PRINCIPLES OF MANAGEMENT

INDEXCONTRIBUTION OF HENRY FAYOLCONTRIBUTION OF ELTON MAYO

HENRY FAYOL

(1841-1925)

14 PRINCIPLES OF MANAGEMENT

• Division of Labor

• Party of Authority & Responsibility

• Principle of One Boss

• Unity of Direction

• Equity

• Order

•  Discipline

•Initiative

•Fair Remuneration

•Stability of Tenure

•Scalar Chain

•Sub-Ordination of Individual Interest to General Interest

•Espirit De’ Corps

•Centralization & De-Centralization

DIVISION OF LABOUR stressed on the specialization of jobs

work of all kinds must be divided and allotted to various

persons

simpler and results in efficiency

helps the individual in acquiring speed, accuracy in his

performance

Specialization leads to efficiency & economy in spheres of

business

Party of Authority & Responsibilityco-existingAuthority is given to a person, he should also be made

responsible.He should also have concerned authority, if anyone is made

responsible.Authority refers to the right of superiors. responsibility means

obligation for the performance of the job assigned.Should be a balanced.Authority- Responsibility = Irresponsible Behavior Responsibility- Authority= Ineffective

Principle of One BossA sub-ordinate should receive orders and be accountable to only boss at a

time.

a sub-ordinate should not receive instructions from more than one person

Dual sub-ordination should be avoided

The enterprise a disciplined, stable & orderly existence

Harmonious relationship between superiors and sub-ordinates

a sub-ordinate should not receive instructions from more than one person

UNITY OF DIRECTION

One head one plan

Related activities should be grouped together

Efforts of all the members of the organization should be directed

towards common goal

Without unity of direction, unity of action cannot be achieved.

Unity of command is not possible without unity of direction.

Order

Concerned with proper & systematic arrangement of

things and people.

Arrangement of things is called material order

Placement of people is called social order.

Material order-should be safe, appropriate and specific place for every article

Social order-Selection and appointment of most suitable person on the suitable job

DisciplineSincerity, Obedience, Respect of Authority & Observance of

Rules and Regulations of the Enterprise.subordinate should respect their superiors and obey their order.smooth running of the enterprisesubordinates but also on the part of management. Discipline can be enforced if - -Good superiors

- Clear & fair agreements with workers - Sanctions are judiciously applied

INITIATIVEEncouraged to take initiative in the work assigned to

them

Initiate actions without being asked to do

Management should provide opportunity to its employees

Helps in developing an atmosphere of trust

Enjoy working in the organization because it adds to their zeal and energy

Suggest improvement in formulation & implementation of place

Fair RemunerationPaid to the workers should be fair of the efforts

Satisfaction to both employer and the employees

Determined on the basis of cost of living, work assigned etc,

Provision of other benefits such as free education, medical & residential facilities to workers

Management creates harmonious relationship and pleasing atmosphere of work.

Stability of TenureEmployees should not be moved frequently

from one job position to anotherOnce they are appointed their services should

be servedTime is required for an employee to get used

to a new workMoney spent on training the worker will go

wasteStability of job creates team spirit& a sense

of belongingness among workers

Scalar Chain

The chain of superiors ranging from the ultimate authority to the lowest

Every orders, instructions etc. has to pass through Scalar chain.

For the sake of convenience & urgency, this path can be cut this short cut -Gang Plank

Temporary arrangement between two different points to facilitate quick & easy communication

Modified as per the requirements of situations.

Sub-Ordination of Individual Interest to General Interest

An organization is much bigger than the individual

As far as possible, reconciliation should be achieved between individual and group interests.

Case of conflict, individual must sacrifice for bigger interests

In order to achieve this attitudeEmployees should be honest & sincere.  Proper & regular supervision of work. Reconciliation of mutual differences

Espirit De’ Corps It refers to team spirit Inspires workers to work harderInterest of the undertaking in the long run. The managers should infuse team spirit &

belongingnessEspirit De’ Corps following steps should be

undertaken proper co-ordination should be encouraged to develop informal relations among themselves. create enthusiasm and keenness among subordinates employees should be rewarded

Centralization & De-CentralizationCentralization-concentration of authority at the top level

De-centralization-disposal of decision making authority to all the

levels of the organization

Increases the role of subordinate is decentralization & Decreases

the role of subordinate is centralization

It is not feasible, organization should strike to achieve a lot

between the two.

GEORGE ELTON MAYO

(1880-1949)

GEORGE ELTON MAYO Was born in South Australia on, 26

December 1880 Father of Human Relations Approach Professor at the Harward business

school Leader of the Hawthorne

Experiments (1924-1927) Died on 1 September 1949

Hawthorne Experiment:(his main contribution 1924-1927 )

Illumination Experiment.Relay Assembly Test Room

Experiment.Mass Interview Programme.Bank Wiring Test Room Experiment.

Illumination Experiment:This experiment was conducted to

establish relationship between output and illumination.

When the intensity of light was increased, the output also increased.

The output showed an upward trend even when the illumination was gradually brought down to the normal level.

CONCLUSION:oIt was concluded that there is no

consistent relationship between output of workers and illumination in the factory. There must be some other factor which affected productivity.

Relay Assembly Test Room Experiment:

This phase aimed at knowing not only the impact of illumination on production but also other factors.

Length of the working days, rest hours, and other physical conditions.

In this experiment, a small homogeneous work-group of six girls was constituted.

These girls were friendly to each other and were asked to work in a very informal atmosphere under the supervision of a researcher.

Productivity and morale increased considerably during the period of the experiment.

Productivity went on increasing and stabilized at a high level even when all the improvements were taken away and the pre-test conditions were reintroduced.

CONCLUSION:oThe researchers concluded that

socio-psychological factors such as feeling of being important, recognition, attention and participation, held the key for higher productivity.

Mass Interview Programme:The researchers interviewed a large number

of workers with regard to their opinions on work, working conditions and supervision.

Initially, a direct approach was used whereby interviewers asked questions considered important by managers and researchers.

Later , this approach was replaced by an indirect technique.

Where the interviewer simply listened to what the workmen had to say.

CONCLUSION:o The findings confirmed the

importance of social factors at work in the total work environment.

Bank Wiring Test Room Experiment:The experiment was conducted to

study a group of workers under conditions which were as close as possible to normal.

This group comprised of 14 workers. After the experiment, the

production records of this group were compared with their earlier production records.

.

It was observed that the group evolved its own production norms for each individual worker, which was made lower than those set by the management.

Because of this, workers would produce only that much, thereby defeating the incentive system.

Those workers who tried to produce more than the group norms were isolated, harassed or punished by the group.

CONCLUSION:oEach individual was restricting

output.oThe group had its own “unofficial”

standards of performance.oIndividual output remained fairly

constant over a period of time.oInformal groups play an important

role in the working of an organization.