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HENRY FAYOL
UNIVERSAL MANAGEMENT
              PROCESS
      14 PRINCIPLES OF
          MANAGEMENT
         SRCM MUZAFFAR NAGAR



         FACULTY – CHANDRA SHEKHAR PANDEY
• Fayol published Administration Industrielle et
  Générale in 1916.
  • Divided manager’s job into five functions:
     • Planning, organizing, command, coordination, and
       control.
  • Developed 14 universal principles of management.
This principle states that work can be
 performed more efficiently and
 productively if it is divided into smaller
 elements and assigning these specific
 elements to specific workers.. Each
 employee or a group of employee
 performs a specific task.




1. Division of Labour
   Authority is the given power ( based on
    legitimate rule by organization) to an
    official to issue orders to subordinates and
    take work from them. This principle states
    that managers require authority to
    perform their managerial responsibilities.




2. Authority
Discipline is related with regulation of
 behaviour of employees at workplace.
 Without discipline, authority has no meaning;
 there should be someone to obey the orders.
This principle suggests that there is
 requirement of a set of rules and procedures
 aimed at attaining good employee discipline
 and obedience.



3. Discipline
This is the “one man one boss rule”. An
 employee should receive orders from only
 one boss only.

If a worker will receive orders from several
  bosses he will be confused and over
  burdened. Also there will be a problem
  regarding reporting.
.

4. Unity of command
5. Subordination of individual
interests to the organizational
 Employees must sacrifice their personal
interest. for the good of the organization.
  interests
  The organizational goals/ tasks/work
  would be preferred over interest of worker
  or group of workers.
This principle supposes that there should be
 only one plan and only one boss for each
 group of activities having same
 objectives. This is to ensure that the
 organization is pursuing it all activities not
 in contradictory directions but there is
 alignment between activities.




6. Unity of direction
Fair wages work as a good motivation for
 employees. Compensation for work done
 should be reasonable to both – employees
 and organization and it should be
 sufficiently motivational, neither overpaid
 nor underpaid.





7. Remuneration of personnel
   Too much centralization leads to
    ineffectiveness and so does the
    decentralization. There should be a balance
    of centralization and decentralization in
    organizations.

   The best approach to get the balance is top
    management designs the broader
    strategy, policies and middle level and lower
    level of managers interpret and
    operationalise them to work.

8. Centralization
 This principle assumes that there should
  be clear hierarchy in organization from
  top to down. The flow of communication
  must follow the hierarchy that it should be
  strictly vertical.
 Horizontal communication is done only
  when there is urgent need and permission
  from superiors has been obtained.



9. Scalar chain
   Order means doing things in rational and
    logical manner. There should be a place for
    everything and everything should be in its
    place.
   An organization’s materials/resources should
    be at right place at right time
    its employees should be assigned to the jobs
    best suited to them.




10. Order
   Equity means being kind, fair and just to
    your subordinates or employees. Equal
    and fair treatment, impartiality and bias
    free environment promotes employee
    motivation commitment and loyalty.




11. Equity
   Employees perform well when their job is
    secured; they are protected from arbitrary
    dismissals. It is necessary to retain
    employees with organization because high
    turnover rate may result high cost to
    organization and leads to inefficiency.




12. Stability of personnel tenure
   Organizations require managers who
    possess ability to conceive and implement
    new ideas. They should be having ability
    to self start and take on the risk
    independently.




13. Initiative
   The maintainance of high moral and unity
    among employees is an essential thing for
    success of organization.




14. Esperit de corps
◦ The management process can be separated
   into interdependent functions.
 ◦ Management is a continuous process.
 ◦ Management is a largely, though not an
   entirely, rational process.
 ◦ The functional approach is useful because it
   specifies what managers should do.




Lessons from the Universal
Process Approach

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Henry fayol

  • 1. HENRY FAYOL UNIVERSAL MANAGEMENT PROCESS 14 PRINCIPLES OF MANAGEMENT SRCM MUZAFFAR NAGAR FACULTY – CHANDRA SHEKHAR PANDEY
  • 2. • Fayol published Administration Industrielle et Générale in 1916. • Divided manager’s job into five functions: • Planning, organizing, command, coordination, and control. • Developed 14 universal principles of management.
  • 3. This principle states that work can be performed more efficiently and productively if it is divided into smaller elements and assigning these specific elements to specific workers.. Each employee or a group of employee performs a specific task. 1. Division of Labour
  • 4. Authority is the given power ( based on legitimate rule by organization) to an official to issue orders to subordinates and take work from them. This principle states that managers require authority to perform their managerial responsibilities. 2. Authority
  • 5. Discipline is related with regulation of behaviour of employees at workplace. Without discipline, authority has no meaning; there should be someone to obey the orders. This principle suggests that there is requirement of a set of rules and procedures aimed at attaining good employee discipline and obedience. 3. Discipline
  • 6. This is the “one man one boss rule”. An employee should receive orders from only one boss only. If a worker will receive orders from several bosses he will be confused and over burdened. Also there will be a problem regarding reporting. . 4. Unity of command
  • 7. 5. Subordination of individual interests to the organizational Employees must sacrifice their personal interest. for the good of the organization. interests The organizational goals/ tasks/work would be preferred over interest of worker or group of workers.
  • 8. This principle supposes that there should be only one plan and only one boss for each group of activities having same objectives. This is to ensure that the organization is pursuing it all activities not in contradictory directions but there is alignment between activities. 6. Unity of direction
  • 9. Fair wages work as a good motivation for employees. Compensation for work done should be reasonable to both – employees and organization and it should be sufficiently motivational, neither overpaid nor underpaid.  7. Remuneration of personnel
  • 10. Too much centralization leads to ineffectiveness and so does the decentralization. There should be a balance of centralization and decentralization in organizations.  The best approach to get the balance is top management designs the broader strategy, policies and middle level and lower level of managers interpret and operationalise them to work. 8. Centralization
  • 11.  This principle assumes that there should be clear hierarchy in organization from top to down. The flow of communication must follow the hierarchy that it should be strictly vertical.  Horizontal communication is done only when there is urgent need and permission from superiors has been obtained. 9. Scalar chain
  • 12. Order means doing things in rational and logical manner. There should be a place for everything and everything should be in its place.  An organization’s materials/resources should be at right place at right time  its employees should be assigned to the jobs best suited to them. 10. Order
  • 13. Equity means being kind, fair and just to your subordinates or employees. Equal and fair treatment, impartiality and bias free environment promotes employee motivation commitment and loyalty. 11. Equity
  • 14. Employees perform well when their job is secured; they are protected from arbitrary dismissals. It is necessary to retain employees with organization because high turnover rate may result high cost to organization and leads to inefficiency. 12. Stability of personnel tenure
  • 15. Organizations require managers who possess ability to conceive and implement new ideas. They should be having ability to self start and take on the risk independently. 13. Initiative
  • 16. The maintainance of high moral and unity among employees is an essential thing for success of organization. 14. Esperit de corps
  • 17. ◦ The management process can be separated into interdependent functions. ◦ Management is a continuous process. ◦ Management is a largely, though not an entirely, rational process. ◦ The functional approach is useful because it specifies what managers should do. Lessons from the Universal Process Approach