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Principle of

management
By anish saraf
12 XII
Introduction
 Principle of management are general guidelines , which can be used
for conduct in work place under certain situation. They help
managers to take implement decision
 Management has 5 key roles
◦ To Planning
◦ To Organize
◦ To Staff
◦ To Directing
◦ To Controlling
Burger king
 Burger king is an American global chain of fast food.
 The company was founded in 1953 as Insta burger king .
 David Edgerton and James Mclamore purchased the company in
1954 and renamed to Burger king.
 The majority of Burger King restaurants, approximately 90%, are
privately held franchises.
 In North America, Burger King Corporation is responsible for
licensing operators and administering of stores
Henri Fayol
 Henri Fayol was a French mining engineer, mining executive,
author and director of mines who developed general theory of
business administration that is often called Fayolism .
 In 1888 he became managing director , when the company had over
10,000 employee
 1930. Industrial and General Administration. Translated by J.A.
Coubrough , London: Sir Isaac Pitman & Sons.
 1949. General and Industrial Management. Translated by C. Storrs, Sir
Isaac Pitman & Sons, London .
Fayol’s function of management
 Division of Work
 Authority and Responsibility
 Discipline
 Unity of Command
 Unity of Direction
 Remuneration of employees
 The Degree of Centralization
 Scalar Chain
 Order
 Equity
 Stability of Tenure of Personnel
 Initiative
 Esprit de Corps/Team Spirit
Division of Work

 Division of work refers to dividing the work into compact jobs and
allocating these compact jobs to different individual.
 Fayol recommended that work of all kind must be divided and
allocated as per competence qualification and experience .
 It makes tasks simpler and repetitive performance helps in growing
and specialization .
 If the principle is violated , the authority is undermined , discipline
in jeopardy , order disturbed
Authority and Responsibility
 According to this principle , there should be a proper balance
between authority and responsibility.
 Authority is the right to give order to subordinate .
 Responsibility is the duty , which subordinate is expected to
perform by virtue of his position in organization
Discipline
 Discipline refers to obedience to rules and regulation of the
organization .
 It requires a good supervisor at all levels , clear and fair
agreements regarding rules and judicious application of penalties .
 It is must for all enterprise and at all level
Unity of Command

 According to this principle , each subordinate should receive


orders and be accountable to one and only one superior
 If a subordinate receives order from more than one superior , the
subordinate will find it difficult to decide as to whom he has to
obey first .
 If the principle is violated , the authority is undermined , discipline
in jeopardy , order disturbed.
Unity of Direction
 Unity of Direction implies that there should be one head and one
plan for group activities having some objectives .
 All the activities having same objective should be carried under the
direction of one head .
 It ensures unity of action and avoid unnecessary duplication of
efforts
Remuneration of employees

 According to this principle , overall pay and compensation should


be fair to both employees and organization .
 The remuneration should be fair and just and should provide
satisfaction to both employees and organization and leads to
harmonious relation in the enterprise .
 For good performance and stability of employees , they should be
properly and adequately paid
Centralization
 According to this principle , there should be proper balance
between centralization and decentralization in the organization .
 It refers to concentration of authority at the top level , where as
decentralization refers to evenly distribution of authority at all
levels of management .
 The degree of centralization and decentralization depends on
various factor such as experience of superior ability of
subordinates , size of organization
Scalar chain
 Scalar chain is the chain of superior ranging from the highest
authority to the lowest level .
 It states superior - subordinate relationship and authority of
superior in relation to subordinate of various level .
 It determines the clear line of authority from top to bottom and
services as a chain of command and communication .
 Fayol permitted a shortcut in the chain known as “Gang Plank”
 Gang plank allows direct communication between the two
employees of the same level , without following the chain .
Order
 According to this principle , there should be a place for everything
and everyone .
 If there is a fixed place for everything and it is present there , than
there will be no obstruction in work .
 Order line in work can ne obtained through suitable organization
of men and materials
Equity
 According to this principle , there should not be any discrimination
among the employees on the basis of religion , language , caste , sex,
belief .
 Equity refers to fair treatment , that is kin and justice on part of
superior while dealing with their subordinates .
 Equity ensures cordial relation between superior and subordinate
and leads to smooth and successful working of the enterprise .
Initiative
 Initiative refers to chalking out the plan and then implementing the
same. Fayol suggested that employees in the organization must be
given an opportunity to take some initiative in making and
executing a plan. It gives immense satisfaction to employees. So
managers must welcome the suggestions and ideas of employees
before framing the plan.
 The initiative does not mean disobedience, i.e., once decisions are
taken by management then every employee must follow it whether
it is according to employee’s suggestion or not.
Espirit De corps
 According to this principle of management should take reasonable
steps to develop a sense of belongingness and feeling of team spirit
among employees .
 In order to achieve the possible result , in divided and group efforts
need to be effectively integrated and coordinated .
 Production is teamwork and requires full support and cooperation
of all members .
 Management must in fuse the team spirit in the worker . It develops
atmosphere of mutual trust and understanding .
Conclusion
 Finally , it can be concluded that Henri Fayol’s 14 principle of
management are widely applicable t o managerial problems and
have cast a profound impact on management thinking today .
 Fayol had hence recognized a wide spread need for principle and
management teaching .
 Emphasizing on two things
◦ The list of management principles is not exhaustive but
suggestive .
◦ Principles of management are not rigid but flexible .

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