Discuss Henry Fayol's 14 Principles of management.

Discuss Henry Fayol's 14 Principles of management.

ANSWER:

The following are the 14 principles of management suggested by Fayol:

i. Division of work - It means that a given task should be divided into small groups or units so that it can be performed in a more competent manner. This principle focuses on work specialisation.

ii. Authority and responsibility - ‘Authority’ means the power to give orders and assign duties, whereas ‘responsibility’ refers to someone’s obligation to perform the assigned duties. According to the principle, managers should strike a balance between power and obligation.

iii. Discipline - The principle says that every organisation should follow certain rules and regulations and ensure conformity to the set rules and policies. The management and the workers should honour their commitments and make fair agreements.

iv. Unity of command - According to the principle of unity of command, an employee should be answerable to only one boss. If an employee receives commands and directions from two or more superiors, then there will be chaos and conflict.

v. Unity of direction - Unity of direction means that each unit of an organisation should work towards the accomplishment of one goal. According to the principle, different units sharing common goals should have a single head and should frame plans and carry out tasks accordingly. This system ensures elimination of overlapping and duplication of work.

vi. Subordination of individual interest to general interest - Organisational goals should enjoy priority over personal interests of any individual. The individuals of an organisation should make sure that their personal interests do not affect the organisational interests in any manner.

vii. Remuneration of employees - Compensation should be fair for the employees and the management. This implies that employees should get fair wages and salaries so that they can have a reasonable and decent standard of living.

viii. Centralisation and decentralisation - Centralisation refers to the consolidation of power and authority in few hands. On the other hand, decentralisation refers to the delegation of authority to more than one level. As per the principle, the management must strike a balance between the areas that need to be decentralised and the responsibilities that need to be retained at the top-level management.

ix. Scalar chain - Scalar chain refers to a pre-defined, formal path of authority and communication in the line of order (from the highest rank to the lowest rank). Every individual in an organisation follows this chain of authority for communication.

x. Order - The principle focuses on the right arrangement of things at their respective places, i.e., ‘the right people at the right place and at the right time’. Order helps in carrying out tasks smoothly, and violation of this principle leads to chaos and delays in work.

xi. Equity - The principle focuses on treating each employee fairly and equally. According to the principle, all employees should be equal in the eyes of the management. All workers should be regarded as equal, irrespective of their religion, language, caste, etc.

xii. Stability of personnel - The principle suggests that the management should follow a rigorous procedure for the selection of potential candidates and work towards retaining employees for as long as possible. This ensures stability of personnel over a longer period.

xiii. Initiative - The principle suggests that workers should be given enough motivation and incentives to work. They should be inspired to come up with suggestions regarding their work, but those suggestions should be in line with the practices and rules of the organisation.

xiv. Espirit de corps - Espirit de corps is a concept that recommends that all employees should work in unity with one another. In other words, team spirit should be promoted by the managers and each employee should feel a sense of belongingness with the organisation.

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