1. Division of Labour
- Henry Fayol has stressed on the specialization of jobs.
- He recommended that work of all kinds must be divided & subdivided and allotted
to various persons according to their expertise in a particular area.
- Subdivision of work makes it simpler and results in efficiency.
- It also helps the individual in acquiring speed, accuracy in his performance.
- Specialization leads to efficiency & economy in spheres of business.
2. Party of Authority & Responsibility
- Authority & responsibility are co-existing.
- If authority is given to a person, he should also be made responsible.
- In a same way, if anyone is made responsible for any job, he should also have
concerned authority.
- Authority refers to the right of superiors to get exactness from their sub-ordinates
whereas responsibility means obligation for the performance of the job assigned.
- There should be a balance between the two i.e. they must go hand in hand.
- Authority without responsibility leads to irresponsible behavior whereas
responsibility without authority makes the person ineffective.
3. Unity of Direction
- Fayol advocates one head one plan which means that there should be one plan for a
group of activities having similar objectives.
- Related activities should be grouped together. There should be one plan of action for
them and they should be under the charge of a particular manager.
- According to this principle, efforts of all the members of the organization should be
directed towards common goal.
- Without unity of direction, unity of action cannot be achieved.
- In fact, unity of command is not possible without unity of direction.
4. Equity
- Equity means combination of fairness, kindness & justice.
- The employees should be treated with kindness & equity if devotion is expected of
them.
- It implies that managers should be fair and impartial while dealing with the
subordinates.
- They should give similar treatment to people of similar position.
- They should not discriminate with respect to age, caste, sex, religion, relation etc.
- Equity is essential to create and maintain cordial relations between the managers and
sub ordinate.
- But equity does not mean total absence of harshness.
- Fayol was of opinion that, "at times force and harshness might become necessary for
the sake of equity".
5. Order
- This principle is concerned with proper & systematic arrangement of things and
people.
- Arrangement of things is called material order and placement of people is called
social order.
- Material order- There should be safe, appropriate and specific place for every article
and every place to be effectively used for specific activity and commodity.
- Social order- Selection and appointment of most suitable person on the suitable job.
There should be a specific place for everyone and everyone should have a specific
place so that they can easily be contacted whenever need arises.
6. Discipline
- According to Fayol, "Discipline means sincerity, obedience, respect of authority &
observance of rules and regulations of the enterprise".
- This principle applies that subordinate should respect their superiors and obey their
order.
- It is an important requisite for smooth running of the enterprise.
- Discipline is not only required on path of subordinates but also on the part of
management.
- Discipline can be enforced if -
- There are good superiors at all levels.
- There are clear & fair agreements with workers.
- Sanctions (punishments) are judiciously applied.
7. Initiative
- Workers should be encouraged to take initiative in the work assigned to them.
- It means eagerness to initiate actions without being asked to do so.
- Fayol advised that management should provide opportunity to its employees to
suggest ideas, experiences& new method of work.
- It helps in developing an atmosphere of trust and understanding.
- People then enjoy working in the organization because it adds to their zeal and
energy.
- To suggest improvement in formulation & implementation of place.
- They can be encouraged with the help of monetary & non-monetary incentives.
8. Fair Remuneration
- The quantum and method of remuneration to be paid to the workers should be fair,
reasonable, satisfactory & rewarding of the efforts.
- As far as possible it should accord satisfaction to both employer and the employees.
- Wages should be determined on the basis of cost of living, work assigned, financial
position of the business, wage rate prevailing etc.
- Logical & appropriate wage rates and methods of their payment reduce tension &
differences between workers & management creates harmonious relationship and
pleasing atmosphere of work.
- Fayol also recommended provision of other benefits such as free education, medical
& residential facilities to workers.
9. Stability of Tenure
- Fayol emphasized that employees should not be moved frequently from one job
position to another i.e. the period of service in a job should be fixed.
- Therefore employees should be appointed after keeping in view principles of
recruitment & selection but once they are appointed their services should be served.
- According to Fayol. "Time is required for an employee to get used to a new work &
succeed to doing it well but if he is removed before that he will not be able to render
worthwhile services".
- As a result, the time, effort and money spent on training the worker will go waste.
- Stability of job creates team spirit and a sense of belongingness among workers
which ultimately increase the quality as well as quantity of work.
10. Sub-Ordination of Individual Interest to General Interest
- An organization is much bigger than the individual it constitutes therefore interest of
the undertaking should prevail in all circumstances.
- As far as possible, reconciliation should be achieved between individual and group
interests.
- But in case of conflict, individual must sacrifice for bigger interests.
- In order to achieve this attitude, it is essential that -
- Employees should be honest & sincere.
- Proper & regular supervision of work.
- Reconciliation of mutual differences and clashes by mutual agreement. For
example, for change of location of plant, for change of profit sharing ratio, etc.
11. Centralization & De-Centralization
- Centralization means concentration of authority at the top level. In other words,
centralization is a situation in which top management retains most of the decision
making authority.
- Decentralization means disposal of decision making authority to all the levels of the
organization. In other words, sharing authority downwards is decentralization.
- According to Fayol, "Degree of centralization or decentralization depends on no. of
factors like size of business, experience of superiors, dependability & ability of
subordinates etc.
- Anything which increases the role of subordinate is decentralization & anything which
decreases it is centralization.
- Fayol suggested that absolute centralization or decentralization is not feasible. An
organization should strike to achieve a lot between the two.
Kavungya answered the question on May 17, 2019 at 14:03