Henri Fayol
Also known as the “Father of modern management”, gave a general theory that can be applied to all levels of management and every department.
He envisioned maximizing managerial efficiency. Today, his theory is practised by the management to organise and regulate the internal activities of an organisation.
Principle?
A Principle refers to the fundamental truth.
it establishes a cause and effect relationship between two or more variables under a given situation. They serve as guides to thought and actions.
These principles are derived on the basis of:
- observation and analysis i.e. practical experience of managers
- by conducting experimental studies.
List of Principles:
- Division of Labour
- Authority and Responsibility.
- Unity of Command
- Unity of Direction
- Equity
- Order
- Discipline
- Initiative
- Fair Remuneration
- Stability of Tenure
- Scalar Chain
- Sub ordination of Individual Interest to general interest
- Esprit De’ Corps
- Centralization & De-Centralization
Also See → The Japanese 5S workplace organization method.
and quick notes.
1. Division of Labour
Henri Fayol stressed on the specialization of jobs.
He recommended that work of all kinds must be divided and subdivided and allotted to various persons according to their expertise in a particular area.
Subdivision of work makes it simpler and results in efficiency.
It also helps the individual in acquiring speed & accuracy in their performance.
Specialization leads to efficiency & economy
2. Authority & Responsibility
Authority and Responsibility NEED to coexist
if authority is given to a person, he should also be made responsible and vice versa
Authority:
refers to the right of superiors to get exactness from their sub ordinates whereas responsibility means obligation for the performance of the job assigned.
Quote
Authority without responsibility leads to irresponsible behaviour.
and Responsiblity without authority makes the person ineffective at their work.
3. Unity of Command
Principle of One Boss
Fayol claims that a subordinate should receive orders and be accountable to one and only ONE boss at a time.
In other words, a subordinate should not receive instructions from more than one person
the reasons he claims are:
- it undermines authority
- weakens discipline
- divides loyalty
- creates confusion
- delays and chaos
- escaping responsibilities
- Duplication of work
- Overlapping of efforts
avoid multiple bosses until its absolutely essential
4. Unity of Direction
He advocates ONE HEAD ONE PLAN which means that there should be one plan for a group of activities having similar objectives.
related activities should b grouped together and one “Plan of action” made for them. and then put in charge of one particular manager.
the efforts of all members of the organization should be directed towards a common goal
Without unity of direction, unity of action cannot be achieved.
Unity of command requires unity of direction to function!
Unity of Command Vs Unity of Direction
read ⬆ before continuing
5. Equity
means a combination of fairness, kindness, & justice.
It implies that managers should be fair and impartial while dealing with the subordinates.
benefits to cordial relations b/w the managers and subordinates.
but equity does not mean total absence of harsness.
Quote
“At times force and harshness might become necessary for the sake of quity”.
Henri Fayol ( allegedly )
6. Order
this relates to the proper & systematic arrangement of things and people.
arrangement of things is called Material Order and placement of people is called Social order
Social order
Selection and appointment of most suitable person on the suitable job. There should be a specific place for every one and everyone should have a specific place so that they can easily be contacted whenever need arises.
Material order
There should be safe, appropriate and specific place for every article and every place to be effectively used for a specific activity and commodity.
7. Discipline
it means sincerity, obedience, respect of authority & observeance of rules and regulations of the enterprise”.
the principle applies that subordinate should respect their superiors and obey their order.
it is not only required on the part of subordinates but also on the part of management.
it can be enforced if there are good superiors at all levels.
there are clear & fair agreements with workers.
sanctions ( punishments ) are judiciously applied.
8. Initiative
workers should be encouraged to take initiative in the work assigned to them. It means eagerness to initiate actions without being asked to do so.
Fayol advised that managements should provide opportunities where employees can suggest ideas, experiences & new methods of work.
this helps build an atmosphere of trust and understanding.
one can use monetary and non monetary incentives to encourage initiative
9. Fair Remuneration
the amount and method of remuneration ( big fancy word for money or salary ) to be paid to the workers should be fair, reasonable, satisfactory & rewarding of the efforts.
it should strive to satisfy both the employer and the employees.
Wages should be determined on the basis of cost of living, work assigned, financial position of the business, wage rate prevailing etc.
Fayol also advocated provision of other benefits such as free education, medical & residential facilities to workers.
10. Stability of Tenure
Fayol was of the opinion that employees should not be moved frequently between roles, or different positions.
according to him, time is required for employees to get used to and then succeed in a job, but if they are moved they would not be able to render worthwhile services.
which would result in wastage of time, effort and money spent of training the worker.
Quote
” Stability of job creates team spirit and a sense of belongingness among workers which ultimately increases the quality AND quantity of Work done.
11. Scalar Chain
‘The chain of superiors ranging from the ultimate authority to the lowest’
every order, instruction, message, request and explanation has to pass through Scalar chain.
But for the sake of convenience and urgency, this path can be cut short, in whats known as a Gang Plank
Gang Plank
is a temporary arrangement between two different points to facilitate quick and easy communication.
it clarifies that management principles are not rigid rather they are very flexible. They can be moulded and modified as per the requirements of situations
12. Subordination of individual interest to general interest
an organization is mush bigger than the individual it constitutes interest of the organization should prevail in all circumstances.
reconciliation should be achieved between individual and group interests.
but in case of conflict, individual must sacrifice for bigger interests.
in order to acheive this attitude, its essential that
employees should be honest & sincere
proper and regular supervision of work
reconciliation of mutual differences and clashes by mutual agreement.
13. Esprit De’ Corps
To inculcate Esprit De’ Corps:
proper coordination of work at all levels
subordinates encouraged to develop informal relations among themselves
efforts made to create enthusiasm and keenness among subordinates
efficient employees rewarded and those who are not up to the mark given a chance to improve their performance.
this can be achieved through unity of command
making sure people enjoy working in the organization makes them offer their best towards the organization.
14. Centralization & De-Centralization
Fayol says the “degree of centralization or decentralization depends on a number of factors like size of business, experience of superiors, dependability and ability of subordinates etc”
anything which increases the role of subordinate is decentralization and vice versa
he suggested that absolute centralization or decentralization is not feasible. the organization needs to find its own balance between the two.