What are the fourteen principles of management by Henri Fayol?

A principle provides the best direction. A principle is a basic statement that provides understanding and guidance to thinking and action.
In management, it gives us predicting what would happen if the principles were applied.
There are two types of principles they are like:-

• Descriptive
• Prescriptive

A descriptive principle merely describes the relationship between the variables.
A prescriptive or normative principle is stated to indicate what a manager should do.

Management principles are an integral part of management science. For effectively perform managerial functions we should need to understand the principles of management.

Principles are the guidelines to the manager for making a decision and taking action. Principles of management have been formulated on the basis of …

• Scientific observation
• Research and analysis
• Experience of executives in managing various situations

The classical management authors, such as F. W. Taylor, Henri Fayol, and Urwick etc…
But the most famous and the easiest content are given by the Henri Fayol. The fourteen principles of general management are like:-

1. Division of Work: - according to this principle, to divide work among various departments and employees, according to required abilities and skills as to get the benefit of specialization. 
2. Authority and Responsibility: - power or authority gives the rights to the management to give orders to subordinates. Authority and responsibility are the two sides of a coin. More authority may result in misutilisation or underutilization of it.
3. Discipline: - it implies compliance – the rules and the responsibilities of an organisation which are fellows by the workers, superior and co-operation.
4. Unity of Command: - according to this principle, one subordinate should get an order from one superior at a particular time. It helps in maintaining disciplines among employees, controlling their activities, fixing responsibility and not allowed them to sidetrack responsibility. 
5. Unity of Direction: - all activities of employees are linked with the objectives. All activities related to common goals should be included in a single plan, to be implemented by a particular manager. 
6. Subordination of Individual’s Interest to Interest of Organisation: - employees should sacrifice his personal interest and goals for accomplishing common goals of the organisation. The primary focus is on the organizational objectives and not on those of the individuals. Managers also follow this.
7. Remuneration: - there are two types of remuneration namely non-monetary (a compliment, more responsibilities, credits) and monetary (compensation and bonus). Employees should be paid fairly and reasonably in accordance with their contribution.
8. Centralisation: - the relationship between centralisation and decentralisation of authority is a matter of proportion and optimum balance which should be maintained according to the needs of the organisation. This depends on the volume and size of an organisation including its hierarchy.
9. Scalar Chain: - the scalar chain is the authority in an organisation from top to the lowest level. This can be seen as a type of management structure. It is known as a scalar chain because all employees are attached to it in the relationship between superior and subordinate.
10. Order: - for smooth flow of work and efficient use of resources material, machine tools equipment, etc. as well as employees should be in their prescribed proper place and order. 
11. Equity: - the principle of equity suggests that similar treatment based on the principles of equity fairness and impartially should be assured to all employees working in the organisation. Employees must be in the right place in the organisation to do things right.
12. Stability of Tenure of Personnel: - since people need time to learn their jobs; therefore they should not be allowed to move frequently from one position to another.
13. Initiative: - according to this principle, employees should be allowed to express new ideas. Employees should be provided with an opportunity to develops and use initiatives for solving work-related problems. This encourages the employees to be involved and interested.
14. Esprit-de-corps: - this stands for the unity and involvement of the employees. It implies to build team spirit among the employees so that they work in a harmonious manner with proper mutual understanding. 

Conclusion: - the 14 principles of management can be used to manage organizations and are useful tools for forecasting, planning, process management, organisation management, decision-making, coordination and control.




Happy reading :)

What are the three levels of management?

The three levels of management are the best structure of business organisation.

Every management has many managerial positions in its structure. These positions are created through the process of delegation of authority from top to lower levels. Each position is marked by authority, responsibility, functions, roles and relationships.

Broadly speaking, an organisation has two important levels of management, namely, functional and operative.

Functional level is concerned with the process of

• Determining primary objectives
• Formulating basic policies
• Making vital decisions
• Controlling and coordinating activities of personnel

Operative level of management is related to

• Implementation of plans and decisions
• The pursuit of basic policies for achieving of the organisation

(i) Top level management 

Generally, ownership group occupied the top level management. In a joint stock company, equity shareholders are the real owners of the company.

The main functionaries in this level are included managing director, general manager or chief executive, to help directors.
The top level managers are the responsible for overall management of the organisation.

Functions of Top Level Management

• To decide corporate goals
• To make a corporate plan for the entire organisation covering all areas of operations
• To design structure of organisation, creating various positions therein
• To formulate basic policies and providing direction and leadership to the organisation as a whole
• To coordinate various sub-systems of the organisation
• To select key officials and executives for the company
• To decide about the profitability and growth of the organisation such as introduction of new product, shifting to new technology and opening new plant etc.
• To exercise overall managerial control through the process of reviewing overall financial and operating results
• To make decisions regarding disposal and distribution of profits
• To maintain cooperation with outside parties having a stake in business such as government. Trade union and trade associations etc.

(ii)  Middle level management

Middle level management is responsible to the top management for the efficient functioning of their departments.
In small enterprise, there is only one layer of middle management, but in big enterprises, there may be senior middle level managers and junior middle level managers.

The senior level managers include –

• Heads of production
• Finance
• Marketing and 
• Other departments

The Junior middle level managers include –

• Branch managers 
• Superintendents
• Heads of various sections

Functions of middle level management

• With the directions of top management they execute the plans of the organisation
• They make plans for the sub-units of the organisation
• They participate in the employment and training of lower-level managers
• They evaluate the performance of junior managers
• They attempt to achieve coordination between different departments
• They send the progress reports and other important data to the top management.

(iii)  Lower level or supervisory level management 

This level consists of first line

• Supervisors
• Inspectors
• Section officers, etc.

They are in direct touch with core group of workers such as operators, assemblers, mechanics, salesmen, and clerks etc. they directly supervise the work performed by core group workers.

They issue orders and instructions to them, educate them about methods of doing the work and regularly supervise their activities.

Functions of lower level management

• To guide, assist and help the workers by explaining work procedures to them and by solving their problems
• To motivate them and to maintain a team spirit among them
• To put their case to higher level managers for various welfare schemes, incentives and for improving physical working conditions
• to get the things done by core group workers
• to prepare plan for their activities
• to issue necessary orders and instructions to the workers regarding the work being performed by them
• to assign the work to the workers and seek its workers regarding the work being performed by them
• to arrange, material, machines and tools for the workers and provide training to them

Thus, these are the three level of management in the business organisation. 

Happy reading :)