Henry Fayol Theory
Made clear distinction between technical and
Identified the main steps in the process of
management (planning, Organizing, Staffing,
Directing and Controlling).
Developed fourteen principles of management which
act as a guidelines for managers for managerial
Principles Of Management
Division of work
Authority and Responsibility
Unity Of command
Unity of direction
Remuneration of persons
Stability of tenure of personnel
Esprit De Corps
Principle Of Division Of Work
Whole work must be divided into small tasks or units
Technical, Managerial and Skilled jobs should also
be divided into small segments.
Increases the specialization of an employee.
Improves efficiency of employees by performing only
one part of the job.
Principle Of Authority And
Authority means power to take decision
Responsibility means obligation to complete the
assign job on time
When some responsibility is given to a person, the
matching authority should also be given.
Excess authority may lead to negative results.
Priciple Of Discipline
Discipline refers to general rules and regulations of
It also mean developing commitment in the
employees towards organization and towards each
Discipline is required at every level of organization,
not only at a subordinate level.
Principle Of Unity Of Command
Employee should take order from only one boss.
No confusion in the mind of a subordinate.
No ego clashes.
Improves effectiveness in working
Principle Of Unity Of Direction
‘One unit one plan’.
Everyone should work in harmony to achieving
common goal of the organisation.
No wastage of resources and efforts of employees
Subordination Of Individual Interest To
Interest of the organization must supersede the
interest of individuals
All employees should work towards the interest of an
Employees should know that their growth depends
upon the company’s growth.
Principle Of Remuneration Of Persons
Employees must be paid fairly and adequately to
give them maximum satisfaction
Remuneration must be just and fair.
Employees get motivated.
Devotion and commitment of employee improve.
Principle Of Centralization And
Centralization means concentration on authority and
power with top level.
Decentralization means evenly distribution of power
at every level
There must be a combination of both in an
Fast decision at operational level and strict control
by top level.
Principle Of Scalar Chain
Scalar chain means ‘Line Of authority’ from highest
to lowest rank.
Everyone in the organisation must follow the rules
of scalar chain.
But in case of emergency, a short cut can be taken,
known as ‘Gang-Plank’.
Principle Of Order
Orderly arrangement of men and material, i.e., a
fixed place for everything and everyone in an
No wastage of time in search of men and material.
Smooth and systematic working of organization.
Principle Of Equity
Fair and just treatment to employees.
No bias in dealing with employees
Gives maximum satisfaction to employees.
Motivate employees and boost up the moral of
Principle Of Initiative
Employees must get an opportunity to take some
initiative in making and executing plans.
Gives immense satisfaction among employees.
Managers must welcome the suggestions and ideas
of employees before making a plan.
Develops feeling of belongingness in employees.
Principle Of Esprit De Corps
Means union is strength.
Develop Team spirit
Every employee must work as a part of team
Managers must develop a feeling of belongingness
Stability Of Tenure Of Personnel
No frequent Termination or Transfer
Must provide job security among employees.
No wastage of time and resourses.
Frequent turnover of employees is bad for
Taylor theory was introduced in 1911
He introduced scientific management principles
replacing the rule of thumb
He simply applied scientific tools and methods to
solve management problems
Standardization and simplification of work
Differential Piece wage system
He advocated that specialisation must be introduced
in a factory.
Division of factory in two department: Planning
department and Production department
Experts in every department to guide the workers
Standardization And Simplification Of
Standardization means maintaining standard among
size, type, weight, measure and quality of the
Simplification means eliminating unnecessary
diversity of product, size and types.
Advantages of STANDARDISATION
It is economical to have standardised material, tools
Operators can be trained easily.
Helps in achieving economies of large scale
Reduce cost of production.
Fatigue is generally caused by long working hours.
It emphasis on:
The Frequency of rest intervals
The duration of rest intervals
The no. of rest intervals
This study aims at providing proper rest interval to
the employees to increase the effectiveness of the
Find one best method of performing the job which
maximizes the profit.
All methods should be tried first and then the best
should be selected.
The Standard time required to perform a job.
Setting up standard target for workers.
Determining the number of workers required to
perform a job.
Categorizing the workers in efficient and inefficient
Observe an average worker when he is performing a
job by determining his movements.
Differentiate between productive and unproductive
Cut down all unproductive and wasteful movements.
Differential Piece Wage System
Paying different rate of wage to efficient and
Extra wages paid to efficient employees will motivate
both efficient and inefficient employees.
When payment given acc. to no. of units produced, it
will automatically maximize the production.
Change in mental attitude of workers and
management towards each other.
Co-operation between worker and employees.
Develop positive thinking among each other.