PRINCIPLE OF MANAGEMENT
Submitted by:- Richa Tiwari
ROLL NO.-:23GSOB1070095
HENRY FAYOL
PRINCIPLE
1.
Divison of Labour:- The division of labor involves dividing the tasks within any organization
2.
Authority & Responsibility: The right to give orders and obedience,” where the worker must be responsible for
into different
teams specialized in those tasks. Ex;- any fast food joint like McDonald’s or Burger King. Here, one person takes the
order, the second person assembles the burger, the third prepares the fries, the fourth person readies the drink, and the
first person serves the entire order.
complying with the order. Both authority and responsibility must be balanced. The managers should be able to ensure
their tasks are being done without fail. Example: A company manager gives his employees the order to go to work the
next day at an item exhibition. Therefore, they are responsible for complying with the request and showing up on
time at said event.
3.
Discipline: The discipline principle of management follows the previous principle and depends on obedience and
compliance with established rules, that is, on behaving correctly. A culture of mutual respect must be created within
teams so that discipline doesn’t feel imposed but should be a part of the organizational flow. Good supervision forms
the base of the discipline. Example: If the employees mentioned in the previous example arrive late or wear an
inappropriate dress to the event, this principle would not be complied with.
4.Unity of Command: The unity of command means that every worker will always receive orders from a single boss or
superior to avoid the duality of information, that is, receiving two contradictory orders and not knowing which one to obey. The
unity of command will help ensure no conflicts of authority. Example: Priya is a secretary in a small family business with two
owners, Raj and Mahesh. Five minutes before the end of his workday, Raj asks her to print some sales reports. Shortly after, Mahesh
tells him she must go to the bank to deposit some checks.
5.Unity of Direction:- Unity of direction suggests that all employees work towards the goal. All activities must be led by a
manager responsible for the plan. Unity of direction is dependent on good organizational skills and planning. There cannot
be unity of command without unity of direction.
Example: Production activities within a production unit should be supervised and managed by one manager, while its
marketing activities, such as advertising, pricing, policy, etc., must be directed by only one manager.
6.Subordination of Individual Interest:- In any organization, the company’s interests must always be privileged over the
particular interests of the owners and employees. This is called subordination of individual interest against the company’s
interest. It will always be necessary to give more importance to what happens in the company than personal issues.
Example: Mini is responsible for meeting with a potential client for an event in a community hall on 10th August. Instead, she used
that community hall to celebrate her birthday party. This way, she not only misses out on a potential client for her company but
also puts her reputation at stake.
7.Remuneration: The salary paid to staff (remuneration) must be equitable, fair, and
guaranteed for all company employees to perform the same task.
Example: A company’s salespeople are paid a 3% commission as a sales award, but a newly
hired employee is paid only 2%. In other words, this principle would not be fulfilled in this
case.
8.Degree of Centralization: Centralization is the concentration of power and decisionmaking in the top hierarchy. In this situation, there is almost no or minor delegation of
tasks or decision-making.
Example: Centralization is very common in SMEs (small and medium-sized enterprises),
where the owners generally make most of the decisions. They do not delegate them or do
not involve middle-management or other employees.
9.Scaler Chain: The scalar chain principle of management suggests that hierarchy is the order in
the command lines from the highest levels. In this hierarchy, the directors and managers are at
the top, the middle managers (bosses and supervisors), and the lower-level employees.
Hierarchy defines authority and responsibility.
Example: The lines of the hierarchy are evident in defense services with different degrees of
importance. For instance, in the army, the hierarchy is as follows – Field marshal, General,
Lieutenant general, Major general, Brigadier, Colonel, Lieutenant colonel, etc.
10. ORDER: THE PRINCIPLE OF ORDER SUGGESTS THAT THERE SHOULD BE A FIXED PLACE FOR
EVERYTHING AND EVERYONE, AND EVERYTHING AND EVERYONE SHOULD BE IN ITS PLACE. THIS
WILL LEAD TO IMPROVED PRODUCTIVITY AND EFFICIENCY.
Example: There is no order for tools and equipment in a company dedicated to manufacturing
auto parts in the workshop. The staff also does not have a fixed place of work assigned, and each
does different tasks without an assigned role. This example defines all the components of the
principle or order.
▶PRINCIPLE
1.
OF FW TAYLOR
Science not the rule of thumb:- This rule focuses on increasing the efficiency of an
organization through scientific analysis of work and not with the ‘Rule of Thumb’ method.
Taylor believed that even a small activity like loading paper sheets into boxcars can be
planned scientifically. This will save time and also human energy. This decision should be
based on scientific analysis and cause and effect relationships rather than the ‘Rule of
Thumb’ where the decision is taken according to the manager’s judgement.
2. HARMONY,
NOT DISCORD:- TAYLOR INDICATED AND BELIEVED THAT THE RELATIONSHIP
BETWEEN THE WORKERS AND MANAGEMENT SHOULD BE CORDIAL AND COMPLETELY HARMONIOUS.
THE DIFFERENCE BETWEEN THE TWO WILL NEVER BE BENEFICIAL TO EITHER SIDE. MANAGEMENT
AND WORKERS SHOULD ACKNOWLEDGE AND UNDERSTAND EACH OTHER’S IMPORTANCE. TAYLOR
ALSO SUGGESTED A MENTAL REVOLUTION FOR BOTH MANAGEMENT AND WORKERS TO ACHIEVE
TOTAL HARMONY.
3.Mental
Revolution:- This technique involves a shift of attitude of management and workers
towards each other. Both should understand the value of each other and work with full participation
and cooperation. The aim of both should be to improve and boost the profits of the organization.
Mental Revolution demands a complete change in the outlook of both the workers and management;
both should have a sense of togetherness.
4.Cooperation, not Individualism:- It is similar to ‘Harmony, not discord’ and believes in mutual
collaboration between workers and the management. Managers and workers should have cooperation
confidence and a sense of goodwill. The main purpose is to substitute internal competition with
cooperation.
5.Development of Every Person to His Greatest Efficiency- The effectiveness of a company
also relies on the abilities and skills of its employees. Thus, implementing training, learning best
practices and technology, is the scientific approach to brush up the employee skills. To ensure that
the training is given to the right employee, the right steps should be taken at the time of selection
and recruiting candidates based on a scientific selection.
PRINCIPLE OF MAX
WEBBER
1)
A Structured Hierarchical Structure:
2)
Rules-Based Management- To exercise control, the company uses rules. Therefore at
In a bureaucratic organization, each level
governs the level below it. Also, the level below it governs it. The foundation of central
planning and centralized decision-making is a formal hierarchy.
higher levels, the lower levels effortlessly execute the decisions made.
3)
Organization of Functional Specialties - Specialists do the job. The company often
breaks workers into groups depending on the type of work they do or the abilities they
possess.