CLASS-12th BUSINESS CLASS-12th BUSINESS STUDIESSTUDIES

CLASS-12th BUSINESS CLASS-12th BUSINESS STUDIESSTUDIES

Rohit BatraRohit BatraPGT-COMMERCEPGT-COMMERCEK.V.-2 Bikaner.K.V.-2 Bikaner.

PRINCIPLES OF MANAGEMENT

Henri Fayol

Henry Fayol was a French industrialist

In 1860 , he joined as a Engineer and became Managing Director in 1888.

At that time the position of the company was very bad. He faced so many problems to control the company.

After long experience he developed 14 principles of management.

HENRI FAYOL‘THE FATHER OF GENERAL

MANAGEMENT’

There were 14 principles of managementpropounded by him –1.Division of work 2.Authority and Responsibility3.Discipline4.Unity of Command5.Unity of Direction

6.Subordination of Individual Interest to General Interest

7.Remuneration of Employees 8.Centralisation and Decentralization9.Scalar Chain10.Order11.Equity12.Stabillity of Personnel13.Intiative14.Espirit De Corps

Come on MR A,

You have to do that

I’AM FED UP OF THIS

MR A, what

about my report????

?

According to this principle, anemployee should receive ordersfrom only one superior at a time andthat employee should be answerableonly to that superior. If anemployee gets order from twosuperior at that same time theprinciple of unity of command is

violated.The principle of unity of command statesthat each participant in a formalorganization should receive orders fromand the responsible to only 1 superior.

Positive Effect of Unity of Command

There will be no confusion in the mind of Subordinates.

Responsibility can be easily fixed.

Better performance as subordinates receive from one superior only.

If Unity of Command is violated

It creates confusion for the subordinates.

It will be difficult to fix responsibility.

Lack of discipline.

SCALAR CHAINAn organization consists of superior andsubordinates. The formal lines of authority

from highest to lowest ranks are known as SCALAR CHAIN.

According to Fayol, ‘’Organization should have a chain of authority and communication that runs from top to bottom & should be followed by managers and the subordinates.’’

According to Fayol this chain should notbe violated in the normal course of formal communication. If there is anemergency then ‘E’ can directly contact‘O’ through ‘Gang Plank’.

UTILITY: Due to more clear system ofauthority and communication, problemscan be solved faster.

Let us consider a situation where there is one head ‘A’ who 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 scalar chain being followed by this situation.