The Fourteen Principles of

Management- Henri Fayol

Batch:2014
Roll #: 731
Course code:50121106
Course: Principles of
management
Assignment #: A112
 Division of Work. Specialization allows the individual to build up experience, and
to continuously improve his skills. Thereby he can be more productive.
Authority. The right to issue commands, along with which must go the balanced
responsibility for its function.
Discipline. Employees must obey, but this is two-sided: employees will only obey
orders if management play their part by providing good leadership.
Unity of Command. Each worker should have only one boss with no other
conflicting lines of command.
Unity of Direction. People engaged in the same kind of activities must have the
same objectives in a single plan. This is essential to ensure unity and coordination in
the enterprise. Unity of direction does not exist without unity of command but does
not necessarily flow from it.
Subordination of individual interest (to the general interest). Management must
see that the goals of the firms are always paramount.
Remuneration. Payment is an important motivator although by analyzing a number
of possibilities, Fayol points out that there is no such thing as a perfect system.
Centralization (or Decentralization). This is a matter of degree depending on the
condition of the business and the quality of its personnel.
Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But
lateral communication is also fundamental, as long as superiors know that such
communication is taking place. Scalar chain refers to the number of levels in the
hierarchy from the ultimate authority to the lowest level in the organization. It should
not be over-stretched and consist of too-many levels.
 Stability of Tenure of Personnel. Employees work better if job security and career
progress are assured to them. An insecure tenure and a high rate of employee
turnover will affect the organization adversely.
Initiative. Allowing all personnel to show their initiative in some way is a source of
strength for the organization. Even though it may well involve a sacrifice of
personal vanity on the part of many managers.
Esprit de Corps. Management must foster the morale of its employees. He further
suggests that: real talent is needed to coordinate effort, encourage keenness, use
each persons abilities, and reward each ones merit without arousing possible
jealousies and disturbing harmonious relations.
Order. Both material order and social order are necessary. The former minimizes
lost time and useless handling of materials. The latter is achieved through
organization and selection.
Equity. In running a business a combination of kindliness and justice is needed.
Treating employees well is important to achieve equity.
 Bharti airtel limited is a leading global
telecommunications company with operations in 19
countries across Asia and Africa. The company offers
mobile voice & data services, fixed line, high speed
broadband, IPTV, DTH, turnkey telecom solutions for
enterprises and national & international long distance
services to carriers. Bharti Airtel has been ranked among
the six best performing technology companies in the world
by business week. Bharti Airtel has 200 million customers
across its operations.
 Being a telecommunications company that covers almost all the
aspects of communication, it makes it important to have skilled
employees in each department that perform one particular
task with complete commitment. eg a department for
broadband under which there would be sub-departments for
technical, customer relations, marketing etc. Under each
department every employee is given a particular job to which
they have to be completely loyal. This is the form of system of
labour that Bharti Airtel follows.
 In Bharti Airtel authority is passed down to
managers of different departments who are
responsible to control the activities of their
departments. These managers can themselves
create sub-departments and pass down
authority provided they think this will enable
the task at hand to be achieved more
effectively.
 Bharti Airtel does not carry out a authoritarian
form of management but follows a democratic
yet organized form of leadership which
creates a form of discipline among its
employees without the use of force. This shows
how good leadership leads to automatic
discipline.
 Airtel follows a system of specific departments
for specific aspects of the company. This means
that each department has its own head to
which they are answerable. There is no criss
cross of networks.
However all these departments, despite being
different work towards the same main goal
which creates a Unity of Direction.
 At Airtel, the ultimate goal and vision is always
given importance to and is something that they
are proud of. Their vision itself is something
that every employee would want to work
towards because more than a corporate aspect
it touches the emotional aspect too.
The Airtel vision is: by 2015 Airtel will be the
most loved brand enriching the lives of
millions.
 Airtel as of now has not been criticised for
their payment systems. They follow all the
common payment methods of salary, bonus
awards and also fringe benefits depending on
the post.
 Bharti Airtel follows a Decentralised way of
management. Rather than focusing all the
company aspects to one main office and
individual, the company is split into many
branches, outlets and even joint ventures and
also high amount of delegation is carried out.
 The above chart shows the top line of authority
ie. the top level managers. Under these
corporates fall the middle level and low level
managers followed by the general employees.
This shows the a system of hierarchy within
Airtel, but this does not mean that
communication is only top-down. Horizontal
communication also takes place provided it
does not harm overall coordination.
 Airtel follows a strict code of conduct which
each of its employees are expected to follow.
There is a system of rules and regulations
which ensure overall order whether in relation
to a certain business process or in terms of
social order.
 Airtel maintains a know discrimination policy
and as mentioned before has a strict code of
conduct which ensures that no member of Airtel
faces any form of unjust behaviour.
 Airtel does not experience a large employee
turnover except in departments where a large
number of young part time workers are
employed.
Overall Airtel maintains a working environment
apt enough for workers to be satisfied with
their jobs for long periods. Also Airtel ensures
a form of job security and career appraisal
which creates a sense of security around.
Airtel believes in motivating the workforce by
encouraging them to continuously improve and
increase their skills and also creating a sense
of importance for their work.
Airtel also is involved in many social activities
such as the Bharti Foundation for the
underprivileged which also creates a sense of
pride for the employees as they belong to an
organisation that supports a good cause.