Principles of Management

HIstory of fayol:

Henry fayol was born in 1841. He got degree in mining Engineering in 1860 and started working as engineer in a coal Mining Company. In 1888 he was promoted as the managing director of the company. At that time the company was in the situation of insolvency. He accepted the challenges and applied his managerial techniques to bring out the company from this situation and he succeeded. when he retired after 30 years the company was a leading coal-steel company with strong financial background.

Fayol’s principles of management:

• Division of work:- According to this principle the whole work must be divided in into small tasks or units and instead of assigning the whole to one person one task or unit or work should be assigned to one person according to the capability,qualification and experience of the person. When a person is performing a job again and again he will become perfect and specialised in doing that and the efficiency will improve.
• Authority and responsibility:- Authority means the power to take decisions and responsibility means an oligation to complete that task in the given period of time. So according to this principle there must be a balance between Authority and Responsibility. Excess of authority without matching responsibility may bring negative results and excess of responsibility without matching authority  will not allow the worker to  complete his job on time. There is need to bring parity between the two for the best result.
• Principle of discipline:- Discipline refers to general rules, regulations for systematic working in an organization. Fayol insists that disciplines required at superior as well as subordinates level. The disciplinary rules shall not be applicable only on subrodinate but discipline requires good superiors at every level, clear and fair agreement between superior and subordinates.
• Principle of Unity of Command:- According to this principle an employee should receive orders from one boss only because if he is receiving orders from more than one boss then he will get confused and will not be able to understand that whose orders must be executed first and on the other hand he gets chances of excuse. If there are more bosses it can create problem of ego-clash among the superiors as every superior will want his order must be executed by the employees.
• Unity of Direction:- One unit means one plan. That is the efforts of all the members and employees of the organisation must be directed towards one direction or one common goal of acheivement of organisational goal.
• Remuneration of persons:-The organisation must be paid fairly to give employees maximum satisfaction. The wages given to employees should be fair for employees and for the organisation also. Fair to organisation means it must be within the paying capacity of an organisation. Fair to employees means they get maximum satisfaction with that remuneration.