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Division of Labor
It refers specialization of jobs.
All Work must be divided and subdivided and allotted to various persons according to
their knowledge in a particular area.
Subdivision of work makes it simpler and results in efficiency.
It also helps the individual in acquiring speed, accuracy in his performance.
Discipline
It is about obedience.
Discipline refers clear and fair agreements and judicious application of penalties
Employees must obey, but this is two-sided: employees will only obey orders if
management play their part by providing good leadership
Unity of Command
Sub-ordinate should receive orders & instructions from only one boss
Each worker should have only one boss with no other conflicting lines of command
Unity of Direction
It means one head, one plan for a group of activities having similar objectives.
Efforts of all the members of the organization should be directed towards common goal.
Remuneration
Remuneration should be sufficient to keep employees motivated and productive.
Wages should be determined on the basis of cost of living, work assigned, financial
position of the business, wage rate prevailing etc
There are two types of remuneration
o Non-monetary Remuneration - a compliment, more responsibilities, credits
o Monetary Remuneration - compensation, bonus or other financial
compensation
Scalar Chain
The formal lines of authority from highest to lowest ranks are known as scalar chain.
According to Fayol, “Organisations should have a chain of authority and communication
that runs from top to bottom and should be followed by managers and the
subordinates.”
There is one head ‘A’ who has two lines of authority under her/ him.
One line consists of B-CD-E-F.
Another line of authority under ‘A’ is L-M-N-O-P. If ‘E’ has to communicate with ‘O’ who
is at the same level of authority then she/he has to cross the route E-D-C-B-A-L-M-N-O.
This is due to the principle of scalar chain being followed in this situation.
Gang Plank
According to Fayol, this chain should not be violated in the normal course of formal
communication. if there is an emergency then ‘E’ can directly contact ‘O’ through ‘Gang
Plank’ as shown in the diagram.
This is a shorter route and has been provided so that communication is not delayed.
Order
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.
Equity
”According to Fayol, this principle gives importance to kindliness and justice in the
behaviour of managers towards workers.
This will make sure loyalty and devotion.
Fayol does not rule out use of force sometimes.
Stability of Personnel
“Employee turnover should be minimised to maintain organisational efficiency”
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.
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.
Espirit 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 otherwise objectives would be difficult to realise.
5. Unity of Direction Functions have only one plan and one boss