BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT

BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management class.

Today, we are going to provide basic fayol’s principles of management  notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSNIESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT

BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT
BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT

In the development of the classical school of management thought, Fayol’s administrative theory provides an important link. While Taylor got changing in the performance of company shop-floor in terms of devising the most suitable system, good day’s work, differential piece-rate way, and functional foremanship; Henri Fayol described what amounts to a manager’s work and what principles should be followed in doing this work. If workers’ performance mattered in the company system, so does managerial performance. Fayol’s participation must be described in terms of the impression that his writings had and continue to have an increase in managerial performances.

Henri Fayol (1841-1925) was a French management scientist whose ideas concerning the scientific organization of workers were generally important at the start of the twentieth century. He graduated from the mining academy of St. Etienne in 1860 in mining engineering. That 19-year-old technician began at the drilling business ‘Compagnie de commentary-Fourchambean-Decazeville, finally working as managing director from 1888 to 1918.

His ideas deal with the method of production in the circumstances of an ambitious company that has to manage its increasing costs. Fayol was the beginning to know four functions of management – Planning, Organizing, Directing, and Controlling although his version was a little different – Plan, Organize, Command, Coordinate, and Control.

According to Fayol, the whole tasks of modern tasks could be classified into Technical; Commercial; Financial; Security: Accounting, and Managerial. He also recommended that features a manager must maintain should be — Physical, Moral, Education, Knowledge, and experience. He thought that the number of management beliefs that force help to develop an organization’s operation is maybe endless.

Mostly based on his own experience, he explained his theory of administration. The 14 principles of management propounded by him were examined in detail in his book issued in 1917, ‘Administration Industrielle et general. It was issued in English as ‘General and Industrial Management in 1949‘ and is popularly considered a foundational work in classical management theory. For his participation, he is also known as the ‘Father of General Management‘. The 14 beliefs of management given by him are:

Division of Work

Work is divided into small tasks/jobs. An educated and qualified specialist is desired to accomplish several jobs. Thus, division of work leads to specialization. According to Fayol, “Division of work means to provide more and better job for the equal energy. The specialization is the most efficient way to use human effort.”

In company job can be achieved more efficiently if it is divided into functional tasks; each performed by an expert or qualified worker. This results in an efficient and effective output. Therefore, in a company, we must separate activities for finance, marketing, production, and human resource development, etc.   All of them have specialized persons. Collectively they manage the production and sales objectives of the organization. Fayol implements this principle of division of work to all varieties of work – technical as well as managerial. You can observe this principle at work in any organization like a hospital or even the government office.

Authority and Responsibility

According to Fayol, “Authority is that the power to produce rules and achieve submission, and duty is that the results of the manager. The two kinds of authority are official authority, which is the authority to order, and individual 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 equality between authority and responsibility. An organization should make security against an abuse of managerial power. At the same time, a manager should have the required authority to take on his responsibility.

Immediately the company provides power to the manager to give a credit limit of only 40 days. The shows that there is an inequality in authority and responsibility. In this case, the manager should be granted authority of offering a credit period of 60 days in the interest of the company.

Similarly, in this example, this manager should not be given the power to offer a credit period of say 100 days because it is not required. A manager should have the power to fix a subordinate for willfully not obeying a genuine order but only after a satisfactory chance has been given to a subordinate for presenting her/his case.

Discipline

Discipline is the obedience to organizational rules and employment contracts which are important for the functioning of the company. According to Fayol, discipline needs good superiors at all levels, clear and fair contracts, and an accurate method of discipline.

Assume that the management and a workers association have joined into an agreement on how workers have accepted to put in extra hours without any extra payment to improve the company out of loss. In return, the management has promised to double the payments of the workers while this mission is achieved. Here, discipline when applied would mean that the workers and management both honor their responsibilities without any prejudice towards one another.

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management class.

Today, we are going to provide basic fayol’s principles of management  notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSNIESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT

Unity of Command

According to Fayol, there should be one and only one manager for each employee. If an employee takes orders from two superiors at an equal time the source of unity of command is broken. The source of unity of command says that each associate in a formal organization should take orders from and be capable to only one superior. Fayol presented a lot of value to this principle. He knew that if this principle is broken “authority is ruined, discipline is at risk, order confused and stability warned”. The principle resembles military organization. Dual subordination should be avoided. This is to restrict confusion regarding responsibilities to be completed. Assume that a salesman is required to secure a deal with a customer and is allotted to provide a 10% discount by the marketing manager. But the finance department knows her/him not to give more than 5% discount. Now there is no unity of command. This can be withdrawn if there is coordination among the several departments.

Unity of Direction

All the units of an organization should be moving towards the same objectives through coordinated and focused efforts. All groups of activities should be the same purpose need to have one manager and one idea. This ensures the unity of action and coordination. For example, if a company is producing bikes as well as cars then it should have two separate parts for both of them. Each division should have its in charge, plans, and execution resources. About no statement should the working of two categories cover? Now let us distinguish among the two principles of unity of command and unity of direction.

Difference Between Unity of Command and Unity of Direction
Difference Between Unity of Command and Unity of Direction

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management class.

Today, we are going to provide basic fayol’s principles of management  notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSNIESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT

Subordination of Individual Interest to General Interest

The interests of an organization should take priority over the interests of anyone individual employee according to Fayol. All workers have some personal interest in working in an organization. The company has got its objectives. For example, the company would want to get maximum output from it. Employees at a competitive cost (salary). On the other hand, an employee may want to get the maximum salary while working the least. In various situations, an individual worker may need some concession, which is not allowed to any different worker like working for a shorter time.

In all the conditions the profits of the group/company will succeed in the interest of anyone individual. This is so because the larger interests of the workers and stakeholders are more important than the interest of anyone person.

For example, the profits of various stakeholders i.e., owners, shareholders, creditors, debtors, financers, tax authorities, customers, and the society at large cannot be sacrificed for one individual or a small group of people who want to use force on the company. A manager can ensure this by her/his exemplary behavior, for example, she/he should not fall into the temptation of misusing her/his powers for individual/ family benefit at the cost of the larger general interest of the workers/ company. This will raise her/his statures in the eyes of the workers and at the same time ensure the same behavior by them. 

Remuneration of Employees

The overall pay and compensation should be good for both workers and the company. The employees should be given good payments, which should give them at least a reasonable standard of living. At the same time, it should be within the paying potential of the organization. In other words, profit should be just and equal. This will ensure a compatible environment and good relations between workers and management. Consequently, the performance of the company would be smooth.

Centralization and Decentralization

The study of decision-making power is called centralization whereas its dispersal between more than one people is known as decentralization. According to Fayol, “There is a request to equal subordinate engagement through the decentralization with executives retention of final power through centralization.” The degree of centralization will depend upon the circumstances in which the company is working. Overall huge companies have more decentralization than small companies. 

For example, panchayats in our country have been given also authorities to decide and contribute funds given to them by the government for the well-being of villages. This is decentralization at the national level.

Scalar Chain

An organization consists of superiors and subordinates. The formal lines of authority from highest to lowest levels are known as a scalar chain. According to Fayol, “Organizations should be a variety of authority and information that operates from upper to lower and should be obeyed by supervisors and the subordinates.”

Let us consider a case where there is one head ‘A’ that has two lines of authority under her/ him. One line consists of B-C D-E-F. Another line of authority under ‘A’ is L-M-N-O-P. If ‘E’ has to communicate with ‘O’ who is at the same level of authority then she/he has to traverse the route E-D-C-B-A-L-M-N-O. This is due to the principle of the scalar chain being followed in this situation. 

According to Fayol, this chain should not be outraged in the ordinary way of formal communication. But, if there is an urgency then ‘E’ can quickly communicate ‘O’ through ‘Gang Plank’ as shown in the diagram. This is a shorter way and has been given so that the information is not delayed. In practice, you find that a worker cannot directly communicate with the CEO of the company. If at all she/he has to, then all the formal levels i.e., foreman, superintendent, manager, director, etc have to know regarding the issue. However, in an emergency, it can be possible that a worker can contact the CEO directly.

Fayol’s Scalar Chain
Fayol’s Scalar Chain

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management class.

Today, we are going to provide basic fayol’s principles of management  notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSNIESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT

Order

According to Fayol “people and stuff must be in proper positions at the relevant period for best performance”. The principle of the order says that “A place for everything (everyone) and everything (everyone) in its (her/his) place’. Essentially it means orderliness. If there is a fixed position for everything and it is already there, then there will be no barrier in the activities of the company/ firm. This will lead to increased productivity and efficiency.

Equity

Excellent sense and knowledge are required to secure due to all workers, they should be treated as fairly as possible, “according to Fayol. This principle indicates kindliness and justice in the behavior of supervisors towards subordinates. This will ensure loyalty and devotion. Fall does not rule out the use of force sometimes. First, he says that slow employees should be sold sternly to convey the information that everyone is similar in the eyes of the management. There should occur no discrimination against anyone on record of sex, religion, language, caste, belief or nationality, etc. In practice, we can observe that nowadays in multinational corporations people of various nationalities work together in a discrimination-free environment. 

Equal chances are possible for everyone in such organizations to grow. Thus, we find Indian-born CEOs such as Rajat Gupta who heads multinationals like Mckinsey Inc. Recently; India-born American Arun Sarin has become CEO of Vodafone limited, a British telecom area.

Stability of Personnel

“Employee turnover should be decreased to keep organizational efficiency” according to Fayol. Employees should be selected and appointed due to the proper and accurate method. Except once elected they should be kept at their designation/ profession for a minimum fixed tenure. They should have the stability of tenure. Everybody should be provided the right time to show results. Every adhocism in this respect will generate instability/insecurity between workers. They would tend to leave the organization. Recruitment selection and training cost will be stability in tenure of personnel is good for the business. 

Initiative

Employees should be inspired to improve and carry out their strategies for changes according to Fayol. Initiative means getting the initial step with self-motivation. It is thinking out and executing the strategy. It is one of the features of an intelligent personality. The initiative should be inspired. But it does not mean going on the organized methods of the business to be different. A reliable organization should have an employee advice system on how initiative/suggestions which result in much cost/time reduction should be compensated.

Espirit De Corps 

Management should support a team spirit of unity and harmony between employees according to Fayol. Management should prefer teamwork, mainly in huge organizations because differently, goals would be tough to understand. This will more result in a lack of coordination. A manager should change T with ‘We’ in all his communications with workers to encourage team spirit. This will give rise to a quality of mutual trust and belongingness between team members. It will too reduce the necessity for using fines.

From the previous analysis, it is clear that Fayol’s 14 principles of management are generally suitable to managerial issues and have figured a great impression on management thought today. Except by the change of conditions in which the company is done, the study of these principles has been exchanged.

For example, authority and responsibility meant allowing managers but now it means empowerment of workers because of even organizational structures that are getting area. We are immediately in a situation to know the modern intentions of Fayol’s principles explained in the accompanying box.

FAYOL VERSUS TAYLOR — A COMPARISON

We are instantly in a situation to relate the participation of both Fayol and Taylor. Both of them have given immensely to the understanding of management, which has formed a basis for more practice by managers. It must be pointed out that their giving is equal to each other. We can get out the following points of difference between their contributions. 

You may also like to have some knowledge of the contributions of Indians to the growth of management knowledge which can be seen in the accompanying box item.

DIFFERENCE BETWEEN HENRI FAYOL AND F.W. TAYLOR
DIFFERENCE BETWEEN HENRI FAYOL AND F.W. TAYLOR

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management class.

Today, we are going to provide basic fayol’s principles of management  notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSNIESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT

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