December 01, 2016

Principles of Management - Henry Fayol & FW Taylor

December 01, 2016

In this article we will discuss the administrative theory of fourteen principles of management developed by Henry Fayol and contribution of FW Taylor in management. Firstly, we will see the introduction of Henry Fayol and his fourteen principles. Secondly, we will discuss the contribution of FW Taylor in management, his scientific management, and its principles.

Henry Fayol

Fayol was a French mining engineer and industrialists. He is regarded as “Father of Modern Management”. Fayol divided activities of industrial enterprise into six groups:

1. Technical (production).

2. Commercial (buying, selling and exchange).

3.Financial (sources and uses of funds).

4.Security (protection of property).

5.Accounting (auditing and statistics).

6.Managerial (planning, organizing, directing, coordinating, and controlling).

14 Principles of management

According Henry Fayol a good manager possesses the following qualities:

1.Physical (good health and communication skills).

2.Mental (ability to understand and learn and having quality of adaptability).

3.Moral (fairness and integrity in dealing with others).

4.Educational (general knowledge and familiarity of business related matters and others)

5.Technical (expert in his field).

6.Experience (dealing with routine and unexpected situations easily).

7.Business quality (acquaintance of accounting principles and be able to determine the sources and uses of funds).

In 1916, Fayol wrote a book entitled “General and Industrial Management” in French which was translated in English in 1949.In this book he developed the 14 principles of management. These principles are universally accepted and used. They are following.

Principles of Management

1.  Division of work
Work must be divided according to skills and specialization in any corporation. By division of work employees become an expert in their field.

2. Authority and responsibility
The authority is the official right of any manager to manage people and things but he also keep in mind that responsibility arises whenever authority is exercised.

3. Discipline
According to this principle subordinate should respect their superiors and obey their order.Fayol emphasized the need of discipline among personnel for effective management.

4. Unity of command
The workers should receive orders from only one superior. If they get order from two superiors at same time then they may get confused that whose order must be implemented.

5. Unity of direction
The entire organization should be moving towards a common objective in a common direction.This principle promotes unity of action and coordination in an organization.

6. Subordination
The personal interests of individuals should not take priority over the interest of the organization. The primary focus should be given to organizational objectives.

7. Remuneration
The employees must be paid a fair wage and salary for their performance.The organization should have a good remuneration policy in order to motivate workers to perform well.

8. Centralization and Decentralization
Under centralization the decision making authority is concentrated in top levels of management. While under decentralization the decision making authority is distributed tolower levels of management. There should be a good balance between centralization and decentralization.

9. Scalar chain
Scalar chain means line of authority from highest to lowest rank. Communication (messages, requests, orders and instructions) should follow this chain.

10. Order
It means a systematic arrangement of materials and systematic place of people in the organization. There should be a specific place for every employee and material in an organization.

11. Equity
There should be no discrimination against anyone. The management must maintain equity among the employees. Equity is helpful to create and maintain cordial relations between management and workers.

12. Stability of tenure
Managers should strive to minimize employee’s turnover to maintain organizational efficiency. Job security should be provided to the employees to get their maximum of output. 

13. Initiative
Employees should be allowed to take initiative to carry out plans. New ideas and method of work should be encouraged. People enjoy working by encouraging their ideas.

14. Esprit de corps
It refers to team spirit and collective force of employees. Management should promote team work and coordination in order to build an atmosphere of mutual trust and understanding.

 Contribution of FW Taylor in Management

Fredrick Winslow Taylor who is regarded as “Father of scientific Management”. In 1978, he joined Midvale Steel Company in Philadelphia in USA as an ordinary worker engaged in metal cutting. During service he continued his study in the evening and got an engineering degree. Later he became an operating manager in the same company. He observed that the industrial resources were not being fully utilized. Business enterprise is being managed by the rule of thumb. There was no proper division of responsibilities between management and workers. This state of affairs forced him to improve the existing practice of management. Taylor developed his efficiency techniques in his book “The Principles of “Scientific Management”. His primary concern was to raise productivity through greater efficiency in production and increased pay for workers by applying the scientific method.

4 principles of management

Scientific Management

Scientific management is the art of knowing exactly what is to be done and what is the best and cheapest way of doing it. Under this approach, scientific techniques are applied in the field of management like recruitment, selection and training of workers.

Principles of Scientific Management

1. Science, not rule of thumb
Taylor emphasized that the rule of thumb be replaced by scientific methods so that best method for performing each task could be determined.

2. Cooperation, not individualism
According to this principle, management and workers should friendly cooperate with each other. There should not be individualism. Management and workers jointly set goals and objectives.

3. Development of each man to his greatest efficiency and prosperity
Workers should be scientifically selected and trained in accordance with the requirement of jobs, so that each worker would be given responsibility for the task for which he was best suited.

4. Division of responsibility between management and workers
Work should be divided between management and workers. Planning is the responsibility of management and implementation is the responsibility of workers.
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