. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience.
Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.
DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort. UNITY OF COMMAND: Workers should receive orders from only one manager. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole.
REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.
SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.
ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible. EQUITY: All employees should be treated as equally as possible. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.
MANAGEMENT INNOVATIONS [email protected]; [email protected]; 12. The words management is very necessary to any business organization because, it involve the following function, planing, organizing, leading and control the effort of orders to perform a task, in going into any business in this world, you require plan without planing you cannot even organize without organizing they is not nothing to lead and without all these you have no any business to idea to run. Therefore, management as the name implies is very necessary in all aspect of any business one has to engage his/her self into.
This article explains the administrative theory of the 14 Principles of Management by in a practical way. After reading you will understand the basics of this powerful management tool. Introduction 14 principles of Management In the last century, organizations already had to deal with management in practice. In the early 1900s, large organizations, such as production factories, had to be managed too. At the time there were only few (external) management tools, models and methods available.
Thanks to scientists like (1841-1925) the first foundations were laid for modern. These first concepts, also called principles of management are the underlying factors for successful management. Explored this comprehensively and, as a result, he synthesized the 14 principles of management. ‘s principles of management and research were published in the book ‘ General and Industrial Management’ (1916). 14 Principles of Management of Henri Fayol 14 principles of Management are statements that are based on a fundamental truth. These principles of management serve as a guideline for decision-making and management actions. They are drawn up by means of observations and analyses of events that managers encounter in practice.
Was able to synthesize 14 principles of management after years of study, namely: 1. Division of Work. In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas (from generalist to specialist). Personal and professional developments support this. According to specialization promotes efficiency of the workforce and increases productivity.
In addition, the specialization of the workforce increases their accuracy and speed. This management principle of the 14 principles of management is applicable to both technical and managerial activities. Authority and Responsibility In order to get things done in an organization, management has the authority to give orders to the employees.
Of course with this authority comes responsibility. According to, the accompanying power or authority gives the management the right to give orders to the subordinates. The responsibility can be traced back from performance and it is therefore necessary to make agreements about this. In other words, authority and responsibility go together and they are two sides of the same coin. Discipline This third principle of the 14 principles of management is about obedience.
It is often a part of the core values of a in the form of good conduct and respectful interactions. This management principle is essential and is seen as the oil to make the engine of an organization run smoothly. Unity of Command The management principle ‘Unity of command’ means that an individual employee should receive orders from one manager and that the employee is answerable to that manager. If tasks and related responsibilities are given to the employee by more than one manager, this may lead to confusion which may lead to possible conflicts for employees. By using this principle, the responsibility for mistakes can be established more easily.
Unity of Direction This management principle of the 14 principles of management is all about focus and unity. All employees deliver the same activities that can be linked to the same objectives.
All activities must be carried out by one group that forms a team. These activities must be described in a plan of action. The manager is ultimately responsible for this plan and he monitors the progress of the defined and planned activities.
Focus areas are the efforts made by the employees and coordination. Subordination of Individual Interest There are always all kinds of interests in an organization. In order to have an organization function well, indicated that personal interests are subordinate to the interests of the organization (ethics). The primary focus is on the organizational objectives and not on those of the individual. This applies to all levels of the entire organization, including the managers. Remuneration Motivation and productivity are close to one another as far as the smooth running of an organization is concerned.
This management principle of the 14 principles of management argues that the remuneration should be sufficient to keep employees motivated and productive. There are two types of remuneration namely non-monetary (a compliment, more responsibilities, credits) and monetary (compensation, bonus or other financial compensation). Ultimately, it is about rewarding the efforts that have been made. 8. The Degree of Centralization Management and authority for decision-making process must be properly balanced in an organization. This depends on the volume and size of an organization including its hierarchy. Centralization implies the concentration of decision making authority at the top management (executive board).
Sharing of authorities for the decision-making process with lower levels (middle and lower management), is referred to as decentralization. Indicated that an organization should strive for a good balance in this. Scalar Chain Hierarchy presents itself in any given organization. This varies from senior management (executive board) to the lowest levels in the organization. ’s “hierarchy” management principle states that there should be a clear line in the area of authority (from top to bottom and all managers at all levels). This can be seen as a type of management structure.
Each employee can contact a manager or a superior in an emergency situation without challenging the hierarchy. Especially, when it concerns reports about calamities to the immediate managers/superiors.
Order According to this principle of the 14 principles of management, employees in an organization must have the right resources at their disposal so that they can function properly in an organization. In addition to social order (responsibility of the managers) the work environment must be safe, clean and tidy. 11. Equity The management principle of equity often occurs in the core values of an organization. According to, employees must be treated kindly and equally.
Employees must be in the right place in the organization to do things right. Managers should supervise and monitor this process and they should treat employees fairly and impartially. 12. Stability of Tenure of Personnel This management principle of the 14 principles of management represents deployment and managing of personnel and this should be in balance with the service that is provided from the organization.
Management strives to minimize employee turnover and to have the right staff in the right place. Focus areas such as frequent change of position and sufficient development must be managed well. 13. Initiative argued that with this management principle employees should be allowed to express new ideas. This encourages interest and involvement and creates added value for the company. Employee initiatives are a source of strength for the organization according to. This encourages the employees to be involved and interested. Esprit de Corps The management principle ‘esprit de corps’ of the 14 principles of management stands for striving for the involvement and unity of the employees.
Managers are responsible for the development of morale in the workplace; individually and in the area of communication. Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding. In conclusion on the 14 Principles of management The 14 principles of management can be used to manage organizations and are useful tools for forecasting, planning, process management, organization management, decision-making, coordination and control.
Although they are obvious, many of these matters are still used based on common sense in current management practices in organizations. It remains a practical list with focus areas that are based on ’s research which still applies today due to a number of logical principles.
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. Division of Labor.
Henri 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. 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. 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. 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. 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.
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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 personnels. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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.
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People then enjoy working in the organization & offer their best towards the organization. Centralization & De-Centralization.
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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.
PRINCIPLES OF MANAGEMENT lecture notes. 1. UNIT I OVERVIEW OF MANAGEMENT Definition - Management - Role of managers - Evolution of Management thought - Organization and the environmental factors – Trends and Challenges of Management in Global Scenario. 1. Management - as how the mind controls the human body and its function similar management (mind) controls the various activities ( human body) in the Organisation - Collection of physical equipments, 4 M’s in Organisation – Men, Machine, Materials, Money, and leads to nothing. For efficient and profitable functioning it is necessary that all these factors are put to work in a co- ordinated manner. Management Definition Management is the art of getting things done through others.
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