èDivision of Labor
·
Henry Fayol has stressed on the specialization of jobs.
·
He recommended that work of all kinds must be divided &
subdivided and allotted to various persons according to their expertise in a
particular area.
·
Subdivision of work makes it simpler and results in
efficiency.
·
It also helps the individual in acquiring speed, accuracy
in his performance.
·
Specialization leads to efficiency & economy in spheres
of business.
èParty of Authority & Responsibility
·
Authority & responsibility are co-existing.
·
If authority is given to a person, he should also be made
responsible.
·
In a same way, if anyone is made responsible for any job,
he should also have concerned authority.
·
Authority refers to the right of superiors to get exactness
from their sub-ordinates whereas responsibility means obligation for the
performance of the job assigned.
·
There should be a balance between the two i.e. they must go
hand in hand.
·
Authority without responsibility leads to irresponsible
behavior whereas responsibility without authority makes the person ineffective.
èPrinciple of One Boss
·
A sub-ordinate should receive orders and be accountable to
one and only one boss at a time.
·
In other words, a sub-ordinate should not receive
instructions from more than one person because -
à It undermines authority
à Weakens discipline
à Divides loyalty
à Creates confusion
à Delays and chaos
à Escaping responsibilities
à Duplication of work
à Overlapping of efforts
·
Therefore, dual sub-ordination should be avoided unless and
until it is absolutely essential.
·
Unity of command provides the enterprise a disciplined,
stable & orderly existence.
·
It creates harmonious relationship between superiors and
sub-ordinates.
èUnity of Direction
·
Fayol advocates one head one plan which means that there
should be one plan for a group of activities having similar objectives.
·
Related activities should be grouped together. There should
be one plan of action for them and they should be under the charge of a
particular manager.
·
According to this principle, efforts of all the members of
the organization should be directed towards common goal.
·
Without unity of direction, unity of action cannot be
achieved.
·
In fact, unity of command is not possible without unity of
direction.
èEquity
·
Equity means combination of fairness, kindness &
justice.
·
The employees should be treated with kindness & equity
if devotion is expected of them.
·
It implies that managers should be fair and impartial while
dealing with the subordinates.
·
They should give similar treatment to people of similar
position.
·
They should not discriminate with respect to age, caste,
sex, religion, relation etc.
·
Equity is essential to create and maintain cordial
relations between the managers and sub-ordinate.
·
But equity does not mean total absence of harshness.
·
Fayol was of opinion that, “at times force and harshness
might become necessary for the sake of equity”.
èOrder
·
This principle is concerned with proper & systematic
arrangement of things and people.
·
Arrangement of things is called material order and
placement of people is called social order.
·
Material order- There should be safe, appropriate and
specific place for every article and every place to be effectively used for
specific activity and commodity.
·
Social order- Selection and appointment of most suitable
person on the suitable job. There should be a specific place for everyone and
everyone should have a specific place so that they can easily be contacted
whenever need arises.
èDiscipline
·
According to Fayol, “Discipline means sincerity, obedience,
respect of authority & observance of rules and regulations of the
enterprise”.
·
This principle applies that subordinate should respect
their superiors and obey their order.
·
It is an important requisite for smooth running of the
enterprise.
·
Discipline is not only required on path of subordinates but
also on the part of management.
·
Discipline can be enforced if -
à There are good superiors at all levels.
à There are clear & fair agreements with
workers.
à Sanctions (punishments) are judiciously
applied.
èInitiative
·
Workers should be encouraged to take initiative in the work
assigned to them.
·
It means eagerness to initiate actions without being asked
to do so.
·
Fayol advised that management should provide opportunity to
its employees to suggest ideas, experiences& new method of work.
·
It helps in developing an atmosphere of trust and
understanding.
·
People then enjoy working in the organization because it
adds to their zeal and energy.
·
To suggest improvement in formulation & implementation
of place.
·
They can be encouraged with the help of monetary &
non-monetary incentives.
èFair Remuneration
·
The quantum and method of remuneration to be paid to the
workers should be fair, reasonable, satisfactory & rewarding of the
efforts.
·
As far as possible it should accord satisfaction to both
employer and the employees.
·
Wages should be determined on the basis of cost of living,
work assigned, financial position of the business, wage rate prevailing etc.
·
Logical & appropriate wage rates and methods of their
payment reduce tension & differences between workers & management
creates harmonious relationship and pleasing atmosphere of work.
·
Fayol also recommended provision of other benefits such as
free education, medical & residential facilities to workers.
èStability of Tenure
·
Fayol emphasized that employees should not be moved
frequently from one job position to another i.e. the period of service in a job
should be fixed.
·
Therefore employees should be appointed after keeping in
view principles of recruitment & selection but once they are appointed
their services should be served.
·
According to Fayol. “Time is required for an employee to
get used to a new work & succeed to doing it well but if he is removed
before that he will not be able to render worthwhile services”.
·
As a result, the time, effort and money spent on training
the worker will go waste.
·
Stability of job creates team spirit and a sense of
belongingness among workers which ultimately increase the quality as well as
quantity of work.
èScalar Chain
·
Fayol defines scalar chain as ’The chain of superiors
ranging from the ultimate authority to the lowest”.
·
Every orders, instructions, messages, requests, explanation
etc. has to pass through Scalar chain.
·
But, for the sake of convenience & urgency, this path can
be cut shirt and this short cut is known as Gang Plank.
·
A Gang Plank is a temporary arrangement between two
different points to facilitate quick & easy communication as explained
below:
In the figure given, if D has to communicate with G he will
first send the communication upwards with the help of C, B to A and then
downwards with the help of E and F to G which will take quite some time and by
that time, it may not be worth therefore a gang plank has been developed
between the two.
·
Gang Plank clarifies that management principles are not
rigid rather they are very flexible. They can be moulded and modified as per
the requirements of situations.
èSub-Ordination of Individual Interest to General Interest
·
An organization is much bigger than the individual it
constitutes therefore interest of the undertaking should prevail in all
circumstances.
·
As far as possible, reconciliation should be achieved
between individual and group interests.
·
But in case of conflict, individual must sacrifice for
bigger interests.
·
In order to achieve this attitude, it is essential that -
à Employees should be honest & sincere.
à Proper & regular supervision of work.
à Reconciliation of mutual differences and
clashes by mutual agreement. For example, for change of location of plant, for
change of profit sharing ratio, etc.
èEspirit De’ Corps (can be achieved through unity of
command)
·
It refers to team spirit i.e. harmony in the work groups
and mutual understanding among the members.
·
Espirit De’ Corps inspires workers to work harder.
·
Fayol cautioned the managers against dividing the employees
into competing groups because it might damage the moral of the workers and
interest of the undertaking in the long run.
·
To inculcate Espirit De’ Corps following steps should be
undertaken -
·
There should be proper co-ordination of work at all levels
·
Subordinates should be encouraged to develop informal
relations among themselves.
·
Efforts should be made to create enthusiasm and keenness
among subordinates so that they can work to the maximum ability.
·
Efficient employees should be rewarded and those who are
not up to the mark should be given a chance to improve their performance.
·
Subordinates should be made conscious of that whatever they
are doing is of great importance to the business & society.
·
He also cautioned against the more use of Britain
communication to the subordinates i.e. face to face communication should be
developed. The managers should infuse team spirit & belongingness. There
should be no place for misunderstanding. People then enjoy working in the
organization & offer their best towards the organization.
èCentralization & De-Centralization
·
Centralization means concentration of authority at the top
level. In other words, centralization is a situation in which top management
retains most of the decision making authority.
·
Decentralization means disposal of decision making
authority to all the levels of the organization. In other words, sharing
authority downwards is decentralization.
·
According to Fayol, “Degree of centralization or decentralization
depends on no. of factors like size of business, experience of superiors,
dependability & ability of subordinates etc.
·
Anything which increases the role of subordinate is
decentralization & anything which decreases it is centralization.
Fayol suggested that
absolute centralization or decentralization is not feasible. An organization
should strike to achieve a lot between the two.
No comments:
Post a Comment
comment should be related to matter or any query,problem,assistance or discussion. Worthless conversation,abusing or any ill behavior will not be entertained. do not provide your contact details in comments area,it'll be removed.