Heneri Fayol (French Industralist):( 1841-1925)
He attempts to systematize the practice of management to provide guidance and direction to manager.
He was the first to focus on management as function: planning, organizing, leading, and controlling, and believed as the core management process. Developed 14 principles of management.
1)DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization. This is because a division of work leads to specialization, and specialization increases efficiency, and efficiency improves the productivity and profitability of the organization.
2)AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility. According to Henri Fayol, there should be a balance between Authority (Power) and Responsibility (Duties). Authority must be equal to Responsibility. If the authority is more than responsibility then chances are that a manager may misuse it. If responsibility is more than authority then he may feel frustrated. (Delegation of authority)
3)DISCIPLINE: A successful organization requires the common effort of workers regarding obedience and respect. Penalties should be applied judiciously to encourage this common effort. Discipline means a respect for the rules and regulation of the organization. Discipline may be Self-discipline, or it may be Enforced discipline. Self-discipline is the best discipline. However, if there is no self-discipline, then discipline should be enforced through penalties, fines, etc. No organization can survive without discipline.
4)UNITY OF COMMAND: Workers should receive orders and instruction from only one manager. According to this principle, a subordinate (employee) must have only one superior (boss or manager). A subordinate must receive orders from only one superior. In other words, a subordinate must report to only one superior. According to Fayol, if one subordinate receives orders from more than one superior then there will be disorder. This will affect the discipline, efficiency, productivity and profitability of the organization.
5)UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction. All activities which have the same objective must be directed by one manager, and he must use one plan. This is called Unity of Direction. For example, all marketing activities such as advertising, sales promotion, pricing policy, etc., must be directed by only one manager. He must use only one plan for all the marketing activities. Fayol advocates "One head and one plan" which means that group efforts on a particular plan be led and directed by a single person. This enables effective co-ordination of individual efforts and energy. This fulfils the principles of unity of command and brings uniformity in the work of same nature. In this way the principle of direction create dedication to purpose and loyalty. It emphasizes the attainment of common goal under one head.
6)SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole. In an organization, there are two types of interest, viz., the individual interest of the employees, and the general interest of the organization. The individual interest should be given less importance, while the general interest should be given most importance.
7)REMUNERATION: Remuneration is the price for services received. Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay. Fairness in remuneration must be assured in accordance with their contribution. This policy should give maximum satisfaction to both employer and employees. It should include both financial and non-financial incentives.
8)CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working. The optimum balance must be found for each organization.
9)SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful. Scalar Chain is a line of authority. This line joins all the members (managers and employees) from top to bottom. Every member must know who is his superior. He must also know who is his subordinate. Scalar Chain is necessary for good communication. Scalar Chain must not be broken in norm circumstances. However, if quick action is necessary, then this chain can be broken.
10)ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible and should be in their proper place. Misplacement will lead to misuse and disorder Putting right thing in right place so that it can be used in right time to get the right output.
11)EQUITY: All employees should be treated as equally as possible. The managers should use the equity while dealing with the employees. Equity is a combination of kindness and justice. There should not be any discrimination as regards caste, sex and religion. An effective management always accords sympathetic and human
treatment. The management should be kind, honest and impartial with the employees. In other words, kindness and justice should be exercised by management in dealing with their subordinates. Equity creates loyalty and devotion in the employees.
12)STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers. An employee needs time to learn his job and to become efficient. Therefore, he should be given time to become
efficient. When he becomes efficient, he should be made permanent. In other words, the employees should have job security.
13)INITIATIVE: Management
should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. Management should encourage initiative. That is, they should encourage the employees to make their own plans and to execute these plans. This is because an initiative gives satisfaction to the employees and brings success to the organization. Under this principle, the successful management provides an opportunity to its employees to suggest their new
ideas, experiences and more convenient methods of work in respect of employee empowerment
14)ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees. Esprit de Corps means "Team Spirit". Therefore, the management should create unity, co-operation and team-spirit among the employees. They should avoid the divide and rule policy
Others:
15.Span of control: The number of subordinate under the immediate supervision of one manger should be limited to manageable number.
16.Management by exception: Focus on selectivity in work and priority in decisions.
17.Shortest decision path: the decisions must be made as closely as possible in time and place to the object of the decision and to those affected by it.