
derived by manager’s position and personal
authority is derived from personal qualities
like intelligence experience moral worth etc.
All persons in organization should be in
discipline. Discipline is obedience application
and respect shown by the employees towards the
agreement between them and organization. If
agreement is fair and superiors are good more
discipline can be achieved.
Unity of command: Unity of command means that a person should get orders from only one
superior. If an employee gets work from two or
more superiors there would be more confusions
and conflicts. Excuses for work not completed
Unity of Direction:
All the activities in the organization having same plan or objective
should be grouped together. There should be one
head and one plan for these activities.
Subordination of Individual to General Interest:
The interests of any one employee or group of
employees should not take primacy over the
interests of the organization as a whole, like
personal goals should not conflict with the
group or team you are working with.
Remuneration of the employees should be fair and
provide maximum satisfaction to them. Financial
and non financial benefits should be given to
refers to the degree to which subordinates are
involved in decision making. Whether
decision making is centralised (to management)
or de-centralised (divided in subordinates), is
a matter of proper proportion. The task is to
find the optimum degree of centralisation for
The line of
authority from top management to the lowest
ranks represents the scalar chain. Communication
should follow the sequence given by the chain.
However, if following the chain creates delays,
cross-communications can be allowed if agreed to
by all parties and superiors are kept informed.
Everything should be placed in a proper manner
in organization whether it is human being,
machinery or anything else. We can say that
there should be place f or everything
and everything in its place. Right person for
right job and right place for materials.
to Fayol to secure loyalty and devotion there
should be combination of kindness and justice.
Everyone should be treated equally for example
there should be no discrimination based on
gender age and position in giving medical leave.
Stability of Tenure: There should be no frequent changes in personnel in organization and
stability should be aimed. Instability in tenure
is cause and effect of bad management and leads
to unnecessary turnover cost. Employee should be
informed that for how many time he is hired for.
All employees should be encouraged to initiate
within limits of authority and discipline.
Initiative is thinking and execution of plan
according to the situation. It increases zeal
and energy on the part of employees.
Esprit de Corps: This is principle of union is strength and extension of unity of command
for establishing team work. The manager should
encourage team spirit in workers.