Principle of Management

Henry Fayol proposed fourteen management concepts that he found most frequently applied in his work. "There is nothing hard or absolute in managerial matters," he says, "it is all an issue of proportion." As a result, these ideas are adaptable and adaptable to every situation. These are their names:

Division of Work:

It refers to the division of labor among multiple individuals within an organization in order to achieve specialization in each task. Henry Fayol has emphasized the importance of work specialization. He suggested that labor of all kinds be divided and subdivided and assigned to different people based on their expertise in a particular field. Work is simplified and more efficient when it is divided. It also aids individuals in gaining speed and precision in their performance.

Authority and Responsibility:

Authority and accountability coexist. In any management process, authority refers to the power to issue commands to subordinates, but responsibility refers to the obligation to act in the manner requested and directed by superior authorities. Alternatively, it refers to the task that the subordinate is required to perform in any management process. Responsibility must be expressed in terms of either functions or objectives. If someone is given authority, he or she should also be held accountable. Similarly, if someone is given responsibility for work, they should have the necessary authority. There must be a balance between the two, i.e. they must work together. Management's irresponsible behavior is encouraged by the authority without responsibility. Similarly, management is effective when there is accountability but no authority. As a result, authority and responsibility should be balanced.

Discipline:

According to Fayol, "discipline means sincerity, obedience, respect for authority, and adherence to the enterprise's norms and regulations." It is critical for the organization's seamless operation. Discipline can be enforced if: 

• There are excellent superiors at all levels.
• There are clear and equitable agreements with employees.
• Sanctions are used sparingly.

Unity of Command:

This idea emphasizes that for any action or activity, one subordinate should only receive commands from one superior. In other words, the subordinate should not receive orders from more than one source because:

• It determines authority
• Weakens discipline
• Divides loyalty
• Creates confusion
• Delays and create chaos
• Escaping responsibilities
• Duplication of work
• Overlapping of efforts

As a result, dual subordination should be avoided unless absolutely necessary. This principle is essential for avoiding confusion and conflict.

Unity of Direction:

According to the idea of the unity of direction, for a set of activities with the same goal, there should be one leader and one plan. It is the condition required for action unity, strength coordination, and effort concentration. Activities that are related should be categorized together. There should be a single plan of action for them, and they should be overseen by a specific manager. This will aid in achieving the goals under the overall control and supervision of a single person. If this idea is not followed, there will be wasteful duplication of efforts and operational inefficiencies. Unity of action cannot be accomplished without unity of direction.

Subordination of Individual Interest to General Interest:

This principle advocate for the reconciliation of an individual's objectives with those of the organization, and when the interests of the individual and the organization conflict, the latter must triumph.

This indicates that limited, selfish interests should be conquered or changed into the organization's common and wide interests for its wellbeing, such as collective bargaining.

1. An organization is substantially larger than a single person.
2. Individual and group interests should be understood as much as feasible.
3. In a fight, however, people must make sacrifices for the greater good.
4. It is critical for employees to be honest and sincere in order to achieve this attitude.
5. Work must be properly and consistently supervised.
6. Mutual agreement is used to resolve disagreements and confrontations. For example, a charge for the placement of a factory, a change in the profit-sharing ratio, and so on.

Remuneration of Personnel:

The employee must be fully compensated for their services to the organization. Employee remuneration should be just and fair to everyone as much as possible. Wages should be decided based on the cost of living, the work assigned, the business's financial status, the prevailing wage rate, job dangers, efficiency and quality of performance, and so on. Wage rates and payment systems that are logical and appropriate lessen friction and differences between workers and management, resulting in a harmonious relationship and a pleasant work environment.

Equity:

Equity is defined as a blend of fairness, kindness, and justice. If devotion is demanded of employees, they should be treated with decency and justice. Equity is required to establish and sustain amicable relationships between managers and subordinates.

Centralization:

The consolidation of authority at one level of an organization is referred to as centralization. Decentralization, on the other side, is the delegation of authority to lower levels of the organization. The degree of centralization and decentralization is determined by a variety of criteria such as the size of the business, the experience of superiors, the reliability and skill of subordinates, and so on. Management should retain ultimate responsibility, but subordinates should be given sufficient authority to accomplish their jobs properly.

Initiative:

Workers should be encouraged to take initiative in their work. It denotes a desire to take action without being asked. Fayol suggested that management provide employees the opportunity to contribute new ideas, experiences, and work approaches. It aids in the development of a trusting and understanding environment. People appreciate working in the organization since it instills zeal and vitality in them.

Order:

The appropriate and systematic arrangement of things and people is the focus of this idea. Material order refers to the arrangement of things, whereas social order refers to the placing of people.

Stability of Tenure:

Employees should not be shifted frequently from one employment position to another, according to Fayol, and the length of service in a job should be fixed. Fayol claims ” Time is essential for an employee to become acclimated to a new job and succeed to doing it successfully but if the is removed before that she will not be able to offer noteworthy services”. Job stability fosters team spirit and a sense of belonging among employees, ultimately increasing both the quality and quantity of labor.

Scalar Chain:

A scalar chain is defined by Fayol as "the chain of superiors stretching from the highest authority to the lowest." The scalar chain must be traversed by every command, instruction, message, request, explanation, and so on.

‘Espirit De’ Corps:

It refers to team spirit, which is defined as harmony in workgroups and mutual understanding among members. Espirit De Corps motivates employees to work harder. The following procedures should be performed to instill Espirit De Corps:

• Work should be properly coordinated at all levels.
• Subordinates should be encouraged to create informal relationships with one another.
• Efforts should be made to instill passion and eagerness in subordinates so that they can work to their full potential.
• Employees who perform well should be rewarded, while those who fall short should be given the opportunity to improve.
• Subordinates should be made aware that anything they do is critical to the success of the company and society.