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8 views

Unit 1

Uploaded by

Tanisha Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PRINCIPLES & PRACTICES

OF MANAGEMENT

Dr. D.Y.Patil Vidyapeeth


Basics of management

Prepared By: Dr. Safia Farooqui


(Professor/Director)
[email protected]

2
Henri Fayol’s 14 Principles Of Management
1. Division Of Work
Specialization allows the individual to build up
experience, and to continuously improve his skills.
Thereby he can be more productive.
2. Authority & Responsibility
The right to issue commands, along with which must go
the balanced responsibility for its function.
3. Discipline
Employees must obey, but this is two-sided: employees
will only obey orders if management play their part by
providing good leadership.
4. Unity Of Command
Each worker should have only one boss with no other
conflicting lines of command.
5. Unity of Direction
People engaged in the same kind of activities must have
the same objectives in a single plan. This is essential to
ensure unity and coordination in the enterprise. Unity of
command does not exist without unity of direction but
does not necessarily flows from it.
6. Subordination of individual interest to
General Interest
Management must see that the goals of the firms are
always paramount.
⚫ In business concern an individual is always interested in
maximising his own satisfaction through more money,
recognition, status etc. This is very often against the
general interest which lies in maximising production.
7. Remuneration
Payment is an important motivator although by
analyzing a number of possibilities, Fayol points out
that there is no such thing as a perfect system
8. Centralization (Or Decentralization)
This is a matter of degree depending on the condition of
the business and the quality of its personnel.
If subordinates are given more role and importance in
the management and organization of the firm it is
DECENTRALIZATION
The management must decide the degree of
centralization and decentralization on the basis of
the nature of circumstances, size of undertaking, the
type of activities and the nature of organizational
structure.
9. Scalar chain (Line of Authority)
A hierarchy is necessary for unity of direction. But lateral
communication is also fundamental, as long as superiors
know that such communication is taking place. Scalar
chain refers to the number of levels in the hierarchy from
the ultimate authority to the lowest level in the
organization. It should not be over-stretched and consist of
too-many levels
10. Order
Both material order and social order are necessary. The
former minimizes lost time and useless handling of
materials. The latter is achieved through organization and
selection.
11. Equity
In running a business a ‘combination of kindliness and
justice’ is needed. Treating employees well is important
to achieve equity.
12. Stability of Tenure of Personnel
Employees work better if job security and career
progress are assured to them. An insecure tenure and a
high rate of employee turnover will affect the
organization adversely.
13. Initiative
Allowing all personnel to show their initiative in some
way is a source of strength for the organization. Even
though it may well involve a sacrifice of ‘personal
vanity’ on the part of many managers.
14. Esprit de Corps
Management must foster the morale of its employees. He
further suggests that: “real talent is needed to coordinate
effort, encourage keenness, use each person’s abilities, and
reward each one’s merit without arousing possible
jealousies and disturbing harmonious relations.”
What Is Management? (According To
Fayol)
Fayol's definition of management roles and actions distinguishes
between Five Elements:

⚫ Prevoyance. (Forecast & Plan). Examining the future and drawing up a plan of
action. The elements of strategy.

⚫ To organize. Build up the structure, both material and human, of the


undertaking.

⚫ To command. Maintain the activity among the personnel.

⚫ To coordinate. Binding together, unifying and harmonizing all activity and


effort.

⚫ To control. Seeing that everything occurs in conformity with established rule


and expressed command.
Application ⚫ Change and Organization.

⚫ Decision-making.
Of Fayol’s
⚫ Skills. Can be used to improve the
Principles basic effectiveness of a manager.

⚫ Understand that management


can be seen as a variety of
activities, which can be listed and
grouped.
THANK YOU

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