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Presentation on theme: "CLASS-12th BUSINESS STUDIES"— Presentation transcript:

Rohit Batra PGT-COMMERCE K.V.-2 Bikaner.


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.

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.


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

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