Month: January 2022

Though Henri Fayol expounded his management principles in the early 20^th Century, these principles still form the basis of management studies even today. Daniel Ren goes on to the extent in writing that, “without contribution of the pioneers such as Fayol, we would be teaching industrial engineering, sociology, economics, and ergonomics to those who aspire to manage. To be doing such a thing would push us back to the nineteenth century, when the technical knowhow reined supreme as the path to managerial responsibility”.

Foyal’s eleventh management principle is Equity which is becoming important by the day. Modern HR management not only draws inspiration from Fayol’s  principle of equity but also offers suggestions and advise based upon what has been recommended by Fayol’s  in his principle of equity.

The need to treat all employees with fairness and kindness has been experienced now more than ever before. Employees have become very sensitive to their feelings; their self-respect and their self-esteem. Today, HR departments ensure that all employees are treated equally and as a result there is greater belonging towards their employer Company. Such a feeling of belonging motivates employees even more than the salary and perks.

Equity also means your holding in a company by virtue of your shares of the company. Further equity also refers to the portion of your particular property. It means that if you own a house of four crores and you have to pay to the bank three crores, your equity will be one crore.

Though Henri Fayol expounded his management theory in the early 20^th Century, it is valid even today. The Management Gurus thereafter only modified or added their respective opinions, but the basic foundation of management remains as expounded by Foyal.

Fayol’s 10^th principle is ‘ORDER’ which does not mean a command from the superior. In fact, it means how things should be organized in a proper manner so that all activities are efficient and productive. This principle states that there should be proper order for everything, just as we say that there should be a place for everything should be in a place. We all know by experience that if we follow the above dictum we shall be able to avoid unnecessary wastage of time in simply trying to find things. Rather we shall make good use of them when they are needed.

According to Fayol, there are two kinds of order that are essential in every organization. These are:

1. Material Order: This specifies that there should be a proper place for all physical resources. Just as we have stated above, a proper place for everything and everything must be in its proper place. As a result we avoid wastage of time and effort by following this principle.
2. Social Order: This specifies that the human resources must be used in accordance with their respective designations. It further elaborates that there should be an appointed place for each employee and each employee must be at his / her appointed place.  The order is based on the basic assumption of the right man for the right job.

We find that this principle helps the organization in achieving productivity and efficiency in work and effectiveness in management. There will no confusion and or delay if set order is followed and maintained by each and every team member. Order also helps in controlling and making fuller use of financial resources.

Benefits of this principles are as follows:

1. More efficient use of resources without any wastage of time and energy.
2. Smooth and systematic work, leading to greater efficiency.
3. The productivity is in increased.
4. It ensures the proper usage of financial resources.

Disregard of this principle leads to:

1. Delayed operations in every area.
2. Scattered physical and human resources.
3. Lack of accountability among staff.
4. Reduced efficiency in controlling work processes and lower operational productivity.
5. Wastage of financial resources.          

Henri Fayol was the pioneer in the field of management. Though he lived between 1841 and 1925, he enunciated the principles of management and actively worked out these principles during the early 20^th Century. In fact, this is the foundation on which management gurus build their philosophies even today.

The Scalar chain principle can be defined by understanding communication recommended in an organization. The principle of scalar chain revolves around the flow of communication from the management to the lowest rank in the company. It identifies the chain of all supervisors from the top management to the lowest ranks.

A clear line of communication is very important. The organizational objectives become difficult to achieve if the communication does not flow according to the designated path from the supervisor to the worker in the lower position. Such a proper flow of communication safeguards against the possibility of any ambiguity.

Let us understand it with the help of an example.

Suppose the company has 10 employees. If employee number 4 has to communicate with employee number 8, he/ she has to follow the scalar chain in the following fashion. The flow of information will thus take place from employee 4,5,6,7, and employee number 8. The process is simple and will avoid any ambiguity.

Though it is not a complicated process, but surely it takes time as it has to go through a four step structure. In case of emergencies, this system may not be usable and therefore may be side stepped in such cases. One of the advantages of scalar change is that it avoids chaos. Every employee knows whom to approach when there is a problem. Further it allows the top management to communicate with the entire organisation through the supervisors at each level who become responsible to execute the orders from the top. Though it should not be inflexible, yet under normal circumstances a proper chain of command allows business to run smoothly.

Henri Fayol was a pioneer in establishing principles of management. His fourteen principles of management constitute the foundation of business management even today. One of his key principles of management is the principle number eight where  Fayol talks about centralization.

Let us define what Centralization is. Centralization means that all the important decisions and actions are directed by a central authority. In such a system this action helps in bringing all the activities taking place in a system; and it also helps in bringing all the activities taking place in a single virtual location.  Let us consider an examples of Facebook of Google. Though the facilities of the organizations are available throughout the world, through the algorithms, the actions and procedures are all conceived and put into practice from the central location.

This means that there is a strict hierarchy with one decision maker who could be sitting in the main office of the organization. This could be one of person or it could be a collective decision of some CEOs and others. This type of management has the benefit that there is proper understanding by the employees of the critical role played by the boss. There remains no room for misunderstanding and misjudgment of the instruction to be followed.

As opposed to centralization; decentralization, which is also practiced today, is defined as the measure that helps the manage activities from several separate entities. The benefit of such a situation is that through power sharing the burden of employees and the department is substantially reduced. Power is regularly dispersed among all employees and delegation is made possible. While there are benefits of both the systems, the fact Fayol’s principle of Centralization remains the nucleus and foundation of all thought in the respect  of his aspect of management.

Blog is written blog is Vikram Kakri.

Anyone joins the organization and works there with the objective of earning his bread and butter. The wages or salary which he earns for his work enables him/her to fulfill the basic needs and there requirements of life. The Remuneration must be in equality with the work done by the employees. This will motivate him to perform better and become loyal to the organization.

Fayol’s principle of management has been respected by management gurus everywhere. The principle of remuneration comes as number seven of the fourteen principles.

The principle of remuneration comprises of salary plus other compensations in the form of commission on the work done. Thus while the salary is fixed, the remunerations can vary according to the quality  and the quantity of work done.

  a  fair wage system is one of which guarantees that both the employer and  employee will be satisfied. The owner in the guarantees due to which both the employer and the employee will be satisfied. The owner in the term  of the work completed by an individual employee who in turn will be received by him/her.

Thus the seventh principle enunciated by Fayol brings about a cordial atmosphere in the organisation. It also leads to better work environment.

Positive Impacts of this principle:

1. It creates better relations between workers and management.
2. Employees get motivated.
3. It reduces the turnover rate of the employees.
4. When employees feel satisfied with their salary / remuneration they contribute there best effort.
5. This raises the standard of living of the employees.
6. Finally It develops the society as a whole.

Consequences of the violation of this principle:

1. The efficiency of the employees decreases.
2. Conflict between the management and employees spoils the work environment.
3. The attrition rate or turnover rate increases.
4. The immediate result is incomplete work and general dissatisfaction.
5. Finally it becomes hard to achieve the organizational objectives.

This principle states that the interest of the organisation should always be above the person interest. Further it states that whenever individual goals conflicts with the organisational goal, the manager should make efforts that the objectives should be so aligned and integrated that both can effectively be accomplished with efficiency. However the goals of the organisations remain supreme and must not be compromised under any circumstances.

Each and every individual joins any organisation with certain personal objectives & expectations. However, it is necessary for him or her to understand the vision, mission and the goals of the organisation he/she is working for. He/she should take up the assignment only if the organisation objectives which come first are acceptable and honoured under any circumstances. In fact it is the Manager’s duty to ensure that there’s no conflict within the organisation. This will ensure that the relationship among the employees and with the management remains cordial.

Positive impacts of this principle areas under:

1. The organisation is able to achieve the objectives seamlessly:
2. There is proper rapport and coordination between the employees and the organisation.
3. The coordination also extends to the individuals and organisation’s goals.
4. There is harmony promoted within the organisation.
5. It increases employee respect for the organisation and the management.

The consequences of the violation of the principle are as follows:

1. It would be difficult to achieve the goals of the organisation.
2. There would be multiple conflicting situations in the organisation.
3. It will result in wastage of time will be lost.
4. There will be valuable time lost due to unnecessary delay in work leading to general dissatisfaction among the employees.

The blog is written by vikram.

The fifth Principle of Management was explained by Fayol, the first known management guru from France. The principle states that one head – one plan. It means all the employees will follow the leader in his / her instructions and the leader will ensure that the plan specified is not changed. It’s a leader / managers duty to workout the plan which aligns with the vision of the organisation. This principle also enables unity of action by the empoyees.

Generally there are three divisions in an organisation for different activities. Thus the efforts of the employees of one division must take into account, the threats and opportunities for their division.

The principle helps in establishing for their division. The division The principle helps in establishing co ordination and uniformity of action in the organisation. The objective is to reduce the wastage of resources. Evidently if different team members of a team think differently and work differently, there will be a lot of wastage . The productivity will thus reduce & the cost will increase. The principle is often confused with the principle of unity of command. the principle of Unity of command both sound the same. But the difference is clear. Unity of command is concerned with taking command from one boss. The unity of direction however is concerned with the efforts of the employees of one division towards achieving the objectives of their division.

When followed the impact of the principle of the unity of direction results in following benefits.

1. Efficient achievement of the organisational objectives.
2. Better coordination among the employees.
3. Efforts of employees are directed in a more productive way.
4. Finally systematic working environment helps to improve the relationship among the employees.

Consequences of violation of the principle are as under.

1. The efficiency decreases and the costs go up.
2. Lack of proper coordination results in confusion.
3. There would be duplication of activities which results in sheer wastage.
4. Finally it would be difficult to achieve the organisation’s objective if the principle of unity of direction is not followed.

Blog is written by Vikram Kakri.

Fayol’s principles of management still hold good. There’s no doubt that many management gurus have added or modified these fourteen fundamental principles of management defined by Fayol.

Principle no four explains the unity of command and its imperative necessity in the management of an organisation. Unity of command complies that the organisation. Unity of command complies that the subordinates should recieve the orders only from one superior officer. Accordingly they will report to the same superior officer. It means that an employee at any moment will not recieve instructions about there duties from different superior officers. This makes the performance better because the emplohe yee will not be con fused due to orders of different people.

The single accountability principle ensures the proper functioning of the personnel in an organisations chain of hierarchy. Any deviation from this apart from creating confusion also affects the performance. It is harmful for the common goals & objectives of the organisation.

Further the unity of command emphasizes on individual employee on individual employee by recommending that they should report to only one supervisor. So thus the supervisor as well as the reportee understand the importance of the value of unity of command.

The principle is particularly important for the armed forces or any defense organisation where multiple instructions can cause a disaster.

Blog is written in Vikram Kakri.

Discipline means obedience that is carrying at the task allotted to you by your senior. It balso means observance of the declared rules of the organisation.

In fact Fayol in his communication about the principles of management had emphasized about the sense of discipline and its necessity among the employee of the organisation. Emphasis was also laid on the importance of supervisors or manager following the discipline so that same can serve as an example.

In this context the organisation manager should ensure:

1. Clear explanation of the rules.

2. Effective supervision which shouldn’t be an interference.

3. Revised system on better obedience.

4. Possible provision for penalty.

Some employees inherently possess this quality while some others need to be guided & motivated to develop discipline.

Top level managers and officers are responsible in developing discipline in the organisation. They need to set an example by following the rules themselves.

What are the positive impacts of maintaining discipline?

1. Its helpful in achieving organisational objective.
2. Improves efficiency.
3. enhances cordial relation between management & employees.
4. It creates a better working environment in the organisation.
5. The wastage is minimised.

What are the consequence of violation of this principles – discipline?

1. Creates disorders
2. Confusion and chaos may result
3. Dire wastage of resources
4. Conflicting situations.

Blog is written by Vikram.

Management consulting is the practice of helping organizations to improve their performance. Organizations may draw upon the services of management consultants for a number of reasons, including gaining external advice and access to consultants’ specialized expertise.

According to Bernand, management consultant authority is the character of a communication {order} in a formal organization. By virtue of this order it is directed what needs to be done and what not needs to be done for the business of the organization by the specific employee to whom the order is directed.

According to Koontz and O’Donnell, the following statement, ”Viewed internally with respect to the enterprise responsibility may be defined as the obligation of the subordinate. This obligation represents the action or the duty which has been assigned to a particular employee. The essence of responsibility is then obligation.”

In fact authority means a formal institutional or a legal power in a particular position which is empowered to issue such orders to perform a power function of functions.

Bernand says that the character of a communication which it is accepted by a contributor of two members of the organization, governing the action he contributed. At the same time Simone, another management consultant explains that the author is the power to make decisions which guides the actions of others or just another. The superior frames such decisions which subordinate accept at the same time these decisions are aligned to the vision of the organization. From the above explanation, we understand that authority needs the right to influence the behavior of others.

Only persons holding authority can make decisions, as it is the main feature of his authority. A manager has the authority to order his subordinates to act or not to act in a particular manner. HE does this because he has already made a decision.

It is also noted that sometimes the exercise of the author may contain an element of the authority may contain an element of subjectivity. Thus a manager has authority to reward or punish his subordinates according to their performance. There’s no doubt assessment is often influenced by his personal likes and dislikes.

There are various theories to explain the sources of authority. These are as follows.

1.       Formal or Traditional or Top – Down Theory

2.       Acceptance or Bottom – Up Theory

3.       Competence or Personal Authority Theory.

1.       Formal Or Top Down Theory – It means the authority flows from rules flow from consents of all stakeholders. The owners on their part select and appoint staff that will help accomplish the task & responsibilities necessary to achieve organizational goals.

2.       Acceptance Theory – Acceptance Theory is the exact opposite of formal theory. According to this theory the manager’s authority will be in direct proportion to the acceptance given to his subordinates. If the subordinates do not accept the authority of the manager, they may not willingly comply with his decisions & orders – they may even defy them.

3.       Competence Theory Of Authority – A person can influence, the behavior of other even if he commands any formal or legal authority. This happens when he enjoys support and confidence of his supports because they see him as personification of their urges & aspirations. They also trust due to various reasons in the untrust of the organisations.

With the help of these theories we can get to know more about how a person behaves in front of his superior whether he follows his superiors he goes against them.

Blog is written By Vikram.