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Principles of Management

Henry Fayol developed the fundamental principles of management in the early 20th century. Some key principles he outlined include the division of work to increase specialization and efficiency, ensuring parity between levels of authority and responsibility, maintaining discipline, and establishing a clear chain of command with a single reporting structure. Other principles focused on putting organizational objectives first, treating employees fairly, developing initiative and team spirit among the workforce, and balancing centralization of decision-making with empowering lower levels. Fayol also identified five core management roles: organizing, planning, commanding, controlling, and coordinating.

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Jewel Anne Beduya
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101 views

Principles of Management

Henry Fayol developed the fundamental principles of management in the early 20th century. Some key principles he outlined include the division of work to increase specialization and efficiency, ensuring parity between levels of authority and responsibility, maintaining discipline, and establishing a clear chain of command with a single reporting structure. Other principles focused on putting organizational objectives first, treating employees fairly, developing initiative and team spirit among the workforce, and balancing centralization of decision-making with empowering lower levels. Fayol also identified five core management roles: organizing, planning, commanding, controlling, and coordinating.

Uploaded by

Jewel Anne Beduya
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Principles of Management

It was a French management theorist, Henry Fayol(1841-1925) who developed the fundamental
notion of principles of management.

Division of Work

According to this principle, the whole work is divided into small tasks. The specialization of the
workforce according to the skills of a person creating specific personal and professional
development within the labor force, and therefore increasing productivity, leads to
specialization which increases the efficiency of labor. By separating a small part of work, the
worker’s speed and accuracy in his/her performance increases. This principle is applicable to
both technical as well as managerial work. This can be made useful in case of project works,
too.

Authority and responsibility

This refers to the issue of commands followed by responsibility for their consequences.
Authority means the right of a superior to give enhanced order to his subordinates;
responsibility means obligation for performance. This principle suggests that there must be
parity between authority and responsibility. They are co-existent and go together, and are two
sides of the same coin, the authority must be commensurate with responsibility.

Discipline

Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc. It
is essential for the smooth functioning of all organizations. This will also help shape the culture
inside the organization. Discipline is absolutely necessary for enterprises to function well.

Unity of Command

This principle states that each subordinate should receive orders and be accountable to one
superior. If an employee receivwes orders from more than one superior, it is likely to create
confusion and conflict. Unity of Command alsomakes it easier to fix responsibility for mistakes.

Unity of Direction

All those working in the same line of acivity must understand and pursue the same objectives.
All related activities should be put under one group, there should be one plan of action for
them, and they should be under the control of one manager.
Subordination of Individual Interest

The management must put aside personal considerations and put company objectives first.
Therefore the interests of goals of the organization must prevail over the personal interests of
individuals.

Remuneration

Workers must be paid sufficiently as this is a chief motivation of employees and therefore
greatly influences productivity. The quantum and methods of remuneration payable should be
fair, reasonable, and rewarding of effort. Remuneration is paid to worker as per their capacity
and productivity. The main objective of an organization is to maximize the wealth and the net
profit as well. For this purpose, the organization has paid wages, salaries, and benefits to their
staff properly and scientifically so that organizational efficiently can be ensured.

The Degree of Centralization

The amount of power wielded with the central management depends on company size.
Centralization implies the concentration of decision-making authority of the top management.
Sharing of authority with lower levels is called decentralization. The organization should strive
to achieve a proper balance.

Scalar Chain

Scalar Chain refers to the chain superiors ranging from top management to the lowest rank.
The principle suggests that there should be a clear line of authority from top to bottom linking
all managers at all levels. It is considered a chain of command. However, there is a concept
called a “gang plank” in which a subordinate may contact a superior in case of an emergency,
defying the hierarchy of control. In this event, the immediate superiors must be informed
about the matter.

Order

Social order ensures the fluid operation of a company through authoritative procedures.
Material order ensures safety and efficiency in the workplace. Order should be acceptable and
under the rules of the company,.
Equity

Employees must be treated kindly, and justice must be enacted to ensure a just workplace.
Managers should be fair and impartial when dealing with employees, giving equal attention
toward all employees.

Stability orf Tenure of Personnel

The period of service should not be too short and employees should not be moved from
positions frequently. An employee cannot render useful service if he/she is removed before
he/she becomes accustomed to the work assigned to him/her.

Initiative

Using the initiative of employees can add strength and new ideas to an organization. Initiative
on the part of employees is a source of strength for an organization because it provides new
and better ideas. Employees are likely to take greater interest in the functioning of the
organization.

Esprit de Corps

This referes to the need of managers to ensure and develop morale in the workplace;
individually and communally. Team spirit helps develop an atmosphere of mutual trust and
understanding. Team spirit helps to finish the task on time.

Key Roles

Fayol also divided the management function into five key roles:

- To organize
- To plan and forecast (Prevoyance)
- To command
- To control
- To coordinate

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