henry fayol principles applied in amul company.
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Henri Fayol

INTRODUCTION

Henri Fayol (Istanbul, 29 July 1841 – Paris, 19 November 1925) was a French mining engineer, mining executive, author and director of mines who developed a general theory of business administration that is often called Fayolism.[1] He and his colleagues developed this theory independently of scientific management but roughly contemporaneously. Like his contemporary, Frederick Winslow Taylor, he is widely acknowledged as a founder of modern management methods.

Biography

Fayol was born in 1841 in a suburb of Istanbul. His father (an engineer) was in the military at the time and was appointed superintendent of works to build Galata Bridge, which bridged the Golden Horn.[1] The family returned to France in 1847, where Fayol graduated from the mining academy "École Nationale Supérieure des Mines" in Saint-Étienne in 1860.

In 1860 at the age of nineteen Fayol started working at the mining company named "Compagnie de Commentry-Fourchambault-Decazeville" in Commentry as the mining engineer. During his time at the mine, he studied the causes of underground fires, how to prevent them, how to fight them, how to reclaim mining areas that had been burned, and developed a knowledge of the structure of the basin.[2] In 1888 he was promoted to managing director. During his time as director, he made changes to improve the working situations in the mines, such as allowing employees to work in teams, and changing the division of labor.[2] Later, more mines were added to his duties.

Eventually, the board decided to abandon its iron and steel business and the coal mines. They chose Henri Fayol to oversee this as the new managing director. Upon receiving the position, Fayol presented the board with a plan to restore the firm. The board accepted the proposal.[2] When he retired in 1918, the company was financially strong and one of the largest industrial combines in Europe

Principles of management

Division of work - The division of work is the course of tasks assigned to, and completed by, a group of workers in order to increase efficiency. Division of work, which is also known as division of labour, is the breaking down of a job so as to have a number of different tasks that make up the whole. This means that for every one job, there can be any number of processes that must occur for the job to be complete.When an individual does the same job repeatedly he acquires speed and accuracy in performance. In words of Fayol," The worker always on the same post, the manager always concerned with the same matters, acquires an ability, sureness and accuracy which increases their output".
Authority and Responsibility - Authority is the right to give orders and obtain obedience, and responsibility is the corollary of authority.
Discipline - Employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership.
Unity of command - Every employee should receive orders from only one superior or behalf of the superior.
Unity of direction - Each group of organizational activities that have the same objective should be directed by one manager using one plan for achievement of one common goal.
Subordination - The interests of any one employee or group of employembmes should not take precedence over the interests of the organization as a whole.
Remuneration - All Workers must be paid a fair wage for their services.
Centralization - Centralization refers to the degree to which subordinates are involved in decision making.
Scalar chain - The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain.
Order - this principle is concerned with systematic arrangement of men, machine, material etc. there should be a specific place for every employee in an organization
Equity - Managers should be kind and fair to their subordinates.
Stability of tenure of personnel - High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.
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