principles of managemet

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IIPS

Principles & practices of management(PPM)

Assignment

Topic Principles Of Management

Guided By: Submitted By :

2013-2014


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INDEX

Sir Henri ayol

Reliance resh

Introduction to Management

Principles of management and

its description in brief


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Sir Henri FayolHenri Fayol

( 29 July 1841 19 November 1925) was a French

mining engineer& director of mines who developed a general

theory of business administration.Fayol's work was one of the first comprehensive statements

of a general theory of management.

Fayol was a successful mining engineer and senior executive

prior to publishing his principle of administrative science. He

was not primarily a theorist , but rather a successful senior a

successful senior manager who sought to bring order to his

personal experiences.

Fayolsfive principle roles of management are still actively practised today he has found

Plan , Organise, command,co

ordinate and control written on more than one managers whiteboard

during his career.

Fayol ideas had a major effect on how mgt functions in most established organisation .

In many ways, they are the bible of mgt and the source of idea is even today is certainly used by all

managers
http://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Mining_engineerhttp://en.wikipedia.org/wiki/Fayolismhttp://en.wikipedia.org/wiki/Fayolismhttp://en.wikipedia.org/wiki/Mining_engineerhttp://en.wikipedia.org/wiki/Mining_engineerhttp://en.wikipedia.org/wiki/France


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Reliance fresh is the convenience store format which forms part of the retail business of

Reliance Industries of India whichis headed by Mukesh Ambani.The company already has in excess of 1000 reliance fresh outlets across the country.These stores sell fresh fruits and vegetables, staples, groceries, fresh juice, bars and dairy

products.

Rekiance Fresh stores are already selling over 1000 tonnes of fresh products and 250categories.Reliance fresh is aggressively workink on introducing a pan-india network of retail storeswith world class enviroment, state of technology and seamless supply chain.


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ManagementManagement is a universal phenomenon. It is a very popular

widely used term. All organisations whether social or political

are involved in mgt as it helps and direct the various effortstowards a definite purpose. It is an art of creating an environ-

ment in which can perform and individual can co-operate

towards attainment of group goals. Ac co . to H.Fayol , Mgt is

To forecast , to plan , to organise , to command, to coordinate

and to control .

It establises cause and effect relationship b/w two or more variables under given state.

They serve as a guide to thoughts and actions. Thr4mgt

principles are the statement of fundamental truth

based on logic which provides guidelines

4 managerial decision making and actions.

Hence we can say that good mgt includes both being effective

$ efficient i.e; fiiting square pegs in square holes and round

ones in round.


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Principles Of Management1

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 Centralisation and Decentralisation

9 Scalar chain

10 Order

11 Equity

12 Stability of personnel

13 Initiative

14 Espirit de Corps


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Division of workAccording to this principle, the whole work must be divided into small task or units and

instead of assigning the whole work to one person . One task or job should beassigned to one person according to the capability , qualification and experience ofthe person .

When a person is performing a part of job again and again he will become perfect andspecialised ine that job and efficiency will improve . This principle is very useful forany ognisation be it private or public. It enhances overall performance of anorganisation because specialists perform consistently .

For example an orgaisation having different departments.


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Authority $ ResponsibilityAuthority means power take decision. Responsibility means obligation to complete the

job on time. So according to principle there should balance and parity b/w authority

and responsibility . Excess of authority may bring negative results and Ecess ofresponsibility will not allow the worker to complete the work on time.

Balance b/w both of them will result in no misuse of authority and it also helps inmeeting responsibility on tie without any delay.


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DisciplineDiscipline refers to general rules , regulation for systematic working of an organisation.

It doesn't mean only rules and regulation but it also means developing commitment

in the employees towards organisation . It also means obedience to organisationalrules that are necessary for functioning of an organisation. It includes

Good supervision at all level

Clear and fair agreement

Application of penalties judiciously

Employees must honor the commitment made by them and management must meet itspromises. On one hand it enforces orderliness and motivates on other side.


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Unity of CommandThere should be one & only one boss for every individual employees working in an

organisation. If employees get order from 2 superiors at same time then they will get

confused and not able to understand that whose orders must be executed .Thus unity of command avoids confusion and conflicts. It also helps in harmonious

relations and fixation of responsibility. If this principle is violated then there will beego clashes as employees should receive order from one boss only. this principlehelps to create peace in same level and to subordinate.


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Unity of DirectionEfforts of all the members and employees of an organisation must be directs towards

one direction that is achievement of common goal. This helps in bringing unity of

action and coordination in an organisation. Each department and groups havingcommon objective must have one head and one plan only.

All the units of an organisation should be moving towards the same objectives throughcoordinated and focused efforts. Positive effects are

Achievement of organisation goal

Efforts of all the employees get unified towards one direction only.


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u ordination o individuainterest to general int.

The interest of an organisation should take priority over the interest of any individual

employee. If objectives of both organisation and individual are in different directionsthen managers must try to reconcile individual interest with organisation goal and ifit is not possible then individual goal must be sacrificed for achieving organisationalgoal.

Employees are required to give up carelessness, selfishness, lethargy and personalinterest. it ensures no ego clashes as credit goes to group and coordination between

individual and organisation.


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Remuneration of employeesThe overall pay and compensation should be fair to employees and workers to give them

at least a reasonable standard of living. Remuneration paid to employees must be fair

because if employees are unpaid they will not be satisfied and an unsatisfied personcan never contribute his maximum. Dissatisfaction will lead to increase inemployees turnover .

This ensures congenial atmosphere b/w the management and workers. In healthyatmosphere , workers put there best efforts to contribute maximum. it ensuressmooth functioning and motivates them.


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Centralisation & DecentralisationCentralisation refers to concentration of authority in few hands at the top level.

Decentralisation means evenly distribution of power at every level of management.According to fayol, a company must not be completely centralised or completelydecentralised but there must be both depending upon the nature and size of theorganisation. A company must be properly balanced i.e.; it should not be completelycentralised or decentralised. This principle leads to positive effect that are

I. Fast decision at operational level and strict control by top level

II. Benefits of centralisation as well as decentralisation.


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Scalar ChainScalar chain means line of authority or chain of superiors from highest to lowest rank.

Organisation should have a chain of authority and responsibility that runs from topto bottom and should be followed by manager.

Every info. must pass through every key of this chain , no skipping of any one key shouldbe allowed. In case of emergency when information has to be passed so fayol haspermitted a short cut in the chain which is called gang plank. Gang plankpermits direct communication between the employees working at the same level ofauthority without following scalar chain. It leads to systematic flow of chain.


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OrderPeople and material must be in suitable place at appropriate time for maximum

efficiency. In other words, there must be orderliness in the organisation

a) Material order arrangement of things is called material order. It ensures proper &fixed place for various materials , tools , and equipments.

b) Social order arrangement of people is referred to as social order. It ensures proper& fixed place for each employee in an organisation.

It results in increase in productivity and efficiency and smoothly functions withouthindrance.


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EquityGood sense and experience are needed to ensure fairness to all employees , who should

be treated as fairly as possible.

Equity means to be kind, fair , and just treatment to employees. Employees will put theirmaximum efforts when they are treated with kindness and justice. This will ensureloyalty and devotion.

There should be no discrimination against anyone on a/c of sex, religion, language,caste, belief or nationality. If a manager is biased in dealing with employees then theywill get dissatisfaction and will not contribute to their maximum capacity. Employees

seek to become loyal and devoted if equally treated .


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Stability of PersonnelEmployees turnover should be minimized to maintain organisational efficiency. In an

organisation the employees should be selected and appointed after following a dueand rigorous procedure. Once they are appointed they should be for fixed period.

Management must provide the feeling of job security among the employees because withthe feeling of insecurity they cant contribute to maximum. Frequent turnover ofemployees is bad for organisation and should be done when necessary. Not onlyturnover but frequent transfer or rotation should be avoided as it takes some time fora person to learn and settle for the job and it also reduces wastage of time and money


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InitiativeWorkers should be encouraged to develop and carry out their plans for improvement

Initiative means first step with self motivation. Fayol said that employees must be givenan opportunity to take some initiative in making and executing a plan. so managersmust welcome the suggestion and ideas of employees before framing plan.Employees must be given freedom to come ahead and use their skills to achieveexpected goal. Positive effects are

i. Develops feeling of belongingness in employees.

ii. Employees achieve target on time if they are set up with their consultation.


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Espirit De CorpsManagement should promote a team spirit of unity and harmony among employees. In

order to achieve organisational goal, mgt should promote team work andcoordination. Espirit De Corps means union is strength. Fayol suggested that every

employee in the organisation must consider him as a part of a team and try toachieve team goal because team contribution is always better than individual.

The feeling of I should be replaced with WE. It helps to develop a feeling of mutualtrust and understanding and achieve goal with efficiency and effectiveness.


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Bibliography

14 Principles of Management.(2008, Aug 29).

Retrieved 10 2008, from www.12manage.com:http://www.12manage.com/methods_fayol_14_principles_of_management.html

Drucker, P. (2007).Management Tasks,

Responsibilities, Practices.New Jersey:Transaction Publishers. Wikipedia.com

Google.com Ril.com

12thmanagement by poonam gandhi


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