Question

Evaluate with illustrations how Henri Fayol’s Principles of Management has contributed to the practice of management in an educational organization like the University for Development Studies (UDS).

Please give a detailed explanation in at least 2pages.

The subject is Principles of Management

Answer 1

Henry Fayol also is known as ‘father of modern management theory’ gave a new perception of the concept of management.

Everything you need to know about the principles of management by Henry Fayol. A number of principles of management have been developed to aid managers in performing their function well.

He introduced a general theory that can be applied to all levels of management and every department. The Fayol theory is practiced by the managers to organize and regulate the internal activities of an organization. He concentrated on accomplishing managerial efficiency.

The fourteen principles of management created by Henri Fayol are explained below.

Division of Work:

Division of work or specialisation alone can give maximum productivity and efficiency. Factory system of production and our machinery of distribution are based on (division of work. In fact, expansion of the market is limited by division of labour. Both technical and managerial activities can be performed in the best manner only through division of labour and specialisation.

2. Authority and Responsibility:

The right to give orders, the right to command, is called authority. The obligation to accomplish objectives or expected results or performance is called responsibility. Please note that authority and responsi­bility are the two sides of the management coin. They exist together. They are complementary and mutually inter-dependent. Acceptance of authority implies acceptance of responsi­bility for the performance of assigned work.

3. Discipline:

The objectives, rules and regulations, the policies and procedures must be honoured by each member of an organisation. Discipline demands good superiors at all levels of management. There must be clear and fair agreement on the rules and objectives, on the policies and procedures. There must be penalties and fines (punishment) for non-obedience or indiscipline. No organisation can work smoothly without discipline—preferably voluntary or self-discipline.

4. Unity of Command:

In order to avoid any possible confusion and conflict, each member of an organisation must receive orders and instructions only from one superior or boss and he|she must be accountable to one boss. We should not have multiple bosses, as it will lead to divided responsibility.

5. Unity of Direction:

All members of an organisation must work together to accomplish common or same objec­tives. Their efforts shall be directed towards one common super-goal.

6. Emphasis on Subordination of Personal Interest to Ge­neral or Common Interest:

This is also called principle of co­operation. Each shall work for all and all for each. General or common interest must be supreme in any joint enterprise. The organisation will collapse when personal interest becomes supreme and general interest is sacrificed.

7. Remuneration:

Fair pay with non-financial rewards can act as the best incentive or motivator for good performance. Exploitation of employees in any manner must be eliminated. Sound scheme of remuneration includes adequate financial and non-financial incentives.

8. Centralisation:

There must be a good balance between centralisation and decentralisation of authority and power. Extreme centralisation and decentralisation must be avoided.

9. Scalar Chain:

The unity of command brings about a chain or hierarchy of command linking all members of the organisation from the top to the bottom. Scalar denotes steps.

10. Order:

Fayol suggested that there is a place for every­thing and everyone which ought to be so occupied. Order or system alone can create a sound organisation and efficient management. Disorder leads to chaos and confusion.

11. Equity:

An organisation consists of human beings, a group of people involved in joint effort. Hence equality, i.e., jus­tice and kindliness must be there based on predetermined cus­tom or convention. Without equity, we cannot have sustained and adequate joint collaboration.

12. Stability of Tenure:

A person needs time to adjust himself with the new work and demonstrate efficiency in due course. Hence, employees and managers must have job security. Security of income and employment is a prerequisite of sound organisation and management.

13. Spirit of Co-operation:

Esprit de corps is the founda­tion of a sound organisation. Union is strength. But unity de­mands co-operation. Pride, loyalty, and sense of belonging are responsible for best performance.

14. Initiative:

Creative thinking and capacity to take ini­tiative can give us sound managerial planning and execution of predetermined plans. Creativity springs from curiosity and imagination.The management should support and encourage the employees to take initiatives in an organization. It will help them to increase their interest and make then worth.

This 14 principles of management are used to manage an organization and are beneficial for prediction, planning, decision-making, organization and process management, control, and coordination.

Importance of Principles of Management:

The principles of management provide insights to managerial behaviour and influence managerial practices. The management theorists or gurus have been continuously analysing all managerial activities and their results to frame principles, which can be used by managers under repetitive or similar circumstances. Thus, we can say that management principles enable managers to fulfill their tasks and responsibilities most effectively and efficiently.