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Principles of Management — Part 2: Fayol, Comparison and Relevance

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Lesson

Fayol's Principles and Their Relevance

Part 2: Fayol's fourteen principles, the scalar chain and gang plank, and how Taylor and Fayol compare today.

In this lesson you will

Explain each of Fayol's principles and identify which one is violated in a given situation
Compare Taylor's and Fayol's contributions and discuss their relevance in a modern Indian business

Part 2 at a glance

Concept

Fayol's principles: one to five

Table of Fayol's principles one to five with meanings and imagined examples: division of work, authority and responsibility, discipline, unity of command, unity of direction
Principle	Meaning	Imagined example
Division of work	Split work into small tasks for specialisation	Graders only grade; packers only pack
Authority and responsibility	Authority must match responsibility	A supervisor answerable for an order may call overtime
Discipline	Obey rules; needs good superiors, fair agreements, fair penalties	Promised bonus is paid; rules are respected
Unity of command	One boss for each subordinate	A deckhand takes orders from the captain only
Unity of direction	One head and one plan for activities with one objective	One manager runs the whole trade-fair stall

Concept

Fayol's principles: six to ten

Table of Fayol's principles six to ten with meanings and imagined examples: subordination of individual interest, remuneration, centralisation and decentralisation, scalar chain, order
Principle	Meaning	Imagined example
Subordination of individual interest	Firm's interest comes before any one person's	Best kiln goes to the urgent export order
Remuneration of employees	Pay fair to workers and affordable for the firm	Wages allow a decent living
Centralisation and decentralisation	Balance decisions kept at the top and passed down	Prices at head office; shifts by yard heads
Scalar chain	Line of authority from top to bottom	Conductor, supervisor, manager, controller
Order	A place for everything and everyone	Tools on marked racks; staff where needed