Kumaraguru College of Technology

Coimbatore-641 006

Principles of Management
Henri Fayol, (1841-1925) a French mining engineer
 14 Principles of Management of Henri
Fayol.
The 14 Management Principles from Henri Fayol (1841-1925)
are:
• Division of Work.
• Authority.
• Discipline.
• Unity of Command.
• Unity of Direction.
• Subordination of individual interest
• Remuneration
 14 Principles of Management of Henri
Fayol conti..
• Centralization (or Decentralization)
• Scalar chain (Line of Authority)
• Order.
• Equity.
• Stability of Tenure of Personnel.
• Initiative.
• Esprit de Corps.
 Division of work

• Division of work and specialization produces more

and better work with the same effort.
• Specialization allows the individual to build up
experience, and to continuously improve his skills
 Authority and responsibility

• Authority is the right to give orders and the power to

exact obedience.
• A manager has official authority because of her
position, as well as personal authority based on
individual personality, intelligence, and experience.
Authority creates responsibility.

• The right to issue commands

 Discipline

• Obedience and respect within an organization

are absolutely essential.
• Good discipline requires managers to apply
sanctions whenever violations become
apparent.
 Unity of command

• An employee should receive orders from only one

superior.

• Each worker should have only one boss with no

other conflicting lines of command.
 Unity of direction

• Organizational activities must have one central

authority and one plan of action.

• This is essential to ensure unity and coordination in

the enterprise.
 Subordination of individual interest to
general interest
• The interests of one employee or group of employees
are subordinate to the interests and goals of the
organization.
• This is necessary to maintain unity and to avoid
friction among the employees.
 Remuneration of personnel
• Salaries - the price of services rendered by
employees - should be fair and provide satisfaction
both to the employee and employer.

• Payment is an important motivator although by

analyzing a number of possibilities, Fayol points
out that there is no such thing as a perfect system.
 Centralization

• The objective of centralization is the best utilization

of personnel. The degree of centralization varies
according to the dynamics of each organization.

• This is a matter of degree depending on the

condition of the business and the quality of its
personnel.
 Scalar chain

• A chain of authority exists from the highest

organizational authority to the lowest ranks.
• Scalar chain refers to the number of levels in the
hierarchy from the ultimate authority to the lowest
level in the organization.
 Order
• Organizational order for materials and
personnel is essential. The right materials and
the right employees are necessary for each
organizational function and activity.

• Both material order and social order are

necessary. The former minimizes lost time and
useless handling of materials. The latter is
achieved through organization and selection.
 Equity

• In organizations, equity is a combination of

kindliness and justice. Both equity and equality of
treatment should be considered when dealing with
employees.
• Treating employees well is important to achieve
equity.
 Stability of tenure of personnel

• To attain the maximum productivity of personnel, a

stable work force is needed.
• Employees work better if job security and career
progress are assured to them.

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 Initiative
• Allowing all personnel to show their initiative in
some way is a source of strength for the organization.
• Thinking out a plan and ensuring its success is an
extremely strong motivator.
 Esprit de corps
• Teamwork is fundamentally important to an
organization.
• Work teams and extensive face-to-face verbal
communication encourages teamwork.
Administration & Management
• Frederick Winslow Taylor 1856-
1915
• F W Taylor is termed as the father of
scientific management and his prime
contribution in the area of
management is the founding of
efficiency movement.
• He is best known in the world of
management for his study of time
and motion.

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 Contribution of F.W.Taylor
• In a company “Midvale steel” he identified how the work could be
done.
• Scientifically study each part of workers task and develop the best
method for performing the task,which replaces the old rule of thumb.
• Scientifically select the workers and train them to perform the task
by using the Scientifically developed methods.
• Co-operate fully with workers to ensure that they use the proper
method.
• Divide work & responsibility between the management & workers so
that the mgnt is responsible for planning work methods using
scientific principles & workers are responsible for executing the
work accordingly.
 Functions of Management
In the 1930s, Luther Gullik, coined the functions of
Management in the word
'P O S D C CO R B'
• Planning
• Organizing
• Staffing
• Directing
• Controlling
• Coordinating
• Reporting
• Budgeting
The functions of Management are common to all business
firm & non-business firm also.
 Planning"To Plan"
• Planning is the (psychological) process of thinking
about the activities required to create a desired future
on some scale.
• According to Harold Koontz -
"Planning is deciding in advance what to do, how to
do, when to do , who is to do it"
• Planning involves
selecting the objectives
& take appropriate
actions to achieve them.
• It requires Decision
Making.
• Planning is the
preparatory step for
actions & helps in
bridging the gap between
the present and future.
 Organizing
• "the grouping of activities necessary to attend objectives“
• Is a collectivity of persons engaged in pursuing specified object.
• Creating an environment for the human performance.
• An Organization structure should be designed to clarify who is
to do what tasks & who is responsible for what results & to
furnish decision-making & communications networks reflecting
& supporting enterprise objectives.
 STEPS
• determining objective & goals
• identifying the activities
• grouping of related activities into departments
• making arrangements of resources
• assigning duties & responsibilities
• granting authority to managers
• establishing relationships between superior and
subordinates
• coordination of activities in the organization
 Organizing contii..
• Thus, division of work among people & coordination
of their efforts to achieve specific objectives are the
fundamental aspects of organization.
 Staffing
• Is defined as -"filling and keeping filled, positions in
organization structure“
• The Staffing is done by identifying the workforce,
requirement, the available people, & recruiting,
selecting, placing, promoting, appraising, planning
the careers of, compensating & training or otherwise
developing both the candidates & current job-holders,
so that they accomplish their task effectively &
efficiently.
 Staffing contii..

• Staffing is continuous function.

• In an established concern also such factors as deaths,
retirements, resignations, demotions, transfers,
change in the overall objectives & methods etc
facilitates the continuous performance of this
function.
 STEPS

• Placing the right person at the right job

• Performance appraisal
• Promotion of employee
• Tansfer of employee
• Training & development of employee
• Motivating & rewarding the employee
 Directing
"Directing consist of the process and techniques utilizing in issuing instructions and making
certain that operations are carried out as originally planned“
Directing involves 3 sub -functions -
• Communicating: transfer of commands from one person to another
• Leading: art of influencing subordinates to work willingly
• Motivating: act of stimulating someone to get desired course of action
 Directing subordinates includes:
• Issuing orders
• Guiding, counseling & instructing
• Supervising the act
• Motivating subordinate
• Maintaining discipline & rewarding effective
performance
 Controlling
• "The task of ensuring that activities are producing the
desired results“
• Controlling is measuring & correcting individual or
organisational performance to ensure that event
confirm to plans. It involves measuring performance
against goals & plans showing where deviations from
the standards exist & helping to correct those
deviations.
• In short, Controlling facilitates accomplishment of
plans.
The basic control process involves 3 steps:
• Establishing standards
• Measuring performance against the standards
• Correcting vairations from standards & plans