Fayol was of the opinion that all managers in all organisation, whether large or small, need to follow the principles or guidelines in managing business affairs.
The principles are as follow
1.Division of work 2.Authority and responsibility 3.Unity of command 4.Unity of Direction 5.Remuneration 6.Centralisation 7.Scalar chain 8.Equity 9.Stability of tenure (employer should be permanent not to be temporary period)
Function of management
The important functions of management are briefly explained as follows :
The modern techniques of making decisions can be broadly divided into two groups:
A. Programmed Decisions 1. Game Theory 2. Linear Programming 3. Simulation
B. Non Programmed Decisions 1. Nominal Group Technique 2. Delphi Technique 3. Quality Circles
Factors of span of control
1. Nature of work 2. Experience and capacity of superior 3. Subordinates nature and experience 4. Time devotion to supervision 5. Faith in subordinates 6. Incentives offered 7. Relationship 8. Assistance from personal staff
Concept
1. Planning Planning is a process of establishing goals and a suitable course of action for achieving those goals Analysing the internal environment to identify strength and weaknesses of the organisation. Analysing the external environment to identify opportunities and threats Setting of clear and realistic goals Framing alternative plan Evaluating alternative plans Selection of the best alternative plans Review of the plans
2. Decision making
The process of identifying and selecting a course of action to solve a specific problem
Defining the problem and situation Framing alternative solutions Evaluating alternative solutions Selection of the best alternative solution Implementation of alternative solution Review of performance
3. Remuneration
Wages and salaries should be fair. More importantly wages must be paid on time. Wages depend on factors, such as cost of living, ability of the company to pay, prevailing wage rates in the industries etc.
4. Controlling Controlling is the process of ensuring that actual activities conform to the planned activities Setting of standards or targets Implementation of tasks Measuring actual performance Comparing actual performance Causes of deviations Corrective measures Selecting the appropriate corrective measures Implementation and review of corrective measures.
5. Matrix-org
The matrix organisation uses two or more co-existing structures. For instance, it can combine project organisation with functional structure. In this type of organisation the project managers work in close co- operation with functional or departmental heads.
6. Policies
Policies are the statements that guide decisions making. Polices define the boundaries within which decisions can be made.
7. Management
Management is an art of getting things done through people
8. Delegation
It is a process by which a manager assigns tasks and authority to subordinates who accept responsibility for those jos
The principles are as follow
9. Division of work
The work in an organisation must be divided among individuals and departments. Division of work lead to specialisation . it result in improvement in quality, increase in quantity, and reduction in costs. Specialisation also leads to innovation.
10. Authority and responsibility
Authority must be equal to responsibility. If authority is more than responsibility, a manager may misuse it. And, if responsibility is more than authority, a manager may feel frustrated.
11. Unity of command
A subordinate should receive orders from only one superior. In turn, the subordinate should report only to one superior. Lack of unity of command creates confusion and chaos in the organisation.
12. Unity of Direction
Same direction need to be given to all employees doing similar activities. A particular activity must be directed with the help of a single plan.
13. Remuneration
Wages and salaries should be fair. More importantly wages must be paid on time. Wages depend on factors, such as cost of living, ability of the company to pay, prevailing wage rates in the industries etc.
14. Centralisation
Centralisation involves decision-making at top level and decentralisation involves decision-making at lower levels. He advised that extreme centralisation or decentralisation is to be avoided. Especially in large companies.
15. Scalar chain
It refers to the line of command which runs from top levels to the lowest level in the organisation.
16. Equity
All members of the organisation should be given fair and just treatment, depending upon the circumstances. Partiality in transfers, promotions, etc. is to be avoided.
Function of management
The important functions of management are briefly explained as follows :
17. Planning Planning is a process of establishing goals and a suitable course of action for achieving those goals Analysing the internal environment to identify strength and weaknesses of the organisation. Analysing the external environment to identify opportunities and threats