Henri Fayol was a French industrialist. He is also famous for the father of modern management as all his principles are followed by today’s organization all over the world. He was also a renowned author who is famous for his book Industrial and General Administration. In this book he mentioned 14 principles of management.
In Henri Fayol’s Principles of Management you will learn about the 14 golden rules that managers must follow to manage their jobs properly.
1) Division of work
The meaning of division of work is to divide the work among the people of the organization according to their specialization. By doing this the efficiency of the organization will increase and the work will be completed soon. At the same time, it also removes the problem of mistakes because the work is done by the expert person of that work.
For example- An expert teacher of business studies can only teach business studies better than other subjects.
2) Authority and Responsibility
Henri Fayol said that in an organization authority must be equal to responsibility. Authority means the power which is given in the hands of any person. If a person has more authority than responsibility then person can misuse his power and if a person has more responsibility than authority then he will not be able to do his job properly. Therefore when you give work to someone, authority and responsibility should be balanced.
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Discipline means following the guidelines, rules and regulations of the organization properly and doing work according to them. Organization should penalize those people who do not follow the guidelines, rules and regulations of the company properly because if there is no discipline in the organization then the employees will not do their work completely and will become irresponsible towards their work. And due to this type of attitude of the workers, the organization may suffer a lot and it will never be successful.
For example- Company peon is very irresponsible person and never comes on time. Because of that other employees of the company suffer a lot and start their work late. The peon should be punished for this irresponsibility as only the organization is suffering while other workers will get their salary on time whether they start their work late or early. It doesn’t matter.
4) Unity of Command
Unity of command means getting orders from a single master. If there is more than one boss giving orders in an organization, then the person working may become a victim of confusion and may make mistakes in his/her work.
5) Unity of Direction
Unity of direction means that all employees in the organization must have common goals to achieve. If the goal of the workers is different, then the goal of the organization will not be fulfilled. If workers in an organization have different goals they will focus on their own goal rather than the company’s goal.
For example- A company appointed CA for work but CA started misleading the company’s customers for his benefit and started fulfilling his goal instead of fulfilling the company’s goal. The company should take strict action against the CA, so that he can set an example for other employees of the organization as well.
6) Subordination of Individual Interests to General Interests
This rule states that the company should make decisions that involve the benefit of the organization rather than the benefit of a particular person in the organization because the organization is the only thing that can satisfy the wishes of its employees.
For example- The brother of an employee of the company is selling raw material to the company for Rs 50,000 while an unknown person is selling goods of the same quality to the company for Rs 45 thousand. The company should take goods worth 45 thousand because the company is getting a profit of 5 thousand rupees.
Remuneration means salary and wages that a company pays to its employees. This rules says that paying system of an organization should be fair. The employee should feel that he is getting the right salary according to the work he is doing for the organization and the organization should feel that he is paying his employee the right salary according to their work. That is, the people on both sides, the giver of the money and the taker of the money should be satisfied with each other. If the employee feels that he is not getting the money according to his work, then he will leave the job and the company will have to recruit the employee again and he will have to train him for his work. This will cost the company a lot of time.
For example- If a person is giving more time to the company than his stipulated time and is working more hard for the company then the company should give extra money for his work. This will encourage him to work harder for the company and the company will achieve its target sooner.
8) Centralization and Decentralization
Centralization means having all the power in one hand and decentralization means transferring some part of the power to another person. To run the work of the organization well, it is necessary to have balance in both centralized and decentralized power, that is why the one who has all the power should give the some part of his power to the person who is helping him in his work. In decentralization person is accountable to that person from whom he got the power to complete the given work. Accountable means person will be answerable to the person from whom he got the work and power. One thing that is most important in decentralization is that the individual should transfer only as much power as he needs to accomplish the task.
9) Scaler Chain
Scalar chain means following a proper sequence in work. For example- If the employee is facing problem in the organization then he should go to his employer and discuss his problem with him. Thereafter the employer will refer the problem to his superior and this process will continue till the problem reaches its original destination in the company.
If employee feel that his employer is not taking his problem seriously and not taking any action over his problem then he can directly contact the main department of the company where his problem will be solved and this process is known as gang plank where employee direct contact to the main office but for this he should also have to follow sequence system first and after if he feels that employer is not taking him serious then he can follow gang plank.
Order means every thing should be at right place and properly maintain in the organization so that workers will get the things that they required as soon as possible and save their time.
For example- An employee is going to the production department to pick up a product but there everything was scattered and he wasted a lot of his time to find that product. If things had been kept properly, he would have gone there and got the product in less time.
This rule states in organization everybody should be treated as same level of respect. For example- In organization there is a person who is close relative to the manager. Manager should not give his relative more importance than other workers and should treat him like he treat other workers.
12) Stability of tenure of personnel
This rule states that the employee of the company should have a sense of stability and security in the job so that he can do his job properly. If they did not have this feeling, their productivity and efficiency towards the organization will be reduced.
This rule states that organization should encourage the worker to take initiative and develop new things so that they can do their work more efficiently as per their mindset.
14) Esprit de corps
This rule states that we should develop the feelings of care among the people of organization so that they can work together.