Unit-2

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.

10. Order

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.

11. Equity

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.

Father of Scientific Management

Frederick Winslow Taylor, often referred to as the "Father of Scientific Management," made
significant contributions to management theory and practices, particularly through his work on
improving industrial efficiency and productivity. His contributions laid the foundation for
modern management practices and industrial engineering. Here are the key contributions of F.W.
Taylor:

1. Scientific Management Theory

Taylor introduced the concept of scientific management, which emphasized the use of scientific
methods to analyze and improve workflows. He believed that work processes should be studied
in a systematic way to identify the most efficient methods for performing tasks.

2. Time and Motion Studies

Taylor used time and motion studies to break down tasks into smaller, more manageable parts.
He measured how long each task took and experimented with different methods to optimize
performance. This helped eliminate wasted motion, streamline tasks, and increase overall
productivity.
3. Task Specialization

Taylor advocated for task specialization, where each worker would perform a specific, well-
defined task rather than having workers do a variety of tasks. By focusing on a single task,
workers could become more skilled and efficient at it, contributing to greater output.

4. Standardization of Tools and Work Processes

Taylor promoted the idea that tools and work methods should be standardized to ensure that all
workers used the same equipment and followed the same procedures. This helped minimize
variations in output and ensured higher consistency in performance.

5. Selection and Training of Workers

Taylor stressed the importance of scientifically selecting workers based on their skills and
abilities and providing them with the necessary training. He believed that selecting the right
person for the right job was critical to improving productivity.

6. Incentive-Based Compensation

Taylor introduced the concept of piece-rate compensation, where workers were paid based on
the amount of work they completed. This incentive system was designed to motivate workers to
increase their output. He believed that providing financial rewards for higher productivity would
benefit both employers and employees.

7. Management-Worker Cooperation

Although Taylor is often seen as focusing heavily on efficiency, he also advocated for better
cooperation between management and workers. He believed that through scientific management,
management could make work more satisfying and rewarding, which would benefit both the
employer and the employee.

8. Division of Labor

Taylor proposed a clear division of labor between management and workers. According to him,
management should be responsible for planning, organizing, and controlling work, while
workers should focus on executing the tasks. This created a clear distinction between the roles of
managers and workers, which helped improve efficiency.

9. Impact on Organizational Structures

His ideas led to more structured and hierarchical organizational designs, where decision-making
was centralized in management, and routine tasks were executed by workers. This was a
departure from earlier, more informal and decentralized approaches to management.
10. Influence on Future Management Theories

Taylor’s work laid the groundwork for later developments in management theory, such as the
human relations movement (which emphasized the social aspects of work), operations
management, and the development of techniques for process improvement (such as Six Sigma
and Lean manufacturing).

Criticisms:

Although Taylor's scientific management brought about increased productivity, it has also been
criticized for treating workers like machines and ignoring their social and psychological needs.
His focus on efficiency sometimes led to the alienation of workers, as they were seen primarily
as units of production rather than as individuals with needs for autonomy and satisfaction.

In summary, Frederick Winslow Taylor's contributions significantly shaped the modern world of
business and industrial management. His principles of scientific management remain influential,
although they have been adapted over time to account for the complexities of human behavior
and the dynamics of modern organizations.