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2.2 Principles of Management 2 - Coggle Diagram
2.2 Principles of Management 2
Fayol's principles of Management
1. Division of work
- work should be divided into small tasks and be done by a specialist or a trained employee
2. Authority & Responsibility
- there should be balance between the two. Authority means the right to give orders and obtain obedience and responsibility means to perform the job assigned on time
3. Discipline
it means obedience to the rules of the organization. Discipline requires good superiors, fair agreements
4. Unity of Command
- an employee should receive orders only from one superior. This prevents confusion regarding tasks to be done
6. Subordination of individual interest to general interest
- the interest of the organization should take priority over interest of an individual
7. Remuneration of Employees
- The employees should be paid fair wages to give them a good standard of living. But it should be within the paying capacity of the organization beeping both employees and employer happy
5. Unity of Direction
- all the departments of an organization should move towards same goals with coordinated efforts. Each division should have one head and one plan without overlap. eg - company making motorycles and cars
Fayol
French Mining Engineer
Personality of Practitioner
Came up with
General Theory of Administration
Perspective on top level of Management
Based on personal experience
Focus on improving overall administration
Believed strongly in Unity of Command
Applicable universally
Fayol's principles of Management
8. Centralization & Decentralization
- there should be a balance between the two. Concentration of decision making authority with the top management is called Centralization. Delegation of authority to different levels of the organization is called decentralization
9. Scalar Chain
- The formal line of authority from highest level to lowest level is called Scalar chain. Communication from top to bottom should follow scalar chain. In an emergency, a shorter route of communication is allowed to avoid delay and is called
Gang Plank
10. Order
- People and material must be in a suitable place at any point of time for maximum efficiency. Principle of order states that "a place for everything and everything in its place
11. Equity
It ensures fairness to all employees by emphasizing kind and just behavior of managers towards workers. There should not be any discrimination based on sex, caste, religion language etc
12. Stability of personnel / employee
- Employees must be recruited after a rigorous selection procedure. But once appointed they should not be moved from their positions frequently. They should be allowed reasonable time to show results
13. Initiative
- Employees should be encouraged to take initiatives for the improvement of the organization
14. Esprit De Corps
- Management should promote team spirit, unity and harmony among employees
Unity of Command
Meaning
- An employee should receive order only from one superior
Aim
- Prevents dual subordination
Implications
- Affects an individual employee
Unity of Direction
Meaning
- Each group pf activities having one goal must have only one head and plan
Aim
- To prevent overlapping of activities
Implication
- It affects the entire organization