1.Division of Work:
·
Work is divided
into small tasks/jobs.
·
A trained specialist
who is competent is required to perform each job.
·
Thus, division of
work leads to specialisation.
·
According to Fayol,
“The intent of division of work is to produce more and better work for the same
effort. Specialisation is the most efficient way to use human effort.”
2. Authority and Responsibility:
According to Fayol, “Authority is the right to give
orders and obtain obedience, and
·
responsibility is the
corollary(attached) of authority.
·
The two types of
authority are official authority, which is the authority to command, and
personal authority which is the authority of the individual manager.”
·
Authority is both
formal and informal . Managers require authority commensurate with their responsibility.
·
There should be a balance
between authority and responsibility.
·
An organisation should
build safeguards against abuse of managerial power.
3. Discipline:
·
Discipline is the obedience
to organisational rules and employment agreement which are necessary for the
working of the organisation.
·
According to Fayol,
discipline requires good superiors at all levels, clear and fair agreements and
judicious application of penalties.
4.Unity of Command:
·
According to Fayol
there should be one and only one boss for every individual employee.
·
If an employee gets
orders from two superiors at the same time the principle of unity of command is
violated.
·
The principle of
unity of command states that each participant in a formal organisation should receive
orders from and be responsible to only one superior.
5.Unity of Direction:
·
All the units of an
organisation should be moving towards
the same objectives through coordinated and focussed efforts.
·
Each group of
activities having the same objective must have one head and one plan.
·
This ensures unity
of action and coordination.
6. Subordination of Individual Interest to General
Interest:
·
The interests of an organisation should take
priority over the interests of any one individual employee according to
Fayol.
·
Every worker has
some individual interest for working in a company. The company has got its own
objectives. For example, the company would want to get maximum output from its employees
at a competitive cost (salary). On the other hand, an employee may want to get maximum
salary while working the least.
·
In any circumstance
the organisation objective should be first priority.
7. Remuneration of Employees:
·
The overall pay and
compensation should be fair to both employees and the organisation.
·
The employees
should be paid fair wages, which should give them at least a reasonable
standard of living.
·
At the same time it
should be within the paying capacity of the company.
8. Centralisation and Decentralisation:
·
The concentration
of decision-making authority is called centralisation (power in few hands) whereas its dispersal
among more than one person is known as decentralisation.
·
According to Fayol,
“There is a need to balance subordinate involvement through decentralisation with
managers’ retention of final authority through centralisation.”
·
The degree of
centralisation will depend upon the circumstances in which the company is
working.
·
In general large
organisations have more decentralisation than small organisations.
9. Scalar Chain:
·
An organisation consists
of superiors and subordinates.
·
The formal lines of
authority from highest to lowest ranks are known as scalar chain.
·
According to Fayol,
“Organisations should have a chain of authority and communication that runs
from top to bottom and should be followed by managers and the subordinates.”
·
In case of urgent
need this chain can be ignored and subordinate can be communicate with each
other.
10.Order:
·
According
to Fayol, “People and materials must be in suitable places at appropriate time
for maximum efficiency.”
·
The
principle of order states that ‘A place for everything (everyone) and
everything (everyone) in its (her/his) place’.
·
Essentially
it means orderliness. If there is a fixed place for everything and it is
present there, then there will be no hindrance in the activities of business/
factory.
11.Equity:
·
Good
sense and experience are needed to ensure fairness to all employees, who should
be treated as fairly as possible
·
This principle
emphasises kindliness and justice in the behaviour of managers towards workers.
·
This will
ensure loyalty and devotion.
12. Stability of Personnel:
·
“Employee turnover
should be minimised to maintain organisational efficiency”, according to Fayol.
·
Personnel should be
selected and appointed after due and rigorous procedure.
·
But once selected they
should be kept at their post/ position for a minimum fixed tenure.
·
They should have
stability of tenure.
·
They should be
given reasonable time to show results.
13.Initative:
·
Workers should be encouraged
to develop and carry out their plans for improvements according to Fayol.
·
Initiative means
taking the first step with self-motivation.
·
it does not mean
going against the established practices of the company for the sake of being different.
·
A good company
should have an employee suggestion system whereby initiative/ suggestions which
result in
substantial cost/time reduction should
be rewarded.
14. Espirit De Corps:
·
Management should
promote a team spirit of unity and
harmony among employees, according to Fayol.
·
Management should
promote teamwork especially in large organisations because otherwise objectives
would be difficult to realise.
·
It will also result
in a loss of coordination.
·
A manager should
replace ‘I’ with ‘We’ in all his conversations with workers to foster team
spirit.
·
This will give rise
to a spirit of mutual trust and belongingness among team members. It will also
minimise the need for using penalties.
