Though Henri Fayol expounded his management principles in the early 20th 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.
