2. • Fayol published Administration Industrielle et
Générale in 1916.
• Divided manager’s job into five functions:
• Planning, organizing, command, coordination, and
control.
• Developed 14 universal principles of management.
3. This principle states that work can be
performed more efficiently and
productively if it is divided into smaller
elements and assigning these specific
elements to specific workers.. Each
employee or a group of employee
performs a specific task.
1. Division of Labour
4. Authority is the given power ( based on
legitimate rule by organization) to an
official to issue orders to subordinates and
take work from them. This principle states
that managers require authority to
perform their managerial responsibilities.
2. Authority
5. Discipline is related with regulation of
behaviour of employees at workplace.
Without discipline, authority has no meaning;
there should be someone to obey the orders.
This principle suggests that there is
requirement of a set of rules and procedures
aimed at attaining good employee discipline
and obedience.
3. Discipline
6. This is the “one man one boss rule”. An
employee should receive orders from only
one boss only.
If a worker will receive orders from several
bosses he will be confused and over
burdened. Also there will be a problem
regarding reporting.
.
4. Unity of command
7. 5. Subordination of individual
interests to the organizational
Employees must sacrifice their personal
interest. for the good of the organization.
interests
The organizational goals/ tasks/work
would be preferred over interest of worker
or group of workers.
8. This principle supposes that there should be
only one plan and only one boss for each
group of activities having same
objectives. This is to ensure that the
organization is pursuing it all activities not
in contradictory directions but there is
alignment between activities.
6. Unity of direction
9. Fair wages work as a good motivation for
employees. Compensation for work done
should be reasonable to both – employees
and organization and it should be
sufficiently motivational, neither overpaid
nor underpaid.
7. Remuneration of personnel
10. Too much centralization leads to
ineffectiveness and so does the
decentralization. There should be a balance
of centralization and decentralization in
organizations.
The best approach to get the balance is top
management designs the broader
strategy, policies and middle level and lower
level of managers interpret and
operationalise them to work.
8. Centralization
11. This principle assumes that there should
be clear hierarchy in organization from
top to down. The flow of communication
must follow the hierarchy that it should be
strictly vertical.
Horizontal communication is done only
when there is urgent need and permission
from superiors has been obtained.
9. Scalar chain
12. Order means doing things in rational and
logical manner. There should be a place for
everything and everything should be in its
place.
An organization’s materials/resources should
be at right place at right time
its employees should be assigned to the jobs
best suited to them.
10. Order
13. Equity means being kind, fair and just to
your subordinates or employees. Equal
and fair treatment, impartiality and bias
free environment promotes employee
motivation commitment and loyalty.
11. Equity
14. Employees perform well when their job is
secured; they are protected from arbitrary
dismissals. It is necessary to retain
employees with organization because high
turnover rate may result high cost to
organization and leads to inefficiency.
12. Stability of personnel tenure
15. Organizations require managers who
possess ability to conceive and implement
new ideas. They should be having ability
to self start and take on the risk
independently.
13. Initiative
16. The maintainance of high moral and unity
among employees is an essential thing for
success of organization.
14. Esperit de corps
17. ◦ The management process can be separated
into interdependent functions.
◦ Management is a continuous process.
◦ Management is a largely, though not an
entirely, rational process.
◦ The functional approach is useful because it
specifies what managers should do.
Lessons from the Universal
Process Approach
