PRI

NCI
PLESOFMANAGEMENT
Concept :-Managementpr inciplei sabr oadandgener algui deli
nef ordeci si
onmaki ng
behaviour.Thesear enotasr igid aspr i
nciplesofsci enceast heydealwi th human
behaviourand t hus aret o be appl i
ed creat i
vely,gi ven the demand oft he sit
uati
on.
Changingt echnol ogyal soaff ectst hebusinesse. g.conferencesy stem ofInfosys.
Principles shoul d be di sti
nguished f rom t echniques. Techni ques ar e
procedure/met hods,whi chi nv olvesaser i
esofst epst obet akent oaccompl i
shdesi red
goals.Pr i
nciplesar egui delinest otakedeci sionswhi l
epr act i
cingt echniques.Pr i
nci
ples
should also be di sti
nguished f rom v alues.Val ues ar e accept abl
e and hav e mor al
connotations.Theyar e gener alr ulesf orbehav iourofi ndi v
idual sin societ
ywher eas
pri
nciplesarebasi ct r
uths/gui deli
nesf orbehav iourf ormedaf terresearchandar et echnical
i
nnat ure.Howev erwi l
epr act i
cingt hepr i
nciples,v aluescannotbenegl ectedbecauseof
socialresponsi bil
it
yofbusi ness.

Natureofpr inci ples:-Pr inci

plesar egener alpr eposi tions,whi char eappl icabl ewhen
certai
ncondi tionsar epr esent .Der i
vationoft hesepr i
nciplesmaysai dt obeamat terof
sci
enceandt hei rcr eat i
v eappl i
cat ionmayber egar dedasanar t.Principl
esl endcr edi bil
it
y
ofal earnabl eandt eachabl edi sci pl
inet ot hepr act i
ceofmanagement .Pr i
ncipleshav e
gai
nedi mpor tancewi t
hi ncr easingpr ofessi onal isat i
onofmanagement .
Pr i
nci plesdenot et hecause&ef fectr elati
onshi pandhel pmanager st ot ake
decisi
onswhi leper for mi ngt hef unct ions.Thenat ureofpr inci pl
esmaybesummar i
zedas
fol
lows:-
1)Uni versalappl icabi li
ty:-Pr inciplesar eint endedt oappl yt oall t
ypesofor gani sat ions,
smal l/l
ar ge/ busi ness/ non- busi ness/ publ ic or pvt.sect or,
manuf act uring/ tradi ng/ser vicesect or.Theext entofappl i
cabilit
ywoul dvar ywi tht he
nat ureofor gani sat i
on,busi nessact ivities,scal eofoper ationset c.Pr inciplesar e
alsoappl icabl et oal imitedcompanywher et her ear esepar atedepar t
ment s, inGov t.
depar tment swher ej obsar eassi gnedt opost .
2)Gener algui del ines:-Pr inciples do not pr ovide r eady made sol utions t o al l
manager i
alpr obl emsbecauser ealbusi nesssi tuationsar ev erydy namicandar ea
resultofmanyf act or s.Butt hei mpor t
anceoft hesepr inciplescannotbeov erlooked
becauseev enasmal lguidel i
necanhel pi nsol vi
ngagi v enpr oblem
3)For medbypr act ice&exper i
ment ation:-Pr i
nciplesar eformedbyexper ienceof
manager s as wel las exper i
ment ations conduct ed by t hem e. g.exper ience –
discipline, exper iment at
ion–f atiguepr obl em ofwor ker s.
4)Fl exible:-Pr incipl esar enotr i
gidpr escr iptionwhi chhav etobef ollowedabsol ut el
y
butar ef lexibleandcanbemodi fiedwhent hesi tuationdemands.Thesepr ov i
de
enoughdi scr etionar ypowert omanager se. g.degr eeofconcent rationofaut hor i
ty.
Principlesar edi fferentt ool sser vingdi f f
er entpur poses.Managerhast odei cide
whi cht ool touseunderwhi chci rcumst ances.
5)Mai nlybehav i
our al:-Pr i
nci plesai m ati nfluenci nghumanbehav ioursot heyar e
behav iour ali nnat ure.Pr inci plesal soper taint ot hingsandphenomenonbutt he
emphasi si sdi ffer ent.Inf actpr inciplesest abli
shabet terunder standingoft he
relati
onshi pbet weenhumanandmat erialr esour cesi naccompl ishingor gani sational
pur poses.
6)Causeandef fectr elati
onshi p:-Pr i
nci plest ellust hati fapar t
icularpr incipl eis

1
 appliedi napar ti
cularsi t
uat i
on,whatwoul dbei tslikel
yef fect.Theyar elesst han
perfectast heyar eappliedonhumanbehav i
ourandr eall
ifesi t
uati
onswhi char enot
i
dent ical.So iti s dif
ficultto establi
sh accur ate cause and ef fectrelationship.
Howev erprinci
plesassi stmanager sinest abli
shingr el
ati
onshi ptosomeext entand
arether efor
eusef ule.g.situati
onofemer gency/settingupaf actory
.
7)Cont i
ngent :
-Theappl i
cationofpr i
ncipl
esdependsupont hepr evai
li
ngsituat i
onata
pointoft i
meandhast obechangedasperr equirement se. g.pri
ncipl
est atesthat
empl oy eesdeservef ai
randj ustremuner ati
on,butwhati sjustandf airi
sdet ermined
bysev eralfact
orsl i
kecont ri
buti
onofempl oyee,pay i
ngcapaci t
yofempl oy erand
prevaili
ngwager ate.
Si
gni
fi
canceofpr
inci
ples
Managementpr inci plespr ovideusef uli nsi ghtst o manager i
albehav iourandi nfluence
manager ialpr act ices.They gui de manager si nt aki ng and i mpl ement i
ng deci sions.
Every
thingwor thwhi lei sgov ernedbyunder lyi
ngpr incipl e.Thesi gnificanceofpr inciples
canbedi scussedasf ollows: -
1)Pr ovidesmanager swi thusef ulinsi ght sintor eality :-Adher ingt opr i
nciplesaddst o
the manager ’s knowl edge,abi li
ty ofunder standi ng manager i
alsi tuat ions and
circumst ances.I tgi vesani nsighti nt or ealwor l
dsi tuations.Manager sl ear nf rom
pastmi st akes,conser vet i
mebysol vi
ngpr obl emsqui ckly ,ther ebyi ncr easet hei r
efficiencye. g.pr inci pleofdel egat ion.
2)Opt imum ut i
lizationofr esour cesandef fect i
v eadmi nistrat i
on:-Pr i
nciplesequi ps
themanager st of oreseet hecauseandef fectr elat ionshi poft hei rdeci sionsand
act i
ons.I tel i
mi nat est hewast agesassoci atedwi tht rialander rorappr oachand
utili
set her esour cest of i
v emaxi mum benef itsatmi nimum cost .
Pr i
nci plesl imitt heboundar yofmanager ialdi scr et i
onanddeci sion
becomes f ree f rom per sonalbi ases & pr ejudi ces.Thi si mper sonal i
sat ion of
manager ialconductmakeadmi nistrat i
onef fect i
v ee. g.pr incipleofcont r i
but iont o
organi sat ional object ives.
3)Sci ent if
icdeci sions:-Deci sionsmustbebasedonf actsandj ust if
iabl eint ermsof
i
nt endedpur poses.Managementpr i
nci pl
eshel pi nt hought fuldeci sionmaki ng.They
emphasi zel ogi cr at hert hanbl i
ndf aith.Theyar ebasedont heobj ect iveassessment
oft hesi tuat ion.
4)Meet schangi ngenv ironmentr equi rement :-Al thoughbynat uret hepr inci plesar e
gener algui del inesbutt heyar ef l
exi bleenought oadoptdy nami cenv ironmente. g.
principl eofdi vi
si onofwor kandspeci ali
zat ionhasbeenext endednow aday s
wher ebycompani esar especi ali
zingi nt heircor ebusi nessanddi vest i
ngnoncor e
act i
vities( e.g.HLLi sdi vestingbusi nessofchemi calandseedscompani esal so
transf err ingnoncor eact i
vit
iesl ikeshar et ransf ermanagementandadv ertisingt o
otheragenci es) .Ev encor epr ocessi ngl i
keR & D,manuf actur i
ng,mar ket i
ngar e
out sour cedt hr oughBPO&KPO.
5)Ful fi
ll
ingsoci alr esponsi bili
ty:-Managementt heor yandpr i
ncipl eshav eev olvedi n
responset ot hedemandsofsoci alr esponsi biliti
es.I nterpr etationoft heseal so
assumesnewerandcont empor arymeani ngwi t
ht hechangei nt imee. g.meani ngof
equi tyt odaydoesnotappl ytowageal one.Exampl eofMahi l
aGr ahaUdy ogLi jj
at
Papadandt ownshi pdev elopedbyBHEL.
6)Managementt raining,educat ion and r esear ch:-Pr inciples ar et he base of

2
 managementt heoryandar eusedasabasi sformanagementt r
aini
ng,education
andr esearch.Pr i
nciplesar egroundworkf ordev el
opmentofmanagementasa
discipli
ne.Pr of
essionalcour sesli
keBBA,MBAal soteachtheseprinci
plesasapar t
ofthei rcurri
culum.Pr inci
plesenablestherefi
nementofmanagementpr act
icesand
developmentofnewmanagementt echni
que‘operati
onresearch’
,‘
costaccount i
ng’
,
‘
justint i
me’ etc.
Itcanbeconcl udedt hatunderstandi
ngoft heprinci
pleswil
lhelpust oappr eci
ate
theirapplicabil
it
yinreal li
fesit
uati
on.

Tay
lor
’sSci
ent
if
icManagement

Fredrick Winslow Tay l

or( F.
W. Tay l
or)was an Amer i
can mechani calengi neerwho
soughtt oi mprovei ndustr
ialeffi
ciencybysci enti
fi
cal lyanal y
zingwor kandf indingone
bestwayofdoi ngi t.Hepr opoundedhi stheor yint heer aofi ndust rialr
evolutionand
beli
ev edthatcont empor arymanagementwasamat eurishandshoul dbest udiedasa
discipli
ne.Hecastemphasi soncooper ati
onbet weenwor kersandmanagementandi s
remember edforhist i
meandmot ionstudies,piecer atewagesy stem.Heemer gedas
‘
Fat her of sci ent
ific management ’by hi s ar ticle‘ The pr i
nci ples of sci enti
fi
c
management ’,publishedin1911.Hewasal sosel ect edast hepr esi dentofAmer i
can
societyofmechani calengi
neer sandpr ofessorofbusi nessschool .
Pr
inci
plesofsci
ent
if
icmanagement
Int heer aofi ndust r i
alr evolut ionmanager sr eliedon‘ rul
eoft humb’t ohandl et he
sit
uat i
onswhi chsuf fersf rom t hel i
mi tationof‘ tri
al&er r
orappr oach’ .Tay lorproposed
scientifi
cmanagementasopposedt or uleoft humb.Hebr okeupt hehumanact ivit
ies
i
ntosmal lpar tsandf oundhowi tcoul dbedoneef f ect i
velyinl esst i
mewi t
hincr eased
product ivi
ty.Accor dingt oTay lor“ Scient ifi
cmanagementmeansknowi ngexact lywhat
youwanty ourment odo,andseei ngt hatt heydoi nthebestandcheapestway .I t
i
mpl i
esconduct ing busi nessact i
vit
ieswi th st andar di
zed t ool s,met hods& t rai
ned
personneli nor dert oi ncr easet heout put ,impr ov equal it
yandr educecostandwast age.
Fourpr inciplesar easf ollows: -
1)Sci ence,notr uleoft humb;-Underr uleoft humbmanager sf oll
owedt heirown
met hodsandal lwoul dnotbeequal lyef f
ect ive.Tay lorbel ievedt hatther ewas
‘
onl yonebestmet hod’ tomaxi mi seef f
iciencywhi chcoul dbedev elopedt hrough
studyandanal ysisandt hemet hodsubst i
t utet her uleoft humb.I tinv olves
i
nv estigationoft het radit i
onalmet hodst hroughwor kst udy ,uni f
y i
ngt hebest
practices and dev elopi ng a st andar d met hod whi ch woul d be f ollowed
throughoutt heor gani sat ion.Mor esophi sticat edt hepr ocess,gr eaterwoul dbe
thesav ing.I npr esentcont ext,t heuseofi nt ernethasbr oughtaboutdr amat i
c
i
mpr ovement sini nt ernal ef f
ici
enci esandcust omersat i
sf action.
2)Har mony ,notdi scor d:-Managementser vesasal inkbet weenowner sand
wor kers.Manager shav et ogett het askdonef rom wor ker swhi chof tenresul tsin
classconf lict.Tobr i
ngcompl etehar monyTay l
orcal ledf or‘ compl et
ement al
revolution’ ont hepar tofbot hmanagementandwor kers.Management shoul d
shar ethegai nsofbusi nesswi thwor kersandwor kersshoul dwor khar dandbe
will
ingt oembr acechangef ort hebenef i
tofcompany .Bot hshoul dbeapar tof
fami l
yandshoul dr eal i
set hatt het ruei nt erestoft het woar eoneandsame.

3
 Pr osper ityofonecannotbeachi ev edf orl ongwi thoutt hepr ogressofot her.
Japanese wor k cul tur ei s a good exampl e ofcompl ete openness bet ween
managementandwor kers.I fwor ker sgoonst ri
ke,t heybearbl ackbadgeand
wor kmor et hannor mal wor kinghour st ogai nsy mpat hyofmanagement .
3)Cooper ation,noti ndi vidual i
sm:-I ti sanext ensi onoft hepr i
nci ple‘harmony ,not
discor d’andcal lsf orcooper at ioni nst eadofcompet iti
on.Managementshoul d
askf orconst ruct ivesuggest ionsf rom empl oy eesandt heyshoul dber ewar dedi f
suggest i
ons pr ov ef ruitf
ul .Bef ore maki ng and i mpor tantdeci sion,wor ker s
shoul dbet akeni ntoconf idence.
Att hesamet i
mewor kersshoul ddesi stf r
om goi ngon
strikeandmaki ngunr easonabl edemands.Tay l
orsuggest edt hatt hereshoul dbe
equaldi vi
sionofwor kandr esponsi bili
tybet weenmanagementandwor kersand
managementshoul dal mostwor ksi debysi dewi t
hwor kershel ping, encour agi ng
andsmoot heni ngt hewayf ort hem.
4)Dev elopmentofeachandev eryper sont ohi sorhergr eat estef f
iciencyand
pr osper ity:-Sci entifi
cmanagementcal lsf ordoi ngt hewor kbybestmet hod.I t
requi resdev elopmentandt r
ai ningofwor ker s.
Tay l
orsuggest ed t hateach per son shoul d be sci entifically
sel ected,assi gned wor k as perhi s/herphy sical ,ment aland i ntellect ual
capabi li
ties, shoul dbegi vent raini ngt oi ncr easeef ficiency .Anef fi
cientempl oy ee
woul dpr oducemor eandear nmor e.I twi llensur ebestef ficiencyandpr osper i
ty
forbot hwor ker sandcompany .
Techni quesofsci ent if
icmanagement
a)Funct i
onalf oremanshi p→ For emani st hel owestr anki ngmanager&hi ghest
ranking wor ker .Ent ire pr oduct ion pl anni ng,i mpl ement ation and cont rolr ev ol ve
aroundhi m.SoTay l
orl istoutt hatf or emanshoul dhav equal it
iesl i
kei ntelli
gence,
educat i
on,t act ,gr it
,j udgment ,speci alknowl edge,manualdext erity,ener gy,honest y
andgoodheal th.Asal lqual i
tiescoul dnotbef oundi nasi ngl eper sonsohe
suggest edf unct i
onal foremanshi pt hroughei ghtspeci al i
stper sons.
Underf act orymanagert her e waspl anni ng i nchar ge & pr oduct i
on
i
nchar ge.Fourper sonseachwer eappoi nt edundereachi nchar geswhi chwer e
respect ivelyr esponsi blef or- -
---
------
-------
-
1.Dr afti
ngi nst ruct i
onsf orwor ker s[ inst r
uct i
oncar dcl erk]
2.Speci f yther out eofpr oduct i
on[ Rout ecl er k]
3.Pr epar et ime&costsheet[ Ti me&costcl erk]
4.Ensur edi sci pline[ Discipl i
nar ian]
5.Ti mely&accur atecompl et ionofj ob[ speedboss]
6.Keepi ngmachi nes&t ool sr eadyf oroper ationsbywor ker s[Gangboss]
7.Ensur epr operwor kingcondi tionsofmachi ne[Repai rboss]
8.Checkt hequal ityofwor k[ I
nspect or ]
Thi si sanext ensi onoft hepr incipleofdi v i
sionofwor k&speci alizationt o
the shop f loor .Those wi tht echni calmast ery& i nt ell
igence maybe gi ven
planni ngwor k&t hosewi thener gyandgoodheal thmaybeassi gnedexecut i
on
wor k.
b)St andar disat ion&si mpl ifi
cat ionofwor k→ Accor dingt oTay l
orsci enti
ficmet hod
shoul dbeusedt oanal ysemet hodsofpr oduct ion.Thebestpr acticescanbekept&

4
furtherr efinedt hroughwor kst udyt echni quest odev elopast andar dwhi chshoul d
bef ollowedt hroughoutt heor gani sat ion.
St andar di sat ionr efer st ot hepr ocessofset tingst andar df orev ery
busi nessact i
v i
ty;itcanbest andar disat i
onofpr ocess,r aw mat eri
al,t ime,pr oduct ,
machi nery,met hodsorwor ki ngcondi tions.Theobj ect ivesofst andar disat ionar e:
-
i. Tomai ntainthef ixedt y pes, sizesandchar act eristicsofpr oduct
i
i. Toest ablishi nt erchangeabi li
tyofmanuf act uredpar t
sandpr oduct s
ii
i. Toest ablishst andar dsofexcel l
enceandqual it
yi nmat er i
al s
iv. Toest ablishst andar dsofper for manceofmenandmachi nes
Simpl ificat ionai msatel imi nat ingunnecessar ydi v er si
tyofpr oductand
resul t
si nsav i
ngofcostofl abour ,machi neandt ool swhi lest andar di sationi mpl i
es
dev i
singnew v ar i
etiesi nst eadofexi st i
ngones.Lar gecompani esl ikeNoki aand
Toy otahav esuccessf ullyi mpl ement edst andar disat i
onandsi mpl i
ficat i
onwhi chis
evidenti nt hei rmar ketshar e.
Met hodst udy :-Met hodst udyi sconcer nedaboutf indingoutt hebestwayt odot he
j
ob.Ev eryact ivi
tyf rom t hepr ocur ementofr aw mat erialt i
llt hedel i
v eringoff i
nal
producti sapar tofmet hodst udy .Forexampl e,f ordesi gningacarassembl ingl i
ne
product i
on woul d ent aildeci di ng t he sequence ofoper at ions,pl ace f ormen,
machi neset c.Thepur posei st omi ni mi zecostofpr oduct ionandmaxi mi set he
qual i
tyandsat i
sfact ionofcust omer s.
Mot ionst udy :-I tr efer st ot hest udyofmov ement swhi char eunder t
akenwhi l
e
doingat ypicalj ob.El imi nat ionofunnecessar ymov ement st akesl esst i
meand
makescompl etionofj obef fect ive.Onexami nat ionofbodymov ement sTay l
or
foundt hreet ypesofmot ion–( i)pr oduct ive( i
i)inci dent al (ii
i)unpr oduct ive
Wi thmot ionst udi esTay lorr educedt heunpr oduct ivemot i
onsandwas
ablet odesi gnsui tabl eequi pment sandt ool st oeducat ewor ker sont heiruse.The
resul t
sachi ev edwer er easonabl e.
Timest udy :-I tdet er mi nest hest andar dt imet akent oper for m awel ldef inedj ob.
Wi t
ht hehel poft imemeasur ingdev ices, standar dt imer equi redt ocompl et eaj obis
fi
xed.Theobj ect i
vei st odet ermi net henumberofwor kerst obeempl oy ed,wage
rateandf ramesui tabl ei ncent iveschemes.
Fatiguest udy :-Fat iguest udyseekst odet er mi net heamountandf r
equencyofr est
i
nter valsincompl etingat ask.Resti nt erval swi l
lhel pt hewor ker stor egai nst ami na
andwor kwi thsamecapaci tyt her ebyi ncr easepr oduct ivity.Causesoff at i
guemay
bel ongwor kinghour s,doi ngunsui tabl ewor k,hav inguncor di nalr elat i
onswi t
ht he
boss, whi chshoul dber emov edf orgoodper formance.
Different i
alpi ecer at esy st em:-Ont hest andar dt i
medet er mi nedundert imeand
mot ionst udy ,Tay l
ordi fferent iatedbet weenef ficientandi nef fici
entwor ker s.He
adv ocat edt hatef fi
cientwor ker sshoul dber ewar ded.Hei nt roduceddi fferentr ateof
wage pay mentf ort hose who per formed abov e st andar d and f ort hose who
perfor medbel owst andar d, e.g.Rs.50/ -peruni tatorabov e.

RelookofTayl
or’
sSyst
em
1)Sear
chf
oref
fi
ciencyr
equir
essear
chforonebestmet
hodwhi
chmustl
eadt
o

5
 thedet erminationofaf airday’
swor k;
2)Compensat ionsy stem mustdi ff
erenti
atet hosewhoar eabl etoexceedf air
day ’
swor k;
3)Effi
ciencyi st her esul
tofj ointeffort
sofmanager sandwor kers,sobot h
shouldwor kinhar monyf ormaximizingtheout putr
atherthanrestri
ctingit;
4)Subst anceofTay lor’
si deaischangeofmi ndset(mentalrevolution)which
i
nv olveschangeofat tit
udeofmanager sandwor kersf r
om compet iti
onto
cooper ati
on.Bot hshoul daimtoincreaset hesizeofsurpl
us;
5)Managementshoul dshareapar tofsurpluswi t
hwor ker
sandwor kersshould
contributetheirbestsot hatcompanymakespr ofi
t.Worker’
swel lbei ngcan
bri
ngpr osperi
tyofbusi nessinlongrun.

Fay
ol’
sPr
inci
plesofManagement

HenryFay ol( 1841- 1925)wasaFr enchmi ni

ngengi neerwhof irstt imei dent i
fiedf our
functi
onsofmanagement– pl anni ng,or gani sing,di rectingandcont rol
li
ng. He
divi
ded t he act iviti
es ofan i ndi vi
dualunder taking i ntot echni cal ,commer cial,
fi
nancial
,secur ity,account ingandmanager ial.Heal sosuggest edqual it
iesofa
managerl i
ke–phy sical,mor aleducat i
on,knowl edgeandexper ience.Basedonhi s
experi
encehepr opounded14pr i
nci plesofgener amanagementf orwhi chhei s
knownas‘ Fat herofGener al Management ’
.Pr inci plesar e:-
1)Di visionofwor k:-Wor kisdi v
idedi ntosmal ljobs.Eachj obi sper f
or medbya
tr
ainedspeci alist.Accor dingt oFay olt hei ntent i
oni st opr oducemor eand
betterr esul t
sf ort hesamewor k.Speci alisationi st hemostef fi
cientwayt o
util
izehumanef f
or t.
Thispr inci pleisappl i
edi nev eryor gani sat ion.I nacompanywe
hav esev er aldepar t
ment s,i nhospi tals,gov t.of fi
cesdi fferentact i
vitiesar e
under taken.
2)Aut hor i
tyandResponsi bil
ity:-Aut hor ityi st her ightt ogi veor dersandobt ain
obedi enceandr esponsi bil
ityi scor ollaryofaut hority.Ther ear et wot y pesof
author ityof f
icialandper sonalaut hor ity.Of fi
cialaut hor ityi st heaut hor ityt o
commandandper sonal aut horityofindi v idual manager s.
Aut horityi s bot hf ormaland i nfor mal .Manager sr equi re
author itycommensur atewi tht heirr esponsi bili
t i
es,t hatmeansabal ance
between aut hor ity and r esponsi bil
ities shoul d exi st.Exampl e:powert o
negot iateadeal ;seepagenos.56&57.
3)Di scipl i
ne:-Di sci pli
nemeansobedi encet oor gani sat i
onalr ulesandr ulesof
empl oy mentwhi char enecessar yf ort hewor king.I trequi resgoodsuper iorat
al
l levels.Fai randcl earagr eement sandj udi ciousappl icationofpenal ti
es.e. g.
commi tmentbet weenwor ker sandmanagementt orev iv et hecompanyoutof
l
oss.
4)Uni tyofcommand:-Par tici
panti naf or malor gani sat ionshoul dr ecei ve
order sf rom &ber esponsi blet oonl yonesuper i
or.I tmeanst hereshoul dbe
onlyonebossf orev er yindiv i
dualempl oy ee.Fay olfel tt hati fthispr i
nci plei s
vi
ol ated“ aut hor i
tyi sunder mined;di sci plinei si nj eopar dy,or derdi sturbed&
stabilit
yt hreat ened” .(e.g.sal esman r ecei v i
ng or derf rom mar keting and

6
 financemanager )
5)Uni t
yofdi r
ect ion:-Al luni tsofanor gani sat ionshoul dbemov i
ngt owar dst he
sameobj ectiv est hr oughcoor dinat edandf ocusedef forts.Eachgr oupof
act iviti
eshav i
ngsameobj ect i
vemusthav eoneheadandonepl an.I tensur es
uni tyofact ion&coor dinat ion.
6)Subor dinat ionofi ndi viduali nt er
estt ogener ali nt er est:-Eachwor kerhas
somei ndi viduali nt erestf orwor kingi nacompany .Companyhasi t sown
obj ect ivesl i
kemaxi mum out put /prof it
s.I nal lsi tuat ionst hei nt erestoft he
gr oup/ companywi llsuper cedet hei nterestofanyonei ndi vidual .I ti sso
becausel argeri nterestoft hewor ker sandst akehol der sar emor ei mpor tant
thant hei nter estofanyoneper son.
Amanagershoul dsetanexampl ebyhi sbehav iourandshoul d
notf alli nt ot empt at i
on ofmi susi ng hi s/ herpower sf ori ndi v i
dual /fami ly
benef itatt hecostofl argergener al interestofwor ker s/company .
7)Remuner ationofempl oy ees:-Thepayandcompensat ionshoul dbef airbot h
toempl oy eesandor gani sat ion.Fai rwagemeansapaywhi chshoul dgi vet he
empl oy eesar easonabl est andar dofl i
v i
ng.Att hesamet imei tshoul dbe
wi thint he pay i
ng capaci ty of t he company .I twi l
lensur e congeni al
at mospher eandgoodr el ationsbet weenwor ker sandmanagement .
8)Cent ral i
sat ion and decent ralisation:-Concent ration ofdeci sion maki ng
aut hor ityi scal ledcent ralisat i
onwher easi tsdi sper salamongmor et hanone
per soni sknownasdecent ralisation.Accor dingt oFay ol”Ther ei saneedt o
makeabal ancei nv ol vementofsubor dinat et hroughdecent ral i
sat ionand
ret entionofaut hor ityt hroughcent rali
sat ion.Degr eeofcent ralisat ionwi l
l
dependont heci rcumst ancesi nwhi chcompanyi swor king.Exampl eof
‘Panchay at’.
9)Scal archai n:-Thel ineofaut hor i
tybet weensuper i
or sandsubor dinat esf rom
highestt ol owestr anksar e known asscal archai n.Accor di ng t o Fay ol
“Or gani sat i
onsshoul dhav eachai nofaut hor i
tyandcommuni cat iont hatr uns
from t opt obot tom andshoul dbef ollowedbymanager sandsubor di nates” .
Thi schai ncanbev iolat edonl yi ft her ei sanemer gency ,t oav oiddel ayi n
communi cat ion.Thev iolat i
onofscal archai ni scal led‘ GangPl ank’ .
10) Or der :-Peopl e and mat erials mustbe on sui tabl e pl aces at
appr opr iatet i
me f ormaxi mum ef ficiency .I ft her ei saf ixed pl ace f or
ev ery thingandi ti spr esentt here,t hant her ewi l
lbenohi ndr ancei nt he
act iviti
esofbusi ness.I twi llleadt oi ncr easedpr oduct ivit
yandef ficiency .
11) Equi ty:-Thi spr inci pleemphasi zeski ndl i
nessandj usticei nbehav iour
ofmanagert owar dswor kers.Thi swi l
lensur el oy al tyanddev otion.Ther e
shoul dbenodi scrimi nat i
onagai nstany oneonaccountofgender ,r eli
gion,
language,cast eornat ional ityet c.Thi scul turei sappar enti nmul tinat ional
cor por at ionwher eequal oppor tunitiesar eav ailablef orev eryone.
Lat elyIndi abor nAmer i
canAr unSar i
nhasbecome
CEOofBr it
ishTel ecom maj orVodaphoneLt d.andl at elyIndr aNooi ebecame
theCEOofPepsi co( I)Lt d.
12) Stabi li
tyofper sonnel :-Empl oy eet urnov ershoul dbemi ni mi zedt o
mai ntai n or gani sat i
onalef ficiency .Empl oy ees shoul d be r ecr uited af ter

7
 ri
gor ouspr ocedur ebutshoul dbekeptatt heirposi tionf orami ni
mum f ixed
tenure.Adhoci sm i nthisregar dwi llcr eateinsecur i
t yamongempl oyeesand
theywoul dtendt oleaveor gani sation, recruit
ment ,
sel ect i
onandt r
ainingcost
willbehi gh,sost abil
it
yint enurei sgoodf orbusi ness.
13) I
niti
ative:-Wor kersshoul dbeencour agedt odev elopandcar r
yout
theirpl ansf ori mpr ovement s.Thi nki ngoutandexecut ingt hepl ani st he
qualityofani ntell
igentper son.Buti tdoesnotmeangoi ng agai nstt he
established pr act i
ceofa company .Empl oy eesuggest ion system shoul d
rewar dsuggest ionwhi chresul tincost /timereduct ion.
14) Espri
tdecor ps:-Managementshoul dpr omot eat eam spiri
tofuni t
y
andhar monyamongempl oyeesot her wiseobj ectiveswoul dbedi f
ficultto
reali
se.Managershoul dr eplace‘ I’wi th‘ We’inconv ersationtogi ver i
set oa
spiri
tofmut ualt rustandbel ongingnessamongt eam member s.Itwi l
lalso
minimi zetheneedf orusingpenal ties.Fay olvs.Tay lor( seepageno.64)

KAUSHALSHARMA
PGTCommer ce
Mob.9808056625