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 managementpropounded by him –1.Division of work2.Authority and Responsibility3.Discipline4.Unity of Command5.Unity of Direction
5 6.Subordination of Individual Interest to General Interest 7.Remuneration of Employees8.Centralisation and Decentralization9.Scalar Chain10.Order11.Equity12.Stabillity of Personnel13.Intiative14.Espirit De Corps
6 -One and only one boss for every UNITY OF COMMAND-One and only one boss for everyindividual employee.
7 MR A, what about my report????? Come on MR A, You have to do thatI’AM FED UP OF THIS
8 According to this principle, an employee should receive ordersfrom only one superior at a time andthat employee should be answerableonly to that superior. If anemployee gets order from twosuperior at that same time theprinciple of unity of command is violated.The principle of unity of command statesthat each participant in a formalorganization should receive orders fromand 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.
12 SCALAR CHAIN An organization consists of superior and subordinates. The formal lines of authorityfrom 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.ABLMCDNEOGANG PLANKFPScalar Chain
14 According to Fayol this chain should not be violated in the normal course offormal communication. If there is anemergency then ‘E’ can directly contact‘O’ through ‘Gang Plank’.UTILITY: Due to more clear system ofauthority and communication, problemscan 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.