Managing Change and Innovation
Cha
pter
11
By:Miss: Maham Muzamil
14 PRINCIPLES OF MANAGEMENT
-HENRI FAYOL
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
3
INTRODUCTION
A principle refers to a fundamental truth.
They serve as a guide to thought & actions.
It establishes cause and effect relationship between
two or more variables under given situation.
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
4
These principles are derived:
• On the basis of observation and analysis
• By conducting experimental studies
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
14 PRINCIPLES OF MANAGEMENT
-HENRI FAYOL
5
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
6
DIVISION OF work
stressed on the specialization of jobs
simpler and results in efficiency
helps the individual in acquiring speed, accuracy
in his performance
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
7
Authority & Responsibility
Authority refers to the right of superiors. responsibility means obligation for the performance of the job assigned.
Should be a balanced. Authority- Responsibility = Irresponsible Behavior Responsibility- Authority= Ineffective
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
8
Discipline
Sincerity, Obedience, Respect of Authority & Observance of Rules and Regulations of the Enterprise.
Discipline can be enforced if - -Good superiors
- Clear & fair agreements with worker - Sanctions are judiciously applied
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
9
Unity of command
A sub-ordinate should receive orders and be
accountable to only boss at a time.
a sub-ordinate should not receive instructions
from more than one person
Dual sub-ordination should be avoided
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
10
UNITY OF DIRECTION
Without unity of direction, unity of action cannot be
achieved.
Unity of command is not possible without unity of
direction.
Related activities should be grouped together
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
11
Interest
An organization is much bigger than the individual - Employees should be honest & sincere.
- Proper & regular supervision of work. - Reconciliation of mutual differences
As far as possible, reconciliation should be achieved between individual and group interests.
Case of conflict, individual must sacrifice for bigger interests
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Remuneration
Paid to the workers should be fair of the efforts
Determined on the basis of cost of living, work
assigned etc,
Provision of other benefits such as free education,
medical & residential facilities to workers
12
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Centralization
Centralization-concentration of authority at the top
level
Decreases the role of subordinate is centralization
13
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Scalar Chain
The chain of superiors ranging from the ultimate authority to the lowest
Every orders, instructions etc. has to pass through Scalar chain.
Modified as per the requirements of situations.
14
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Order
• Concerned with proper & systematic
arrangement of things and people.
• Placement of people is called social order.
• Social order-Selection and appointment of
most suitable person on the suitable job
15
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Equity
Paid to the workers should be fair of the
efforts
Provision of other benefits such as free
education, medical & residential facilities to
workers relationship and pleasing
atmosphere of work. 16
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Stability of Tenure
Employees should not be moved frequently from one job position to another
Once they are appointed their services should be served
Time is required for an employee to get used to a new work –fayol
Stability of job creates team spirit& a sense of belongingness among workers
17
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
INITIATIVE
Encouraged to take initiative in the work
assigned to them
Helps in developing an atmosphere of trust
Enjoy working in the organization because it
adds to their zeal and energy
18
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Espirit De’ Corps
It refers to team spirit Inspires workers to work harder Interest of the undertaking in the long run. The managers should infuse team spirit &
belongingness
19
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Espirit De’ Corps following steps should be undertaken
proper co-ordination should be encouraged to develop informal
relations among themselves. create enthusiasm and keenness among
subordinates employees should be rewarded
20
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
21
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
22