PRINCIPLES OF MANAGMENT

Henry Fayol developed theory of management. According to him managerial excellence is a technically ability and can be acquired. Fayol's principles of management meet the requirements of modern management.

The principles of management that Fayol developed are:

Division of work, Authority and responsability, discipline, unity of command, unity of direction, subordination of individual interest to general interests, fair remuneration to employees, centralization and decentralization, social chain, order, equity, stability of use of personnel, initiative, spirit of cooperation.

• Division of Work

Division of work promotes efficiency because it permits an organizational member to work in a limited area reducing the scope of his responsibility. 

• Authority and Responsibility

Authority and responsibility go together or co-existing. Both authority and responsible are the two sides of a coin. In this way, if anybody is made responsible for any job, he should also have the concerned authority. In other awards when the authority is exercised the responsibility. In other awards when the authority is exercised the responsibility is automatically generated.

• Discipline

Means sincerity about the work and enterprise, carrying out orders and instructions of superiors and to have faith in the policies and programmes of the business enterprise, in other sense, discipline in terms of obedience, application, energy and respect to superior. A well disciplined working force is essential for improving the quality and quantity of the production.

• Unity of Command

A subordinate should take order from only one boss and he should be responsible and accountable to him. The violation of this principle will face some serious consequences. In this way, the principle of unity of command provides the enterprise disciplined, stable and orderly existence. It creates harmonious relationship between officers and subordinates, congenial atmosphere of work. 

• Unity of direction

Fayol advocates "One head and one plan" which means that group efforts on a particular plan be led and directed by a single person. This enables effective co-ordination of individual efforts and energy.

• Subordination of individual interests to general interests

The interest of the business enterprise ought to come before the interests of the praise individual workers. In other words, principle of management state that employees should surrender their personnel interest before the general interest of the enterprise. Sometimes the employees due to this ignorance, selfishness, laziness, carelessness and emotional pleasure overlook the interest of the organisation. This attitude proves to be very harmful to the enterprise.

• Fair Remuneration to employees

Wage-rates and method of their payment should be fair, proper and satisfactory. Both employees and ex-employers should agree to it. Logical and appropriate wage-rate and methods of their payment reduces tension and differences between workers and management, create harmonious relationship and a pleasing atmosphere of work. 

• Centralization and Decentralization

There should be one central point in the organisation which exercises overall direction and control of all the parts. But the degree of centralization of authority should vary according to the needs of situation. Further, Fayol does not favor centralization or decentralization of authorities but suggests that these should be proper and effective adjustment between centralization and decentralization in order to achieve maximum objectives of the business. The choice between centralization and decentralization be made after taking into consideration the nature of work and the efficiency, experience and decision-making capacity of the executives.

• Scalar chain

The scalar chain is a chain of supervisors from the highest to the lowest rank. It should be short-circuited. An employee should feel the necessity to contact his superior through the scalar chain. The authority and responsibility is communicated through this scalar chain. Fayol defines scalar chain as "the chain of superiors ranging from the ultimate authority to the lowest rank." 

• Order

According to Fayol there should be proper, systematic and orderly arrangement of physical and social factors, such as land, raw materials, tools and equipments and employees respectively. This principle also stresses scientific selection and appointment of employees on every job.

• Equity

The principle of equality should be followed and applicable at every level of management. There should not be any discrimination as regards caste, sex and religion. An effective management always accords sympathetic and human treatment. The management should be kind, honest and impartial with the employees. 

• Stability of use of personnel

Principle of stability is linked with long tenure of personnel in the organisation. This means production being a team work, an efficient management always builds a team of good workers. If the members of the team go on changing the entire process of production will be disturbed. Stability of job creates a sense of belongingness among workers who with this feeling are encouraged to improve the quality and quantity of work.

• Initiative

Under this principle, the successful management provides an opportunity to its employees to suggest their new ideas, experiences and more convenient methods of work. 

• Spirit of Co-operation 

In order to achieve the best possible results, individual and group effort are to be effectively integrated and coordinated. Production is a team work for which the whole-hearted support and co-operation of the members at all levels is required. Everyone should sacrifice his personal interest and contribute his best energies to achieve the best results.