06/03/26 Fri 18:26pm

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Father of Modern Management

Fourteen Principles of Management

1st Division of Labour

2nd Authority & Responsibility

3rd Unity of command ( Principle of One Boss )

  • A subordinate should receive orders and be accountable to One Boss at a time.
  • dual subordination should be avoided unless absolutely necessary

4th Unity of Direction

  • Fayol advocates ONE HEAD - ONE PLAN which means that there should be one plan for a group of activities having similar objectives
  • related activities should be grouped together. There should be one plan of action for them and they should be under the charge of a particular manager.
  • unity of command & unity of direction are closely related

5th Equity

  • is a combination of fairness, kindness & justice.
  • it implies that managers SHOULD BE FAIR AND IMPARTIAL while dealing with the subordinates.
  • Equity is essential to create and maintaining cordial relations between managers and subordinates
  • Equity does not mean total absence of harshness.
  • Fayol was of the opinion that “at times force and harshness might become necessary for the sake of equity”.
  • there is a difference in equality and equity.

6th Order

  • this principle is concerned with proper & systematic arrangement of things and people.
  • Arrangement of things is called MATERIAL ORDER and placement of people is called SOCIAL ORDER.

7th Discipline

  • this means sinceriety, obedience, respect of authority & observance of rules and regulations of the enterprise

8th 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 management should provide opportunity to its employees to suggest ideas, experiences & new method of work.
  • helps develop an atmosphere of trust and understanding
  • they can encouraged with money and non money benefits

9th Fair Remuneration

  • the quantum and method of remuneration to be paid to the workers should be fair, reasonable, satisfactory & rewarding of the efforts.
  • As far as possible it should accord satisfaction to both 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 recommended provision of other benefits such as free education, medical & residential facilities to workers.

10th Stability of Tenure

  • Fayol emphasised that employees should not be moved frequently from one job position to another i.e. the period of service in a job should be fixed.
  • According to Fayol “Time is required for an employee to get used to a new work & succeed in doing it well but if he is removed before that he will not be able to render worthwhile services”. As a result, the time, effort and money spent on training the worker will go waste.
    _Stability of job creates team spirit and a sense of belonging among workers which ultimately increase the quality as well as a quantity of work.

11th Scalar Chain

  • Fayol defines it as ‘The chain of superiors ranging from the ultimate authority to the lowest’.
  • Every order, instructions, messages, requests, explanation etc. has to pass through Scalar chain.
  • A Gang Plank is a temporary arrangement between two different points to facilitate quick & easy communication.
    Gang Plank clarifies that management principles are not rigid rather they are very flexible. They can be moulded and modified as per the requirements of situations

12th Sub-Ordination of Individual Interest to General Interest

  • An organisation is much bigger than the individual it constitutes therefore interest of the undertaking should prevail in all circumstances.
  • As far as possible, reconciliation should be achieved between individual and group interests.

13th Esprit De’ Corps

team Spirit

14th Centralisation & De-Centralisation