Have a problem
staring at your face. Well this article might help you to devise some strategy
to roll out a solution. Today we have access to such a huge amount of resources
to improve our managing skills, thanks to all those researchers who worked so
hard so that we can have ready to use solutions. But what about the managers
who were leading the way forward about 100 years ago??
Managers in the
early 1900s had very few external resources to draw upon to guide and develop
their management practice. But thanks to early theorists like Henri Fayol
(1841-1925), managers began to get the tools they needed to lead and manage
more effectively. Fayol, and others like him, are responsible for building the
foundations of modern management theory.
Fayol's "14
Principles" was one of the earliest theories of management to be created,
and remains one of the most comprehensive. He's considered to be among the most
influential contributors to the modern concept of management, even though people
don't refer to "The 14
Principles" often today.
A principle
refers to a fundamental truth. It establishes cause and effect relationship
between two or more variables under given situation. They serve as a guide to
thought & actions. Therefore, management principles are the statements of
fundamental truth based on logic which provides guidelines for managerial
decision making and actions. These principles are derived:
- On
the basis of observation and analysis i.e. practical experience of
managers.
- By
conducting experimental studies.
There are
14 Principles of Management described by Henri Fayol.
1.
Division of Labor
- Henry Fayol has stressed on the
specialization of jobs.
- He recommended that work of all kinds
must be divided & subdivided and allotted to various persons
according to their expertise in a particular area.
- Subdivision of work makes it simpler
and results in efficiency.
- It also helps the individual in
acquiring speed, accuracy in his performance.
- Specialization leads to efficiency
& economy in spheres of business.
2.
Party of Authority & Responsibility
- Authority & responsibility are
co-existing.
- If authority is given to a person, he
should also be made responsible.
- In a same way, if anyone is made
responsible for any job, he should also have concerned authority.
- Authority refers to the right of
superiors to get exactness from their sub-ordinates whereas
responsibility means obligation for the performance of the job assigned.
- There should be a balance between the
two i.e. they must go hand in hand.
- Authority without responsibility leads to irresponsible behavior whereas responsibility without authority makes the person ineffective.
3. Principle of One Boss
- A
sub-ordinate should receive orders and be accountable to one and only one
boss at a time.
- In
other words, a sub-ordinate should not receive instructions from more
than one person because -
- It
undermines authority
- Weakens discipline
- Divides loyalty
- Creates confusion
- Delays and chaos
- Escaping responsibilities
- Duplication of work
- Overlapping of efforts
- Weakens discipline
- Divides loyalty
- Creates confusion
- Delays and chaos
- Escaping responsibilities
- Duplication of work
- Overlapping of efforts
- Therefore,
dual sub-ordination should be avoided unless and until it is absolutely
essential.
- Unity
of command provides the enterprise a disciplined, stable & orderly
existence.
- It
creates harmonious relationship between superiors and sub-ordinates.
4. Unity of Direction
- Fayol
advocates one head one plan which means that there should be one plan for
a group of activities having similar objectives.
- Related
activities should be grouped together. There should be one plan of action
for them and they should be under the charge of a particular manager.
- According
to this principle, efforts of all the members of the organization should
be directed towards common goal.
- Without
unity of direction, unity of action cannot be achieved.
- In fact, unity of command is not possible without unity of direction.
Basis
|
Unity of command
|
Unity of direction
|
Meaning
|
It implies that a
sub-ordinate should receive orders & instructions from only one boss.
|
It means one head, one
plan for a group of activities having similar objectives.
|
Nature
|
It is related to the
functioning of personnel’s.
|
It is related to the
functioning of departments, or organization as a whole.
|
Necessity
|
It is necessary for fixing
responsibility of each subordinates.
|
It is necessary for sound
organization.
|
Advantage
|
It avoids conflicts,
confusion & chaos.
|
It avoids duplication of
efforts and wastage of resources.
|
Result
|
It leads to better
superior sub-ordinate relationship.
|
It leads to smooth running
of the enterprise.
|
Therefore it is obvious that they are different from each other
but they are dependent on each other i.e. unity of direction is a pre-requisite
for unity of command. But it does not automatically comes from the unity of
direction.
5. Equity
- Equity
means combination of fairness, kindness & justice.
- The
employees should be treated with kindness & equity if devotion is
expected of them.
- It
implies that managers should be fair and impartial while dealing with the
subordinates.
- They
should give similar treatment to people of similar position.
- They
should not discriminate with respect to age, caste, sex, religion,
relation etc.
- Equity
is essential to create and maintain cordial relations between the
managers and sub-ordinate.
- But
equity does not mean total absence of harshness.
- Fayol
was of opinion that, “at times force and harshness might become necessary
for the sake of equity”.
6. Order
- This
principle is concerned with proper & systematic arrangement of things
and people.
- Arrangement
of things is called material order and placement of people is called
social order.
- Material
order- There should be safe, appropriate and specific place for every
article and every place to be effectively used for specific activity and
commodity.
- Social
order- Selection and appointment of most suitable person on the suitable
job. There should be a specific place for every one and everyone should
have a specific place so that they can easily be contacted whenever need
arises.
7. Discipline
- According
to Fayol, “Discipline means sincerity, obedience, respect of authority
& observance of rules and regulations of the enterprise”.
- This
principle applies that subordinate should respect their superiors and
obey their order.
- It
is an important requisite for smooth running of the enterprise.
- Discipline
is not only required on path of subordinates but also on the part of
management.
- Discipline
can be enforced if -
- There
are good superiors at all levels.
- There are clear & fair agreements with workers.
- Sanctions (punishments) are judiciously applied.
- There are clear & fair agreements with workers.
- Sanctions (punishments) are judiciously applied.
8. Initiative
- Workers
should be encouraged to take initiative in the work assigned to them.
- It
means eagerness to initiate actions without being asked to do so.
- Fayol
advised that management should provide opportunity to its employees to
suggest ideas, experiences& new method of work.
- It
helps in developing an atmosphere of trust and understanding.
- People
then enjoy working in the organization because it adds to their zeal and
energy.
- To
suggest improvement in formulation & implementation of place.
- They
can be encouraged with the help of monetary & non-monetary
incentives.
9. Fair Remuneration
- The
quantum and method of remuneration to be paid to the workers should be
fair, reasonable, satisfactory & rewarding of the efforts.
- As
far as possible it should accord satisfaction to both employer and the
employees.
- Wages
should be determined on the basis of cost of living, work assigned,
financial position of the business, wage rate prevailing etc.
- Logical
& appropriate wage rates and methods of their payment reduce tension
& differences between workers & management creates harmonious
relationship and pleasing atmosphere of work.
- Fayol
also recommended provision of other benefits such as free education,
medical & residential facilities to workers.
10. Stability of Tenure
- Fayol
emphasized that employees should not be moved frequently from one job
position to another i.e. the period of service in a job should be fixed.
- Therefore
employees should be appointed after keeping in view principles of
recruitment & selection but once they are appointed their services
should be served.
- According
to Fayol. “Time is required for an employee to get used to a new work
& succeed to doing it well but if he is removed before that he will
not be able to render worthwhile services”.
- As
a result, the time, effort and money spent on training the worker will go
waste.
- Stability
of job creates team spirit and a sense of belongingness among workers
which ultimately increase the quality as well as quantity of work.
11. Scalar Chain
- Fayol
defines scalar chain as ’The chain of superiors ranging from the ultimate
authority to the lowest”.
- Every
orders, instructions, messages, requests, explanation etc. has to pass
through Scalar chain.
- But,
for the sake of convenience & urgency, this path can be cut shirt and
this short cut is known as Gang Plank.
- A Gang
Plank is a temporary arrangement between two different points to
facilitate quick & easy communication as explained below:
In the figure given, if D has to communicate with G he will first
send the communication upwards with the help of C, B to A and then downwards
with the help of E and F to G which will take quite some time and by that time,
it may not be worth therefore a gang plank has been developed between the two.
- Gang
Plank clarifies
that management principles are not rigid rather they are very flexible.
They can be moulded and modified as per the requirements of situations
12. Sub-Ordination of
Individual Interest to General Interest
- An
organization is much bigger than the individual it constitutes therefore
interest of the undertaking should prevail in all circumstances.
- As
far as possible, reconciliation should be achieved between individual and
group interests.
- But
in case of conflict, individual must sacrifice for bigger interests.
- In
order to achieve this attitude, it is essential that -
- Employees
should be honest & sincere.
- Proper & regular supervision of work.
- Reconciliation of mutual differences and clashes by mutual agreement. For example, for change of location of plant, for change of profit sharing ratio, etc.
- Proper & regular supervision of work.
- Reconciliation of mutual differences and clashes by mutual agreement. For example, for change of location of plant, for change of profit sharing ratio, etc.
13. Espirit De’
Corps (can be achieved through unity of command)
- It
refers to team spirit i.e. harmony in the work groups and mutual
understanding among the members.
- Spirit
De’ Corps inspires workers to work harder.
- Fayol
cautioned the managers against dividing the employees into competing
groups because it might damage the moral of the workers and interest of
the undertaking in the long run.
- To
inculcate Espirit De’ Corps following steps should be undertaken -
§ There
should be proper co-ordination of work at all levels
§ Subordinates
should be encouraged to develop informal relations among themselves.
§ Efforts
should be made to create enthusiasm and keenness among subordinates so that
they can work to the maximum ability.
§ Efficient
employees should be rewarded and those who are not up to the mark should be
given a chance to improve their performance.
§ Subordinates
should be made conscious of that whatever they are doing is of great importance
to the business & society.
- He
also cautioned against the more use of Britain communication to the
subordinates i.e. face to face communication should be developed. The
managers should infuse team spirit & belongingness. There should be no
place for misunderstanding. People then enjoy working in the organization
& offer their best towards the organization.
14. Centralization &
De-Centralization
- Centralization
means concentration of authority at the top level. In other words,
centralization is a situation in which top management retains most of the
decision making authority.
- Decentralization
means disposal of decision making authority to all the levels of the
organization. In other words, sharing authority downwards is
decentralization.
- According
to Fayol, “Degree of centralization or decentralization depends on no. of
factors like size of business, experience of superiors, dependability
& ability of subordinates etc.
- Anything
which increases the role of subordinate is decentralization &
anything which decreases it is centralization.
- Fayol
suggested that absolute centralization or decentralization is not
feasible. An organization should strike to achieve a lot between the two.
These are the gems of the management. One should be well versed with these principles to become a successful leader.
14 Steps is interesting .. It is the way you captured somebody else attention .. to say what you want to share.. good luck..
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DeleteThank You Sir! :)
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