Henry Fayol is considered the father of modern management. He developed 14 principles of management based on his experience managing a mining company. The principles include division of work, authority and responsibility, discipline, unity of command, centralization vs decentralization, remuneration of employees, order, equity, and stability of personnel. Fayol's principles provide guidelines for managers to effectively organize and lead their teams to accomplish goals.

1. Fayol’s Principles of Management
CENTRAL UNIVERSITY OF HARYANA
B.Tech CSE
TOPIC
Presented by: Nitesh (191917)

2. Points to be covered
❖ Background and history of Fayol
❖ Major Contributions of Fayol
❖ 14 principles
➢ Division of work
➢ Authority and responsibility
➢ Discipline
➢ Unity of Command
➢ Unity of Direction
➢ Subordination of Individual
Interest to Group Interest
➢ Remuneration of employees
➢ Centralization and Decentralization
➢ Scalar Chain
➢ Order
➢ Equity
➢ Initiative
➢ Esprit De Corps
➢ Stability of Tenure

3. Fayol’s Principles of Management
Background and history of Fayol
❖ Henry Fayol was born in France in 1841
❖ He got degree in mining engineering in 1860 and started working as
engineer in a coal mining company.
❖ In 1888, he was promoted as the managing director of the company.
❖ At that time the company was in the situation of insolvency.
❖ He accepted the challenge and applied his managerial techniques to
bring out the company from this situation and he succeeded.
❖ When he retired after 30 years the company was a leading coal-steel
company with financial background.

4. Major Contributions of Fayol
❖ Henry Fayol became famous as- “Father of Management Studies
and Thoughts”, because of the following contributions:
(a) He made clear distinction between technical and managerial skill.
(b) He identified the main steps in the process of management which
are considered the main functions of management- planning,
organising, staffing, directing, controlling
(c) He developed fourteen principle of management which act as
guidelines for managers to perform managerial activities.

5. DIVISION OF WORK
According to this principle, the whole work must be divided into small task or
units and instead of assigning the whole work to one person . One task or job
should be assigned to one person according to the capability , qualification
and experience of the person . When a person is performing a part of job
again and again he will become perfect and specialised in that job and
efficiency will improve . For example an organisation having different
departments.

6. Authority and Responsibility
Authority means power take decision.
Responsibility means obligation to complete the job on time.
So according to principle there should balance and parity b/w authority and
responsibility . Excess of authority may bring negative results and eccess of
responsibility will not allow the worker to complete the work on time. Balance b/w
both of them will result in no misuse of authority and it also helps in meeting
responsibility on tie without any delay.

7. Discipline
Discipline refers to general rules , regulation for systematic working of an
organisation. It doesn't mean only rules and regulation but it also means
developing commitment in the employees towards organisation . It also means
obedience to organisational rules that are necessary for functioning of an
organisation. It includes –
• Good supervision at all level
• Clear and fair agreement
• Application of penalties judiciously
Employees must honor the commitment made by them and management must
meet its promises. On one hand it enforces orderliness and motivates on other
side.

8. Unity of Command
There should be one & only one boss for every individual employees working in an
organisation. If employees get order from 2 superiors at same time then they will
get confused and not able to understand that whose orders must be executed .
Thus unity of command avoids confusion and conflicts. It also helps in harmonious
relations and fixation of responsibility. If this principle is violated then there will be
ego clashes as employees should receive order from one boss only. this principle
helps to create peace in same level and to subordinate.

9. Unity of Direction
Efforts of all the members and employees of an organisation must be directs
towards one direction that is achievement of common goal. This helps in bringing
unity of action and coordination in an organisation. Each department and groups
having common objective must have one head and one plan only. All the units of
an organisation should be moving towards the same objectives through
coordinated and focused efforts. Positive effects are – Achievement of
organisation goal Efforts of all the employees get unified towards one direction
only.

10. Subordination of individual interest to general
interest
The interest of an organisation should take priority over the interest of any
individual employee. If objectives of both organisation and individual are in
different directions then managers must try to reconcile individual interest with
organisation goal and if it is not possible then individual goal must be sacrificed for
achieving organisational goal. Employees are required to give up carelessness,
selfishness, lethargy and personal interest. it ensures no ego clashes as credit goes
to group and coordination between individual and organisation.

11. Remuneration of employees
The overall pay and compensation should be fair to employees and workers to give
them at least a reasonable standard of living. Remuneration paid to employees
must be fair because if employees are unpaid they will not be satisfied and an
unsatisfied person can never contribute his maximum. Dissatisfaction will lead to
increase in employees turnover . This ensures congenial atmosphere b/w the
management and workers. In healthy atmosphere , workers put there best efforts
to contribute maximum. it ensures smooth functioning and motivates them.

12. Centralisation & Decentralisation
Centralisation refers to concentration of authority in few hands at the top level.
Decentralisation means evenly distribution of power at every level of
management. According to fayol, a company must not be completely centralised
or completely decentralised but there must be both depending upon the nature
and size of the organisation. A company must be properly balanced i.e.; it should
not be completely centralised or decentralised. This principle leads to positive
effect that are – I. Fast decision at operational level and strict control by top level
II. Benefits of centralisation as well as decentralisation.

13. Scalar Chain
Scalar chain means line of authority or chain of superiors from highest to lowest
rank. Organisation should have a chain of authority and responsibility that runs
from top to bottom and should be followed by manager. Every info. must pass
through every key of this chain , no skipping of any one key should be allowed. In
case of emergency when information has to be passed so fayol has permitted a
short cut in the chain which is called “ gang – plank”. Gang plank permits direct
communication between the employees working at the same level of authority
without following scalar chain. It leads to systematic flow of chain.

14. Order
People and material must be in suitable place at appropriate time for maximum
efficiency. In other words, there must be orderliness in the organisation a)
Material order – arrangement of things is called material order. It ensures proper
& fixed place for various materials , tools , and equipments. b) Social order –
arrangement of people is referred to as social order. It ensures proper & fixed
place for each employee in an organisation. It results in increase in productivity
and efficiency and smoothly functions without hindrance.

15. Equity
Good sense and experience are needed to ensure fairness to all employees , who
should be treated as fairly as possible. Equity means to be kind, fair , and just
treatment to employees. Employees will put their maximum efforts when they are
treated with kindness and justice. This will ensure loyalty and devotion. There
should be no discrimination against anyone on a/c of sex, religion, language, caste,
belief or nationality. If a manager is biased in dealing with employees then they
will get dissatisfaction and will not contribute to their maximum capacity.
Employees seek to become loyal and devoted if equally treated .

16. Initiative
Workers should be encouraged to develop and carry out their plans for
improvement Initiative means first step with self motivation. Fayol said that
employees must be given an opportunity to take some initiative in making and
executing a plan. so managers must welcome the suggestion and ideas of
employees before framing plan. Employees must be given freedom to come ahead
and use their skills to achieve expected goal. Positive effects are – i. Develops
feeling of belongingness in employees. ii. Employees achieve target on time if they
are set up with their consultation.

17. Espirit De Corps
Management should promote a team spirit of unity and harmony among
employees. In order to achieve organisational goal, mgt should promote team
work and coordination. Espirit De Corps means union is strength. Fayol suggested
that every employee in the organisation must consider him as a part of a team and
try to achieve team goal because team contribution is always better than
individual. The feeling of “I” should be replaced with “WE”. It helps to develop a
feeling of mutual trust and understanding and achieve goal with efficiency and
effectiveness.

18. Stability of Personnel
Employees turnover should be minimized to
maintain organisational efficiency. In an organisation
the employees should be selected and appointed
after following a due and rigorous procedure. Once
they are appointed they should be for fixed period.
Management must provide the feeling of job security
among the employees because with the feeling of
insecurity they can’t contribute to maximum.
Frequent turnover of employees is bad for
organisation and should be done when necessary.
Not only turnover but frequent transfer or rotation
should be avoided as it takes some time for a person
to learn and settle for the job and it also reduces
wastage of time and money

19. Thank you