1. CLASS-12th BUSINESS STUDIES
Rohit Batra
PGT-COMMERCE
K.V.-2 Bikaner.

2. PRINCIPLES OF MANAGEMENT

3. Henri Fayol Henry Fayol was a French industrialist
In 1860 , he joined as a Engineer and became Managing Director in 1888.
At that time the position of the company was very bad. He faced so many problems to control the company.
After long experience he developed 14 principles of management.

4. HENRI FAYOL ‘THE FATHER OF GENERAL MANAGEMENT’
There were 14 principles of management
propounded by him –
1.Division of work
2.Authority and Responsibility
3.Discipline
4.Unity of Command
5.Unity of Direction

5. 6.Subordination of Individual Interest to General Interest
7.Remuneration of Employees
8.Centralisation and Decentralization
9.Scalar Chain
10.Order
11.Equity
12.Stabillity of Personnel
13.Intiative
14.Espirit De Corps

6. -One and only one boss for every
UNITY OF COMMAND
-One and only one boss for every
individual employee.

7. MR A, what about my report?????
Come on MR A, You have to do that
I’AM FED UP OF THIS

8. According to this principle, an
employee should receive orders
from only one superior at a time and
that employee should be answerable
only to that superior. If an
employee gets order from two
superior at that same time the
principle of unity of command is violated.
The principle of unity of command states
that each participant in a formal
organization should receive orders from
and the responsible to only 1 superior.

9. Positive Effect of Unity of Command
There will be no confusion in the mind of Subordinates.
Responsibility can be easily fixed.
Better performance as subordinates receive from one superior only.

10. If Unity of Command is violated
It creates confusion for the subordinates.
It will be difficult to fix responsibility.
Lack of discipline.

11. SCALAR CHAIN

12. SCALAR CHAIN An organization consists of superior and
subordinates. The formal lines of authority
from highest to lowest ranks are known as SCALAR CHAIN.
According to Fayol, ‘’Organization should have a chain of authority and communication that runs from top to bottom & should be followed by managers and the subordinates.’’

13. Scalar Chain N GANG PLANK P
Fayol has explained this principle with the help of a ladder as shown in the diagram. A B L M C D N E O
GANG PLANK F P
Scalar Chain

14. According to Fayol this chain should not
be violated in the normal course of
formal communication. If there is an
emergency then ‘E’ can directly contact
‘O’ through ‘Gang Plank’.
UTILITY: Due to more clear system of
authority and communication, problems
can be solved faster.

15. Let us consider a situation where there is one head ‘A’ who has two lines of authority under her/ him. One line consists of B-C-D-E-F. Another line of authority under ‘A’ is L-M-N-O-P. If ‘E’ has to communicate with ‘O’ who is at the same level of authority then she / he has to traverse the route E-D-C-B-A-L-M-N-O. This is due to the principle of scalar chain being followed by this situation.

16. Thank you