PPT BY SUMAN CHANDOK BBA-BM

14 PRINCIPALS
Division of work Authority and responsibility Discipline Unity of comand Unity of direction Subordination of individual interest to general interest Remuneration to employees Centralisation and decentralisation Scolar chail (i)Meaning of scolar chain (ii)Fayols opinion (iii)Fayols ladder (iv)Utility (v)Gang plan Order
Equity Stability of personnel Initiative Esprit de crops

Division of work
This principal of Fayol tells us that as far as possible the whole work should be divided into different parts and each part should be assigned only one part of the work according to his ability and taste rather than giving the whole work to one person. When a particular individual performs the same job repeatedly, he will become an expert in doing that particular part of the whole job. Consequently, the benefits of specialization will become available.

Authority and responsibility

According to this principal, authority and responsibility should go hand in hand. It means that when a particular individual is given a particular work and he is made responsible for the results, this can be possible only when he is given sufficient authority to discharge his responsibility. It is not proper to make a person responsible for any work in the absence of authority.

DISCIPLINE
Discipline is essential for any successful work performance. Fayol considers discipline to mean obedience, respect for authority, and observance of established rules. Discipline can be established by providing good supervision at all levels, clearly explaining the rules, and implementing a system of reward and punishment. A manager can present a good example to his subordinates by disciplining himself.

Unity of command
According to the principal the unity of command, an individual employee should receve orders from only superior at a time and that employee should be answerable only to that superior. If there are many superiors giving orders to the same employee, he will not be able to decide as to which order is to be given priority.

Unity of direction
Unity of direction means that there should be one plan for a group of activities having the same objective. In other words, there should be one plan of action for a group of activities having the same objective and there should be only one manager to control them. It is necessary to distinguish between the meaning of unity of command and unity of action. Unity of command means there should be one manager at a time to give command to an employee, while the unity of direction means that there should be only one manager exercising control over all the activities activities having the same objective.

Subordination of individual interest to general interest

The principal can be named priority to general interest over individual interest. According to this principal, the general interest of the organization is above to everything. If one is asked to place individual interest and the general interest will be placed individual interest and the general interest in order of priority, definitely the general interest will be placed at the first place.

Remuneration to employees
Fayol is the opinion that the employees should get a fair remuneration so that the employees and the owners find equal amount of satisfaction. It is the duty of the manager to ensure that everybody is being paid remuneration according to their work. If however, they are not paid properly for there work, they will not do there work with perfect dedication, honesty and capacity.

Centralisation and decentralisation

According to this principal, the superiors should adopt effective centralisation instead of complete centralisation and complete decentralisation. By effective centralisation, Fayol does not mean that authority should be complete centralised. He feels that the superiors should keep the authority of taking important decisions in there own hands, while the authority to take daily decisions of less important should be delegated to the subordinates

Scolar chain
It refers to a formal line of authority which moves from highest to the lowest ranks in a straight line. Fayol opinion: this chain must be followed in a strict manner. It means communication must move from top to bottom and vise verse in a straight line. The important condition here is that no step (post) should be over load during communication principal. Fayol ladder: Fayol has explained this principal with with the help of ladder or double chain as shown in the diagram.

Scolar chail

Utility: Due to more clear system of authority and command, problems can be solved faster. Gang plan: It is the exception of the principal of scolar chain. This concept was develop to establish a direct contact with the employee of equal rank in case of emergency to avoid delay in communication.

Order
According to the principal of order, a right person should be placed at a right job and a right thing should be placed at a right place.

Equity
This principal tells that the managers should treat their subordinates in a just and kind manner so that they develop a feeling of dedication and attraction for their work. All the employees should be treated equally and impartially .fayol tells us in a connection with this principal that there should not be any equality of treatment between a person whose work is really good and a person who is a shirker by nature.

Stability of personnel
From the point of view of management it is absolutely harmful to change the employees frequently as it is a reflection of inefficient management. Therefore, according to this principal there should be stability of tenure of the employees so that the work continues efficiently. Fayol thinks that instability in the tenure of employees is a cause of poor management and results. High rate of labour turnover.

Initiative
Initiative means the capacity to work while expressing ones thought. According to Fayol it is the duty of manager to encourage the feeling of initiative among his employees for doing some work or taking some decisions but with in the limits of authority and discipline.

Esprit de crops
As per this principal, a manager should continuously make efforts to develop a team spirit among the subordinates. To do this, he/she should use the word We instead of I during the conversation with subordinates.