ASSIGNMENT 1

Henri Fayol’s 14 Principles Of Management

1. DIVISION OF WORK
This principle suggests that total work should be sub-divided into smaller parts, which will
lead to specialisation and less wastage.
2. AUTHORITY
Authority means power to take decision. A manager should have authority and a sense of
delegation of authority when assigning work his team members.
3. DISCIPLINE
Discipline is obedience. Discipline can also be termed as dedication towards once work. It is
required in all areas of an organization as well as life. Discipline can be of two types
1. Self-imposed, which comes from within and
2. Command Discipline, which comes from some authority.
4. UNITY OF COMMAND
It means that instructions should come from one authoritative figure only. If there are two
boss then it could create confusion, misunderstanding and conflicts in the organization.
5. UNITY OF DIRECTION
Each group of activity with same objective must have one head and one plan. This helps in
smooth functioning of day-to-day activities.
6. SUBORDINATION OF INDIVIDUAL INTEREST
Interest of organization should take priority over individual interest. If individual and
organization goals are different then manager should try to reconcile them.
7. REMUNARATION
Remuneration should be reasonable and should provide satisfaction to the employees. Job
satisfaction is also considered as an incentive for employees.

8. CENTRALIZATION (or Decentralization)

Centralization or Decentralization in a firm may vary due to several reason. Mostly small
organizations prefer centralization. In decentralization the authority and responsibility is
passed to another capable and experienced personnel.
9. SCALAR CHAIN
This means there should be a chain of authority and of communication ranging from the
highest level to the lowest level. There should not be many levels and it should not be over-
stretched.
10. ORDER
This relates to arrangement of things and people, everything and everyone should be in the
right place. Employees in an organization must have the right resources at their disposal so
that they can function properly in an organization.
11. EQUITY
The management principle of equity often occurs as the core values of an organization. It is a
combination of justice and kindness; it brings loyalty to the organization. Managers should
supervise and monitor this process and they should treat employees fairly and impartially.
12. STABILITY OF TENURE
This states that there should be a reasonable security in work tenure; this stability provides a
sense of satisfaction among the employees. Management strives to minimize employee
turnover and to have the right staff in the right place.
13. INITIATIVE
This principle states that manager should encourage their sub-ordinates to take initiative,
within the limits of authority and discipline. Employees should be allowed to express new
ideas. This encourages interest and involvement and creates benefit for the company.
14. ESPRIT DE CORPS
Managers are responsible for the development of morale in the workplace, individually and
in the area of communication. Esprit de corps contributes to the development of the culture
and creates an atmosphere of mutual trust and understanding.

CONCLUSION

The 14 principles of management are used to manage organizations and are useful tools for
forecasting, planning, process management, organization management, decision-making,
coordination and control. Most of these principles are still used in the current management
practices in organizations. It remains a practical list with focus areas that are based on Henri
Fayol’s research.

The principle, which I find redundant in most of the private organizations, is Stability of tenure
of personnel. Private organisations are driven solely by the work ethics, content and quality
of work input by an employee. They prefer innovation and dedication rather than the tenure
of personnel.

The principle, which I find most relevant, is innovation. Innovation takes us from 0 to 1 as
explained in the Book Zero to One. Any radical change should be welcomed and implemented
in an organization. Sustainability should be the synonym for innovation. With the help of
technology, miracles in organization should be created.

The principle, which I feel the need to inculcate in my life, is disciple. Pursing PGDM has led
me to realize that how important schedules and structures are. Being disciplined will help me
to reach my maximum potential and improve my performance.