Henri Fayol’s Principles of Management
Father of
Modern Management  Henri Fayol (Istanbul, 29 July 1841–Paris, 19 November 1925) |
Division of work in the management process produces more and better
work with the same effort. Various functions of management like
planning, organising, directing and controlling cannot be performed
efficiently by a single proprietor or by a group of directors. They must
be entrusted to specialists in related fields.
As the management consists of getting the work done through others, it
implies that the manager should have the right to give orders and power
to exact obedience. A manager may exercise formal authority and also
personal power. Formal authority is derived from his official position,
while personal power is the result of intelligence, experience, moral
worth, ability to lead, past service, etc. Responsibility is closely
related to authority and it arises wherever authority is exercised. An
individual who is willing to exercise authority, must also be prepared
to bear responsibility to perform the work in the manner desired.
However, responsibility is feared as much as authority is sought after.
Discipline
is absolutely essential for the smooth running of business. By
discipline we mean, the obedience to authority, observance of the rules
of service and norms of performance, respect for agreements, sincere
efforts for completing the given job, respect for superiors, etc. The
best means of maintaining discipline are (a) good supervisors at all
levels, (b) clear and fair agreements between the employees and the
employer, and (c) judicious application of penalties. In fact,
discipline is what leaders make it.
This
principle requires that each employee should receive instructions about
a particular work from one superior only. Fayol believed that if an
employee was to report to more than one superior, he would be confused
due to conflict in instructions and also it would be difficult to
pinpoint responsibility to him.
It means that there should be complete identity between individual and
organisational goals on the one hand and between departmental goals inter-see on the other. They should not pull in different directions.
Subordination of Individual Interest to General Interest In a 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. Hence the
need to subordinate the individual interest to general interest.
According to Henri Fayol's principles of management The
remuneration paid to the personnel of the firm should be fair. It
should be based on general business conditions, cost of living,
productivity of the concerned employees and the capacity of the firm to
pay. Fair remuneration increases workers" efficiency and morale and
fosters good relations between them and the management.
If subordinates are given more role and importance in the management
and organisation of the firm, it is decentralisation. The management
must decide the degree of centralisation or decentralisation of
authority on the basis of the nature of the circumstances, size of the
undertaking, the type of activities and the nature of organisational
structure. The objective to pursue should be the optimum utilisation of
all faculties of the personnel.
Scalar chain means the hierarchy of authority from the highest
executive to the lowest one for the purpose of communication. It states
superior-subordinate relationship and the authority of superiors in
relation to subordinates at various levels. As per this principle, the
orders or communications should pass through the proper channels of
authority along the scalar chain. But in case there is need for swift
action, the proper channels of authority may be short-circuited by
making direct contact (called gang plank) with the concerned authority.
To put things in an order needs effort. Disorder does not need any
effort. It evolves by itself. Management should obtain orderliness in
work through suitable organisation of men and materials. The principle
of "right place for everything and for every man" should be observed by
the management. To observe this principle, there is need for scientific
selection of competent personnel, correct assignment of duties to
personnel and good organisation.
Equity means equality of fair treatment. Equity results from a
combination of kindness and justice. Employees expect management to be
equally just to everybody. It requires managers to be free from all
prejudices, personal likes or dislikes. Equity ensures healthy
industrial relations between management and labour which is essential
for the successful working of the enterprise.
In order to motivate workers to do more and better work, it is
necessary that they should be assured security of job by the management.
If they have fear of insecurity of job, their morale will be low and
they cannot give more and better work. Further, they will not have any
sense of attachment to the firm and they will always be on the lookout
for a job elsewhere.
Initiative means freedom to think out and execute a plan. The zeal and
energy of employees are augmented by initiative. Innovation which is the
hallmark of technological progress, is possible only where the
employees are encouraged to take initiative. According to Fayol.
initiative is one of the keenest satisfactions for an intelligent man to
experience, and hence, he advises managers to give their employees
sufficient scope to show their initiative. Employees should be
encouraged to make all kinds of suggestions to conceive and carry out
their plans, even when some mistakes result.
14. Esprit de Corps
This
means team spirit. Since "union is strength", the management should
create team spirit among the employees. Only when all the personnel pull
together as a team, there is scope for realizing the objectives of the
concern. Harmony and unity among the staff are a great source of
strength to the undertaking. To achieve this. Fayol suggested two
things. One. the motto of divide and rule should be avoided, and two,
verbal communication should be used for removing misunderstandings.
Differences grow more bitter when cleared through written communication.