Fayol’s Administrative Management

Fayol’s Administrative Management

Principles of Fayol's Administrative Management

1.    Division of work

This principle concentrates to distribute working responsibility among the employees. This leads to develop the concept of specialization and efficiency among the workers. The work may be related with technical or managerial levels of an organization. Hence, Fayol recommends the implementation of this principle both in technical and managerial levels of the organization.

2.    Discipline

Discipline means obedience to the superiors and their guide line and concerned to follow the rules, regulations and procedures of the organization. In Fayol’s view, superiors can reasonably expect discipline of subordinate only when they are disciplined. Rules and regulations of the organization must be clear and fair, penalties and punishments for non observation of discipline must be impartial and equal.

3.    Unity of command

Unity of command is one of the most important and useful principle of management. This principle concentrates that a subordinate must get order and instructions only from one superior at a time. It means a subordinate should be accountable to one and only superior at a time.

4.    Feeling of authority and responsibility

Authority and responsibility are two interrelated terms of management. Authority is the power and right inherent in a managerial position through which a manager commands subordinates to work, to achieve organizational objectives.

5.    Unity of direction

It means similarity to guidance. It implies that there should be one head and one plan for a group of activities having the common objectives. Fayol emphasizes on this principle that is group of activities having the same objective must have one head and one plan.

6.    Subordination of individual interest to general interest

Individual interest means fulfillment of employee’s objective whereas general interest means attainment of the organizational goals. This principle emphasizes that the achievement of organizational objectives in the long run contributes to fulfill individual objectives of the employees.

7.    Remuneration of personnel

It is the price payable to the employees for their service towards the achievement of organizational objectives. Fayol has recommended that the remuneration to the personnel must be such that it is acceptable both to the management and employees.

8.    Centralization

Centralization means to reserve decision making authority at the top level management. The maintenance of centralization depends upon the nature and size of the organization and also capability and knowledge of superior and subordinate level managers.

9.    Scalar chain

The scalar chain refers to the unbroken chain of relation ranking from superior to the lowest rank of authority in an organization. This principle is significant for systematic and orderly communication from the top level to the lowest level and vice-versa. It means each level of information is communicated through successive level of the chain either from lower level to top level or vice-versa.

10.    Order

The placement of the material, machine and other physical things in proper place and quantity is material order. This principle is essential to maintain system in the organization and brings smoothness in performance. This principle is essential to ensure, to minimize wastages and brings smoothness in organizational activities.

11.    Equity

This principle concentrates on kindness and justice to all the members of the organization. This is significant to develop the feeling of responsibility and efficiency among all the workers of the organization. Management has to avoid the concept of favoritism and nepotism among the workers.