Ans : In 1916, Henry Fayol(Father of modern management) provided a list of 14 principles in his book titled “industrial and general administration”. Fayol was of the opinion that all mangers in all organizations, whether large or small, need to follow the principles or guideline in managing business affairs.
Watch this video to understand the Henry Fayol’s principles of management.
His 5 management of principles are as follows:
- Division of Work: The work in an organisation must be divided among individuals and departments. Division of work leads to specialization. It results in an improvement in quality, increase in quantity and reduction in cost.
- Authority and responsibility: Fayol stressed that there should be a balance between authority and responsibility. Authority is the power or right to take decisions. The responsibility is the obligation for accepting authority. Authority must be equal to responsibility. If authority is more than responsibility then-manager may misuse it. If responsibility is more than authority then he may feel frustrated.
- Unity Of Command: A subordinate should receive an order from only one superior. In turn, the subordinate should report to only one superior. Fayol observed that if one subordinate receives orders from more than one superior, then everything will be in disorder. Lack of unity of command is like “too many cooks spoil the soup”.
- Unity of Direction: There should be the same directions for all employees doing similar activities. A particular activity must be directed with the help of a simple plan. In the absence of the unity of direction, there would be confusion among the employees.
- Subordination of interest: The interest of an organization should be primary and that of employees or group of employees be secondary. Every employee or group should work in the interest of the organisation and not for their own self-interest.
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