Fayol's Principles

Henry Fayol's Principles of Management

By- Ishaan Taneja

Henry Fayol's ''Theory of Management''

Henry Fayol also known as ' father of modern management theory ' gave a new perception to the concept of management. He introduced a general theory ,which can be applied to all levels of mangement and every department . He gave a total of 14 principles .

Fayol's Principles are

• Division of work- Work should be divided into small tasks ,each performed by a trained employee. This leads to specialization.

• Authority and Responsibility- According to this principle ,an employee must be given authority in hand with responsibility or else the work would not be completed .

• Discipline- Here discipline means that both the workers and managers should follow the organisational rules and employment agreement and should honor their commitment towards each other .

Multiple Choice

According to Henri Fayol, if this principle of general management is violated, "authority is undermined, discipline is in jeopardy, order disturbed and stability threatened." Identify the principle.

• Authority and responsibility

• Discipline

• Unity of command

• Equity

Multiple Choice

Which principle of management leads to specialisation?

• Division of work

• Unity of command

• Unity of direction

• Scalar chain

• Principle of Unity of Command- It states that ,the employee must get orders from a single boss only because if he will get orders from more than 1 boss than he will be confused and get excuses for not doing his work on time.

• Unity of Direction- It states that all the efforts in an organization must be directed towards one common goal. If applied correctly leads to coordination in a organization .

• Principle of Remuneration- It states that the employees in a organization must be paid fairly and adequately to give them maximum satisfaction .

• Principle of Centralization and Decentralization - According to it , a company must not be completely centralized or decentralized but have a combination of both .

• Principle of Scalar chain- According to this, every information must pass through line of authority and there should not be skipping of anyone from this chain.

• Principle of Order- This principle states that there must be a fixed place for everything and everyone in the organization.So no energy is wasted for searching someone or something in the organization.

Multiple Choice

“ Panchayats in our country have been given more powers to decide and spend funds granted to them by the government for welfare of villages. Identify the principle of management highlighted in the statement.

• Equity

• Centralisation and decentralisation

• Authority and Responsibility

• Espirit De corps

• Principle of Equity- this principle states that every employee in an organization must be treated fairly,kindly and be provided with justice whenever necessary irrespective of grade ,position and gender.

• Stability of Tenure of Personnel- It states that the management must provide a sense of security to the person because with feeling of job insecurity an employee is not able to give his hundred percent.Frequent transfers and turnovers must also be avoided.

• Principle of Initiative- It states that before setting up a plan the manager must welcome the suggestions and ideas of employees for their maximum participation,but once plan is made every employee must follow it.

Multiple Choice

____ is defined as getting work done through others.

• Planning

• Management

• Business

• Non of the others

Multiple Choice

Should a management frequently transfer or terminate its employee .

• False

• True

• Subordination of Individual Interest to General Interest- According to this principle the interest of organization must always supersede the goals/interest of employees.The goal of organization must not be sacrificed because individuals will be able to achieve their objective only when organization prospers.

• Principle of Esprit De Corps- It means that union is strength.Fayol suggested that every emplyee in the organization must consider him/her as a part of a team and try to achive the team goal because team's contribution is always better and more than an individual's contribution.

Multiple Choice

Principle of Responsibility and authority insists on

• Responsibility> Authority

• Authority> Responsibility

• Authority= Responsibility

• All of the above

Multiple Choice

Organisation interest supersede employees interest is indicated in

• Principle of subordination of individual interest to general interest

• Principle of Esprit de corps

• Principle of initiative

• Principle of discipline

Multiple Choice

Principle of initiative:

• Boost up the morale of employees

• Brings down the morale of employees

• Does not effect on morale of employees

• None of these

Multiple Choice

Implies the concentration of decision making at the top management

• Remuneration

• Subordination

• Centralization