case study of 14 principles of management

Henri Fayol 14 Principles of Management with Examples

Table of Contents

Henri Fayol , often referred to as the ‘Father of Modern Management Theory ‘, was a French mining engineer. He rose to prominence within the French mining company Commentry-Fourchambault and Decazeville, climbing up from an engineer to the organization’s director. Fayol’s unique management approach, which emphasized administrative skills over technical abilities, resulted in the formulation of his famous 14 principles of management.

Henri Fayol 14 Principles of Management

Below, we explore each of Fayol’s 14 principles of management, providing examples and detailing their relevance in the contemporary business environment.

Division Of Work The first principle suggests that work should be divided among individuals according to their expertise. Division of work makes each task simpler & Repetitive performance helps in gaining speed specialisation, and increases efficiency. accuracy &. For this reason, big firms have separate departments for Finance, Marketing, and Human Resources. etc. For example , in a school, different departments handle academics, sports, and administration, each managed by specialists in their respective fields.
Authority & Responsibility According to Fayol, managers must possess the necessary authority to ensure that their instructions are executed. However, with authority comes responsibility. A balance between these two is essential for an organization’s smooth functioning. For example, In a retail store, a store manager has the authority to make decisions about inventory and staffing and is accountable for the store’s performance. ► Benefit: 1) Prevent misuse of authority. 2) It helps in fixing responsibility. 3) It increases the confidence of the employee. Ex- Responsibility Without authority. Foreman– 100 units.
Discipline Discipline, as per Fayol, is a fundamental requirement for any organization. It is obedience to the rules and regulations of the organisation which is necessary for the systematic, working of the organisation. IGH. Discipline must be for all enterprise STs for all levels. Ex-Senior time- Junior? ► Benefit: ●Smooth & Systematic functioning of business. ●Better relations between management & employees. Better Reputation.
Unity Of Command According to this principle, a single manager should provide directions to all employees. This strategy minimizes possible confusion and conflict and keeps authority and responsibility intact. For Example- In a project team, team members report to the project manager to maintain clarity in task assignments. ► Benefit: ●No confusion in the mind of a subordinate. ● Responsibility can be easily fixed. ● Better performance. ●No conflict ◆Example- Mkt Manager, sales executive- 10% discount, finance manager -5%.-customer.
Unity Of Direction Fayol emphasizes that There should be a single leader and a unified plan for a group of activities with shared objectives. It keeps efforts from being duplicated needlessly and guarantees coordination and unity of action. For Example- In a marketing department, all advertising efforts are directed by the marketing manager to ensure a consistent message. ► Benefit: ●Emphasis importance of a common goal ●Facilitates coordination. ◆Example- Tata Hotel ?, FMCG ?, automobile gold jewelry, etc. there should be separate divisions for all. Every division ought to be in control of, and have its own plan and resource.
Subordination Of Individual Interest to General Interest. Fayol asserts that the organization’s interests as a whole must take precedence over those of its individual members. If there are divergent interests, it is the responsibility of management to balance them. However, if reconciliation is not possible, then the general must interested. Interest supersedes individual. This principle ensures the organization’s goals are not compromised by individual interests. For Example- In a sales team, individual sales targets may need to be sacrificed for the team to achieve overall sales objectives. ► Benefit: 1) helps in achieving the goal of organisation. 2) Coordination between individual and organisational objectives.
Remuneration Of Employees Employees must receive fair compensation for their work, including both financial and non-financial benefits. The remuneration Of Employees must be Fair to everybody. This principle underlines the importance of motivational factors in employee performance. For Example – In a tech star-tup, competitive salaries, bonuses, and stock options can motivate employees to perform at their best. ► Benefit: ●High level of motivation. action ●Cordial relations between management. employees and ●Improvement in the commitment of employees towards the organisation.
Centralisation & Decentralisation Centralization refers to the consolidation of decision-making authority at higher echelons of management. However, Fayol proposes the necessity of maintaining a proper balance between centralization and decentralization within the organization. For Example- In a multinational corporation, strategic decisions may be made centrally, while operational decisions are decentralized to regional managers. Benefit: ( Decentralisation) ●Quick- Decision at middle & operational level. ●Decrease the workload of superiors. ●Increase in Encouragement & Motivation level of subordinates.

9.Scaler chain There is a chain of command and communication that is followed from the top down by managers and employees. The Scalar Chain denotes the formal hierarchical structures organized from the highest to the lowest ranks. It is not appropriate to break the chain during official correspondence. Crucial-Unity of Command & Effective Communication. In an emergency, Fayol permitted a shortcut in the chain known as Gang 44 Plank”. Direct contact between two employees at the same level is made possible by “Gang Plank,” which eliminates the need for the scalar chain. The concept of gang plank is possible only for employees of equal rank or same level. Ex-gang Plank cannot be established between D & F.

▸ Pros: 1) Orderly & Smooth flow of information.. 2) Clear line of authority & responsibility. ▸ 3)Better relationship between subordinate & superior. 4) Unity of Command due to no confusion of dual order

Order. Everybody and everything should have a place. People & Materials must be in a suitable place for Maximum Efficiency. place at appropriate time No Obstruction in work, increased Productivity & Efficiency. Benefit: ●Efficient use of resources, no time waste. ●Smooth and systematic working of organisation.

Types Of Order: Material Order & Social Order.

Equity No employee shall be subjected to discrimination on the grounds of nationality, gender, caste, religion, language, or belief. If management is partial- Employees dissatisfied- not work properly. It Improves satisfaction & motivation levels among Cordial relations between employees & management
Stability Of Personnel Appropriate measures must be taken to guarantee stability and continuity of employee tenure. Personnel have to be chosen and appointed after a thorough and legal process. Minimum interval after selection. Employees will experience instability and insecurity as a result of constant change, and they will likely leave the company. Additionally, it will increase the price of hiring, choosing, and training employees.

Benefit- ●Increase Efficiency of employees Better Reputation of the organisation, Less Expense on recruitment time & resources.

Initiative Employees who take the initiative to create and carry out the plans should be commended and given the chance to do so. Self-initiative takes the first step with self-motivation and is a source of strength for the organisation. For Example- In a tech company, employees are empowered to suggest improvements to processes or products, fostering innovation.

Benefit: ●Increase in mental employees. s.al growth & feeling of belongingness in ●It increases the commitment increase com of employees towards the organisation through maximum participation.

Espirit De Corp Management should promote a Team Spirit of Unity and Harmony among employees. Especially in large organisations because otherwise objectives would be difficult to realise and there will be a loss of coordination. A manager should replace ‘I’ with ‘We’ in his conversation to give rise to a spirit of team spirit.

Benefit: ●an atmosphere ▸ Develop an atmosphere of mutual trust. ●Help in the achievement of group goals. ●Cordial relationship between management and workers.

Relevance of Fayol’s Principles Today

Despite being more than a century old, Fayol’s 14 principles of management remain relevant. They provide a robust framework for efficient management, emphasizing planning, organization, leading, and control. These principles have been adopted by numerous organizations globally, underlining their enduring value.

Henri Fayol’s 14 principles of management continue to guide today’s leaders. By understanding and applying these principles, organizations can foster a productive, efficient, and harmonious work environment. Whether you’re an aspiring manager or an experienced leader, integrating these principles into your management style can significantly enhance your team’s performance and overall organizational success.

F.w. taylor- 5 principles of scientific management.

Who was henri fayol, henry fayol’s 14 principles of management, 1. division of work, 2. authority, 3. discipline, 4. unity of command, 5. unity of direction, 6. collective interest over individual interest, 7. remuneration, 8. centralization, 9. scalar chain, 12. stability of tenure of personnel, 13. initiative, 14. esprit de corps, history of the 14 principles of management, what is the importance of the 14 principles of management, criticism of fayol's principles of management, are these principles of management still relevant today, what are the 14 principles of management by henri fayol.

Reviewed and fact-checked by Sayantoni Das

Any organization that wishes to be efficient and achieve its goals needs good management . Management has four basic functions - planning, organizing, leading, and controlling, also called the POLC framework in management. Without these in place, there would be little to no structure and focus in an organization. One classic theory on the principles of management was written by Henri Fayol in his 1916 book, "Administration Industrielle et Générale”. By placing the focus on managerial skills over technical skills, these principles give us a foundation for what we call “good management”.

Check out the video below that explains Henry Fayol’s 14 principles of management.

A French mining engineer, Henri Fayol is well-renowned as the 'Father of Modern Management Theory'. Fayol worked at the French mining company Commentry-Fourchambault and Decazeville, where he started as an engineer but worked his way up to become the general manager and then the organization's director from 1888 to 1918. When Foyal took on the managerial role at the mining company, he chose to rely not on his technical skills but on his ability as an organizer and his skills at handling people.

Widely influential in the early 20th century, Henri Foyal wrote the book on management theories and work organization, "Administration Industrielle et Générale." Henri Foyal introduced theories that could be applied to all levels of management and for any department. Organizations and managers still practice Foyal's principles of management to ensure an efficient and successful business.

Henri Foyal developed the 14 principles of management towards the tail end of the industrial revolution. It was the perfect timing too, the world had been subjected to massive changes, and new and improved working styles were the need of the moment. Therefore, Fayol's Principles of Management influence the present management theory quite significantly.

Henry Fayol’s 14 principles of management look at an organization from a top-down approach to help managers get the best from employees and run the business with ease. Let’s take a look at them and understand them in detail.

The first Henry Fayol principle of management is based on the theory that if an employee is given a specific task to do, they will become more efficient and skilled in it. This is opposed to a multi-tasking culture where an employee is given so many tasks to do at once. In order to implement this principle effectively, look at the current skill sets of each employee and assign them a task that they can become proficient at. This will help them to become more productive, skilled, and efficient in the long run.

Example: At a school, every department has a different responsibility, like academics, sports, administration, sanitation, food, beverages, etc. These responsibilities are taken care of by employees specializing in that particular department, increasing efficiency and productivity and making them specialists in their field.

This henry fayol principle of management states that a manager needs to have the necessary authority in order to ensure that his instructions are carried out by the employees. If managers did not have any authority, then they would lack the ability to get any work done. However, this authority should come along with responsibility. According to Henri Fayol, there should be a balance between authority and responsibility. If there is more authority than responsibility, the employees will get frustrated. If there is more responsibility than authority, the manager will feel frustrated.

Example: If an employee has been responsible for managing the decor department while planning an event but has no authority to make design decisions or contact the vendors to get the work done, no efficiency or productivity will be achieved.

This principle states that discipline is required for any organization to run effectively. In order to have disciplined employees, managers need to build a culture of mutual respect. There should be a set of organizational rules, philosophies, and structures in place that should be met by everyone. Bending rules or slacking should not be allowed in any organization. In order to achieve this, there is a need for good supervision and impartial judgment.

Example: Every employee must follow certain rules and regulations and keep a disciplined attitude in the workplace for smooth working and efficient results.

This principle states that that should be a clear chain of command in the organization. The employees should be clear on whose instructions to follow. According to Fayol, an employee should receive orders from only one manager. If an employee works under two or more managers, then authority, discipline, and stability are threatened. Moreover, this will cause a breakdown in management structure and cause employees to burn out.

Example: If in a company, an employee has been given a task to finish within 3 to 4 hours as ordered by their immediate superior. But the head of the department asks them to deliver the task within 1 hour. In this case, no unity of command can create confusion and pressure in the workplace.

This henry fayol principle of management states that the work to be done should be organized in such a way that employees work in harmony towards the same objective, using one plan, under the direction of one manager. For example, if you have a range of marketing activities such as advertising, budgeting, sales promotion, etc., there should be one manager using one plan for all the marketing activities. The different activities can be broken down for different sub-managers, but they should all work towards a common goal under the direction of one main person in charge of the whole thing.

Example: Different sets of activities within a department should be managed by different managers to avoid confusion and lesser efficiency within the workflow.

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This principle states that the overall interest of the team should take precedence over personal ones. The interest of the organization should not be sabotaged by the interest of an individual. If anyone goes rogue, the organization will collapse.

Example: While planning a team outing, the employee making the travel and stay decisions must make arrangements according to comfort and affordability, not just as per their liking.

This henry fayol principle of management states that employees should be paid fair wages for the work that they carry out. Any organization that underpays its workers will struggle to motivate and keep quality workers. This remuneration should include both financial and non-financial incentives. Also, there should be a structure in place to reward good performance to motivate employees.

Example: Any organization must be fair regarding their remuneration policies where all the employees must receive a salary worth their efforts irrespective of their gender, tenure, and other factors.

Centralization refers to the concentration of power in the hands of the authority and following a top-bottom approach to management. In decentralization, this authority is distributed to all levels of management. In a modern context, no organization can be completely centralized or decentralized. Complete centralization means that people at the bottom have no authority over their responsibilities. Similarly, complete decentralization means that there will be no superior authority to control the organization. To use this effectively today, there should be a balance of centralization and decentralization. The degree to which this balance is achieved will differ from organization to organization.

Example: Centralization is mostly common in small and medium-sized firms where the delegation of work is minimal, and the owners make most of the decisions.

A scalar chain refers to a clear chain of communication between employees and their superiors. Employees should know where they stand in the hierarchy of the organization and who to go to in a chain of command. To implement this in the workplace, Fayol suggests that there should be an organizational chart drawn out for employees to see this structure clearly.

Example: Every organization has a specific chain of authority from the highest level of superiors, like the founder or CEO, to the lowest level of subordinates following a hierarchy for maximum productivity.

This principle states that there should be an orderly placement of resources (manpower, money, materials, etc.) in the right place at the right time. This ensures the proper use of resources in a structured fashion. Misplacement of any of these resources will lead to misuse and disorder in the organization.

Example: Employees should be given a designated space and the right tools or equipment to complete their work efficiently.

Equity is a combination of kindness and justice. This principle states that managers should use kindliness and justice towards everyone they manage. This creates loyalty and devotion among the employees towards the organization they work for.

Example: All employees, irrespective of gender, religion, race, and sexuality, must feel safe, seen, and heard and be given equal opportunities to grow and flourish in their careers within the organization.

This principle states that an organization should work to minimize staff turnover and maximize efficiency. Any new employee cannot be expected to get used to the culture of an organization right away. They need to be given enough time to settle into their jobs to become efficient. Both old and new employees should also be ensured job security because instability can lead to inefficiency. There should also be a clear and effective method to handle vacancies when they arise because it takes time and expense to train new ones.

Example: Every new employee must be given a proper induction of both the technical aspect of the company as well as the work culture and office environment for them to mingle well. Old employees should be given alum awards for completing certain tenures to boost morale.

This principle states that all employees should be encouraged to show initiative. When employees have a say as to how best they can do their job, they feel motivated and respected. Organizations should listen to the concerns of their employees and encourage them to develop and carry out plans for improvement.

Example: Taking suggestions from employees regarding their specific department can make them feel seen in an authoritative position and can give them a sense of achieving something for the team.

Esprit de Corps means “Team Spirit”. This henry fayol principle of management states that the management should strive to create unity, morale, and co-operation among the employees. Team spirit is a great source of strength in the organization. Happy and motivated employees are more likely to be productive and efficient.

Example: While discussing the new plan of action for achieving the next month's targets, using the word 'We' instead of 'I' brings a teamwork spirit to the group.

That was all about principles of management.

Henry Fayol is known as the father of modern management theory. He was an engineer at the Compagnie de Commentry-Fourchambault-Decazeville mining company and worked his way up to become a manager during the peak of the Industrial Revolution in France. Under his watch, the struggling company prospered.

In 1916, he wrote the book, "Administration Industrielle et Générale," where he shared his experiences of managing a workforce. This laid the foundation for administrative theory and the 14 Principles of Management. By focusing on administrative over technical skills, these principles became one of the earliest examples of treating management as a true profession.

Every organization is truly successful once its employee strength has been optimized to its full potential. These 14 principles of management by Henri Foyal are still widely influential in making sound management decisions and bringing the best results for both the company as well as the employees.

Foyal's principles of management are widely credited for making the employees highly efficient and productive, in turn generating the best possible results and effortless functioning of the organization. Below are some of the most important achievements organizations have achieved by following the 14 principles of management by Henri Fayol.

1. Structure

Every company requires a structure and a flow to prosper truly. These principles of management provide a structure to the management and encourage the authoritative personnel to take charge and bring out efficiency among the employees.

2. Communication

Communication is key in every well-managed company. Effective communication is the key to achieving maximum productivity while having clarity about the end goal. Clear and effective communication is a crucial tool in managing many employees and teams and ensuring the best results.

3. Efficiency

Fayol's principles of management give a firm perspective of how important it is to have good management in place to achieve maximum efficiency while doing smart work.

Any organization is nothing without its employees. It is very important to gain the employees' trust and loyalty as they are an important cog in running the company smoothly and efficiently. Ensuring these principles of management are observed and practiced can be a huge step in gaining trust and building healthy relations with the employees.

While Henri Fayol's 14 principles of management are still significantly used by companies and organizations, there are certain criticisms around the theory.

Fayol's school of thought, or Fayolism, is considered too rigid and can only be applicable in a formal structure. While this theory is practical in some aspects, it is argued that it is not completely useful as the employees should also be given the freedom to make decisions.

Henry Fayol’s 14 principles of management are universally accepted and continually used as a guideline for managers across the world. Though these principles of management are more than 100 years old, without them, it would push us back hundreds of years back when technical skills reigned supreme, and people lacked managerial responsibility.

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Q1. What is Fayol's theory of management?

Henri Fayol was known as the father of modern management. He gave us the famous 14 principles of management. According to him, the 5 main functions of management are Planning, Organizing, Commanding, Coordinating and Controlling.

Q2. What are the principles of management?

Principles of management are basic activities that can help you plan, organize and control operations related to material, people, machines, methods, money and markets. They provide leadership to human efforts so that they achieve set objectives efficiently.

Q3. Why is Henry Fayol called the father of management?

Henry Fayol is popularly known as the father of modern management as he suggested the 14 principles of management in the 20th century. His research and findings helped several enterprises scale their production and work in an efficient manner. He concentrated on the essential parts of a manager’s work in ensuring the production cycle.

Q4. What Is the First Rule of Management?

The first rule of management is proper segregation or division of work among employees with respective strengths to fulfill those responsibilities.

Q5. What are the characteristics of principles of management?

The basic yet important characteristics of the principles of management are planning, organizing, directing, staffing, and controlling. A manager or authority personnel must perform all these duties simultaneously.

Q6. What is the nature of the principles of management?

A principle is a universal concept for making well-informed and effective decisions and executing them efficiently. The principles of management are, by nature, a set of rules that, if followed, will help the company with great management.

Q7. What are the benefits of applying Fayol's principles of management?

There are many benefits to applying Fayol's principles of management, including:

Increased efficiency and productivity
Improved decision-making
Reduced costs
Increased employee morale
Improved customer satisfaction
Enhanced organizational performance

Q8. How can I apply Fayol's principles of management in my own organization?

Start by identifying the principles that are most relevant to your organization
Develop a plan for implementing the principles
Communicate the principles to employees and managers
Monitor the implementation of the principles and make adjustments as needed

Q9. What are the types of planning?

The 4 types of planning are strategic, operational, tactical, and contingency planning.

Q10.What are the techniques of management by Henri Fayol?

Henri Fayol's techniques of management, known as the "14 Principles of Management," include division of work, authority, discipline, unity of command, unity of direction, subordination of individual interest to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps.

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Principles of Management

(18 reviews)

ISBN 13: 9781946135186

Publisher: University of Minnesota Libraries Publishing

Language: English

Formats Available

Conditions of use.

Learn more about reviews.

Reviewed by Nicole Englitsch, Lecturer, University of Texas Rio Grande Valley on 5/8/24

Comprehensiveness rating: 4 see less

The material covers relevant topics that you would expect to see in a principles of management book. It is a good basic introduction to management principles. Even though it is organized well, the structure of the resource could be improved by adapting an easier to follow structure and refer back to the big picture of POLC. Given that it was published in 2015, some cases are outdated, and instructors definitely need to add current examples and exercises.

Content Accuracy rating: 4

Text is accurate and no errors were detected. The business world has changed quite a bit from 2015, so some chapters may benefit from updating so it reflects a more accurate view.

Relevance/Longevity rating: 5

Basics were covered well. Content could benefit from some updates but overall concepts are still relevant and will be for a long time.

Clarity rating: 4

The resource is written in a clear and concise manner. It is suited for early career college students. Some of the images/graphics could be updated to make it more visually pleasing. Some images are not extremely relevant to the text and could be omitted or replaced.

Consistency rating: 5

It follows a consistent formatting. It is consistent when it comes to terminology and the framework it uses.

Modularity rating: 5

It is easy to navigate and has a clear structure. it can easily be divided into sections and assigned accordingly.

Organization/Structure/Flow rating: 4

Even though it is organized well, the structure of the resource could be improved by adapting an easier to follow structure and refer back to the big picture of POLC. The key points at the end of each chapter were helpful and so were the references for each section (sometimes too many references and not all of great quality but students may prefer the easier to understand and quick reads). As an instructor, I would have preferred more quality references.

Interface rating: 4

No navigation problems and no interface issues. Some of the images/graphics could be updated to make it more visually appealing. Some images are not extremely relevant to the text and could be omitted or replaced. Lots of empty/white space. It is not an extremely visually appealing resource. It is not possible to easily copy & paste text from (line breaks).

Grammatical Errors rating: 5

No glaring grammatical errors were noticed.

Cultural Relevance rating: 4

So much is happening in the DEIB space and the text would benefit from some updates. Overall it seems relevant for mostly students in the US. The text was culturally appropriate without any bias but also did not invite for much discussion around current DEIB issues around the country and world.

This text can be a good resource and basis for a principles of management course, but instructors need to be mindful to combine it with more recent cases and discussions around current trends, best practices, and issues.

Reviewed by Anjali Chaudhry, Professor, Dominican University on 10/27/22

Comprehensiveness rating: 3 see less

This open text covers all pertinent areas related to principles of management. Any core business class on management focuses on the four functions of management- planning, organizing, leading, and controlling. This material does a good job going over key concepts as well as terminology relevant in this area. Some of the examples may be outdated but that is understandable considering that this book was published in 2015 and the fact that the world of business has been experiencing a number of transitions. I am not too happy with the leadership chapter. Then again, in my opinion, most textbooks do a poor job with this topic.

The content is error-free, unbiased, and for the most part accurate. I specially appreciate the links for research and other sources from which the text draws support.

Relevance/Longevity rating: 4

Content is mostly up-to-date and therefore, I am not too concerned about the lack of editions that such a format does not offer. My recommendation is to use the book as a basic text and then use other sources such as news articles, cases, and simulations to incorporate the role of current workplace context into the study of management. What aspects of management are relevant in the modern workplace (e.g., traditional organizational designs) or how new developments such as the gig economy can be understood using the management lens can easily be taught with a few additional resources that bolster this open source book material. If and when updates are needed, I am fairly certain that these can be done in a relatively easy and straightforward manner.

Clarity rating: 5

The text is written in a clear and easy to understand style. It introduces most of the key terms and accepted jargon from the field.

Consistency rating: 4

The text is internally consistent in terms of terminology and framework.

Modularity rating: 4

The text has been divided in chapters and sub-sections each with its own hyperlink that makes it easy to move from one section to the next.

Organization/Structure/Flow rating: 5

The logical organization and simple structure of the textbook is one of its strengths.

The text uses relevant graphs and images that I frequently use to review key points from a section. The illustrations are meaningful and well-placed.

I did not notice any glaring grammatical errors.

The text has been written to be relevant for students in the US. I am not sure whether the examples will be too applicable for those studying management in other countries. I did not find any instances where the text could be perceived as culturally insensitive or offensive to any demographics.

I have adopted this book for my core management course, and I plan to continue to use it.

Reviewed by John Strifler, Associate Adjunct, University of Indianapolis on 4/22/21

The text is appears to be an excellent text to introduce the P-O-L-C management principles, and promote the key elements of strategy, entrepreneurship, and leadership development in students. Highlights: Chapter 1 introduces the concepts... read more

The text is appears to be an excellent text to introduce the P-O-L-C management principles, and promote the key elements of strategy, entrepreneurship, and leadership development in students.

Highlights: Chapter 1 introduces the concepts thoroughly and sets the approach the rest of the book utilizes. A concise history of management thought is found in chapter 3. The summary element at end of each section ( Key Takeaway) is excellent reference for learner. With the references at the end of each section, one can pull a section out for use in a teaching setting and retain the references.

Content Accuracy rating: 5

The authors are clear in the beginning that they focus performance on the triple bottom line - financial, social, and environmental - and appear faithful in maintaining this approach throughout. There are no obvious errors in examples used to illustrate principles.

Examples remain accurate and relevant in explaining the concepts, however, I would utilize additional, more recent examples - noting that the text is substantially the same as its 2010 original publication.

For example, the section 3.4 addresses contemporary principles of management addressing social movements has the latest citation in 2007. Social networks have seen a significant shift.

Level of writing is suited for early college or even college prep use. A Key term summary at the end of each section or chapter would add to its usefulness.

The textbook follows a consistent formatting, allowing for scanning through thumbnails to find illustrations or desired summaries

The way the chapters are sectioned and summarized, makes for ease of modular use. Consistently starts each new section on new page, which allows for ease of sub-dividing the material. Again, the practice of placing citations at the end of each section further adds to the modularity.

The text follows logical approach in the order of topics, similar to other management texts.

Interface rating: 5

I viewed the text in its PDF format, and found it clean to view and all images were displayed properly. Searching and navigation had no issues. Having a full feature PDF viewer will simplify the process of accessing and using sections separately.

No obvious grammatical issues

Cultural Relevance rating: 5

A variety of images used with a diversity of individuals. The examples used appear to be "globally" recognized.

Will utilize sections of this text as supplemental material to provide students additional information.

Reviewed by JOE MESSER, Professor of Entrepreneurship, Manchester University on 4/2/21

I have been a business owner for 30 years and taught business management for the last 12 years. I found this text to cover all the important areas of management. Plan, Organize, Lead, and Control, were introduced early on (page 19) and each... read more

Comprehensiveness rating: 5 see less

This book is well suited for an entry level course in management. Students do not need a business background before reading this text. I appreciated the current examples that were used. This will keep students engaged.

Management basics were covered very well. Examples were recent and relevant. The companies that were used as examples (SAS, Xerox, Toyota, Nucor, Google, etc. are companies that should be relevant businesses years from now.

The text was easy to read and the vocabulary was appropriate for an introductory course.

The flow and layout of the book stayed the same throughout all 16 chapters.

I found some of the sections within the chapters to be too verbose. I will cut out some of the sections (modules) in order to have time to go more in detail in other areas. For that reason the modularity is good.

The organization of the book made sense to me.

Interface rating: 2

I am still struggling trying to get access to any educational resources that go along with the book. Slides, exams, etc.

I did not run into any grammatical issues.

The text was culturally appropriate with no biases.

I intend to use this text assuming a can locate the teaching resources that go along with it. I look forward to saving my students money by using this text.

Reviewed by B'Ann Dittmar, Instructor, Clarke University on 1/7/21

Like most Principles of Management textbooks, this book has a wide breadth of topics that are covered that are relevant to the subject area. Consistent with a principles course, it does not go into great depth in most areas, as those deeper dives are saved for more advanced courses. I currently use McGraw Hill's "Management: Leading & Collaborating in a Competitive World" 14th edition by authors, Thomas S. Bateman and Scott A. Snell, which is very comprehensive, and this text covers similar subject areas. The OpenStax text appears more succinct in the length of the chapters but provides adequate coverage without a lot of fluff / filler. The OpenStax text uses a couple of photo images per chapter, as well as several colorful graphics and illustrations, with adequate white space, to make it easy to read and to digest, as well as to maintain interest.

I did not see any inaccuracies within the OpenStax Principles of Management text. The text appears to remain updated with relevant examples for discussion purposes and for students to relate to.

The content provided is relevant and the examples / references to today's world provided seemed to span from 2016-2018, from what I saw. Example companies included Starbucks and Amazon, which are both relevant organizations that college students would know and have an interest in learning about. It is a contemporary text and does not feel dated. I would love to see some direct links within the text to the real-world topics that are being discussed, so students could click on them to get more information and an in-depth view, versus just a brief mention of a topic or issue. The student’s study guide contains some links like these, but it would be great to have some within the chapter, itself.

This text is easy to read, clear, and to the point. There are definitions provided for clarification, in the chapters, as well as in a list at the end of each chapter. A recommendation would be to put the chapter title and subject area on both the first page of the chapter, as well as listing it as a running head on the main window with the chapter readings. This information is currently listed along the left-hand side of the page in the table of contents, only and each chapter begins with an image and the learning outcomes on the page, but no mention of the chapter number or subject. I think this addition would provide more clarity.

Each chapter has consistency in layout and design. After each of the chapter concepts are covered, the chapter concludes with the following: • Key Terms • Summary of Learning Outcomes • Chapter Review Questions • Management Skills Application Exercises • Managerial Decision Exercises • Critical Thinking Case These resources provide a good review, as well as offering opportunities for students to synthesize / apply what they have learned. It also offers instructors the opportunity to use some of these tools for discussion.

This textbook would allow you to set up your course in a variety of modalities, as you can decide how many and which chapters you would like to use, depending on how many weeks long your course will be. It can certainly be used in a synchronous or asynchronous course, with online, hybrid, or in-person delivery. The Instructor Pack also includes several resources to take your course online and offers “cartridges” to integrate into several learning management systems, including Blackboard, Moodle, D2L Course, and Canvas.

The text appears to be well organized, overall. One chapter that could possibly be moved is the “History of Management” chapter, which is the third chapter. My current textbook addresses the history of management as an appendix to Chapter 1, which seems to make sense to me. The OpenStax text places it after Chapter 1, Managing and Performing, and after Chapter 2, Managerial Decision-Making. It may be appropriate to have Chapter 1 first, so students understand what management is, and then go into what happened in the history of management, as past events can be predictors for the future. The placement of the history chapter is not a real concern, but it just made me pause and wonder why it was placed where it was.

The interface appeared clear and functioned well. I tried it on both a laptop as well as on my iPhone. One thing I noticed as far as navigation is that when I wanted to jump to another chapter, I would click on the chapter link in the list on the left-hand tool bar, but it would not change the screen to take me there. Rather, it would open a list of drop downs for options of topics to select within that chapter. I think most people want to start at the beginning of a chapter and a click could be saved if they were taken to the beginning of the chapter when they click on the chapter title. That click could still also open the chapter options, and if they wanted to go somewhere else, they could do that.

I did not see any grammatical errors.

I appreciated that this text offered diverse images and examples that included a variety of demographics and cultural aspects. Further, you feel their commitment to diversity when you read their six-page Diversity and Representation Guidelines, which details their commitment to improving representation and diversity in OER materials. This is something that I appreciate and look for when reviewing textbook materials for use in my courses.

Overall, I believe this text is a great option for instructors and for students. I currently use the McGraw-Hill Connect access for online quizzes and exams, which include a built-in proctoring system to eliminate cheating in an online environment and would like an option for doing something similar with this open textbook. I appreciate that there are a variety of options for accessing this textbook, from an app, to a download, to viewing online, or even ordering a printed copy- all provide plenty of options for students. I also like that students can highlight within the chapters when viewing online. When I am looking to adopt a text, I am very interested in the Instructor Resources. This text offers guided lecture notes and PowerPoints as well as a test bank in Word format. Unfortunately, I found the PowerPoints to be lacking. I happen to teach Business Communications, which includes how to put together an effective PowerPoint, and typically "less is more." The PowerPoints that accompany this textbook have a plain white background with black text and no real template, so they don't look very interesting and they are inconsistent from slide to slide in their look. They also contain WAY too much text, often including full paragraphs. They should just have bullet points and save the "extra content" as lecture notes outside of the presentation slides. I did appreciate that some of the PowerPoint slides included embedded links to TED Talks and other example videos, including scenes from Apollo 13, as well as including discussion questions regarding those videos. If OpenStax: 1. Offered pre-made quiz and exam options vs. downloading a Word document with all the quiz questions and 2. They partnered with a low-cost proctoring service as an add-on solution, and 3. Updated the PowerPoint slide deck, I would be very interested in adopting this text. It offers a lot of value for an open resource.

Reviewed by Jose-Luis (Joe) Iglesias, Assistant professor of Management, USC-Beaufort on 8/25/20

I believe that the examples and cases are appropriate to demonstrate the applicability of management concepts. However, I wish that the authors could be able to update the examples and cases to a more recent world reality. Overall, the index and... read more

I believe the content is appropriate for an introductory text in management.

The text provides the authors with the opportunity for updates.

The textbook uses an easy to understand verbatim and accessible concepts for non-business major students.

Consistency rating: 3

Terminology and frameworks are acceptable for an introduction to management. However, I would advise the authors to provide detailed information on the theories that support managerial functions.

I believe that modularity is an option. However, the instructor will need to add extra readings and complementary contents such as videos.

The sequence of managerial functions is well organized and explored in the text.

No interface issues noticed.

Grammatical Errors rating: 1

No grammatical mistakes noticed.

Cultural Relevance rating: 1

I believe that the diversity of examples and in the pictures represents a good example of inclusion.

I would consider the adoption of this textbook to an elective class in management, or management 101.

Reviewed by Linda Williamson, Program Lead, Business Administration, Klamath Community College on 3/13/19

I have reviewed numerous books related to management over the past 15 years and this text includes several components that I often need to add to the textbooks I am using. For example, there is wonderful language related to the "balanced scorecard" included in this text. I also like the depth of content related to innovation and strategic thinking that is referenced across several chapters.

I thoroughly read most chapters and carefully scanned the others; accuracy across words, figures, and exhibits appears to be strong. I did not detect any bias on the part of the authors, and in fact appreciated the wide array of business examples used to support their concepts.

The overall content in this textbook appears to be extremely relevant. Current and appropriate businesses are profiled throughout and related discussion questions seem to focus on real-world issues related to management. Chapter 2 in this text focuses on the individual student and includes substantial self-assessment; this is exactly how I teach my current Management Fundamentals course as I believe effective managers need to be aware of how they communicate with others before they can implement management tools and strategies.

This book does seem to be written in clear, concise prose, with good support and definition for new terms (and for jargon). References are provided throughout the content (including the business cases) with additional explanation for new or "involved" topics. I see consistency throughout the chapters in flow and tone, which is not always true when there are multiple authors.

This textbook appear to be consistent in the use of terminology and also in the overall framework of the content. For example, consistency in starting each chapter ("What's in it for me?"), the "Key Takeaways" at the end of each section, and the consistent reference to POLC (Planning, Organizing, Leading, Controlling) figure to consistently remind the reader how/where the new chapter content fits in to the overall role of management. Very effective!

I love the "chunks" and short chapter sections in this textbook! Each chapter has clearly defined sections (which a student can navigate directly to by using the tabs on the left of the page as soon as a "chapter" is selected) and yet the conclusion of each section and chapter still ties everything in to place. Very well designed.

The text is well organized in content, though I tend to like the "POLC" sections to be more clearly defined as "sections" of the textbook (again, the POLC figure at the start of each chapter does clear show which element the new content attaches to). There is logical flow to the content within the chapters and throughout the text overall.

I like the navigation of this textbook. Like any electronic resource, it takes a bit of getting familiar with, but it appears to be very user-friendly. When I facilitate a class using an OER, I like to have the entire textbook available in the very first module of my course in addition to having each assigned chapter available for access directly within the module that includes that specific chapter. I did not experiment to see if that would be an option with this resource.

None that I could find!

I found several examples that supported very respectful references to different cultures/people. My favorite actually involves a story of Goodwill...rather than do the traditional focus on who Goodwill serves, the authors instead focus on how the company is innovative in their strategic planning. In my opinion, that reference not only shows a different light on this company but also reminds the reader of the need for nonprofit organizations to be focused on innovation. A win-win!

I will likely select this textbook next year for my Management Fundamentals course. The authors stress upfront the necessity of determining competitive advantage and continue that theme throughout the book, which is incredibly relevant for management. The cases, discussion questions, and indepth content related to assessments (for personal growth and also for company performance such as the balanced scorecard) add a great array of materials to incorporate into this course. I really like this textbook!

Reviewed by Jeanine Parolini, Teaching Partner, Bethel University on 12/3/18

Principles of Management provides a comprehensive overview of key management and leadership principles for my professional adult undergraduate students. In our program, it is vital that we offer students a progressive big picture overview of the areas they need to consider in leading and managing others, and Principles of Management is that resource for our students. It is easy to access the information in this resource.

Our professional adult students need a resource that they are able to connect with and apply directly to their professional lives. Principles of Management addresses current topics that my students are dealing with in their workplaces, and it offers insights into the personal and professional management and leadership issues that pertain to most organizations today.

My adult professional undergraduate students are able to engage with the content and apply it to their personal and professional lives. The cases and examples in this resources are also relevant to students' experiences and contexts. At the same time, please keep the book up to date with considering a future revision in 2 to 5 years so that the information, examples and cases remain current.

The information is presented to my professional adult undergraduate students in a way that is engaging, practical, and accessible. The books connects well with business students and business issues.

When I engage the students in using the terminology and frameworks from Principles of Management in their papers and presentations, I am finding that students are digesting and utilizing the information properly and insightfully. They are applying it to their personal and professional lives. As I interact with students in both face to face and online venues, my experience is that students are remembering and practically using the terms and frameworks in real life applications.

Presently, I am using most of the book in my professional adult undergraduate business management course. I am able to offer several chapters in Principles of Management each week as I integrate in other articles and videos to support the week's topics. Students have commented in their evaluations that the reading is accessible, practical, interconnected with the week's topic, and a fair amount of reading for the course.

The chapters are well organized in Principles of Management and the topics in each chapter build upon each other throughout the chapter. The progression of the information in each chapter flows well and supports the practical outcomes such as discussion forums, presentations or writing assignments in my course.

For the most part the text is free from navigation issues. The one area for development is to make sure it is clear when it is a chapter subheading and when it is a figure subheading. Perhaps using a different size font or bolding or italicizing the font for one of those titles may be helpful. I have been confused at times when a figure title falls on the previous page of the actual figure, yet the chapter subheading is at the top of the figure. I have also experienced students' questions on this as well when they are being asked to assess a certain figure in the reading material and want to be sure they have the correct figure. I'd appreciate clearing this up in the next version to avoid confusion.

The text appears to be free from mechanical issues and grammatical errors. I am proud of the way the text presents itself to our professional adult undergrad students.

Cultural inclusion is important to me so I am sensitive to inclusivity of races, ethnicities and backgrounds in my approach to resources and the classroom environment. Principles of Management provides support to cultural inclusion in it's discussion of globalization and global trends, values-based leadership, and to some level related to ethics and culture. At the same time, this is a key area to keep up to date on and to realize that the globe is in our workplaces everyday with our diversity. In future revisions, I suggest taking this area to another level in helping readers to manage an innovative and diverse workplace to a greater level by being aware of cultural bias and learning through differences. I supplement the books information with additional material related to bias, insecurity and personal/cultural maturity.

Principles of Management is an engaging resource for my professional adult undergrad business students because it provides a general overview of key management and leadership topics with the opportunity for practical application through examples, cases, questions, and relevant frameworks that I can then incorporate into my weekly assignments.

Reviewed by Valerie Wallingford, Professor, Bemidji State University on 6/19/18

There should be a chapter devoted to the 4 functions of management (planning, leading, organizing & controlling) versus just one chapter covering all four primary functions of management so that is why I have ranked it a 3. read more

Text is accurate, case studies are outdated.

Textbook is up-to-date except cases.

The book's clarity is good as provides adequate context for terminology utilized. Easy to understand and comprehend.

Yes, the text is consistent throughout.

Yes, the text is easily readable and chapters are easily divisible into smaller reading sections which makes it nice if the professor doesn't want to cover the entire chapter just sections. There are pictures, charts, etc. that also break up the reading.

The organization/flow/structure are similar to many principles of management texts with possibly moving mission/vision chapter earlier but professor can assign chapters in the order they prefer.

The interface is good, as I had no issues with navigation, distortion, or display features.

No grammatical errors were found.

The text was not culturally insensitive or offensive in any way. It was inclusive of a variety of races, ethnicities, and backgrounds.

Reviewed by K Doreen MacAulay, Instructor II, University of South Florida on 3/27/18

The material covers all the basic requirements for a principles of management course. The concepts and applications are on par with what is being taught. I feel the examples are a little dated, but that is something that could easily be augmented... read more

The content of this book is very accurate and I did not find any errors in the delivery of the information.

Relevance/Longevity rating: 3

The concepts are up to date with what is important and covered in a principles of management course. The examples, although relevant to the material, could be a little more up to date. As note, however, this is something that could easily be addressed through classwork.

The concepts, theories and general knowledge delivered in this book as exactly what one would expect to find in a good Principles of Management book.

There are no consistency issues that I found throughout the reading of this book.

The segments within each of the chapters of the book made for an easy and logical flow to the material. Each segment lends itself easily to the learning process for the reader.

Organization/Structure/Flow rating: 2

The actually order of the book chapters, however, did not seem to fit a traditional model. I would not teach the chapters in the order that they are provided, however, I would use all the material provided. Example: I would have motivating after leading; the structure chapter near the end and make chapter 13 - chapter 14 and chapter 14 be chapter 13.

To me a logical concept flow goes from a general introduction, strategy and the go micro level to macro level. This book's order of chapters does not seem to have a clear path.

Some of the pictures seemed out of place because they were small. As well, there was not a uniformed look to the pictures which took away a little from the appearance, but overall the material was easy to read and that is the main point.

Grammatical Errors rating: 4

Easy to read and understand.

Clearly based in a American capitalist approach to knowledge, this book is on par with most American textbooks in this area.

I look forward to incorporating this textbook into my class. I believe for a survey course like this, this work is the ideal foundation to help the students learn.

Reviewed by Debby Thomas, Assistant Professor of Management, George Fox University on 2/1/18

The text covers the basics that other Principles of Management texts do. read more

The text covers the basics that other Principles of Management texts do.

I have found this textbook to be clear and accurate. The case studies are a bit dated, but relevant.

The content of this book is organized around management concepts and principles that will not quickly go out of date. The case studies are concise, practical and relevant and should be fairly easy for the publishers to update occasionally.

This book is written in a way that the concepts are covered thoroughly without being verbose or difficult to understand. The concepts are presented in a way that is easy to comprehend and encourages application.

The terminology and framework of the text are consistent. One minor improvement would be to have a comprehensive table of contents at the beginning of the book (presently there is a table of contents of each chapter at the beginning of the chapter). This would help students follow the overall flow of the text more easily.

This text provides numbered sections for each chapter. I find this helpful and I don't always assign the whole chapter as reading for one class. I can be precise about exactly which parts of which chapters I want the students to read. The text has pictures and charts or graphs to break up the text, and the sections are generally short enough to hold a student's attention.

The topics are presented in a logical fashion. As with most Principles of Management textbooks its impossible to get through all of the content in one semester, but the set up works well to emphasize certain chapters more than others.

The book comes in multiple formats for the convenience of the reader. The PDF is usable only with the use of the built in table of contents (no clickable links to chapters in the PDF).

The text does not contain grammatical errors.

The pictures in the text include people of a variety of ethnicities. I have not found anything in the book that is insensitive or offensive in any way. It also introduces the concepts of unconscious bias early in the text.

Reviewed by Mindy Bean, Faculty, Linn-Benton Community College on 6/20/17

The Principles of Management heavily relies of the POLC method of Planning, Organizing, Leading, and Controlling. The text was unique in covering the basics of each area within each context while tying it in with many factors that managers deal... read more

The books content was very accurate to the date that the sources were presented. A lot of resources were during the recession or before the recession. I feel like an OER that was adapted from 2010 should have included a few more updated examples.

The books concepts will keep for a while, when it comes to management theories there are always more being presented (fades) and there are those that keep the core concepts. I believe this book covers on the hard fundamentals of management while expressing the common trends of management in certain business industries. With technological advances and competitive nature of business, this book's relevance and longevity is based more on the subject matter.

The writing is adequate for the topics being presented. The many examples of firm situations and how they applied the concepts were well placed and had a good consistency until the end of the text. The jargon was appropriate for the subject matter.

The book carried consistent terminology and framework. The rhythm in which the reader gets used to is consistent except for two chapters toward the end in which it extended on my laptop to being about 25 pages. The way in which terms are presented are not in bold but mainly italic or overly emphasized. I believe it to be an easier read then most materials I have came across.

The book was easy and readily divisible into smaller reading sections besides the two chapters I previously mentioned towards the end. I personally would use the OER in that way due to its design to prevent good amounts of information without disruption.

The organization of the text was presented well. It was different from other materials that focus on the POLC and cover each section individually in order. I was impressed by the clear fashion that information was laid out by relating each topic outside of POLC that managers have to deal with and correlating to how it works with POLC when necessary.

The interface worked well. I pulled the book up on three different forms and systems. It was consistent, the visual aids/charts were presented well and I was able to see them all clearly. The only thing I personally didn't like was downloaded on iBooks you had to swipe versus clicking to turn the page.

The cultural relevance was accurate. I did not see any insensitive or offensive material.

I did have problems trying to get this on my Kindle.

Reviewed by Irene Seto, Faculty, Portland Community College on 6/20/17

I was involved with modifying an existing course to utilizes Open Education Resources in our introduction to Management Supervisory course. This text book is one that we selected a few chapters from for our course. I found this book covers all the... read more

I did not encounter any biased or inaccurate information in the textbook.

The principles of Business be the same, but the business world and our technology is constantly changing. I would imagine minor updates of examples and case studies would be needed every 2-3 years.

I found the chapters easy to read and follow. Key terminologies were highlighted and explained well.

Each chapter's layout is consistent and created an easy to follow framework.

The chapters are well organized, similar to many introductory Management textbook. The learning objective and summary for each chapter is good.

The flow of the chapters are fine. But we did not use all of the chapters for our course. Personally, I would put Globalization and Valued Based Leadership (Chapter 3) toward the end.

The embedded links that I came across to and tested were fine. There were not many graphics.

I did not found grammatical errors.

Nothing really stood out that seem to be culturally insensitive.

Page numbers would be helpful!

Reviewed by Holly Jean Greene, Lecturer, University of Tennessee, Knoxville on 6/20/17

The textbook covers subject matter found in most management texts such as the four foundations of management - planning, organizing, leading and controlling ( P-O-L-C). In fact, each chapter links back to P-O-L-C very well. The textbook covers... read more

The textbook covers organizational structure & culture, planning & goal setting, strategy & decision making, teams, leadership & motivation too. A few additional topics covered are social media and communication. One of the text strengths is in it's brevity: It covers a swath of terrain succinctly and would work well in course where an instructor wants to add additional learning tools such as videos and case studies.

I didn't find any areas of obvious inaccuracy or bias. In fact, I find the text is written without the opinion of the authors.

Each chapter includes a "case in point" story that's current or at least covers an event that's occurred within the last ten years.

I like the style in which the text is written - simple, easy to read prose. There are instances where I felt as if the text was written for an 8th grader, yet, if an instructor's goal is to use a text that simply introduces students to the foundations of management and they plan on adding additional learning tools, this is a great text to use.

I didn't see any obvious areas of inconsistency.

Using this text modularity and assigning just the sections students need is one of the text strengths. Each chapter stands on its own.

Organization of the text is clear and logical. In some instances, the text is not in the order I would assign but structuring the subject matter to an instructor's discretion is one of the advantages of using this text.

A few of the images seem small and I believe more images could have been used.

I didn't find any glaring grammatical errors.

Another one of the text strengths is its focus on helping students understand their own behavior. Each chapter contains an activity for students to complete that allows them the opportunity to learn more about their own behavior and biases.

This text in combination with additional learning materials - videos, case studies, self-assessment assignment - is a solid choice to use.

Reviewed by Paul Jacques, Associate Professor, Rhode Island College on 4/11/17

Each of the concepts that are typically covered in a Principles of Management course are included in this manuscript. The table of contents, chapter index, are helpful. Glossary of key terms is embedded within each chapter and could perhaps be broken out in a separate chapter section (end of chapter?) to aid comprehension. There was no index included in this reviewer’s copy of the text.

The concepts included are presented accurately.

To be sure, each of the topics covered in this text are within the scope of the body of knowledge that an Introduction to Management student would be expected to master. The references are quite dated, however, with the bulk of the most recent references being from 2008. That said, and perhaps in the interest of providing the most updated references possible, citations from seminal work (example: NEO-PI, Costa and McCrae, 1985) are largely ignored in lieu of more recent, but relatively lightweight, work s. While major concepts are explained, the impact of these concepts on the world of work/management are given much less emphasis. To the reader, this approach can be perceived as being presented with a stream of facts, one after the other, with little attempt at anchoring the concepts to applications.

Clarity rating: 3

What’s here is good with my main concern being that there’s large sections of pure, unbroken text. I would think that the “Key takeaway” segments could be more numerous throughout the chapter. The Moreover, these takeaways would seem to benefit from several “key implications for managers” summaries throughout the chapter. As it stands now, it appears to be left to the student to pull out the relevance of the various concepts explained.

It seems apparent that there was a great deal of work involved in the preparation of the book manuscript. Each chapter’s flow and appearance are similar to that in each of the other chapters.

Each chapter appears to be designed to stand alone.

The “What’s in it for me?” chapter introductions are a useful and clever way of avoiding the more sterile term “chapter learning objectives.” The significant challenge to the student, however, is to internalize the chapter readings so that he/she sees the applicability.

Not sure if it’s a browser/printer issue, but some of the images were inordinately small (ex: figure 2.11, p. 63). Moreover, several of the figures are orphaned in the text – no reference/support afforded by surrounding paragraphs.

This reviewer observed no instances of grammatical errors which, in a work of this size (over 600 pages) is compelling evidence of polished, thoughtful preparation.

There were no examples of cultural insensitivity. To the contrary, the authors added to the reader’s understanding of the topic by presentation of findings related to the GLOBE study. Perhaps a more comprehensive treatment of the topic would have resulted had the authors presented the idea of diversity from a “levels of analysis” perspective – individual, dyad, group/collective. This approach would seem to result in a more efficient presentation of the topic and one that is applicable to all levels of management.

Overall, it seems that a strength of this text is that it encompasses a full gamut of topics that are typically included in a Principles of Management course at the undergraduate level. This reviewer found the content to be quite strong, but the interface between content and learner to be the main opportunity that exists with this title. Specifically, cases are interspersed throughout the text/chapters, but there are no questions related to any of the cases and so the cases come across more as stories than they do point of convergence/learning. In addition, the segments that are labelled “Exercises” at the end of each chapter’s segments would be more aptly referred to as simply “chapter segment questions.” The reality that there is no real deep thought required to answer the questions nor are they reflective of any experiential/active learning. The word that this reviewer keeps coming back to is “Application.” The text boasts truly excellent content, but the application portion is largely missing.

Reviewed by David Bess, Professor, University of Hawaii on 8/21/16

The text covers the major topics taught in a typical introduction to management course quite thoroughly. read more

The text covers the major topics taught in a typical introduction to management course quite thoroughly.

It read well and seemed to be quite accurate in terms of the theories/concepts and their applications.

It is up to date...other than maybe some cases.

It is easy to read; has nice summary sections; flows well./

It is consistent.

It is easy to read and has nice short sections with summaries.

The topics are presented in a logical fashion. They are offered in the rough order found in many principles texts. It is not the order in which I teach them...but it is logical and clear.

The interface is sound.

The grammar is sound.

I believe it is ;culturally relevant for most cultures.

I wish it had page numbers....it is a bit difficult to navigate.

Reviewed by Kim bishop, Adjunct Faculty, Portland Community College on 8/21/16

Yes, the subjects match up with what our school has for Course content and outcome Guides, for this course. It covers all subjects adequately. read more

Yes, the subjects match up with what our school has for Course content and outcome Guides, for this course. It covers all subjects adequately.

I did not find any errors and I did not see it as biased in any way. I guess it would depend on what you call accuracy and unbiased. For my needs, from what I have been taught and from what I have learned in the working world, I found it adequate.

The only things that would need updating would be case studies that could be more current since it was written in 2010. Having more current up to date case studies would be more interesting to the students and more engaging since it would be current or within the last couple of years at least.

very easy to read and understand. There were a couple of acronyms that were new to me, but the way they were laid out in the objectives and then addressed were helpful.

I love the way it is laid out. each chapter was easy to navigate and set up. It is the same for each objective and chapter giving you lots of options for discussion and for assigning work.

It is organized excellently. as mentioned before I like how it is laid out with learning objectives, content, key take away and exercises for each section. I like the What's in it for Me, at the beginning of the chapter so it shows students what they will get out of the chapter and then it ties in with each section. I really like how this book is laid out.

Yes, very logical and easy to read as mentioned before. Student gets to see what they will learn and how they can apply it, then each section is broken down to address the learning objectives.

There was not a lot of graphics or pictures, but the links do work that are embedded for external work.

I could not find any glaring grammatical errors.

I did not find any examples of cultural insentitivity

I really like this book and I am going to use for my course in the fall as a resource. I really like how it is laid out and the case studies the exercises, discussion points as well as the external resources like finding out what your learning style is. I like that it does not have a bunch of fluff and pictures and graphics as I will use this as a resource. It is intuitive and as current as it can be. Management concepts do not change much over time, but how they are implemented and communicated do and I feel this addresses that need for change. it was an easy read and did not feel like you were reading a textbook but interesting information about management. There are enough outside links to other information that you do not really need the textbook and the online content they have extra that you have to pay for. I would recommend the book, with some updates periodically to the case studies.

Reviewed by Brian Richardson, Adjunct Faculty, University of Hawaii at Manoa on 8/21/16

In the introduction to Principles of Management, the authors state that there are three themes in the book: strategic thinking, entrepreneurial thinking, and active management. The entrepreneurial theme is not as prevalent as their introduction would suggest. There is some discussion of creativity, although references to writers and books beyond the single book by Edward De Bono would have enhanced the section. Sections that stand out as useful include the discussions of fairness, groupthink, employee performance review, and predictors of job performance. Some sub-sections and minor topics should have been separate sections with more details, such as the discussion of meetings, of interviewing, and of HR rules and policies. Finally, sections that would have useful additions to the textbook include how to write a good survey, how to deal with very difficult employees, and how to improve morale, which was referenced superficially but not focused on. The selection of management writers and level of detail provided for their positions is uneven. Maslow's hierarchy of needs is given three pages while Collins' discussion of changing good companies into great ones has two passing references and a short summary of the idea of a BAHG (big, hairy, audacious goal). Some thinkers were left out or not considered. Senge is not mentioned, even in the short section on "Learning Organizations". Likewise, academic writers and many historical thinkers, such as Max Weber, are not mentioned at all. Also lacking was a sense of how these different thinkers or ideas might disagree with each other or people outside of the management field. Instead, the text offers a series of disconnected concepts and models, which likely improved the modularity of the overall book, but at the cost of limiting the interactions between the topics and positions. As a result, there was little logical or conceptual analysis and the book relied on exposition.

Much of the textbook is made up of summaries of different concepts and models connected to management, with an emphasis on contemporary writers and psychosocial theories. There were no obvious inaccuracies in the summaries of the concepts and thinkers, although some sections could be criticized as limited, vague, superficial, or uncritical.

A textbook on management principles will become less relevant over time as updated information becomes available and new thinkers offer different concepts and models. One reference that stood out was the quote that "According to one source, there will be 11.5 million more jobs than workers in the United States by 2010." Given that this is a book last updated in 2015, the data should have been updated as well, especially given how wrong it turned out to be. Interestingly, this source is a Wired magazine article from 2007, published just before the economic crash. The examples and illustrations may become dated fairly quickly. References to specific CEOs and other leaders, for instance, will become less relevant over time. In this edition, there is a reference to and picture of Condoleeza Rice but no mention of Obama, for instance. Obama only occurs as a marginal participant in a group shot of world leaders

The clarity of the discussion is generally good, although there is some room for improvement. The photographs, for instance, do not support the text very well. A glossary would have been useful for clarifying all of terms used while an index would have helped readers access specific sections more effectively. The choice of examples is sometimes not clear. For instance, the examples used to illustrate organizations dealing with uncertain conditions, and thus needing flexible strategies were "a gang of car thieves or a construction company located in the Gaza Strip" (page 182). Both of these examples are strange and much better examples taken from businesses could have been provided and then discussed in some detail. Likewise, the example that they give of resistance to change was that people have been unwilling to adopt Dvorak keyboard and have stuck with the QWERT keyboard, despite the obvious efficiency of the Dvorak system (page 281). This is a great example of resistance to change, but one wonders why the authors could not find an example from business, such as how the railroads ignored the rise of the airplane.

While the book is generally consistent overall, it book sometimes strays from a discussion of the "principles" of management and does not adopt a consistent idea of what kinds of businesses are being talked about. The book would have been clearer if the authors had started with a classification of types of business that they are talking about (manufacturing, marketing, services, non-profits, perhaps) and be clear about what they were not covering (like government bureaucracies). For instance, I was thinking of using this textbook to support a course in Library management, and while some of it was useful, much of it would have been irrelevant or confusing. Had the book been clearer on how the different topics connected to different types of organizations, it would have been clearer which topics were relevant to specific readers or situations

The textbook is very modular, although there are times when this modularity breaks down. For instance, the discussion of data in the early part of the book was useful, but it would have been more appropriately connected to the discussion of budgeting, which occurs much later in the section on control. Another example is the discussion of globalization and intercultural issues, which occurs sporadically throughout the book and is never really brought into focus.

Organization/Structure/Flow rating: 3

The overall structure of the textbook follows Fayol's POLC model of management (Planning, Organizing, Leading, and Controlling) with the overall narrative following the different stages in the process. Each section includes learning objectives, key takeaways, and discussion questions. These parts are very good at focusing the conversation in the larger sections. However, these additional parts are sometimes longer than the main text for that section and seem unnecessarily repetitive. The shift between institutional management and personal management is a bit strained at times, making it unclear whether the focus of the book is management or the personal growth of the manager. Each section included a list of references. In one section, there is simply a reference to the Columbia Encyclopedia, which was not helpful. Typically, however, there are a lot of references in each section. In fact, there are too many references that have minimal value. With some exceptions, the references are to short articles that could easily be retrieved by a Google search. Given that this is an introductory textbook, it would have been better to have an annotated "Further Reading" section that could lead readers to important writings and videos that expend on the different modules.

Interface rating: 3

The layout of the textbook follows standard page layout formatting. There are some things that could be improved. First, some of the text, such as some paragraph headers and keywords, are blue, which suggests that it is hyperlinked (as are the captions for pictures), but this is not the case. The full URLs in the text, also blue, are the only hyperlinks in the textbook. Another feature that could be improved is the way that the text, at least in the PDF version, has line breaks at the end of each line, which means that copying text leads to broken paragraphs that require additional editing if they are copied to another document or web page. The greatest issue with the interface, however, is the amount of white space that is included in the text. Given how short the different sections are and the way that the layout is organized, there is likely 100 pages worth of unnecessary white space in the text, which turns a 500-odd page book into over 600 pages. Added to this that the pictures and list of references are not that relevant, and the book appears to be laid out very inefficiently.

Beyond a few minor typos, the book was clearly written. The prose was a straightforward expository style, although at times it could have been more concise. The writers would often begin their paragraphs with rhetorical questions and then answer them right away, which did not help clarify the prose and typically made the writing more verbose. On page 279, the caption and the picture do not match.

Cultural Relevance rating: 3

The book is focused on ideas and problems connected to American private-sector management. As a result, it is largely uncritical of large-scale organizations. Non-profits are discussed on a single page in the context of internal controls. Bureaucracy, as a term with negative connotations, is only mentioned in passing as an example of mechanistic structures, which are seen as an exception. Discrimination, likewise, is mentioned in passing three times, once in terms of how issues of discrimination have become a broader concern for "diversity management". Finally, unions are mentioned a few times in a long list of stakeholders (pages 150 and 151), even though the sample table for tracking stakeholders (page 148) does not mention them. Unions are seen as a punishment for businesses that appear to be unjust (page 529). At-will employment, on the other hand, is discussed in a focused paragraph in a way that does not consider the debate between union and at-will employment. For a textbook on industrial-focused management, the relative silence to the contrast between union and at-will employment conditions is unfortunate. When the book discusses global trends, it tends to be simplistic, taking trends such as "becoming more connected" as more important than such things as economic inequality, resource depletion, surveillance, war and terrorism, or social instability. In that sense, the book would not be very useful to people outside of the United States or to those who were actively engaged in intercultural management. At best, the book points to some of the problems that could be faced.

Chapter 1: Introduction to Principles of Management

1.1 Introduction to Principles of Management
1.2 Case in Point: Doing Good as a Core Business Strategy
1.3 Who Are Managers?
1.4 Leadership, Entrepreneurship, and Strategy
1.5 Planning, Organizing, Leading, and Controlling
1.6 Economic, Social, and Environmental Performance
1.7 Performance of Individuals and Groups
1.8 Your Principles of Management Survivor's Guide

Chapter 2: Personality, Attitudes, and Work Behaviors

2.1 Chapter Introduction
2.2 Case in Point: SAS Institute Invests in Employees
2.3 Personality and Values
2.4 Perception
2.5 Work Attitudes
2.6 The Interactionist Perspective: The Role of Fit
2.7 Work Behaviors
2.8 Developing Your Positive Attitude Skills

Chapter 3: History, Globalization, and Values-Based Leadership

3.1 History, Globalization, and Values-Based Leadership
3.2 Case in Point: Hanna Andersson Corporation Changes for Good
3.3 Ancient History: Management Through the 1990s
3.4 Contemporary Principles of Management
3.5 Global Trends
3.6 Globalization and Principles of Management
3.7 Developing Your Values-Based Leadership Skills

Chapter 4: Developing Mission, Vision, and Values

4.1 Developing Mission, Vision, and Values
4.2 Case in Point: Xerox Motivates Employees for Success
4.3 The Roles of Mission, Vision, and Values
4.4 Mission and Vision in the P-O-L-C Framework
4.5 Creativity and Passion
4.6 Stakeholders
4.7 Crafting Mission and Vision Statements
4.8 Developing Your Personal Mission and Vision

Chapter 5: Strategizing

5.1 Strategizing
5.2 Case in Point: Unnamed Publisher Transforms Textbook Industry
5.3 Strategic Management in the P-O-L-C Framew

Ancillary Material

About the book.

Principles of Management teaches management principles to tomorrow's business leaders by weaving three threads through every chapter: strategy, entrepreneurship and active leadership.

Strategic — All business school teachings have some orientation toward performance and strategy and are concerned with making choices that lead to high performance. Principles of Management will frame performance using the notion of the triple bottom-line — the idea that economic performance allows individuals and organizations to perform positively in social and environmental ways as well. The triple bottom line is financial, social, and environmental performance. It is important for all students to understand the interdependence of these three facets of organizational performance.

The Entrepreneurial Manager — While the "General Management" course at Harvard Business School was historically one of its most popular and impactful courses (pioneered in the 1960s by Joe Bower), recent Harvard MBAs did not see themselves as "general managers." This course was relabeled "The Entrepreneurial Manager" in 2006, and has regained its title as one of the most popular courses. This reflects and underlying and growing trend that students, including the undergraduates this book targets, can see themselves as entrepreneurs and active change agents, but not just as managers.

By starting fresh with an entrepreneurial/change management orientation, this text provides an exciting perspective on the art of management that students can relate to. At the same time, this perspective is as relevant to existing for-profit organizations (in the form intrapreneurship) as it is to not-for-profits and new entrepreneurial ventures.

Active Leadership — Starting with the opening chapter, Principles of Management shows students how leaders and leadership are essential to personal and organizational effectiveness and effective organizational change. Students are increasingly active as leaders at an early age, and are sometimes painfully aware of the leadership failings they see in public and private organizations. It is the leader and leadership that combine the principles of management (the artist's palette, tools, and techniques) to create the art of management.

This book's modular format easily maps to a POLC (Planning, Organizing, Leading, and Controlling) course organization, which was created by Henri Fayol (General and industrial management (1949). London: Pitman Publishing company), and suits the needs of both undergraduate and graduate course in Principles of Management.

This textbook has been used in classes at: College of Alameda, Columbia Basin College, Flagler College, Johnson County Community College, Pasadena City College, Penn State University, Renton Technical College, San Diego Mesa College, Sierra College, Yuba College.

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14 Principles of Management by Henri Fayol

14 Principles of Management: this article explains the administrative theory and management theory of 14 Principles of Management , developed by Henri Fayol in a practical way. Every principle is being explained with practical examples, next to the history. After reading you will understand the basics of this scientific management theory. Enjoy reading!

History and the develoment of the 14 principles of management

In the last century, organizations already had to deal with management in practice. In the early 1900s, large organizations, such as production factories, had to be managed too. At the time there were only few (external) management tools, models, theory and methods available.

Thanks to scientists like Henri Fayol (1841-1925) the first foundations were laid for modern scientific management . These first concepts, also called principles of management are the underlying factors for successful management.

Henri Fayol explored this comprehensively and, as a result, he synthesized the 14 principles of management. Henri Fayol’s principles of management and research were published in the book ‘ General and Industrial Management ’ (1916).

14 Principles of Management, the indept video

Henri Fayol’s 14 Principles of Management explained including examples

Henri Fayol’s 14 Principles of Management are statements that are based on a fundamental truth. These principles of management serve as a guideline for decision-making and management actions .

They are drawn up by means of observations and analyses of events that managers encounter in practice. Henri Fayol was able to synthesize 14 principles of management after years of study.

These principles of management are:

Division of Work
Authority and Responsibility
Unity of Command
Unity of Direction
Subordination of Individual Interest
Remuneration
The Degree of Centralization
Scalar Chain
Stability of Tenure of Personnel
Esprit de Corps

Figure 1 – Henri Fayol’s 14 Principles of Management (Fayol, 1916)

1. Division of Work

In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas (from generalist to specialist).

Personal and professional developments support this. According to Henri Fayol specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed. This management principle of the 14 principles of management is applicable to both technical and managerial activities.

2. Authority and Responsibility

In order to get things done in an organization, management has the authority to give orders to the employees. Of course with this authority comes responsibility. According to Henri Fayol, the accompanying power or authority gives the management the right to give orders to the subordinates.

The responsibility can be traced back from performance and it is therefore necessary to make agreements about this. In other words, authority and responsibility go together and they are two sides of the same coin.

3. Discipline

This third principle of the 14 principles of management is about obedience. It is often a part of the core values of a mission statement and vision in the form of good conduct and respectful interactions. This management principle is essential and is seen as the oil to make the engine of an organization run smoothly.

4. Unity of Command

The management principle ‘Unity of command’ means that an individual employee should receive orders from one manager and that the employee is answerable to that manager.

If tasks and related responsibilities are given to the employee by more than one manager, this may lead to confusion which may lead to possible conflicts for employees. By using this principle, the responsibility for mistakes can be established more easily.

5. Unity of Direction

This management principle of the 14 principles of management is all about focus and unity. All employees deliver the same activities that can be linked to the same objectives. All activities must be carried out by one group that forms a team. These activities must be described in a plan of action .

The manager is ultimately responsible for this plan and he monitors the progress of the defined and planned activities. Focus areas are the efforts made by the employees and coordination.

6. Subordination of Individual Interest

There are always all kinds of interests in an organization. In order to have an organization function well, Henri Fayol indicated that personal interests are subordinate to the interests of the organization (ethics).

The primary focus is on the organizational objectives and not on those of the individual. This applies to all levels of the entire organization, including the managers.

7. Remuneration

Motivation and productivity are close to one another as far as the smooth running of an organization is concerned. This management principle of the 14 principles of management argues that the remuneration should be sufficient to keep employees motivated and productive.

There are two types of remuneration namely non-monetary (a compliment, more responsibilities, credits) and monetary ( compensation , bonus or other financial compensation). Ultimately, it is about rewarding the efforts that have been made.

8. The Degree of Centralization

Management and authority for decision-making process must be properly balanced in an organization. This depends on the volume and size of an organization including its hierarchy.

Centralization implies the concentration of decision making authority at the top management (executive board). Sharing of authorities for the decision-making process with lower levels (middle and lower management), is referred to as decentralization by Henri Fayol. Henri Fayol indicated that an organization should strive for a good balance in this.

9. Scalar Chain

Hierarchy presents itself in any given organization. This varies from senior management (executive board) to the lowest levels in the organization. Henri Fayol’s “hierarchy” management principle states that there should be a clear line in the area of authority (from top to bottom and all managers at all levels).

This can be seen as a type of management structure. Each employee can contact a manager or a superior in an emergency situation without challenging the hierarchy. Especially, when it concerns reports about calamities to the immediate managers/ superiors.

According to this principle of the 14 principles of management, employees in an organization must have the right resources at their disposal so that they can function properly in an organization. In addition to social order (responsibility of the managers) the work environment must be safe, clean and tidy .

The management principle of equity often occurs in the core values of an organization. According to Henri Fayol, employees must be treated kindly and equally.

Employees must be in the right place in the organization to do things right. Managers should supervise and monitor this process and they should treat employees fairly and impartially.

12. Stability of Tenure of Personnel

This management principle of the 14 principles of management represents deployment and managing of personnel and this should be in balance with the service that is provided from the organization.

Management strives to minimize employee turnover and to have the right staff in the right place. Focus areas such as frequent change of position and sufficient development must be managed well.

13. Initiative

Henri Fayol argued that with this management principle employees should be allowed to express new ideas. This encourages interest and involvement and creates added value for the company.

Employee initiatives are a source of strength for the organization according to Henri Fayol. This encourages the employees to be involved and interested.

14. Esprit de Corps

The management principle ‘esprit de corps’ of the 14 principles of management stands for striving for the involvement and unity of the employees. Managers are responsible for the development of morale in the workplace; individually and in the area of communication.

Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.

In conclusion on the 14 Principles of Management

The 14 principles of management can be used to manage organizations and are useful tools for forecasting, planning, process management, organization management , multiple Project Management Methodologies, decision-making, coordination and control.

It’s Your Turn

What do you think? What are the Henry Fayol’s 14 principles of management of today’s management? Do these management principles work in every organization or are there exceptions? And if so, what are the exceptions and what can we learn from them?

Share your experience and knowledge in the comments box below.

More information

Fayol, H. (1917). General and Industrial Management . Dunod et E. Pinat.
Hodge, B. J. (2002). Organization theory: a strategic approach . Pearson Education .
Wren, D. A. , Bedeian, A. G. , Breeze, J. D. (2002). The foundations of Henri Fayol’s administrative theory . Management Decision, Vol. 40 Iss: 9, pp.906 – 918 state: It was not until the Storr’s translation that Fayol’s (1949) Administration Industrielle et Générale reached a wider audience, especially in the USA and established Fayol as a major authority on management.

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What Are the 14 Principles of Management by Henri Fayol?

Explanation of the 14 principles with real-world examples, critiques and contemporary relevance, understanding henri fayol’s 14 principles of management.

Henri Fayol, a French mining engineer, is considered one of the founding fathers of modern management theory. Fayol’s contributions have had a profound impact on managerial practices worldwide. His seminal work, “General and Industrial Management,” introduced the concept of administrative management and laid the foundation for his 14 Principles of Management. These principles provide a framework for effective organizational management and remain relevant in contemporary business environments.

The 14 principles of management by Henri Fayol are:

Division of Work
Authority and Responsibility
Unity of Command
Unity of Direction
Subordination of Individual Interest to General Interest
Remuneration
Centralization
Scalar Chain (Chain of Command)
Stability of Tenure of Personnel
Esprit de Corps

1. Division of Work

This principle emphasizes the benefits of specializing in tasks and assigning them to individuals based on their skills and expertise. By breaking down complex projects into smaller, more manageable tasks, individuals can become more efficient and skilled in their specific areas, leading to improved overall productivity.

For example, a hospital implements this principle by dividing its workforce into specialized departments such as surgery, pediatrics, cardiology, and radiology. Each department comprises individuals with specific skills and expertise, leading to efficient patient care.

2. Authority and Responsibility

Effective management requires a clear chain of command, where managers have the authority (the right to give orders) to achieve organizational goals, and employees have the corresponding responsibility (the obligation to carry out those orders) to the best of their ability.

For example, a restaurant manager has the authority to schedule staff, manage inventory, and oversee daily operations. They are also responsible for ensuring the restaurant meets its sales targets and maintains high customer satisfaction.

3. Discipline

Maintaining a disciplined work environment is crucial for organizational success. This principle highlights the importance of mutual respect, adherence to established rules and regulations, and fair application of consequences for both positive and negative behavior.

For example, a software development company implements a fair and consistent disciplinary policy that addresses issues like missed deadlines or code quality violations. This policy ensures an environment conducive to productive work and high-quality deliverables.

4. Unity of Command

Each employee should report to only one direct supervisor, eliminating confusion and conflicting instructions. This principle ensures clear accountability and streamlines communication within the organization.

For example, in a call center, each call center representative reports directly to their team lead, who, in turn, reports to the call center manager. This clear chain of command avoids confusion and ensures accountability for individual performance and meeting team goals.

5. Unity of Direction

Activities of individuals and teams within an organization should be aligned toward achieving the same objectives. This fosters a sense of collective purpose and prevents individual efforts from working at cross-purposes.

For example, a marketing team works towards a unified goal of launching a new product successfully. This involves collaboration between various sub-teams responsible for advertising, social media marketing, and public relations, all contributing to the shared objective.

6. Subordination of Individual Interests to the General Interest

While individual interests are important, they should not supersede the collective goals of the organization. This principle encourages employees to prioritize the organization’s success while recognizing individual contributions.

For example, a salesperson prioritizes the company’s overall success by adhering to ethical sales practices and promoting products that benefit customers, even if it means sacrificing a personal commission on a higher-priced product.

7. Remuneration

Employee compensation should be fair, equitable, and motivating. This principle acknowledges that appropriate compensation not only attracts and retains talent but also incentivizes high performance.

For example, a company offers competitive salaries and benefits packages based on performance, experience, and industry standards. This incentivizes attracting and retaining top talent while encouraging individual growth and contribution to the organization’s success.

8. Centralization

The degree to which decision-making authority is concentrated at the top management level versus being delegated to lower levels. Fayol advocated for a balance, with centralized control over crucial decisions and decentralized authority for operational matters.

For example, a multinational corporation may have a centralized headquarters that sets strategic direction and oversees core functions like finance and legal matters. Operational decision-making, however, might be delegated to regional or branch offices, allowing for flexibility and responsiveness to local market conditions.

9. Scalar Chain

This principle refers to the formal line of authority that flows from top management to lower levels. While adhering to the chain of command is essential, Fayol also acknowledged the need for flexibility when necessary.

For example, while a formal chain of command is essential, a company might also implement an “open-door policy” where employees can directly approach senior management with concerns or suggestions, fostering a more open and collaborative environment.

A well-organized and orderly workplace fosters efficiency and minimizes wasted resources. This principle emphasizes the importance of maintaining a clean and organized physical environment and establishing clear procedures for various tasks.

For example, a manufacturing plant implements a system of 5S (Sort, Straighten, Shine, Standardize, Sustain) to maintain a clean, organized, and efficient work environment. This minimizes waste, improves safety, and ensures smooth production flow.

Managers should treat all employees with fairness and respect, regardless of their background or position. This principle fosters trust, motivation, and a positive work environment.

For example, a company implements diversity and inclusion initiatives to ensure all employees, regardless of their background or gender, are treated fairly, have equal opportunities for advancement, and feel valued within the organization.

12. Stability of Tenure of Personnel

High employee turnover can be disruptive and costly. This principle emphasizes the importance of creating an environment that encourages long-term employment by offering fair compensation, growth opportunities, and job security.

For example, a company invests in employee development opportunities and offers competitive compensation and benefits packages to create a work environment that encourages long-term employment. This reduces the cost of employee turnover and fosters a sense of loyalty and commitment among employees.

13. Initiative

Encouraging employees to take initiative and use their creativity can lead to innovation and problem-solving. This principle fosters a sense of ownership and empowers employees to contribute beyond their specific roles.

For example, an engineering team is encouraged to brainstorm and propose innovative solutions to a complex technical challenge. This fosters a culture of ownership and empowers employees to contribute beyond their specific roles, potentially leading to groundbreaking solutions.

14. Esprit de Corps

This principle emphasizes the importance of promoting team spirit and a sense of unity within the organization. Building camaraderie and fostering a collaborative environment can significantly enhance employee engagement and overall success.

For example, a company organizes team-building activities and encourages collaboration across departments. This fosters a sense of unity and belonging, enhancing employee engagement and promoting teamwork toward achieving common goals.

Overly rigid: Some argue that Fayol’s principles are too rigid and fail to account for the dynamic nature of modern organizations.
Limited focus on human aspects: Critics suggest that the principles place insufficient emphasis on employee motivation and psychological well-being.
Developed in a different era: The principles were formulated in the early 20th century and may not fully address the complexities of the contemporary business world.

Contemporary Relevance

Despite these criticisms, Fayol’s principles remain remarkably relevant in the modern context. They offer a foundation for effective management practices and can be adapted to address contemporary challenges:

Balancing structure with flexibility: Organizations can maintain a clear structure while allowing for flexibility and adaptation to changing circumstances.
Empowering employees: Encouraging employee participation, initiative, and creativity can foster a culture of innovation and engagement.
Promoting diversity and inclusion: Building a diverse and inclusive work environment aligns with the principle of equity and contributes to a more dynamic and successful organization.

Q: How did Henri Fayol develop his 14 Principles of Management?

Henri Fayol developed his principles based on his observations and experiences as a manager in the mining industry. He outlined these principles in his book “General and Industrial Management,” published in 1916.

Q: Are Fayol’s principles still relevant today?

Yes, many of Fayol’s principles remain relevant and have been adapted to address the complexities of modern business environments, demonstrating their enduring significance in management theory.

Q: Are there any limitations to applying Fayol’s principles in contemporary organizations?

While Fayol’s principles offer valuable insights, they may not fully address the complexities of modern organizations, such as globalization, technological advancements, and diverse workforce dynamics. Managers need to adapt these principles to suit their specific organizational contexts.

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Management Basics
Principles of Management

Henri Fayols 14 Principles of Management

A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more variables under given situation. They serve as a guide to thought & actions. Therefore, management principles are the statements of fundamental truth based on logic which provides guidelines for managerial decision making and actions. These principles are derived: -

There are 14 Principles of Management described by Henri Fayol.

Division of Labor

Party of authority & responsibility, principle of one boss.

- It undermines authority - Weakens discipline - Divides loyalty - Creates confusion - Delays and chaos - Escaping responsibilities - Duplication of work - Overlapping of efforts

Unity of Direction


Meaning	It implies that a sub-ordinate should receive orders & instructions from only one boss.	It means one head, one plan for a group of activities having similar objectives.
Nature	It is related to the functioning of personnel’s.	It is related to the functioning of departments, or organization as a whole.
Necessity	It is necessary for fixing responsibility of each subordinates.	It is necessary for sound organization.
Advantage	It avoids conflicts, confusion & chaos.	It avoids duplication of efforts and wastage of resources.
Result	It leads to better superior sub-ordinate relationship.	It leads to smooth running of the enterprise.

Therefore it is obvious that they are different from each other but they are dependent on each other i.e. unity of direction is a pre-requisite for unity of command. But it does not automatically comes from the unity of direction.

- There are good superiors at all levels. - There are clear & fair agreements with workers. - Sanctions (punishments) are judiciously applied.

Fair Remuneration

Stability of tenure, scalar chain.

In the figure given, if D has to communicate with G he will first send the communication upwards with the help of C, B to A and then downwards with the help of E and F to G which will take quite some time and by that time, it may not be worth therefore a gang plank has been developed between the two.

Sub-Ordination of Individual Interest to General Interest

- Employees should be honest & sincere. - Proper & regular supervision of work. - Reconciliation of mutual differences and clashes by mutual agreement. For example, for change of location of plant, for change of profit sharing ratio, etc.

Espirit De’ Corps (can be achieved through unity of command)

The managers should infuse team spirit & belongingness. There should be no place for misunderstanding. People then enjoy working in the organization & offer their best towards the organization.

Centralization & De-Centralization

In other words, centralization is a situation in which top management retains most of the decision making authority.

In other words, sharing authority downwards is decentralization.

Importance of Management Principles
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What is Management ?
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Management as a Discipline
Management as a Group
Management as a Science
Management as an Art
Management as a Profession
Features of Management
Levels of Management
Objectives of Management
Importance of Management
Management and Administration
Management Principles
Scientific Management - Introduction
Principles of Scientific Management
Techniques of Scientific Management
Criticism of Scientific Management
Taylor and Fayol

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14 Principles of Management by Henri Fayol

Principles of Management are like a guidebook for leaders to run a company well. They help managers make plans, organize tasks, and motivate teams , and, they serve as frameworks for managers to deal with the difficulties of leading people and achieving goals within an organization.

Principles of Management cover a diverse range of concepts and practices that aim to optimize resources, encourage innovations, and improve performance . They provide managers with a systematic approach to decision-making , problem-solving, and achieving results in a dynamic business environment .

Table of Content

What are the Principles of Management?

Who was henri fayol , principles of management by henri fayol, 1. division of work, 2. authority and responsibility, 3. discipline, 4. unity of command, 5. unity of direction, 6. subordination of individual interest to general interest, 7. remuneration of employees, 8. centralization and decentralization, 9. scalar chain, 12. stability of personnel, 13. initiative, 14. esprit de corps, difference between principles of management and techniques of management, henry fayol’s principle of management – faqs.

Principles of Management is a universal and general concept for decision-making and execution . It is based on experience and changes in the business industry; therefore, these principles may not be as firm as those of science. They involve human behavior and are used accordingly in the required situation. Thus, these principles change with time. For example, while making a decision regarding the promotion of an employee, one manager may decide considering his age or rank. Whereas some other managers may promote the employee based on his conduct and performance.

Father of the general principle of management, Henry Fayol was a French industrialist . He joined a French mining company in 1860 as an engineer and rose to the position of its managing director in 1888 . At that time, his company was at the stage of bank insolvency . With broad administrative experience, ‘Fayol’ contributed a lot to his company. When he retired in the year 1918 , the company was in excellent condition. Henri Fayol recognized the need for Principles of Management . He identified 14 Principles of Management .

It refers to dividing the work into different individuals. Fayol recommended that work of all kinds must be divided and allocated as per competence, qualification, and experience of individuals . According to Fayol, “ Division of Work intends to produce more and better work for the same effort. Specialization is the most efficient way to use human effort. ”

For example, a bank has several operations, like collection and payment of cash, issue of cheque books, etc. All those activities are divided and allocated to a different person in the bank . This method of doing work also improves their efficiency and makes them experts in their field .

According to this principle, there should be a proper balance between authority and responsibility . Authority is the duty, which a subordinate is expected to perform. Authority and responsibility go hand in hand . Authority without responsibility leads to irresponsible behavior, while responsibility without authority will make a person ineffective.

According to Fayol:

“ Authority is the right to give orders and obtain obedience, and responsibility is the corollary of authority. The two types of authority are official authority, which is the authority to command, and personal authority, which is the authority of the individual manager. ”

For example, if a foreman is given the responsibility to produce 50 units per day, then he must be given the required authority to achieve this target. If he is not given authority to draw raw material from the stores, then he cannot be blamed.

Discipline refers to obedience to the rules and regulations of the organization . Discipline requires good supervision at all levels of management. According to Fayol, good supervision at all levels, clear and fair rules, and a built-in system of penalties will help to maintain discipline. It is a must for all levels of management.

For example, employees must be disciplined to work effectively and efficiently to meet their promises of bonuses, increments, and promotions. Its smoothness systemizes the functioning of an organization by providing better relations between management and employees.

According to this principle, each subordinate should receive orders and be accountable to only the superior . No person can serve several masters at the same time. If an employee gets orders from two superiors at the same time, then the principle of unity of command is violated, and he will find it very difficult to decide who he has to obey first. So, to avoid confusion, employees should receive an order from one superior.

For example, there is a salesperson who is asked to clinch a deal with a buyer and he is allowed to give a 12% discount by the marketing manager. But the finance department tells him not to offer more than a 6% discount. In this case, there is no unity of command, which will lead to confusion and delay.

It implies that there should be one head and one person for proof of activities having the same objectives . According to this principle, all the activities should be carried under the direction of one head, and there should be effective coordination in all the activities. This principle ensures unity of action and avoids unnecessary duplication of work.

For example, if an organization has four departments for different activities, then each department must be directed by one superior , and its employees should give their whole efforts to achieving the plan of the organization. Each division should have its in charge, plans, and execution resources. There should not be an unnecessary duplication of efforts and a waste of resources.

According to this principle, the interest of the organization as a whole must prevail over the interest of the individual. Simply put, the interest of the organization should be placed above the interest of employees . It is the duty of the manager to reconcile them. If reconciliation is impossible, then general interest must supersede individual interest. A manager must sacrifice his interest . Manager can achieve their objectives when the organization recovers from financial crises .

For example, there is a company that wants maximum output from its employees by providing less salaries. There are employees on the other hand who want to get the maximum salary while working the least. In both situations, the interests of the company will supersede the interest of any one individual, as the interests of the workers and stakeholders are more important than the interests of any one person .

According to this principle, remuneration should be fair and satisfactory to both employees and the organization . This principle leads to harmonious relations in the organization. Fair remuneration should be determined based on government rules related to wages , financial position of the organization, nature of work, and cost of living . Employees should be paid reasonable wages for their service, which should provide them with a moderate standard of living.

For example, if an organisation earns higher profits, then it should share some of its parts with the employees in the form of bonus.

Centralization refers to the concentration of authority at the top level, and decentralization means distribution at all levels of management. According to this principle, there should be a proper balance between centralization and decentralization. The degree of centralization and decentralization depends on various factors, such as experience of the employees, ability of subordinates, size of the organization, etc. Too much centralization lead to loss of control of top management . Therefore an optimum balance should be maintained according to the need of the organization.

For example, Authority to take vital decisions must be given to the top management, whereas authority related to operational activities must be given to the middle and lower level.

According to this principle, there is a scalar chain of authority and communication that moves in a straight line from the superior to the lowest subordinate . Henri Fayol permitted a shortcut of chain in case of urgency known as gang plank. Gang plank allows direct communication between two employees of the same level.

For example, E wants to communicate with I for some important work. The message should orderly move from E to D, then to C, B, A, and then down from A to F then to G, H and finally to I . This will take lots of time so to avoid this delay in work, Fayol suggested the concept of Gang Plank . In this concept ‘E’ can communicate directly with ‘I’ on an urgent matter. Thus, the gang plank allows two employees of the same level to communicate directly with each but each must enforce to its superior.

According to this principle, there should be a proper place for everything and everyone. Henri Fayol emphasized on two types of order: material order and social order . In material order, there must be a plan for everything . It ensures to fix a place for various material tools. Whereas in social order, there must be an appointed place for every employee , which ensures a proper and fixed place/cabin for each employee.

For example, there should be specific place for foremen in a factory so that the work can be done easily.

According to this principle, there should not be any discrimination amongst employees based on religion, caste, language, or nationality . Equity ensures coordinated relations between superiors and subordinates . It leads to the smooth and successful working of the enterprise. It improves satisfaction and motivation of the employee , creating relation between manager and employees.

For example, workers doing similar jobs in the same organization should be paid same wages irrespective of their sex, caste, religion and language.

According to this principle, there should be proper effort to achieve stability and continuity of employment . Fayol said that employees should be kept in their position for a reasonable time to show stability creates a sense of belonging, and workers are encouraged to improve their quality of work . This will increase the efficiency of employees, and it will also increase the reputation of the organization. Unnecessary labor turnover creates an atmosphere of disbelief . Continuous changes in employees disturb the working environment.

For example, new employees must be given ample time to adapt to new culture and environment of the workplace.

According to this principle, workers should encourage and should be given an opportunity to take initiative in making and executing the plan. Henri Fayol suggested that employees at all levels should be encouraged to take initiative in work . It motivates employees to work better and to take more interest in the organization. The initiative is a powerful motivator of human behavior and a source of strength for the organization. This increase the mental growth and feeling of belongingness in employees . It increases the commitment of employees toward the organization. Lack of initiatives may create an atmosphere of non-cooperation.

For example, organizations must have an employee suggestion system so that they have feeling of belongingness.

According to this principle, management should take reasonable steps to develop a sense of belongingness and a feeling of team spirit amongst employees . In order to achieve the best possible result, individual and group efforts need to be integrated. Production is a teamwork and it requires the full support of all members. For this purpose, a manager should replace ‘I’ with ‘We’ in his conversations to bring a team spirit among the employees. This will develop an atmosphere of mutual trust. It will help in achieving group goals , leading to cordial relations between management and workers .

For example, authority and responsibility meant empowering managers, but now it means empowerment of employees because of flat organizational structures that are gaining ground.

The principle of management should not be mistaken for techniques of management. Techniques of Management are methods or approaches involving several steps to be followed to reach the desired goal . Principles on the other hand are a set of rules that needs to be taken care of while practicing technique in order to work efficiently.

Similarly, principles should also be distinguished from values . Values are beliefs or morals that are based on human behavior and help individuals to behave morally in society. On the other hand, principles are formed on the basis of the work situation. However, the values and morals cannot be ignored while practicing the principle of management in an organization as it has to fulfill all kinds of responsibilities whether they are social or ethical.

What are Henri Fayol’s 14 Principles of Management?

Fayol outlined 14 principles of management in his book. It includes unity of command, division of work, discipline authority and responsibility, unity of direction, etc.

How are Fayol’s 14 principles different from other management theories?

Fayol’s principles focus more on the functions of management within an organization where as other management theories might emphasize different aspects, like human relations or systems thinking.

How to implement Fayol’s principles in management role?

Managers can use Fayol’s principles as a framework for decision-making and problem-solving. By applying these principles, managers can improve organizational efficiency, communication , and effectiveness.

How to learn Henri Fayol’s 14 principles of management?

One can explore Henri Fayol’s original works, such as “ Administration Industrielle et Générale ,” or refer to management textbooks and academic resources that discuss his theories.

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Case Studies - Principles of Management | Business Studies (BST) Class 12 - Commerce PDF Download

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Q. 1. In your school, you observe that books are kept in office, chalks in the library and office records in the staff room.

Which principle of management is violated here and why?
How will that affect the achievement of school objectives?
As a manager, what steps will you take to rectify the shortcomings? (3 marks)
Disparate storage of resources violates "Unity of Direction" principle.
Breeds inefficiency: Staff waste time searching for materials, reducing productivity.
Increases mismanagement risk: Resources may be misplaced or lost, disrupting school operations.
Creates coordination challenges: Departments struggle to implement cohesive strategies.
Solutions: Centralize resource management; designate storage areas; implement inventory control.
Train staff on proper resource handling.
Foster collaboration among departments.
Benefits: Enhances efficiency, minimizes mismanagement risks, promotes unified direction towards achieving school objectives.

Q. 2. The production manager of an automobile company asked the foreman to achieve a target production of 200 scooters per day. But he did not give him the authority of requisition tools and materials from the stores department. Can the production manger blame the foreman if he is not able to achieve the desired target? Explain briefly the principle relating to the situation. (3 marks)

Ans. No, the production manager cannot blame the foreman because he did not give him the authority to requisition tools and materials form the stores department. Since he has no authority, he could not fulfill his responsibility.

In this case the principle of ‘Authority and Responsibility’ is violated. Fayol suggested tht there must be a balance between authority and responsibility. Authority and responsibility must go hand in hand. Responsibility without adequate authority will make the subordinate ineffective, I.e., he will not be able to perform his duties properly. At the same time giving authority without fixing responsibility may lead to misuse of of authority.

Q. 3. S oniya Ltd. was engaged in the business of manufacturing auto components. Lately, its business was expanding due to increased demand for cars. The competition was also increasing. In order to keep its market share intact, the company directed its workforce to work overtime. But this resulted in many problems.

Due to increased pressure of work the efficiency of workers declined. Sometimes, the subordinates had to work for more than one superiors. The workers were becoming indisciplined. The spirit of teamwork, which had characterized the company previously, had begun to wane.

Identify any three principles of management (as given by Henry Fayol) which were begin violated, quoting the lines from the above case. (3 marks)

Ans. Three principles of management by Henry Fayol that were being violated in the case of Soniya Ltd.:

Unity of Command : "Sometimes, the subordinates had to work for more than one superiors."

This violates the principle of unity of command, which states that an employee should receive orders from only one superior to avoid confusion and conflicting instructions.

Division of Work : "Due to increased pressure of work the efficiency of workers declined."

The increased workload and pressure on workers suggest a lack of effective division of work, leading to decreased efficiency and productivity.

Esprit de Corps (Spirit of Teamwork) : "The spirit of teamwork, which had characterized the company previously, had begun to wane."

This indicates a decline in the spirit of teamwork among employees, which violates the principle of esprit de corps. This principle emphasizes the importance of fostering harmony and unity among workers to achieve common objectives.

Q. 4. The production manager of Harsh Ltd. instructs a salesman to go slow in selling the product, where the marketing manager is insisting on fast selling to achieve the target. Which principle of management is being violated in this case? (1 mark)

Ans. Unity of command

Q. 5. Kanika and Priyanka are typists in a company having same educational qualifications. Kanika is getting Rs. 16000 per month and Priyanka Rs. 10000 per month as salary for the same working hours. Which principle of management is violated in this case. (1 mark)

Ans. Principle of equity

Q. 6. Rishabh, a manager, very often speaks to people at all levels, passing on instructions regarding his department and also the other departments. Which principle of management is being overlooked? (1 mark)

Ans. Principle of Scalar Chain.

Q. 7. The management and workers have entered into an agreement that workers will do overtime to cover up looses of the company. In return, the manager will increase the wages. But management later refused to increase the wages. Name the principle violated in this situation. (1 mark)

Ans. Principle of discipline

Q. 8. In Simran Ltd., an employee has the objective of maximizing his salary, but the organizational objective is to maximize output at competitive cost. There was some dispute on this for a while. Eventually, the organization’s interest was given priority over employees’ interest. Name the principle related to this situation. (1 marks)

Ans. Principle of subordination of individual interest to general interest.

Q. 9. Radhika opens a jewelry showroom in Jaipur after completing a course in jewelry designing. She has employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to given any further discount rests with Radhika as the final authority. In the earlier days of starting of the business, five of her employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. However, when it comes to setting the conflicts among her employees, she tends to b e more biased towards her female employees.

In context of the above case:

Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph.
Identify and explain the principle of management which is being violated by Radhika by quoting lines from the paragraph.
State any one effect of the violation of the principle of management by Radhika as identified in part (b) of the question.
The various principles of management that are being applied by Radhika are listed below:
Principle of Division of work:

“For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.”

Principle of Centralization and Decentralization:

“The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.”

Principle of Discipline:

“Therefore, after six months when the business was doing well, she awarded a each bonus to each of these employees to honour her commitment.”

The principle of management which is being violated by Radhika is Equity.

“However, when it comes to setting the conflicts among her employees, she tends to be more biased towards her female employees.”

One effect of the violation of the Principle of Equity is that it may lead to job dissatisfaction among the male workers.

Q. 10. Neeraj is selected for the post of software developer in an IT Company. On the first day of his joining Mehul, his project manager tells Neeraj that during the course of his work he will come across many such opportunities which may temp him to misuse his powers for individual or family’s benefit at the cost of larger general interest of the company. In such situations, he should rather exhibit exemplary behavior as it will raise his stature in the eyes of the company. Also, for interacting with anyone in the company on official matters, he should adopt the formal chain of authority and communication.

Identify and explain the various principles of management that Mehul is advising Neeraj to follow while doing his job.
List any two values that Mehul wants to communicate to Neraj.
Subordination of Individual Interest to General Interest:
Scalar Chain:
Self restraint

Q. 11. Davinder is a class twelfth commerce student in a reputed school in Punjab. Satinder is his elder brother who is doing his Masters in Hospital administration from Delhi after completing his B. Sc course. During vacations when Satinder comes home, Davinder shows him the business studies project that he is preparing on the topic ‘Principles of Management’. Satinder tells him that these principles are also a part of MBA course curriculum at the beginner’s level as they form the core of management in practice. But he finds these principle different from those of pure science.

Outline the concept of principles of management.
Why does Satinder find the principle of management different from those of pure science?
Why do the principles of management form the core of management in practice?

Explain by giving any two points highlighting the importance of principles of management.

The principles of management serve as a broad and general guideline for the managerial decision making and action.
Satinder finds the principles of management different from those of pure science because the management principles are not as rigit as principles of pure science. This is due to the fact that they deal with the human behavior and thus, need to be applied creatively in the light of given situation.
The importance of principles of management is described below:
Providing managers with useful insights into reality:
Optimum utilization of resources and effective administration:

Q. 12. Nutan Tiffin Box service was started in Mumbai by Mumbai dabbawalas. The Dabbawalas who are the soul of entire Mumbai aim to provide prompt and efficient services by providing tasty homemade tiffin to all office goers at right time and place. The service is uninterrupted even on the days of bad weather, political unrest and social disturbances. Recently they have started online booking system through their website’ mydabbawals.com’. owing to their tremendous popularity amongst the happy and satisfied customers and members, the dabbawalas were invited as guest lecturers by top business schools. The Dabbawals operate in a group of 25-30 people along with a group pleader. Each group teams up with other groups in order to deliver the tiffin on time. They are not transferred on frequent basis as they have to remember the addresses of their customers. They follow certain rules while doing trade-No alcohol during working hours; No leave without permission; Wearing of white cap & carrying ID cards during business hours.

Recently on the suggestion of a few self motivated fellow men, the dabbawalas thought out and executed a plan of providing food left in tiffins by customers to slum children. They have instructed their customers to place red sticker if food is left in the tiffin, to be fed to poor children later.

State any one principle of management given by Fayol & one characteristic of management mentioned in the above case.
Given any two values which the Dabbawalas want to communicate to the society.

Ans. One principle of management given by Fayol that can be observed in the case of Mumbai dabbawalas is "Unity of Command." This principle states that an employee should receive orders from only one superior to avoid confusion and conflict. In the case of dabbawalas, each group operates under the leadership of a group leader (group pleader), ensuring clear direction and accountability within the group.

One characteristic of management mentioned in the above case is "Adaptability." Despite facing various challenges such as bad weather, political unrest, and social disturbances, the dabbawalas continue to provide uninterrupted service by adapting their strategies and operations to overcome these obstacles.

Two values that the Dabbawalas want to communicate to society are:

1. Social Responsibility : By implementing a plan to feed slum children with leftover food from customers' tiffins, the dabbawalas demonstrate their commitment to addressing social issues and contributing to the welfare of the less fortunate in society.

2. Reliability : The dabbawalas' consistent and efficient delivery service, even in adverse conditions, reflects their value of reliability. They strive to provide prompt and dependable service to their customers, earning their trust and satisfaction.

Q. 13. ‘Aapka vidyalaya’ believes in holistic development of students and encourages team building through a mix of curricular, co-curricular and sports activities. On its founders day a stage performance had to be put up. A committee of ten prefects was constituted to plan different aspect of the function. They all decided to use recycled paper for decoration. There was a spirit of unit and harmony and all members supported each other. With mutual trust and belongingness the programme was systematically planned and executed. Kartik, one of the prefects realized that unknowingly the group had applied one of the principles of management while planning and executing the programme. He was so inspired by the success of the function that he asked his father to apply to same principle in his business. His father replied that he was already using this principle.

Identify the principle of management applied for the success of the programme.
State any two features of management highlighted in the above para.
Identify any two values which ‘Aapka Vidyalaya’ communicated to the society.

Ans. The principle of management applied for the success of the program is "Unity of Purpose" or "Unity of Objective." This principle emphasizes the importance of aligning individual and group efforts towards the achievement of common goals.

Two features of management highlighted in the paragraph are:

Teamwork : The committee of prefects demonstrates effective teamwork by collaborating to plan and execute the function. There is a spirit of unity and harmony among the members, and they support each other to achieve their goals.

Systematic Planning and Execution : The program is systematically planned and executed by the committee of prefects. They use recycled paper for decoration, indicating a thoughtful and environmentally conscious approach to organizing the event.

Two values communicated to society by 'Aapka Vidyalaya' are:

Environmental Responsibility : By choosing to use recycled paper for decoration, 'Aapka Vidyalaya' demonstrates its commitment to environmental sustainability and responsibility. This value promotes awareness and action towards protecting the environment.

Holistic Development : 'Aapka Vidyalaya' emphasizes holistic development by encouraging a mix of curricular, co-curricular, and sports activities. This value reflects a commitment to nurturing students' overall growth and well-being, beyond academic achievements alone.

Q. 14. Nikita and Salman completed the MBA and started working in a multinational company at the same level. Both are working hard and are happy with their employer. Salman had the habit of backbiting and wrong reporting about his colleagues to impress his boss. All the employees in the organization knew about it. At the time of performance appraisal the performance of Nikita was judged better than Salman. Even then their boss, Mohammed Sharif decided to promote Salman stating that being a female Nikita will not be able to handle the complications of a higher post.

Identify and explain the principle of management which was not followed by this multinational company.
Identify the values which are being ignored quoting the liens the above para. (5 marks)

Ans. The principle of management that was not followed by this multinational company is "Impartiality" or "Fairness." This principle emphasizes that decisions and actions should be fair and unbiased, without favoritism or discrimination.

In this scenario, the boss, Mohammed Sharif, decided to promote Salman over Nikita despite Nikita's better performance. The reason cited for promoting Salman, based on gender stereotypes, indicates a lack of impartiality and fairness in the decision-making process. By allowing Salman's negative behavior to influence the promotion decision and discriminating against Nikita based on her gender, the company fails to uphold the principle of impartiality.

The values being ignored in this scenario are:

Fairness and Equality : The company's decision to promote Salman over Nikita based on gender stereotypes disregards the principles of fairness and equality. Nikita's better performance should have been the sole criterion for promotion, irrespective of her gender.

Integrity and Ethical Conduct : Salman's habit of backbiting and wrong reporting about his colleagues indicates a lack of integrity and ethical conduct. By promoting him despite his negative behavior, the company sends a message that unethical conduct is tolerated and even rewarded, undermining the values of integrity and ethical behavior in the workplace.

Q. 15. Sigma Ltd. is a large company manufacturing electric motors. The company has several departments – Production, Marketing, Finance and HR. Mr. Shashank, CEO of the company set the target sale of 10 crore in a month. To increase the sales, the marketing manager, Mr. Ishaan insists on offering 10% discount to customers. But the finance manager, Mr. Mohak does not approve such discount as it would mean loss of revenue. Because of dual subordination, the sales manager, Mr. Anshik could not achieve the sales target.

Which concept of management Sigman Ltd. is lacking? State it.
Which principle of management has been overlooked by this company? State it.
Which principle of management has been overlooked by this company? State it. (6 marks)
The company is lacking ‘ Coordination ’.

It is the process by which the activities of different departments are synchronized to ensure unity of action.

2. Concept: Unity of Command

In Sigma Ltd., the absence of "Unity of Command" leads to dual subordination for the sales manager, Mr. Anshik.

Mr. Anshik faces conflicting directives from the marketing manager, Mr. Ishaan, who advocates for offering discounts to boost sales, and the finance manager, Mr. Mohak, who opposes the idea due to potential revenue loss.

This dual subordination hampers Mr. Anshik's ability to effectively achieve the sales target set by the CEO, Mr. Shashank, as he receives contradictory instructions from multiple superiors.

3. Principle: Unity of Direction

In addition to lacking "Unity of Command," Sigma Ltd. also overlooks the principle of "Unity of Direction."

This principle emphasizes the importance of aligning all activities within the organization towards a common goal or objective.

While the CEO has set a sales target of 10 crore in a month, the conflicting opinions between the marketing manager and the finance manager regarding offering discounts create disunity in direction.

The marketing manager's proposal to offer discounts to increase sales conflicts with the finance manager's concern about potential revenue loss, resulting in a lack of alignment in efforts towards achieving the sales target.

This lack of unity in direction hampers the company's ability to effectively coordinate its actions and resources towards the common goal of achieving the sales target.

Q. 16. ABC Ltd. is engaged in producing electricity from domestic garbage. There is almost equal division of work and responsibility between workers and management. The management even takes workers into confidence before taking important decisions.

All the workers are satisfied as the behavior of the management is very good.

State the principle of management described in the above para.
Identify any two values which the company wants to communicate to the society. (3 marks)
The principle of Taylor described in the above para is Cooperation, Not Individualism.

Values communicated to society by ABC Ltd.:

Employee Empowerment : ABC Ltd. values and promotes employee empowerment by involving workers in decision-making processes and sharing responsibilities equally between workers and management. This communicates a commitment to fostering a sense of ownership and involvement among employees, empowering them to contribute meaningfully to the company's success.

Good Governance and Transparency : The company emphasizes good governance and transparency by taking workers into confidence before making important decisions. This demonstrates a commitment to open communication, trust, and fairness in organizational practices, thereby promoting transparency and accountability in its operations.

Q. 17. Voltech India Ltd. is manufacturing LED bulbs to save electricity and running under heavy losses.

To revive from the losses, the management thought of shifting the unit to a backward area where labour is available at a low cost. The management also asked the workers to work overtime without any additional payment and promised to increased to wages of the workers after achieving its mission. Within a short period the company started earning profits because both the management and the workers honoured their commitments.

Identify any two values that the company wants to communicate to the society. (3 marks)
The principle of management described in the above para is Discipline.

Discipline is the obedience to organizational rules and employment agreement which are necessary for the working of the organization.

2. Values communicated to society by Voltech India Ltd.:

Fairness and Social Responsibility : The company demonstrates a commitment to fairness and social responsibility by promising to increase wages for workers after achieving its mission. Despite asking workers to work overtime without additional payment initially, the company fulfills its commitment to reward their efforts once profitability is restored. This communicates a sense of fairness and social responsibility towards its employees, ensuring they are fairly compensated for their contributions.

Ethical Conduct and Integrity : Voltech India Ltd. upholds ethical conduct and integrity by honoring its commitments to both management and workers. The decision to shift the unit to a backward area where labor is available at a low cost may raise questions about ethical labor practices. However, by promising to increase wages after achieving profitability and delivering on that promise, the company demonstrates integrity and ethical conduct, ensuring transparency and trust in its dealings with both management and workers.

Q. 18. Kushal Ltd. is a leading automobile company in which the various departments are setting up their own objectives without paying any interest to the organizational objectives.

Which aspect of management the company is lacking? What will be its impact on the organization?
Identify the principle of management which has been overlooked by this organization.
State any two values neglected by the people of this organization. (5 marks)

Ans. Aspect of Management Lacking: Coordination

Impact on the Organization: The lack of coordination among departments in setting their own objectives without aligning them with organizational objectives can lead to inefficiency, duplication of efforts, conflicts, and ultimately hinder the achievement of overall organizational goals. Departments may pursue their own agendas, resulting in disjointed efforts, wasted resources, and decreased overall performance of the organization.

Principle of Management Overlooked: Unity of Direction

Values Neglected by the People of the Organization:

Teamwork and Collaboration : The departments' focus on setting their own objectives without considering organizational goals neglects the value of teamwork and collaboration. Instead of working together towards common objectives, departments may operate in silos, hindering synergy and cooperation within the organization.

Organizational Vision and Mission : By disregarding organizational objectives in favor of departmental goals, the people of Kushal Ltd. neglect the value of aligning individual and departmental efforts with the organization's vision and mission. This lack of alignment can lead to a loss of focus on the overarching purpose and direction of the organization, resulting in fragmented efforts and diminished organizational effectiveness.

Q. 19. Telco Ltd. is manufacturing files and folders from old clothes to discourage use of plastic fields and folders. For this, they employ people from nearby villages where very less job opportunities are available. An employee, Harish, designed a plan for cost reduction but it was not welcomed by the production manager. Another employee gave some suggestion for improvement in design, but it was also not appreciated by the production manager.

Identify any two values that the company wants to communicate to the society. (3 marks)
Initiative. It means eagerness to initiate action without being asked to do so.
Values which the company wants to communicate to the society are:
Sensitivity towards the environment
Creation of job opportunities
Development of backward regions.

Q. 20. Khandelwal Ltd., a tyre manufacturing concern has been established for more than ten years. Having made good profits in the past, company wanted to expand further and hence did not declare bonus for the previous year. The workers got agitated and trade union declared strike and demanded bonus and other facilities. The management decided not to give into their demands.

Which principle of scientific management is overlooked in the given case?
State any two values overlooked/ignored by the management in the above case.
Harmony, not Discord
Values overlooked are:
Mutual understanding
Peace and stability
Law and Order
Sense of belongingness (any two)

Q. 21. Hritik is desirous of setting up a small factory to manufacture different kinds of eco-friendly packaging materials. He proposes to adopt to logical approach to his business rather than hit and trial method as he knows that this can result in tremendous saving of human energy as well as wastage of time and materials. He plans to adopt paternalistic style of management in practice in order to avoid any kind of class-conflict that may emerge between him and the workers. Moreover, he plans to seek the opinion of his workers before taking any important decisions and also offers incentives to them for providing valuable suggestions for the business.

Identify and explain the various principle of scientific management that Hritik plans to apply in his business.
List any two values that he wants to communicate to the society by offering eco-friendly packaging material.
The various principle of scientific management that Hritik plans to apply in his business are described below:
Science, not Rule of Thumb:
Harmony, Not Discord:
Cooperation, Not Individualism:
The two values that Harit wants to communicate to the society by offering eco-friendly packaging material are:
Concern for environment
Sense of responsibility

Q. 22. Gaurika has been appointed as the chief organizer of a weeklong cultural event. Being a staunch follower of scientific management, she decides to execute her work by putting into practice the various techniques of scientific management. On the basis of several observations, she is able to determine that the standard time taken by the security officer at the gat to check the credentials of each visitor is 30 seconds. So she decides to employ two persons on this job for every function along with the other necessary support staff. She considers the fact that every day, the functions will take place in three shifts of four hours each, therefore it is important to give breaks to the support staff even in a single shift to take her/his lunch etc. moreover, on introspection, she determines that the best way to distribute refreshment boxes to the visitors will be to hand it over to them at the exit gate as it would help to save time and eliminate any kind of confusion.

In the context of the above case:

Identify and explain the various techniques of work study which have been put into practice by Gaurika.
List any two values that Gaurika wants to communicate to the society.
The various techniques of work study which have been put into practice by Gaurika are outlined below:
Time Study:
Fatigue Study:
Method Study:
The two values that Gaurika wants to communicate to the society are:
Optimum utilization of resources
Concern for employees

Q. 23. ‘Study Buddy Pvt.’ Is company dealing in stationery items. In order to establish standards of excellence and quality in materials and in the performance of men and machines, the company adheres to benchmarks during production. Moreover, its products are available in limited varieties, sizes and dimensions thereby eliminating superfluous diversity of products.

Identify the technique of scientific management which has been adopted by ‘Study Buddy Pvt. Ltd.’

Ans. Technique of scientific management: Standardization

Establishing benchmarks during production.
Limiting varieties, sizes, and dimensions of products.
Consistency in materials and performance.
Quality control and excellence in production.
Efficiency in operations.
Enhanced quality and customer satisfaction.

Q. 24. Tina and Anshu completed their MBA and started working in a multinational company at the same level. Both are working hard. Anshu has the habit of backbiting and wrong reporting about his colleagues to impress the boss. All the employees in the organization know about it. At the time of performance appraisal also Tina’s performance was rated better than Anshu. Even then their boss decided to promote Anshu stating that being a female, Tina will not be able to handle the complications of higher post.

Identify and explain the principle of management that was not followed by this company.
Identify the values being ignore.
Company is violating the “Principle of Equity.”
The values ignored are

1. Gender equality

2. eward for performance

3. Good human behavior.

Q. 25. In one of his principles, Taylor suggested that job performance should be based on scientific enquiry and not on will/wish or personal intuition of manager?

Name that principle.
What values can be followed by using this principle?
Principle of “Science not rule of thumb.”
If manager is using this technique he can follow the value of objectivity it as when decisions are taken scientifically he cannot be biased.

Q. 26. The production department of Alpha Ltd. was not performing well on detailed analysis, it was observed that the workers of that department were overburdened. They were forced to work for longer hours without any break. So the management planned to replace the production manager. They appointed Mr. Hari as the new Production Manager. He observed the average worker and note down their times. He noted down the time they worked and the time they required to be fresh to join back the work. Based on this observation, he set the break intervals for workers. He gave small breaks to workers to recharge their energy.

Name and explain the technique of scientific management used by Mr. Hari.
State the value which Mr. Hari wants to communicate to the society by allowing rest intervals to workers.
Fatigue study.
Value of humanity/sympathy/respect towards employees.

Q. 27. In the staff meeting the principal of the school raised objection that teachers start the teacher after 5 to 10 minutes in third floor classes. He warned them as students are complaining about this. The teachers explained the principal that when we climb steps from ground to third floor. We get some tiredness and need 5 to 10 minutes rest before starting the lecture. The principal planned to install a lift in school so that teachers do not waste their energy on wasteful activity of climbing steps.

State the techniques of scientific management used by principal.
State any other technique of scientific management.
“Technique of motion study.”
Other two techniques:
Functional foremanship
Time study.

Q. 28. In a factory the toolbox was kept under the table of every worker, whenever worker needs tools he had to bend tape out tool from tool box and keep it back after use. The newly appointed supervisor observed it and suggested to keep a stool near every worker’s chain where toolbox can he placed so that workers do not waste their energy in bending again and again.

Which technique of scientific management is used by New Supervisor.
State the objective of motion study.
Motion study.
The objective of motion study is to eliminate unproductive movements of workers.

Q. 29. Mr. Mukesh used to manufacture shoes by employing labour who were easily available. When his son after completing his MBA joined the business, he analysed that if we use capital intensive method by using a machine it will reduce the cost and the quality of shoes will also improve.

Which technique of Scientific management is used by his son.
What is the objective of that technique.
Method Study
Finding the best way of doing thing.

Q. 30. Mr. Kapoor, Finance manager of ABC Ltd. applied for leave to attend a family function in Amritsar. The director of the company requested him to cancel his leave as there is an important meeting schedule on that date. Mr. Kapoor immediately agreed and cancelled his trip as he thought attending meeting is more important for company’s benefit.

Which principle of Fayol is applied by Mr. Kapoor?
Explain that principle.
Principle of subordination of individual interest to general interest.
According to this principle, the interest of organization must supersede the interest of individuals or employees. In the organization all the employees are working with some objective and there is always an objective of organization.

Q. 31. The manager of ABC Ltd. asked his workers to work overtime to increase the production and earn more but he did not paid extra wages to workers for extra time worked. The workers started feeling dissatisfied and stop contributing maximum.

Which principle of Fayol is violated in the above case.
Explain that principles.
Principle of Remuneration.
According to this principle, the interest of organization must supersede the interest of individuals or employees.

Q. 32. Mr. Rajiv is the owner of ‘Laxmi Dairy.’ He is producing various milk products. He always tests various ways of producing different products and chooses the best and most economical way of production. He is also very particular about fixing a place for everything and he makes sure that all the employees are given a fixed place so that there is no wastage of time and delay in production.

Which technique of scientific management is applied by Mr. Rajiv?
Which principle of Henry Fayol is followed by him?
Principle of order

Q. 33. Mr. Rajiv the senior manager of Unique enterprise considered himself very wise and used to take all the decisions himself without consulting the employees, he never used to help any one nor he used to take help of anyone. The employees of unique enterprise were not working efficiently and company’s profit margin started declining to tackle the problem, the company appointed a new manager from IIM Bangalore. The new manager after joining made a policy that all the decisions will be taken after consulting employees in the meeting. All employees must give some suggestions and best suggestions will be rewarded with financial and nonfinancial incentives. This policy had a very positive effects on company.

State the principle of Hencry Fayol used by new manager.
State the technique of scientific management related to above case.
Principle of initiative.
“Cooperation not individualism.”

Q. 34. In a school principal makes sure that every instruction, order or information given by him must be passed to vice-principal then Head of the department and then to teachers and students must be informed by respective teachers only. He never allows teachers to directly communicate with him.

Stat the Principle of Henry Fayol followed by the school principal.
In case of emergency which concept of Scalar Chain can be used by teacher to pass urgent message directly to principal.
Scalar Chain.
Gang-plank.

Q. 35. Pawan is working as a Production Manager in CFL Ltd. which manufactures CFL bulbs. There is no class-conflict between the management and workers. The working conditions are very good. The company is earning huge profits. As a policy, the management shares the profits earned with the workers because they believe in the prosperity of the employees.

State the principle of management described in the above paragraph.
Identify any two values which the company wants to communicate to society.
The principle of management described in the above paragraph is ‘Harmony, not discord’.
The two values that the company wants to communicate to the society are:

Q. 36. The principles of Taylor and Fayol are mutually complementary. On believed that management should share the gains with the workers while the other suggested that employees’ compensation should depend on the earning capacity of the company and should give them a reasonable standard of living.

Identify and explain the principles of Fayol and Taylor referred to in the above paragraph.

The principles of Fayol and Taylor referred to in the above paragraph are ‘Remuneration of employees’ and ‘Harmony, Not Discord’.

Remuneration of Employees:
Harmony, not Discord:

Q. 37. The principles of Taylor and Fayol are mutually complementary. One believed that management should not close its ears to constructive suggestions made by the employees while the other suggested that a good company should have an employee suggestion system whereby suggestions which result in substantial time or cost reduction should be rewarded.

Identify and explain the principles of Taylor and Fayol referred to in the above paragraph.

Ans. The principles of Fayol and Taylor referred to in the above paragraph respectively are ‘Initiative’ and ‘Cooperation and Not Individualism’.

Initiative:
Cooperation and Not Individualism:

Q. 38. Hina and Harish are typists in a company having the same educational qualifications. Hina gets Rs. 3,000 per month and Harish gets Rs. 4,000 per month as salaries for the same working hours. Which principle of management is being violated in this case? Name and explain the principle.

Ans. The principle of Equity has been violated in this case. It emphasizes kindliness and justice in the behavior of managers towards workers. No discrimination should be made by them on the basis of caste, creed, gender or otherwise.

Q. 39. Rajveer works as a plant superintendent in a carpet making factory. In order to complete the export orders on time, the production manager asks him to make the workers work over time whereas the finance manager is strictly against this practice because it will increase the cost of production. Moreover, Rajveer feels that since the company is manufacturing handmade carpets as well as machine made carpets there is a lot of overlapping of activities. Therefore, there should be two separate divisions for both of them wherein each division should have its own in charge, plans and execution resources.

Identify and explain the principle of management which is being violated.
Also identify the principle of management that Rajveer feels should be implemented in the factory.
Give any two differences between the principle of management as identified in part (a) and part (b) respectively.

The principle of management which is being violated in stated below:

Unity of command:
Unity of direction:
The difference between the principle of Unity of Command and Unity of Direction is given below:

Q. 40. Gurpreet is running a retail mart in Varansi to provide various types of products of daily use under one roof to the buyers. The employee turnover in his business is very high and he is perpetually on a look out for new staff. The fact of the matter is that he lacks managerial skills and assigns work to his employees on adhoc basis without letting them settle down in a specific work. This approach of his creates a sense of insecurity among the employees and they tend to leave the job very quickly. However, he is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.

Identify and explain the principle of management which Gurpreet is unable to apply and is perpetually ona look out for new staff.
“He is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.” Name and explain the relevant principle of management will have been brought into effect by Gurpreet.
Stability of Personnel;

Also Check at EduRev: Chapter Notes - Principles Of Management Learn Principles of the Scientific Management: Overview

Q. 41. After finishing her BBA degree course, Tanya gets a job of Assistant Manager in a retail company through the reference of her cousin Taruna who works in the same company as a Senior Manager. Taruna decides to guide Tanya through her experience by making her aware of the important facts about management in practice. She tells her that neither the principles of management provide any readymade, straitjacket solutions to all managerial problems nor they are not rigid prescriptions, which have to be followed absolutely.

Identify the two features of principles of management mentioned in the above paragraph by quoting lines from the paragraph.
Why do the principles of management not provide readymade, straitjacket solutions to all managerial problems?
The two features of principles of management mentioned in the above paragraph are as follows:
General guidelines:
As the real business situations are very complex and dynamic and are a result of many factors, the principles of management not provide readymade, straitjacket solutions to all managerial problems.

Q. 42. Raj and Simran are both qualified eye surgeons and good friends. After obtaining a certificate of practice, they decide to persue a career of their own choice. Raj starts an eye care centre in the city whereas Simran joins a government hospital in a small village. They meet after a long time in a party. Raj invites Simran to visit his eye care centre and she accepts his invitation. She observes at his clinic that there is a fixed place for everything and everyone and it is present there so that there is no hinderance in the activities of the clinic. Also, Raj always tends to replace ‘I’ will ‘We’ in all his conversations with the staff members. Later on Raj shares with her that he always deals with lazy staff sternly to send the message that everyone is equal in his eyes.

Identify and explain the various principles of management that Raj is applying for the successful management of his eye care centre.
List any two values that Simran wants to communicate to the society by taking up a job in a village.
Spirit de Corps:
Concern for poor

Q. 43. Anshul owns a small scale factory where utility items are prepared from waste material like paper mache items, paper and cloth bags, decorative material etc. over the past few weeks, he was observing that the productivity of one of his very efficient worker, Ramdas, is going down. So he decides to probe into the matter and confronts Ramdas one day. On being asked, Ramdas shares with Anshul that he has deliberately slowed down in his work as many of the less efficient workers often pull his leg saying that there is no need for him to be more efficient when everybody is being paid at the same rate. Taking a lesson from this insight, Anshul decides to implement an incentive bonus plan so as differentiate between efficient and inefficient workers.

Name and explain the incentive bonus plan that Anshul may implement so as differentiate between efficient and inefficient workers.
State any two values that Anshul wants to communicate to the society by setting up a special type of business.

Differential Piece wage System is the incentive bonus plan that Ashul may implement so as differentiate between efficient and inefficient workers.

Q. 44. Swaraj is running an office furniture showroom. Most of his clients are businessmen and they prefer to buy goods on credit. Keeping this in mind, he has given the power to the sales manager, Mr. Bhardwaj, to offer a credit period of only 20 days, while negotiating a deal with a buyer. On a specific day, Mr. Bhardwaj finds that if he can offer a credit period of 30 days as an exception to a prospective buyer, he is likely to finalize a highly profitable deal for the business. So Mr. Bhardwaj requests Swaraj to grant him additional authority for offering a credit period of 30 days in the interest of the business. But swaraj refuses to extend his authority and as a result, the deal is not finalized.

Can Mr. Bhardwaj be held responsible for loss of the deal? Why or why not? Give a suitable reason in support of your answer.
Also, explain the related principle.
No, Mr. Bhardwaj cannot be held responsible for loss of the deal in the above case as he was not given the necessary authority to carry out his responsibility. There is an imbalance in authority and responsibility.
The name of the related principle is Authority and Responsibility.

Get an overview of Business Finance through this video. Find NCERT Solutions of Financial Management here .

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Henri Fayol’s 14 Principles of Management with Examples

Henri Fayol's 14 Principles of Management: Get an complete overview about Henri Fayol's 14 Principles of Management with Examples. Read now.

November 4, 2023

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Henri Fayol’s 14 Principles of Management: In the ever-changing realm of management, certain principles remain timeless, serving as guiding stars for organisational success. Henri Fayol’s 14 Principles of Management are some of them, offering invaluable insights that continue to shape today’s business landscape.

Fayol’s principles are not just a thing of the past; they are a living testament to effective management practices. From the division of work to fostering unity, from the balance of authority and responsibility to the encouragement of innovation, each principle illuminates a critical aspect of successful management. In this blog, we’ll talk about Henri Fayol’s 14 Principles of Management and much more!

What are Henri Fayol’s 14 Principles of Management?

Fayol’s 14 Principles of Management can be broken down as follows:

Division of Work: Tasks should be split among individuals and teams for efficiency and specialisation.
Authority and Responsibility: Authority and responsibility must align to maintain balance and accountability.
Discipline: Employees must follow rules and regulations for orderly conduct in the organisation.
Unity of Command: Each employee should receive orders from only one superior to prevent confusion and conflicting directions.
Unity of Direction: The organisation should have a single plan and focus to achieve common objectives.
Subordination of Individual Interest: Individual interests should not take precedence over the organisation’s goals.
Remuneration: Employees must receive fair and just compensation for motivation and satisfaction.
Centralization: Balanced distribution of decision-making power, combining central and decentralised approaches, is crucial.
Scalar Chain: A clear, unbroken chain of command and communication must exist from top to bottom within the organisation.
Order: Resources and materials must be organised efficiently for increased productivity.
Equity: Workers should receive fair and compassionate treatment to secure loyalty and commitment.
Stability: Minimising employee turnover is crucial for maintaining consistent organisational workflows.
Initiative: Encourage employees to apply creativity and innovation to enhance processes.
Esprit de Corps: Foster a sense of unity and teamwork among employees to achieve harmony and synergy.

Read: Sacrificing Ratio

Explain Henri Fayol’s 14 Principles of Management

Division of work.

Fayol’s initial principle, “Division of Work,” highlights the significance of splitting tasks in an organisation to boost efficiency. This principle is grounded in the notion that when work is divided among individuals or groups based on their expertise and specialisation, it results in increased productivity and expertise development.

Employees improve their skills and overall performance by concentrating on specific tasks. In a manufacturing plant, for example, this principle is visible in the separation of roles: assembly line workers, quality control teams, and maintenance crews, each specialising in their respective areas. This specialisation guarantees efficient production and a highly skilled workforce.

Authority and Responsibility

The Authority and Responsibility principle asserts that authority must come with an equal level of responsibility to uphold balance and accountability within an organisation. Put simply, those granted the power to decide are also obligated to account for the results of their decisions.

Management’s concept of discipline entails employees’ obligation to abide by established rules and procedures, ensuring an organised environment. It aims to instil a culture of conformity and adherence to defined norms and guidelines. In a hospital, strict adherence to hygiene protocols, patient care guidelines, and safety measures serves as a tangible illustration of discipline in practice.

Healthcare workers must strictly follow rules and guidelines to protect patients’ health and ensure excellent care. Breaking these regulations can lead to confusion, disruptions, and, most importantly, potential harm to patients. Consequently, discipline is particularly vital in settings where precision, safety, and adherence to protocols hold utmost significance.

Unity of Command

Fayol’s “Unity of Command” principle stresses that each worker should get directions from just one boss to avoid confusion and mixed instructions. Essentially, it guarantees a clear and uncomplicated reporting system for individuals.

For instance, in a software development firm, each coder obtains project directions and support solely from their designated project manager. This removes confusion and lessens the chance of conflicting orders. Unity of command simplifies decision-making, lessens the odds of workers being conflicted, and promotes a united approach to achieving the company’s objectives.

Unity of Direction

The Unity of Direction principle says an organisation must follow one unified plan to achieve shared goals. This means everyone in the organisation should work together towards a common mission.

For example, in a tech company, the whole team must collaborate to launch a new product successfully. When parts of the organisation have conflicting goals or strategies, it can cause inefficiency, confusion, and internal conflicts. Unity of direction ensures that the organisation’s efforts are coordinated, focused, and committed to its main objectives. It fosters consistency, reduces resource wastage, and improves overall effectiveness by uniting the organisational purpose.

Subordination of Individual Interest

The Subordination of Individual Interest principle stresses that the organisation’s interests must prevail over personal ones. It urges employees to prioritise the company’s collective goals and well-being above personal benefits. In a law firm, lawyers are expected to prioritise clients’ needs and the firm’s reputation over personal financial gain or self-interest.

This principle ensures that decisions prioritise clients and the firm’s long-term success. Consequently, it cultivates a culture of selflessness, teamwork, and ethical behaviour. Subordination of individual interest harmonises individual actions with the organisation’s mission and values, fostering loyalty, dedication, and reducing conflicts of interest.

Remuneration

The Subordination of Individual Interest principle stresses that individuals’ concerns shouldn’t overshadow the organisation’s. It urges employees to prioritise the company’s collective goals and well-being over personal profit. In a law firm, lawyers are expected to prioritise clients’ needs and the firm’s reputation over personal financial gain or self-interest.

This principle ensures decisions focus on clients’ best interests and the firm’s long-term success. In doing so, it fosters selflessness, teamwork, and ethical behaviour. Subordination of individual interest aligns individual actions with the organisation’s mission and values, promoting loyalty, dedication, and reducing conflicts of interest.

Centralization

Fayol’s Centralization principle means sharing decision-making power effectively in an organisation. It aims to find a balance between centralised and decentralised decision-making. This recognizes that some decisions should come from the top, while others work better at lower levels.

For instance, in a retail chain, setting the pricing strategy could be a centralised job to maintain consistency across branches. On the other hand, store managers have control over daily operations, like staffing and inventory. Balancing centralization and decentralisation optimises decision-making, using both big-picture strategy and on-the-ground expertise. This way, decisions support the organisation’s goals and adapt to specific situations.

Scalar Chain

The Scalar Chain concept highlights the necessity of a continuous, clear line of communication and authority throughout the organisation. It ensures that information and instructions flow smoothly within the company.

In a large multinational corporation, for instance, communication follows a distinct hierarchy. The CEO communicates with division heads, who, in turn, relay messages to their teams. This unbroken communication chain reduces misunderstandings and ensures efficient dissemination of directives. It fosters coordination and consistency in organisational activities.

By following the scalar chain principle, an organisation can refine its decision-making and communication, leading to increased efficiency and the prevention of miscommunication.

The Order principle focuses on optimising resource, material, and space organisation to boost productivity. It emphasises giving everything a specific role and place, minimising waste, and increasing efficiency.

For instance, in a library, books are methodically grouped by genres, authors, or subjects. This systematic arrangement eases book retrieval, making library visits more productive and enjoyable. Implementing the Order principle lets organisations streamline operations, save time and effort on tasks, and maintain an organised, uncluttered environment that fosters productivity.

Equity is a core principle that stresses the fair and just treatment of employees in an organisation. It means giving everyone equal chances for career growth, recognition, and compensation, promoting a sense of belonging and dedication.

In non-profit organisations, equity is crucial to ensure kindness and justice for employees and volunteers. Fairness in promotions, benefits, and decisions not only protects employee rights but also boosts loyalty and commitment to the organisation’s mission.

The equity principle fosters an inclusive and fair culture where individuals feel valued and empowered, leading to a harmonious and motivated workforce.

The Stability principle advises organisations to reduce employee turnover for consistent processes. Keeping experienced, skilled employees is vital for preserving expertise and knowledge.

In a pharmaceutical company’s research and development department, this principle is crucial. Retaining seasoned scientists maintains project knowledge and expertise. High turnover disrupts operations, raises recruitment and training costs, and erodes institutional knowledge. Thus, stability ensures continuous operations, cost-effectiveness, and skill preservation.

Employees are urged to be creative and innovative, enhancing processes and introducing fresh ideas. It cultivates proactive troubleshooting and ongoing progress. In tech startups, workers are motivated to suggest inventive answers to intricate issues. This innovative environment frequently results in pioneering products, solutions, and business tactics.

The initiative concept not only nurtures a dynamic and adaptable organisation but also empowers employees to assume responsibility for their tasks and make a favourable impact on the company’s expansion and competitiveness. It aligns the organisation with the constantly shifting business environment and technological advancements, bolstering its capacity to flourish and innovate.

Esprit de Corps

Esprit de Corps, a guiding principle, emphasises unity and camaraderie among employees. It fosters cooperation and harmony at work. In sports like soccer or basketball, players need cohesive teamwork for success. Strong team spirit enhances performance, fosters camaraderie, and helps overcome challenges.

This principle is crucial in organisations where teamwork is vital. It nurtures a positive workplace culture, making individuals feel valued and supported. It fosters a shared purpose and commitment to the organisation’s goals. A robust esprit de corps can boost morale, enhance employee satisfaction, and improve organisational performance.

Henry Fayol’s 14 Principles of Management with Examples

At a car manufacturing company, the work division is evident. Various departments handle specialised tasks. The assembly department, for example, assembles car parts. The quality control department inspects finished vehicles, and the maintenance department keeps machinery in good working order.

This specialisation and division of tasks make the production process run smoothly. Employees become experts in their roles. Consequently, the company achieves high-quality car production quickly.

A retail company, with many store branches, has individual store managers. These managers possess the power to make crucial decisions for their stores, such as staffing, inventory control, and sales promotions. Yet, this authority comes with a corresponding obligation.

The store manager is accountable for guaranteeing that their store accomplishes its sales objectives, maintains a well-stocked inventory, fosters a positive workplace atmosphere, and offers exceptional customer service. Striking this equilibrium between authority and responsibility is essential for the store’s prosperity. It ensures that those making decisions are answerable for their choices and the store’s overall performance.

In school, discipline is crucial to uphold a productive and safe learning atmosphere. Set clear rules for students and staff. Students should come on time, attend classes regularly, and show respect to teachers and peers. Teachers must follow the school’s curriculum, grading rules, and code of conduct. Discipline maintains an uninterrupted learning process, allowing students to concentrate on education without disruptions.

In a software firm, developers handle diverse projects. Each project manager oversees a specific project. In this setup, developers get directions and project needs from a single manager.

This distinct chain of authority avoids confusion and assures developer clarity about their duties. If a developer received conflicting orders from multiple managers, it might cause confusion, delays, and reduced productivity. Unity of command ensures a streamlined and well-coordinated development process.

In a tech firm creating a new product, the whole team must aim for one goal: a successful product launch. Conflicting goals, like some seeking cost savings and others valuing product features, can slow progress and make things less efficient. With one shared focus, the team can coordinate efforts and resources to ensure a successful product launch that aligns with the company’s strategic goals.

In a legal practice, attorneys must place their clients’ interests and the firm’s reputation above their own financial gains. This rule guarantees that legal choices prioritise clients and the firm’s long-term prosperity. Ethically, lawyers are obligated to serve their clients’ best interests, even if it involves giving up personal financial benefits or upholding the firm’s integrity and reputation.

In financial firms, pay principles show in employee compensation. They offer competitive wages, performance-based bonuses, and extensive benefits. This aims to lure and keep skilled workers who fuel growth and success. Fair pay motivates and keeps top talent in this competitive field.

In a retail chain, pricing strategies can be controlled by the corporate headquarters to ensure uniformity in all branches. This centralization guarantees that customers are charged the identical price for a product, no matter where the store is situated.

Nevertheless, store managers have the authority to make decisions regarding everyday tasks like staffing, inventory control, and local marketing endeavours. This equilibrium between central pricing and local operations allows for effective pricing management while catering to specific regional requirements.

In a major global corporation, communication follows a strict hierarchy. The CEO talks to division leaders, who then relay information to their teams. This seamless communication chain guarantees efficient coordination, minimises misunderstandings, and allows for quick decision-making. It also ensures consistent distribution of directives within the organisation.

Maintaining order is vital in a library. Books get sorted, catalogued, and arranged systematically by genre or author. This organised setup helps patrons locate materials easily, making the library a productive and enjoyable place that enables efficient information retrieval.

Equity is crucial in a community-focused non-profit. Fairness in promotions, salary changes, benefits, and decision-making boosts employee and volunteer morale, making them more committed to the organisation’s mission. This fosters a positive workplace and enhances goal achievement.

Stability is crucial in the R&D department of a pharmaceutical company. Researchers and scientists are pivotal for drug development. Keeping experienced professionals ensures project consistency, expertise, and research continuity. High turnover disrupts projects, causes knowledge loss, and hampers overall company stability and pharmaceutical industry progress.

In a tech startup, promoting initiative is vital. Staff are urged to devise inventive answers to intricate issues. This innovative culture often results in the creation of state-of-the-art products and solutions. For instance, software developers might suggest inventive features or enhancements to current products, resulting in improved functionality and a competitive advantage in the market.

In a symphony orchestra, musicians must collaborate harmoniously to produce exquisite music. A robust team ethos among instrumentalists elevates their execution and the collective pleasure of the listeners. Players should synchronise their endeavours, rehearse jointly, and guarantee that their individual skills enrich the melodious and triumphant orchestra presentation.

Conclusion

In today’s ever-changing business landscape, Henri Fayol’s 14 Principles of Management continue to provide invaluable guidance. These principles, over a century old, remain highly relevant. From Division of Work to Esprit de Corps, each principle plays a vital role in achieving effective and efficient management. They promote specialisation, unity, discipline, and innovation.

Just as a skilled conductor guides an orchestra to create beautiful music, these principles lead organisations to success. They are not relics of the past but dynamic tools for the present. In our ever-evolving world, let Fayol’s principles be our timeless compass, guiding us to orchestrate success, fostering harmony within our organisations.

Henri Fayol's 14 Principles of Management FAQs

Yes, these principles are adaptable to small businesses and can help in structuring operations, fostering a productive work environment, and encouraging employee initiative.

These principles are universal and can be applied in any industry. Their adaptability makes them valuable across sectors, from manufacturing to service, healthcare, and education.

Encouraging initiative involves creating an open and innovative workplace culture, recognizing and rewarding creative contributions, and providing opportunities for employees to take ownership of their ideas.

Stability is essential in retaining experienced employees who can provide consistency in operations. High turnover can lead to a loss of expertise and negatively affect employee satisfaction.

No, these principles apply to all levels of management, from top executives to frontline supervisors. They establish a framework for effective management practices throughout an organisation.

Organisations can adapt by embracing flexibility within the principles, allowing for adjustments when needed and ensuring their continued relevance in an evolving landscape.

Companies like Google, which encourages employee initiative and fosters an innovative culture, and Toyota, known for its commitment to continuous improvement and quality, exemplify successful implementations of Fayol's principles.

While they are primarily applied in an organisational context, some of Fayol's principles, like "Division of Work" and "Order," can be adapted for personal time and task management.

No, these principles remain relevant. They provide a foundation for effective management in the digital age and can be adapted to address challenges associated with remote work and technology integration.

Innovation is encouraged through the "Initiative" principle, which empowers employees to propose creative solutions and contribute to the improvement of organisational processes. It aligns with modern ideals of fostering innovation in the workplace.

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Henri Fayol 14 Principles Of Management

Henri Fayol's 14 Principles of Management

Henry Fayol, also known as the Father of Modern Management Theory, gave a new perception on the concept of management. He introduced a general theory that can be applied to all levels of management and every department. He envisioned maximising managerial efficiency. Today, Fayol’s theory is practised by the management to organise and regulate the internal activities of an organisation.

The fourteen principles of management created by Henri Fayol are explained below.

1. Division of Work

Henri believed that segregating work in the workforce amongst the workers will enhance the quality of the product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a technical work level.

2. Authority and Responsibility

These are the two key aspects of management. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership.

3. Discipline

Without discipline, nothing can be accomplished. It is the core value for any project or any management. Good performance and sensible interrelation make the management job easy and comprehensive. Employees’ good behaviour also helps them smoothly build and progress in their professional careers.

4. Unity of Command

This means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion.

5. Unity of Direction

Whoever is engaged in the same activity should have a unified goal. This means all the people working in a company should have one goal and motive which will make the work easier and achieve the set goal easily.

6. Subordination of Individual Interest

This indicates a company should work unitedly towards the interest of a company rather than personal interest. Be subordinate to the purposes of an organisation. This refers to the whole chain of command in a company.

7. Remuneration

This plays an important role in motivating the workers of a company. Remuneration can be monetary or non-monetary. Ideally, it should be according to an individual’s efforts they have put forth.

8. Centralization

In any company, the management or any authority responsible for the decision-making process should be neutral. However, this depends on the size of an organisation. Henri Fayol stressed on the point that there should be a balance between the hierarchy and division of power.

9. Scalar Chain

Fayol, on this principle, highlights that the hierarchy steps should be from the top to the lowest. This is necessary so that every employee knows their immediate senior also they should be able to contact any, if needed.

A company should maintain a well-defined work order to have a favourable work culture. The positive atmosphere in the workplace will boost more positive productivity.

All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination.

12. Stability

An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees.

13. Initiative

The management should support and encourage the employees to take initiatives in an organisation. It will help them to increase their motivation and morale.

14. Esprit de Corps

It is the responsibility of the management to motivate their employees and be supportive of each other regularly. Developing trust and mutual understanding will lead to a positive outcome and work environment.

In conclusion, the 14 Principles of Management the pillars of any organisation. They are integral for prediction, planning, decision-making, process management, control and coordination.

Also Read : Difference Between Fayol and Taylor’s Theories of Management

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Henri Fayol 14 Principles of Management with examples

Henri Fayol 14 Principles of Management

Henri Fayol (1841-1925) was a French management theorist whose theories concerning scientific organisation of labour were widely influential in the beginning of twentieth century. He graduated from the mining academy of St. Etienne in 1860 in mining engineering.

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The 19 year old engineer started at the mining company ‘Compagnie de commentary-Fourchambean-Decazeville, ultimately acting as its managing director from 1888 to 1918.

His theories deal with organisation of production in the context of a competitive enterprise that has to control its production costs. Fayol was the first to identify four functions of management – Planning, Organising, Directing and Controlling although his version was a bit different – Plan, Organise, Command, Coordinate and Control.

According to Fayol, all activities of an industrial undertaking could be divided into: Technical; Commercial; Financial; Security; Accounting and Managerial. He also suggested that qualities a manager must possess should be — Physical, Moral, Education, Knowledge and experience. He believed that the number of management principles that might help to improve an organisation’s operation is potentially limitless.

Based largely on his own experience, he developed his concept of administration. The 14 principles of management propounded by him were discussed in detail in his book published in 1917, ‘Administration industrielle et generale’ . It was published in English as ‘General and Industrial Management’ in 1949 and is widely considered a foundational work in classical management theory.

For his contribution he is also known as the ‘Father of General Management’ The 14 principles of management given by him are:

1) Division of Work

Work is divided into small tasks/ jobs. A trained specialist who is competent is required to perform each job. Thus, division of work leads to specialisation. According to Fayol, “The intent of division of work is to produce more and better work for the same effort. Specialisation is the most efficient way to use human effort.” In business work can be performed more efficiently if it is divided into specialised tasks; each performed by a specialist or trained employee.

This results in efficient and effective output. Thus, in a company we have separate departments for finance, marketing, production and human resource development etc. All of them have specialised persons. Collectively they achieve production and sales targets of the company. Fayol applies this principle of division of work to all kinds of work – technical as well as managerial. You can observe this principle at work in any organisation like hospital or even a government office.

2) Authority and Responsibility

Authority is the right to take decisions. It is necessary to get the things done appropriately from subordinates. Authority always comes with the responsibility. If the manager is given the authority to complete a task within a given time, he should be held responsible if he does not complete the work in given time. Manager should have proper authorities to take managerial decision on his own in respect to the goal.

For example, a sales manager has to negotiate a deal with a buyer. She finds that if she can offer credit period of 60 days she is likely to clinch the deal which is supposed to fetch the company net margin of say Rs 50 crores. Now the company gives power to the manager to offer a credit period of only 40 days. This shows that there is an imbalance in authority and responsibility.

In this case the manager should be granted authority of offering credit period of 60 days in the interest of the company. Similarly, in this example this manager should not be given a power to offer a credit period of say 100 days because it is not required. A manager should have the right to punish a subordinate for wilfully not obeying a legitimate order but only after sufficient opportunity has been given to a subordinate for presenting her/his case.

3) Discipline

Discipline is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.

Suppose management and labour union have entered into an agreement whereby workers have agreed to put in extra hours without any additional payment to revive the company out of loss. In return the management has promised to increase wages of the workers when this mission is accomplished.

Here discipline when applied would mean that the workers and management both honour their commitments without any prejudice towards one another.

4) Unity of Command

According to Fayol there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. The principle of unity of command states that each participant in a formal organisation should receive orders from and be responsible to only one superior. Fayol gave a lot of importance to this principle. The principle resembles military organisation. Dual subordination should be avoided. This is to prevent confusion regarding tasks to be done.

Suppose a sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount by the marketing manager. But finance department tells her/ him not to offer more than 5% discount. Now there is no unity of command. This can be avoided if there is coordination between various departments.

5) Unity of Direction

All the units of an organisation should be moving towards the same objectives through coordinated and focussed efforts. Each group of activities having the same objective must have one head and one plan. This ensures unity of action and coordination.

For example, if a company is manufacturing motorcycles as well as cars then it should have two separate divisions for both of them. Each division should have its own incharge, plans and execution resources. On no account should the working of two divisions overlap.

6) Subordination of Individual Interest to General Interest

The interests of an organisation should take priority over the interests of any one individual employee according to Fayol. Every worker has some individual interest for working in a company. The company has got its own objectives.

For example, the company would want to get maximum output from its employees at a competitive cost (salary). On the other hand, an employee may want to get maximum salary while working the least. In another situation an individual employee may demand some concession, which is not admissible to any other employee like working for less time. In all the situations the interests of the group/company will supersede the interest of any one individual. This is so because larger interests of the workers and stakeholders are more important than the interest of any one person.

For example, interests of various stakeholders, i.e., owners, shareholders, creditors, debtors, financers, tax authorities, customers and the society at large cannot be sacrificed for one individual or a small group of individuals who want to exert pressure on the company. A manager can ensure this by her/his exemplary behaviour.

For example, she/he should not fall into temptation of misusing her/his powers for individual/ family benefit at the cost of larger general interest of the workers/ company. This will raise her/his stature in the eyes of the workers and at the same time ensure same behaviour by them.

7) Remuneration of Employees

The overall pay and compensation should be fair to both employees and the organisation. The employees should be paid fair wages, which should give them at least a reasonable standard of living. At the same time it should be within the paying capacity of the company.

In other words, remuneration should be just and equitable. This will ensure congenial atmosphere and good relations between workers and management. Consequently, the working of the company would be smooth.

8) Centralisation and Decentralisation

The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, “There is a need to balance subordinate involvement through decentra lisation with managers’ retention of final authority through centralisation.” The degree of centralisation will depend upon the circumstances in which the company is working. In general large organisations have more decentralisation than small organisations.

For example, panchayats in our country have been given more powers to decide and spend funds granted to them by the government for the welfare of villages. This is decentralisation at the national level

9) Scalar Chain

Scalar chain means the hierarchy of authority from the top level to the lower level for the purpose of communication. This helps to ensure the orderly flow of information and communication. Traditionally, organizations used to frame large scalar chain which is time consuming.

For example, a General Manager informs the decision to respective Functional Manager, then Functional Manager will pass it to supervisor, the supervisor will inform it to Foreman and so on according to level of authority. For avoiding this longer chain and to take speedy decisions cross communication or direct communication is followed by various organizations which is known as Gang Plank. For direct communication, proper permission of the authorities is necessary.

In the above diagram, the communication between ‘D’ and ‘G’ should flow through proper hierarchy.But to avoid delay or in emergency situation there will be direct communication. It is termed as Gang Plank.

According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’. Essentially it means orderliness.

If there is a fixed place for everything and it is present there, then there will be no hindrance in the activities of business/ factory. This will lead to increased productivity and efficiency.

Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible,” according to Fayol. This principle emphasises kindliness and justice in the behaviour of managers towards workers. This will ensure loyalty and devotion. Fayol does not rule out use of force sometimes. Rather he says that lazy personnel should be dealt with sternly to send the message that everyone is equal in the eyes of the management. There should be no discrimination against anyone on account of sex, religion, language, caste, belief or nationality etc. In practice we can observe that now a days in multinational corporations people of various nationalities work together in a discrimination free environment. Equal opportunities are available for everyone in such companies to rise.

12) Stability of Personnel

“Employee turnover should be minimised to maintain organisational efficiency”, according to Fayol. Personnel should be selected and appointed after due and rigorous procedure. But once selected they should be kept at their post/ position for a minimum fixed tenure.

They should have stability of tenure. They should be given reasonable time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation. Recruitment, selection and training cost will be high. So stability in tenure of personnel is good for the business.

13) Initiative

Workers should be encouraged to develop and carry out their plans for improvements according to Fayol. Initiative means taking the first step with self-motivation. It is thinking out and executing the plan. It is one of the traits of an intelligent person. Initiative should be encouraged.

But it does not mean going against the established practices of the company for the sake of being different. A good company should have an employee suggestion system whereby initiative/suggestions which result in substantial cost/time reduction should be rewarded.

14) Esprit De Corps

Management should promote a team spirit of unity and harmony among employees, according to Fayol. Management should promote teamwork especially in large organisations because otherwise objectives would be difficult to realise. It will also result in a loss of coordination.

A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster team spirit. This will give rise to a spirit of mutual trust and belongingness among team members. It will also minimise the need for using penalties.

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14 Principles of Management by Henri Fayol

History and the develoment of the 14 principles of management

14 Principles of Management, the indept video

Henri Fayol’s 14 Principles of Management explained including examples

1. Division of Work

2. Authority and Responsibility

3. Discipline

4. Unity of Command

5. Unity of Direction

6. Subordination of Individual Interest

7. Remuneration

8. The Degree of Centralization

9. Scalar Chain

12. Stability of Tenure of Personnel

13. Initiative

14. Esprit de Corps

In conclusion on the 14 Principles of Management

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Henri Fayols 14 Principles of Management

Division of Labor

Unity of Direction

Fair Remuneration

Sub-Ordination of Individual Interest to General Interest