20-06-2015, 09:17 AM
I want this information because it's school Assignment for class XII.
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fayols principles applied in reliance
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I want this information because it's school Assignment for class XII.
20-06-2015, 03:23 PM
fayols principles applied in reliance
Some of the major Fayol’s principles of management are as follows: 1. Division of Work 2. Authority and Responsibility 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Subordination of Individual Interest to General Interest 7. Remuneration of Personnel 8. Centralization 9. Scalar Chain 10. Order 11. Equity 12. Stability of Tenure 13. Initiative 14. Esprit de Corps (Union is Strength).
1. Division of Work:
This principle implies that every employee should be assigned only one type of work so as to bring about specialisation in every activity. Fayol applied the principle of division of work or specialization to both the managerial as well as technical activities. He observed that specialisation belongs to the natural order.
Division of work tends to increase efficiency. It helps to avoid waste of time and effort caused by changes from one work to another. But when carried too far, it leads to loss of skill and craftsmanship of the employee, and makes the jobless monotonous is and less interesting. Since division of work makes the job less satisfying, management practice of today gives serious thought to the possibility of job enlargement as a tool of job satisfaction.
2. Authority and Responsibility:
Authority is the right to give order to the subordinates. Responsibility means the duty which the subordinate is expected to perform by virtue of his position in the organization. Responsibility must be expressed either in terms of functions or in terms of objectives.
When a subordinate is asked to control a working of the machine, the responsibility is stated in terms of function and when a subordinate is asked to produce a certain number of pieces of a product, the responsibility is created in terms of objectives.
“There should be parity of authority and responsibility. In other words, authority and responsibility should bear a logical relation to each other. Sufficient authority should be delegated to a subordinate to enable him to discharge his duties. If authority is less, the subordinate will not be able to perform his duties well. If he is given excessive authority, he may misuse his authority.
3. Discipline:
Discipline means getting obedience to rules and regulations of the organisation. According to Fayol, discipline is obedience, application, energy and outward mark of respect. Discipline is necessary for the smooth running of the organisation. Maintenance of discipline in the organisation depends upon the quality of leadership, clear and fair arrangements and a judicious application of sanctions.
According to Fayol, discipline can best be maintained by:
(i) Having good superiors at all levels;
(ii) Entering into agreements (either with the individual employees or with the union, as the case may be) that are as clear and fair as possible;
(iii) Ensuring that penalties are judiciously imposed.
4. Unity of Command:
A subordinate should receive orders from one superior only. If he receives orders from more than one superior, he will not be able to carry out orders in a proper manner. Fayol observed that if this principle is violated, authority will be undermined, discipline will be in jeopardy, order will be disturbed and stability will be threatened. Dual command is the permanent source of conflict. Therefore, in every organization, each subordinate should have one superior whose command he has to obey.
His will help him in achieving the following benefits:
(i) Each subordinate shall receive clear-cut orders from one boss only. This will improve his performance.
(ii) Authority-responsibility relations will be clear to everybody.
(iii) Orders and instructions of every executive will be honoured. It would be easy to fix responsibility in case of default.
(iv) There will be harmonious relations between the superiors and the subordinates.
Violation of the principle of unity of command will lead to the following consequences:
(i) There will be overlapping of orders and instructions. ,
(ii) A subordinate may not be able to satisfy two or more bosses. This may lead to conflicts in the organisations.
(iii) It will be easy for the subordinates to escape responsibility.
(iv) It will be very difficult to maintain discipline in the organization.
5. Unity of Direction:
By unity of direction Fayol meant, “One unit and one plan” for the group of activities having the same objective. In other words, all the activities of a work unit or group should be directed towards its common objective. This will lead to better coordination and help in the effective management of the enterprise.
If this principle is not followed, there will be unnecessary duplication of efforts and wastage of resources. Efficiency of organisation will also be affected adversely because of lack of harmony of efforts of various individuals and groups.
The distinction between the principles of unity of command and unity of direction should be clearly understood. Fayol perceived unity of direction as related to the functioning of the business undertaking as a whole, while unity of command is related to the functioning of personnel.
Unity of direction means one unit, one plan; and unity of command means one employee should receive orders from one superior only. Unity of direction is necessary for sound organization whereas unity of command is necessary to fix responsibility of the subordinates and to avoid conflicts in the enterprise.
6. Subordination of Individual Interest to General Interest:
The business enterprise is superior to its individual employees. The interests of the business organisation must prevail upon the personal interests of the individuals. This principles call for reconciliation of goals of individuals with those of the organization.
When the individual and the organizational interests conflict, the latter must prevail. The employees should subordinate their interests to the general interests of the concern. The goals of the concerns must not be sacrificed for the promotion of personal interests of individuals.
7. Remuneration of Personnel:
The employees must be remunerated fully for their services rendered to the concern. The method of employee remuneration should be just and fair to everybody. As far as possible, it should accord satisfaction to both the employees and the concern. This will create harmonious relations in the enterprise and build-up a workforce of contended employees.
8. Centralization:
Fayol referred to the centralization in the context of authority. It means concentration of authority at one place or at one level in the organization. On the other hand, decentralization means dispersal of authority to the lower levels in the organization.
According to Fayol, the question of centralization and decentralization is a simple question of proportion, a matter of finding optimum degree for a particular concern. In his view, everything that an increase the importance of subordinate’s role is decentralization and that reduces it is centralization.
The degree of centralization varies in each case. Small firms have absolute centralization because the management orders go directly to subordinates. But in large concerns, there is less degree of centralisation because a manager’s orders pass through a number of intermediaries to reach the operative employees.
9. Scalar Chain:
Scalar chain is the chain of superiors ranging from the chief executive or ultimate authority to the lowest level in the organisation. The line of authority is the route followed via every page link in the chain by all communications which starts from or goes to the ultimate authority. Fayol felt that departure from the chain is necessary to make communication fast and effective. Communication should be should be short-circuited as far as possible.
The principle of scalar chain recognizes the necessity of formal authority in the organization. It has the following advantages:
(i) There will be unity of command in the organization and there will be no confusion of dual order. Every member will know under whom he is working and whose orders he is to obey.
(ii) Delegation of authority, which is essential to organizing, is facilitated.
(iii) The scalar chain establishes the channels through which communication will pass.
The main disadvantages of scalar chain is that communication takes too much time as the order comes from top level to bottom in the chain. The scalar chain should not be rigid. There should be provision for short circuiting the chain.
This would allow quick communication and swift action as shown in figure. Fayol called it ‘gang plank’ shown by the dotted line joining D and O. The gang plank allows direct page link between two employees of different departments and thus facilitates quick communication. It would lead to better coordination by removing hurdles in the exchange of information between employees of two different departments.
As mentioned in the above figure there are two ladders of authority—one from M to E and other from S to P. If D wants to communicate with O under the scalar chain, information will first flow upward from D to S through C, B and A, and then downward from S to 0 through L, M and N. Thus, communication will normally be a time consuming process. In order to allow swift action, D and O should be allowed to exchange information directly by using gang plank.
However, Fayol, was of the opinion that the gang plank should not be a normal practice as it undermines the established line of authority. But whenever it is necessary to avoid delays and distortions, the subordinates should use the gang plank.
10. Order:
Fayol said that there should be a place for everything and everyone. At the same time, everything and everyone should be in their own place. This means “right man in the right place”. He believed that this kind of order “demands precise knowledge of human requirements and resources of the concern and a constant balance between these requirements”. This balance is more difficult in bigger organisations.
For proper order in each department, the departmental head should allot specific workstation and tools to each worker so that there is no confusion in the organisation. Similarly there should be specific shelves or rooms for storing raw materials, finished goods, etc.
11. Equity:
The employees should be treated with kindness and equity if devotion and loyalty are expected of them. Equity does not exclude forcefulness and sternness. The managers in the organisation should be experienced good natured so as to deal with the subordinates in a proper manner. They should be impartial and should not discriminate with regard to sex, caste, religion, etc.
Each subordinate should get a fair treatment in matter of reward or punishment. The managers should not undue favours to some and neglect others. The workers performing similar jobs should be paid the same wage rate. If the principle of equity is followed, the workers will feel happy as they get fair treatment from the management. They will also be motivated to work harder.
12. Stability of Tenure:
Management should remove the feeling of insecurity of jobs from the minds of personnel. If the job of a person is not secure, he will be on lookout for job elsewhere and his work will not be satisfactory. Moreover, the employee should not be rotated on different jobs very frequently because considerable time is required to learn each job.
According to Fayol, “Time is required for an employee to get used to new work and succeed in doing it well, always assuming that he possesses the requisite abilities. If, when he has got used to it or before that he is removed, he will not have had time to render worthwhile service.” If this principle is followed, the workers will feel secured and show higher productivity. But its adverse effect is that the workers will not develop their multiple skills required of different jobs.
13. Initiative:
Fayol wanted that subordinates should be given an opportunity to take some initiative in making and executing the plans. Employees get satisfaction when they are allowed to take initiative. Initiative on their part can be a great source of organisational strength.
14. Esprit de Corps (Union is Strength):
Literally speaking, the phrase esprit de corps means the spirit of loyalty and devotion which unites the members of the group. It also means regard for the honer of the group to which one belongs. Fayol called for the personnel of the concern. Harmoy among the personnel is a source of strength, unity among the personnel can be accomplished through proper communication and coordination.
Fayol warned against two enemies of esprit de corps, viz.,
(i) divide and rule, and
(ii) abuse of written communication. It will be dangerous for the firm to divide its workers. They should rather be welded in cohesive and highly interacting workgroups.
Over-reliance in written communication also tends to disrupt the team spirit. Written communication, where necessary, should always be supplemented by oral communication because face-to-face contacts tend to promote speed, clarity and harmony.
Some of the major Fayol’s principles of management are as follows: 1. Division of Work 2. Authority and Responsibility 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Subordination of Individual Interest to General Interest 7. Remuneration of Personnel 8. Centralization 9. Scalar Chain 10. Order 11. Equity 12. Stability of Tenure 13. Initiative 14. Esprit de Corps (Union is Strength).
1. Division of Work:
This principle implies that every employee should be assigned only one type of work so as to bring about specialisation in every activity. Fayol applied the principle of division of work or specialization to both the managerial as well as technical activities. He observed that specialisation belongs to the natural order.
Division of work tends to increase efficiency. It helps to avoid waste of time and effort caused by changes from one work to another. But when carried too far, it leads to loss of skill and craftsmanship of the employee, and makes the jobless monotonous is and less interesting. Since division of work makes the job less satisfying, management practice of today gives serious thought to the possibility of job enlargement as a tool of job satisfaction.
2. Authority and Responsibility:
Authority is the right to give order to the subordinates. Responsibility means the duty which the subordinate is expected to perform by virtue of his position in the organization. Responsibility must be expressed either in terms of functions or in terms of objectives.
When a subordinate is asked to control a working of the machine, the responsibility is stated in terms of function and when a subordinate is asked to produce a certain number of pieces of a product, the responsibility is created in terms of objectives.
“There should be parity of authority and responsibility. In other words, authority and responsibility should bear a logical relation to each other. Sufficient authority should be delegated to a subordinate to enable him to discharge his duties. If authority is less, the subordinate will not be able to perform his duties well. If he is given excessive authority, he may misuse his authority.
3. Discipline:
Discipline means getting obedience to rules and regulations of the organisation. According to Fayol, discipline is obedience, application, energy and outward mark of respect. Discipline is necessary for the smooth running of the organisation. Maintenance of discipline in the organisation depends upon the quality of leadership, clear and fair arrangements and a judicious application of sanctions.
According to Fayol, discipline can best be maintained by:
(i) Having good superiors at all levels;
(ii) Entering into agreements (either with the individual employees or with the union, as the case may be) that are as clear and fair as possible;
(iii) Ensuring that penalties are judiciously imposed.
4. Unity of Command:
A subordinate should receive orders from one superior only. If he receives orders from more than one superior, he will not be able to carry out orders in a proper manner. Fayol observed that if this principle is violated, authority will be undermined, discipline will be in jeopardy, order will be disturbed and stability will be threatened. Dual command is the permanent source of conflict. Therefore, in every organization, each subordinate should have one superior whose command he has to obey.
His will help him in achieving the following benefits:
(i) Each subordinate shall receive clear-cut orders from one boss only. This will improve his performance.
(ii) Authority-responsibility relations will be clear to everybody.
(iii) Orders and instructions of every executive will be honoured. It would be easy to fix responsibility in case of default.
(iv) There will be harmonious relations between the superiors and the subordinates.
Violation of the principle of unity of command will lead to the following consequences:
(i) There will be overlapping of orders and instructions. ,
(ii) A subordinate may not be able to satisfy two or more bosses. This may lead to conflicts in the organisations.
(iii) It will be easy for the subordinates to escape responsibility.
(iv) It will be very difficult to maintain discipline in the organization.
5. Unity of Direction:
By unity of direction Fayol meant, “One unit and one plan” for the group of activities having the same objective. In other words, all the activities of a work unit or group should be directed towards its common objective. This will lead to better coordination and help in the effective management of the enterprise.
If this principle is not followed, there will be unnecessary duplication of efforts and wastage of resources. Efficiency of organisation will also be affected adversely because of lack of harmony of efforts of various individuals and groups.
The distinction between the principles of unity of command and unity of direction should be clearly understood. Fayol perceived unity of direction as related to the functioning of the business undertaking as a whole, while unity of command is related to the functioning of personnel.
Unity of direction means one unit, one plan; and unity of command means one employee should receive orders from one superior only. Unity of direction is necessary for sound organization whereas unity of command is necessary to fix responsibility of the subordinates and to avoid conflicts in the enterprise.
6. Subordination of Individual Interest to General Interest:
The business enterprise is superior to its individual employees. The interests of the business organisation must prevail upon the personal interests of the individuals. This principles call for reconciliation of goals of individuals with those of the organization.
When the individual and the organizational interests conflict, the latter must prevail. The employees should subordinate their interests to the general interests of the concern. The goals of the concerns must not be sacrificed for the promotion of personal interests of individuals.
7. Remuneration of Personnel:
The employees must be remunerated fully for their services rendered to the concern. The method of employee remuneration should be just and fair to everybody. As far as possible, it should accord satisfaction to both the employees and the concern. This will create harmonious relations in the enterprise and build-up a workforce of contended employees.
8. Centralization:
Fayol referred to the centralization in the context of authority. It means concentration of authority at one place or at one level in the organization. On the other hand, decentralization means dispersal of authority to the lower levels in the organization.
According to Fayol, the question of centralization and decentralization is a simple question of proportion, a matter of finding optimum degree for a particular concern. In his view, everything that an increase the importance of subordinate’s role is decentralization and that reduces it is centralization.
The degree of centralization varies in each case. Small firms have absolute centralization because the management orders go directly to subordinates. But in large concerns, there is less degree of centralisation because a manager’s orders pass through a number of intermediaries to reach the operative employees.
9. Scalar Chain:
Scalar chain is the chain of superiors ranging from the chief executive or ultimate authority to the lowest level in the organisation. The line of authority is the route followed via every page link in the chain by all communications which starts from or goes to the ultimate authority. Fayol felt that departure from the chain is necessary to make communication fast and effective. Communication should be should be short-circuited as far as possible.
The principle of scalar chain recognizes the necessity of formal authority in the organization. It has the following advantages:
(i) There will be unity of command in the organization and there will be no confusion of dual order. Every member will know under whom he is working and whose orders he is to obey.
(ii) Delegation of authority, which is essential to organizing, is facilitated.
(iii) The scalar chain establishes the channels through which communication will pass.
The main disadvantages of scalar chain is that communication takes too much time as the order comes from top level to bottom in the chain. The scalar chain should not be rigid. There should be provision for short circuiting the chain.
This would allow quick communication and swift action as shown in figure. Fayol called it ‘gang plank’ shown by the dotted line joining D and O. The gang plank allows direct page link between two employees of different departments and thus facilitates quick communication. It would lead to better coordination by removing hurdles in the exchange of information between employees of two different departments.
As mentioned in the above figure there are two ladders of authority—one from M to E and other from S to P. If D wants to communicate with O under the scalar chain, information will first flow upward from D to S through C, B and A, and then downward from S to 0 through L, M and N. Thus, communication will normally be a time consuming process. In order to allow swift action, D and O should be allowed to exchange information directly by using gang plank.
However, Fayol, was of the opinion that the gang plank should not be a normal practice as it undermines the established line of authority. But whenever it is necessary to avoid delays and distortions, the subordinates should use the gang plank.
10. Order:
Fayol said that there should be a place for everything and everyone. At the same time, everything and everyone should be in their own place. This means “right man in the right place”. He believed that this kind of order “demands precise knowledge of human requirements and resources of the concern and a constant balance between these requirements”. This balance is more difficult in bigger organisations.
For proper order in each department, the departmental head should allot specific workstation and tools to each worker so that there is no confusion in the organisation. Similarly there should be specific shelves or rooms for storing raw materials, finished goods, etc.
11. Equity:
The employees should be treated with kindness and equity if devotion and loyalty are expected of them. Equity does not exclude forcefulness and sternness. The managers in the organisation should be experienced good natured so as to deal with the subordinates in a proper manner. They should be impartial and should not discriminate with regard to sex, caste, religion, etc.
Each subordinate should get a fair treatment in matter of reward or punishment. The managers should not undue favours to some and neglect others. The workers performing similar jobs should be paid the same wage rate. If the principle of equity is followed, the workers will feel happy as they get fair treatment from the management. They will also be motivated to work harder.
12. Stability of Tenure:
Management should remove the feeling of insecurity of jobs from the minds of personnel. If the job of a person is not secure, he will be on lookout for job elsewhere and his work will not be satisfactory. Moreover, the employee should not be rotated on different jobs very frequently because considerable time is required to learn each job.
According to Fayol, “Time is required for an employee to get used to new work and succeed in doing it well, always assuming that he possesses the requisite abilities. If, when he has got used to it or before that he is removed, he will not have had time to render worthwhile service.” If this principle is followed, the workers will feel secured and show higher productivity. But its adverse effect is that the workers will not develop their multiple skills required of different jobs.
13. Initiative:
Fayol wanted that subordinates should be given an opportunity to take some initiative in making and executing the plans. Employees get satisfaction when they are allowed to take initiative. Initiative on their part can be a great source of organisational strength.
14. Esprit de Corps (Union is Strength):
Literally speaking, the phrase esprit de corps means the spirit of loyalty and devotion which unites the members of the group. It also means regard for the honer of the group to which one belongs. Fayol called for the personnel of the concern. Harmoy among the personnel is a source of strength, unity among the personnel can be accomplished through proper communication and coordination.
Fayol warned against two enemies of esprit de corps, viz.,
(i) divide and rule, and
(ii) abuse of written communication. It will be dangerous for the firm to divide its workers. They should rather be welded in cohesive and highly interacting workgroups.
Over-reliance in written communication also tends to disrupt the team spirit. Written communication, where necessary, should always be supplemented by oral communication because face-to-face contacts tend to promote speed, clarity and harmony.
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