DEMO LESSON ON DEMO LESSON ON PRINCIPLES OF PRINCIPLES OF MANAGEMENTMANAGEMENT

PRESENTED BYPRESENTED BY

FAYOL’S PRINCIPLES OF FAYOL’S PRINCIPLES OF MANAGEMENTMANAGEMENT

PRINCIPLE OF DIVISION OF WORKPRINCIPLE OF DIVISION OF WORKAccording to this principle the whole work must be According to this principle the whole work must be

divided into small tasks and instead of assigning divided into small tasks and instead of assigning the whole work to one person one task or unit of the whole work to one person one task or unit of work should be assigned to one person according work should be assigned to one person according to the capability, qualification and experience of to the capability, qualification and experience of the person.the person.

Positive effect of principle-Positive effect of principle-:: Benefit of specialisationBenefit of specialisation Improves efficiency of employeesImproves efficiency of employeesConsequences of violation of this principle-Consequences of violation of this principle-:: Lack of efficiencyLack of efficiency There will be no specialisationThere will be no specialisation

Principle of authority and responsibilityPrinciple of authority and responsibility According to this there must be balance or parity between the authority and According to this there must be balance or parity between the authority and

responsibility. Excess of authority without matching responsibility may bring negative responsibility. Excess of authority without matching responsibility may bring negative results and excess of responsibility without matching authority will not allow the results and excess of responsibility without matching authority will not allow the worker to complete his job on time. worker to complete his job on time.

Positive effect of principle-:Positive effect of principle-: No misuse of authority.No misuse of authority. Helps in meeting responsibilities on time without any delay.Helps in meeting responsibilities on time without any delay. Consequences of violation of this principle-:Consequences of violation of this principle-: Delay in completion of work due to less authority.Delay in completion of work due to less authority. Misuse of authority due to excess authority.Misuse of authority due to excess authority.

PRINCIPLE OF DISCIPLINE-:PRINCIPLE OF DISCIPLINE-: According to this, Fayol insists that discipline is required at superior as well as According to this, Fayol insists that discipline is required at superior as well as

subordinate level. subordinate level. Positive effect of principle-:Positive effect of principle-: Systematic working in the organisationSystematic working in the organisation Improves efficiencyImproves efficiency Consequences of violation of this principle-:Consequences of violation of this principle-: Disorder, confusion and chaosDisorder, confusion and chaos Wastage of resources in absence of disciplineWastage of resources in absence of discipline

PRINCIPLE OF UNITY OF COMMAND-:PRINCIPLE OF UNITY OF COMMAND-: According to this, an employee should receive orders from According to this, an employee should receive orders from

one boss only because if he is receiving orders from more one boss only because if he is receiving orders from more than one boss then he will get confused and will not be able than one boss then he will get confused and will not be able to understand that whose orders must be executed first and to understand that whose orders must be executed first and on the other hand, if employee is receiving orders from on the other hand, if employee is receiving orders from more bosses he gets chance to give excuses by saying that more bosses he gets chance to give excuses by saying that he was busy in executing the orders of other boss.he was busy in executing the orders of other boss.

Positive effect of principle-:Positive effect of principle-: No confusion in the mind of subordinateNo confusion in the mind of subordinate Improves effectiveness in workingImproves effectiveness in working Consequences of violation of this principle-:Consequences of violation of this principle-: Confusion in the mind of employee Confusion in the mind of employee Egoclashes among the different superiors. Egoclashes among the different superiors.

5 UNITY OF DIRECTION5 UNITY OF DIRECTION According to this principle ‘one unit means one According to this principle ‘one unit means one

plan’, that is the efforts of all the members and plan’, that is the efforts of all the members and employees of organisation must be directed employees of organisation must be directed towards one direction that is the achievement of towards one direction that is the achievement of common goal.common goal.

Positive effect of principle-:Positive effect of principle-: Achievement of organisational goalAchievement of organisational goal Efforts of all the employees get unified towards one Efforts of all the employees get unified towards one

direction only.direction only. Consequences of violation of this principle-:Consequences of violation of this principle-:Lack of coordinationLack of coordinationWastage of efforts and resources by working in Wastage of efforts and resources by working in

different directionsdifferent directions

6 SUBORDINATION OF INDIVIDUAL INTEREST TO 6 SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST-:GENERAL INTEREST-:

According to this the interest of organisation must According to this the interest of organisation must supersede the interest of employees. The goal of supersede the interest of employees. The goal of organisation must must not be sacrificed because organisation must must not be sacrificed because individuals will be able to achieve their objectives individuals will be able to achieve their objectives only when organisation prospers.only when organisation prospers.

Positive effect of principle-:Positive effect of principle-: Achievement of organisational goalAchievement of organisational goal Coordination between individual and organisational Coordination between individual and organisational

goalgoal Consequences of violation of this principle-:Consequences of violation of this principle-: No achievement of organisational goalNo achievement of organisational goal Even employees will also suffer in long runEven employees will also suffer in long run

7 REMUNERATION:-7 REMUNERATION:- According to this the employees in the organisation must be paid According to this the employees in the organisation must be paid

fairly or adequately to give them maximum satisfaction. The fairly or adequately to give them maximum satisfaction. The remuneration must be just and fair in order to get maximum remuneration must be just and fair in order to get maximum efforts from employees.efforts from employees.

Positive effect of principle-:Positive effect of principle-:Employees get motivatedEmployees get motivatedDevotion of employees improves Devotion of employees improves Consequences of violation of this principle-:Consequences of violation of this principle-:Increase in turnover of employeesIncrease in turnover of employeesDissatisfaction of employeesDissatisfaction of employees

8 CENTRALISATION AND DECENTRALISATION_-:8 CENTRALISATION AND DECENTRALISATION_-:According to Fayol a company must not be completely centralised or According to Fayol a company must not be completely centralised or

completely decentralised but there must be combination of both completely decentralised but there must be combination of both depending upon the nature and sije of the organisation. depending upon the nature and sije of the organisation.

Positive effect of principle-:Positive effect of principle-: Benefits of centralisation as well as decentralisationBenefits of centralisation as well as decentralisation Fast decisions at operational level and strict control by top Fast decisions at operational level and strict control by top

levellevelConsequences of violation of this principle-:Consequences of violation of this principle-:Complete centralisation will result in delay in decisionComplete centralisation will result in delay in decisionComplete decentralisation will result in misuse of authorityComplete decentralisation will result in misuse of authority

9 PRINCIPLE OF SCALAR CHAIN-:9 PRINCIPLE OF SCALAR CHAIN-:Scalar chain means line of authority or chain of superiors from Scalar chain means line of authority or chain of superiors from

highest to lowest rank. Fayol insists that this chain must be highest to lowest rank. Fayol insists that this chain must be followed strictly in the organisation. followed strictly in the organisation.

Positive effect of principle-:Benefits of centralisation as well as decentralisationFast decisions at operational level and strict control by top levelConsequences of violation of this principle-:Complete centralisation will result in delay in decisionComplete decentralisation will result in misuse of authority

9 PRINCIPLE OF SCALAR CHAIN-:Scalar chain means line of authority or chain of superiors from highest to lowest rank. Fayol insists that this chain must be followed strictly in the organisation. The following diagram explains the principles -:

Positive effect of principle-:Positive effect of principle-: