{"id":2908,"date":"2019-12-07T14:58:40","date_gmt":"2019-12-07T14:58:40","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2908"},"modified":"2019-12-07T14:58:40","modified_gmt":"2019-12-07T14:58:40","slug":"14-principles-of-management-by-henri-fayol","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/","title":{"rendered":"14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#14_PRINCIPLES_OF_MANAGEMENT_BY_HENRI_FAYOL\" title=\"14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL\">14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#WHAT_ARE_PRINCIPLES_OF_MANAGEMENT\" title=\"WHAT ARE PRINCIPLES OF MANAGEMENT?\">WHAT ARE PRINCIPLES OF MANAGEMENT?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#14_PRINCIPLES_OF_MANAGEMENT_BY_HENRI_FAYOL-2\" title=\"14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL\">14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#DIVISION_OF_WORK\" title=\"DIVISION OF WORK\">DIVISION OF WORK<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#PARITY_BETWEEN_AUTHORITY_AND_RESPONSIBILITY\" title=\"PARITY BETWEEN AUTHORITY AND RESPONSIBILITY\">PARITY BETWEEN AUTHORITY AND RESPONSIBILITY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#DISCIPLINE\" title=\"DISCIPLINE\">DISCIPLINE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#UNITY_OF_COMMAND\" title=\"UNITY OF COMMAND\">UNITY OF COMMAND<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#UNITY_OF_DIRECTION\" title=\"UNITY OF DIRECTION\">UNITY OF DIRECTION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#SUBORDINATION_OF_INDIVIDUAL_INTEREST_TO_GENERAL_INTEREST\" title=\"SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST\">SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#REMUNERATION_OF_PERSONS\" title=\"REMUNERATION OF PERSONS\">REMUNERATION OF PERSONS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#CENTRALISATION_AND_DECENTRALISATION\" title=\"CENTRALISATION AND DECENTRALISATION\">CENTRALISATION AND DECENTRALISATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#PRINCIPLE_OF_SCALAR_CHAIN\" title=\"PRINCIPLE OF SCALAR CHAIN\">PRINCIPLE OF SCALAR CHAIN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#PRINCIPLE_OF_ORDER\" title=\"PRINCIPLE OF ORDER\">PRINCIPLE OF ORDER<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#PRINCIPLE_OF_EQUITY\" title=\"PRINCIPLE OF EQUITY\">PRINCIPLE OF EQUITY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#STABILITY_IN_TENURE_OF_PERSONNEL\" title=\"STABILITY IN TENURE OF PERSONNEL\">STABILITY IN TENURE OF PERSONNEL<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#PRINCIPLE_OF_INITIATIVE\" title=\"PRINCIPLE OF INITIATIVE\">PRINCIPLE OF INITIATIVE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/#ESPIRIT_DE_CORPS\" title=\"ESPIRIT DE CORPS\">ESPIRIT DE CORPS<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"14-principles-of-management-by-henri-fayol\"><span class=\"ez-toc-section\" id=\"14_PRINCIPLES_OF_MANAGEMENT_BY_HENRI_FAYOL\"><\/span> 14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL <span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/02\/download-84-1.jpg\" alt=\"\" class=\"wp-image-5236\"\/><figcaption> 14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL <\/figcaption><\/figure>\n\n\n\n<p class=\"has-normal-font-size\">Henry Fayol was the Frenchman who introduced the General Principles of <a href=\"https:\/\/commerceiets.com\/management\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Management  (opens in a new tab)\">Management <\/a>for the first time during his job as Junior Engineer in a Coal Mining and Iron Foundry Company. 14 Principles of management by Henri Fayol has emerged as a theoretical framework for the managers to enhance their skills. Because of this Henri Fayol is known as \u2018Father of Modern Management\u2019 or \u2018Father of Management Studies and Thoughts\u2019.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"what-are-principles-of-management\"><span class=\"ez-toc-section\" id=\"WHAT_ARE_PRINCIPLES_OF_MANAGEMENT\"><\/span>WHAT ARE PRINCIPLES OF MANAGEMENT?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Principles are the general statements which reflect the\nfundamental truth about some phenomenon based on cause and effect relationship.\nManagement Principles are broad and general guidelines for decision making and\nbehavior of managers.<\/p>\n\n\n\n<p>The <strong>features of principles of management<\/strong> are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Management principles are very flexible.<\/li><li>These are applied with the creativity as these\nprinciples influence the behavior of human being.<\/li><li>Management principles have to keep pace with the\nchanging requirement of business environment.<\/li><\/ul>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"14-principles-of-management-by-henri-fayol\"><span class=\"ez-toc-section\" id=\"14_PRINCIPLES_OF_MANAGEMENT_BY_HENRI_FAYOL-2\"><\/span>14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The 14 principles of management by Henri Fayol are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/12\/Slide3-1.jpg\" alt=\"14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL\" class=\"wp-image-2909\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/12\/Slide3-1.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/12\/Slide3-1-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/12\/Slide3-1-768x576.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><figcaption>14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL<br \/><\/figcaption><\/figure>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"division-of-work\"><span class=\"ez-toc-section\" id=\"DIVISION_OF_WORK\"><\/span>DIVISION OF WORK<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Division of work is also known as Principle of Specialization.\nThis principle states that all the work should be divided into smaller tasks.\nThen the work should be divided on the basis of the qualifications, experience,\nskills and knowledge. This will lead to improved efficiency of the employee in\ncompleting the job. Fayol stated that this principle applies to all kinds of\nwork may it be managerial or technical.<\/p>\n\n\n\n<p><strong>Example:<\/strong> In a bank, one person is appointed to deposit cash, one person is appointed for giving cash, a person is making entry in pass book and one is appointed to listen to customer queries. This will make each and everyone specializes in his work and will lead to effectiveness and efficiency in work.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Whenever work is divided according to the qualification then it will lead to specialization.<\/li><li>When employee is performing only one part of the job then he becomes expert in that and results in less wastage of resources.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/02\/download-86-1.jpg\" alt=\"\" class=\"wp-image-5237\"\/><figcaption> 14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL <\/figcaption><\/figure>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Lack of efficiency<\/li><li>There will be no specialization<\/li><li>Chances of duplication of work.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"parity-between-authority-and-responsibility\"><span class=\"ez-toc-section\" id=\"PARITY_BETWEEN_AUTHORITY_AND_RESPONSIBILITY\"><\/span>PARITY BETWEEN AUTHORITY AND RESPONSIBILITY<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Authority<\/strong> refers to the power of getting things done through others.<\/p>\n\n\n\n<p><strong>Responsibility<\/strong> is the consequence of authority. It refers to duty to get the work done.<\/p>\n\n\n\n<p>Fayol stated that there should be parity between the\nauthority and responsibility of the employee. Authority without responsibility\nleads to its arbitrary use while responsibility without authority will not let\nemployer finish his work on time. So both should be go hand by hand as these\nare co-extensive. To accomplish the goals effectively, adequate authority\nshould be delegated along with responsibility.<\/p>\n\n\n\n<p><strong>Example:<\/strong> A person is given responsibility to produce 100 units of goods without giving him authority to purchase the raw material. This leads to his failure to complete the target of producing 100 units in time as responsibility was given to him without authority.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>No misuse of authority.<\/li><li>Helps in meeting responsibilities on time\nwithout any delay.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Delay in work or in completion of work due to\nlack of authority.<\/li><li>Misuse of authority due to excess delegation of\nauthority.<\/li><li>Overburden with work due to excess responsibility.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"discipline\"><span class=\"ez-toc-section\" id=\"DISCIPLINE\"><\/span>DISCIPLINE<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Discipline is one of the most important 14 Principles of Management by Henri Fayol. It refers to obedience and respect to superiors. It refers to :<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Following code of conduct, rules and regulations\nof employment contract.<\/li><li>Clear and fair agreement among subordinate and\nsuperior.<\/li><li>Meeting commitments at all levels.<\/li><li>Judicious application of penalties.<\/li><\/ul>\n\n\n\n<p>Fayol says, \u201cDISCIPLINE IS WHAT LEADERS MAKE IT\u2019. It may be\nof two types: Self-Discipline and Command discipline. Self Discipline springs\nfrom within the individual and is in the nature of spontaneous response to a\nskillful leader. Command Discipline comes from recognized authority and seeks\nthe observance of rules and regulations.<\/p>\n\n\n\n<p><strong>Example:<\/strong> The employees must honor their commitments towards the organization by working effectively and efficiently. On the other hand, superiors must also meet their commitment by meeting their promises of increments, promotions, wage revisions etc.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Systematic working in the organization.<\/li><li>Improves efficiency.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Disorder, confusion and chaos.<\/li><li>Wastage of resources in absence of discipline.<\/li><li>Delay in work due to absence of rules and\nregulations.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"unity-of-command\"><span class=\"ez-toc-section\" id=\"UNITY_OF_COMMAND\"><\/span>UNITY OF COMMAND<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"299\" height=\"168\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/02\/images-37.jpg\" alt=\"\" class=\"wp-image-5239\"\/><figcaption> 14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL <\/figcaption><\/figure>\n\n\n\n<p>Unity of Command is one of the most important 14 Principles of Management by Henri Fayol. Henry states \u2018Should unity of command be violated, authority is undermined; discipline is in jeopardy, order disturbed and stability threatened. This rule seems fundamental to me; so I have put it to the rank of Principles.\u2019<\/p>\n\n\n\n<p>According to this principle, an employee should receive\norders from one boss only because if he is receiving orders from more than one\nboss then he will get confused and will not be able to understand that whose\norders must be executed first.<\/p>\n\n\n\n<p><strong>Example: <\/strong>If employee of production department is asked to go slow in production to maintain quality standard by the production in charge and sales in charge instructs the employee to fasten the production to meet the pending orders. In this situation, employee will get confused as to whose instructions must be followed by him.<\/p>\n\n\n\n<p><strong>&nbsp;Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>No ego clashes.<\/li><li>No confusion in the mind of subordinate.<\/li><li>Improves effectiveness in working.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Confusion in the mind of the employee.<\/li><li>Subordinate will get chance to escape from his\nresponsibilities by giving excuses.<\/li><li>Ego clashes among the different superiors.<\/li><li>Difficulty in maintaining discipline in the\norganization. <\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"unity-of-direction\"><span class=\"ez-toc-section\" id=\"UNITY_OF_DIRECTION\"><\/span>UNITY OF DIRECTION<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to this principle, \u2018<strong><em>one unit means one plan\u2019<\/em><\/strong>,\nthat is the efforts of all the members and employees of the organization must\nbe directed towards one direction that is the achievement of common goal. Each\ndepartment and a group having common objective must have one head and one plan\nonly.<\/p>\n\n\n\n<p><strong>Example:<\/strong> If an organization is producing different lines of products: cosmetics, medicines and confectionery items each product has its own market and its own business environment. Each division must plan its target and every employee of that division must put his efforts towards he achievement of plan of their division under the direction of one head only.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Achievement of organizational goal.<\/li><li>Efforts of all the employees get unified towards\none direction only.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Lack of coordination.<\/li><li>Wastage of efforts and resources by working in\ndifferent directions.<\/li><li>Difficulty in achieving organizational goal.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"subordination-of-individual-interest-to-general-interest\"><span class=\"ez-toc-section\" id=\"SUBORDINATION_OF_INDIVIDUAL_INTEREST_TO_GENERAL_INTEREST\"><\/span>SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to this principle, there should be reconciliation\nbetween the individual and common interests. If there is any conflict or clash\nbetween the two, the interests of the organization should prevail over the\nindividual interest. <\/p>\n\n\n\n<p>Manager must take all the decisions in the organization by\ngiving priority to organizational interest and not his personal interest. The\nmanager can ensure this by his exemplary behavior by not misusing his authority\nfor personal favors. The agreement between employers and employees should be\nfair and there should be constant vigilance and supervision.<\/p>\n\n\n\n<p><strong>Example: <\/strong>Before buying raw materials the manager must compare the prices and qualities of the entire supplier and give order to best rather than giving order to his own relative by misusing his power.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Achievement of organizational goal.<\/li><li>Coordination between individual and\norganizational goal.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>No achievement of organizational goal.<\/li><li>No Coordination between individual and\norganizational goal.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"remuneration-of-persons\"><span class=\"ez-toc-section\" id=\"REMUNERATION_OF_PERSONS\"><\/span>REMUNERATION OF PERSONS<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"168\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/02\/images-35.jpg\" alt=\"\" class=\"wp-image-5240\"\/><figcaption> 14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL <\/figcaption><\/figure>\n\n\n\n<p>According to this principle employees in the organization\nmust be paid fairly or adequately to give them maximum satisfaction. The\nemployees should be paid fair wages and salaries, which would give at least a\nreasonable standard of living. At the same time it should be within the paying\ncapacity of the company. The fair wage is determined according to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Financial capacity of the concern.<\/li><li>By keeping in mind the minimum wage act of the\nGovernment.<\/li><li>Wages and salaries paid by the competitors.<\/li><\/ul>\n\n\n\n<p>Fayol did not favor profit sharing plan for workers but\nadvocated it for managers. If there is dissatisfaction among the employees\nrelating to wage system of the company, it may lead to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Employee\u2019s poor performance.<\/li><li>Chronic absenteeism<\/li><li>High turnover<\/li><li>Poor communication<\/li><li>Bad attitudes.<\/li><li>Inordinate number of grievances etc.<\/li><\/ul>\n\n\n\n<p><strong>Example:<\/strong> If in a particular year the organization has earned more profit than part from giving extra profit to shareholders and owners, some part of profit must be given to employees also in the form of bonus. This will encourage and motivate to put more efforts and increase the profit of the company.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Employees get motivated.<\/li><li>Devotion and commitment of employees increases.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Increase in turnover of employees.<\/li><li>Dissatisfaction and demotivation of employees.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"centralisation-and-decentralisation\"><span class=\"ez-toc-section\" id=\"CENTRALISATION_AND_DECENTRALISATION\"><\/span>CENTRALISATION AND DECENTRALISATION<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/02\/images-36-1.jpg\" alt=\"\" class=\"wp-image-5241\"\/><figcaption> 14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL <\/figcaption><\/figure>\n\n\n\n<p>Centralization refers to concentration of authority or power\nin few hands at the top level. Decentralization means evenly distribution of\npower at every level of management. According to Fayol, a company must not be\ncompletely centralized or completely decentralized but there must be\ncombination of both depending upon the nature and size of the organization. <\/p>\n\n\n\n<p>In small organization, centralization can be preferred but\nin large organizations, where there is large number of intermediaries, the\ndecentralization should be adopted.<\/p>\n\n\n\n<p><strong>Example:<\/strong> The major decisions and activities of setting up organizational goals, plans, policies, strategies can be centralized but there can be policy of decentralization for the activities of routine work such as purchase of raw materials, fixing targets of workers etc.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Benefits of centralization as well as\ndecentralization.<\/li><li>Fast decisions at operational level and strict\ncontrol by top level.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Complete centralization will result in delay in\ndecision.<\/li><li>Complete decentralization will result in misuse\nof authority.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"principle-of-scalar-chain\"><span class=\"ez-toc-section\" id=\"PRINCIPLE_OF_SCALAR_CHAIN\"><\/span>PRINCIPLE OF SCALAR CHAIN<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Scalar chain means chain of superiors ranging from top management to the lowest rank. This principle focuses that every communication must follow prescribed routes. It can be short circuited only in special circumstances or in emergency situations when its rigid following is feared to be detrimental to the organization. The information should be communicated through gang plank in case of emergency situations. Gang plank permits direct communication between the employees working in different positions without following the scalar chain.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"258\" height=\"195\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/12\/65fab08ca951b8a7d8a18a2279b8eed5.png\" alt=\"SCALAR CHAIN\" class=\"wp-image-2913\"\/><figcaption>14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL<br \/><\/figcaption><\/figure>\n\n\n\n<p><strong>Example: <\/strong>If the employee at lowest level wants to communicate some urgent information to the CEO of the company, he can use the gang plank. But generally workers cannot directly communicate with CEO but through gang plank it is possible.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Systematic flow of information.<\/li><li>No communication gap in the organization.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>There may be communication gap.<\/li><li>No clarity in authority responsibility\nrelationship.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"principle-of-order\"><span class=\"ez-toc-section\" id=\"PRINCIPLE_OF_ORDER\"><\/span>PRINCIPLE OF ORDER<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This principle is related to the arrangement of things and\nplacement of people. Fayol says that there should be proper material and social\norder in the organization. There must be Right man at the Right place and Right\nthing should be at right place. <\/p>\n\n\n\n<p><strong>Example: <\/strong>If the worker is in need of tool he must know which tool room or box it will find. Similarly, if any worker needs guidance from the supervisor he must know the fixed cabin of the supervisor.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>No wastage of time in search of men and\nmaterial.<\/li><li>Smooth and systematic working of an\norganization.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Wastage of time and energy in search of men and\nmaterial.<\/li><li>Not able to contact the people at the right\ntime.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"principle-of-equity\"><span class=\"ez-toc-section\" id=\"PRINCIPLE_OF_EQUITY\"><\/span>PRINCIPLE OF EQUITY<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Equity refers to kind, fair and just treatments to the\nemployees. The superiors should be fair and impartial in their dealings with\nthe subordinates. They should give similar treatment to all the people working\nin the similar positions. Equity helps in creating cordial relations between\nmanagement and workers and brings only loyalty in the organization.<\/p>\n\n\n\n<p><strong>Example: <\/strong>In multinational companies, people of various nationalities work together without any discrimination as we find a person of Indian origin Sunder Pichai became CEO of Google. Sunil Sood became CEO of Vodafone.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Employees get satisfied.<\/li><li>Motivate the employees and boost up the morale\nof the employees.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Dissatisfaction in employees<\/li><li>Increase in turnover<\/li><li>Unhealthy relation between superior and\nsubordinates.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"stability-in-tenure-of-personnel\"><span class=\"ez-toc-section\" id=\"STABILITY_IN_TENURE_OF_PERSONNEL\"><\/span>STABILITY IN TENURE OF PERSONNEL<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Stability of Personnel ensures no frequent termination or\ntransfer of the employees. Fayol was of the view that job security is important\nfor an employee to give his best at the job. High labor turnover is bad for the\norganization. So the management should adopt such policies that make the\nemployees feeling connected to the organization.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Improves efficiency level of the employees.<\/li><li>No wastage of time and resources.<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Wastage of resources in learning the new job.<\/li><li>Frustration and dissatisfaction among employees.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"principle-of-initiative\"><span class=\"ez-toc-section\" id=\"PRINCIPLE_OF_INITIATIVE\"><\/span>PRINCIPLE OF INITIATIVE<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Initiative means doing something without being asked to do.\nIt refers to freedom to think for oneself and use of discretion in doing work.\nFayol says that employees at all levels in the organization should be given the\nopportunity to show initiative and exercise judgment in the formulation and\nexecution of plans. It increases their zeal and energy and encourages them to\nact in an efficient way.<\/p>\n\n\n\n<p><strong>Example: <\/strong>Before setting up of plan, the manager must welcome the suggestions and ideas of employees to allow their maximum participation. But once the plan is made every employee must follow it and implement it.<\/p>\n\n\n\n<p><strong>Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Develops feeling of belongingness in employees.<\/li><li>Employees achieve the target on time if they are\nset up with their consultation. <\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Employees will not work to the best of their ability.<\/li><li>Demotivation among employees.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"espirit-de-corps\"><span class=\"ez-toc-section\" id=\"ESPIRIT_DE_CORPS\"><\/span>ESPIRIT DE CORPS <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is a French phrase which implies that there should be\nspirit of co-operation in the organization. This refers to harmony and mutual\nunderstanding among the members of an organization. Fayol stresses that only\nthose organizations can be successful which act as a team.<\/p>\n\n\n\n<p><strong>Example: <\/strong>If the production manager assigned a target of manufacturing 100 units to a group of 10 members, then each member must contribute the production of 10 units at its own to reach the target. In case any employee falls sick, then remaining must take over its work and finished it well. This will be defined as accomplishment of goal with team work.<\/p>\n\n\n\n<p><strong>&nbsp;Positive effects of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Develops team spirit.<\/li><li>Achievement of group goal<\/li><\/ul>\n\n\n\n<p><strong>Consequences of violation of this principle:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Team goal may not be achieved.<\/li><li>No team spirit and more stress on individualism.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/02\/download-85-1.jpg\" alt=\"\" class=\"wp-image-5242\"\/><figcaption> 14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL <\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>ALSO STUDY:<\/strong><\/td><td><strong>ALSO STUDY:<\/strong><\/td><td><strong>ALSO STUDY:<\/strong><\/td><td><strong>ALSO STUDY:<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/management\/\">Management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-management\/\">Objectives of management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/functions-of-management\/\">Functions of management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-management\/\">Process of management<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/management-is-an-art\/\">Management as an art<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/management-as-a-science\/\">Management as a science<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/management-as-profession\/\">Management as a profession<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-stock-company\/\">Company<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/incentive-plans\/\">Incentive plans<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/\">14 principles of management by Henry Fayol<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/principles-of-scientific-management\/\">Principles of scientific management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scientific-management\/\">Scientific management<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/what-is-work-study\/\">Work study<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/time-study\/\">Time study<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/motion-study\/\">Motion study<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/method-study\/\">Method study<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/planning\/\">Planning<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/importance-of-planning-in-management\/\">Importance of planning in management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/benefits-of-planning-in-business\/\">Advantages of planning in business<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-planning\/\">Process of planning<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/types-of-planning-in-business\/\">Types of planning in business<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/setting-objectives-in-management\/\">Setting objectives in management<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives\/\">Objectives<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/smart-test\/\">SMART test<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/management-by-objectives\/\">Management by objectives<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/policies-in-business\/\">Policies in Business<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/management-and-business-administration\/\">Management and business administration<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/functional-areas-of-management\/\">Functional areas of management<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/limited-liability-partnership\/\">Limited Liability partnership<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-llp-and-company\/\">LLP Vs company<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-llp-and-partnership\/\">LLP vs Partnership<\/a><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"152\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg\" alt=\"14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL\" class=\"wp-image-4836\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg 512w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1-300x89.jpg 300w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><figcaption>14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL\n<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL Henry Fayol was the Frenchman who introduced the General Principles of Management for the first time during his job as Junior Engineer in a Coal Mining and Iron Foundry Company. 14 Principles of management by Henri Fayol has emerged as a theoretical framework for the managers to enhance&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/14-principles-of-management-by-henri-fayol\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2912,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[68],"tags":[],"class_list":["post-2908","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2908"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2908\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2912"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}