Classical Management Perspective

Five principles of administrative management (Fayol's principles)

Henri Fayol, a French industrialist, was the first to identify the functions of management and to lay down general principles of administration. He gave 14 principles in his book General and Industrial Management (1916). Any five are explained below.

1. Division of work Work should be divided into small tasks and assigned to individuals according to their skill and ability. Division of work leads to specialisation, which increases efficiency, speed and accuracy, and reduces wastage. It applies to both managerial and technical work. However, over-division should be avoided, as it makes work monotonous.

2. Authority and responsibility Authority is the right to give orders and the power to get work done; responsibility is the obligation to perform the assigned duty. The two must go together — authority without responsibility leads to misuse of power, and responsibility without authority makes it impossible to get work done. Fayol also held that authority should match responsibility at every level.

3. Unity of command An employee should receive orders from and be accountable to only one superior. Dual subordination should be avoided, because it creates confusion, conflict and divided loyalty, and makes it difficult to fix responsibility for mistakes. This principle ensures discipline and smooth flow of instructions.

4. Unity of direction There should be one head and one plan for a group of activities having the same objective. For example, all activities relating to production should be under one production manager working to one plan. This principle prevents duplication of effort and wastage of resources, and unifies the efforts of the whole organisation towards a common goal.

5. Scalar chain The scalar chain is the formal line of authority running from the top management to the lowest level in the organisation. It shows the path along which orders and information travel. Fayol allowed a "gang plank" (short cut) so that employees at the same level can communicate directly in an emergency, provided their superiors are informed. This principle makes communication orderly and maintains discipline.

Conclusion These principles are not rigid rules but flexible guidelines. They help managers to coordinate work, maintain discipline and run the organisation efficiently.

The principles of administrative management were developed by Henri Fayol, a French industrialist, who is regarded as the father of modern management. He identified 14 principles that serve as general guidelines for managing an organisation efficiently. They are:

1. Division of Work – Work should be divided into small tasks and assigned to individuals according to their skill, so that specialization increases efficiency and productivity.

2. Authority and Responsibility – Authority (the right to give orders) must be balanced with responsibility (the obligation to perform). Authority should be delegated along with responsibility.

3. Discipline – Employees must obey organisational rules and regulations and respect the authority of superiors. Discipline is essential for the smooth running of the organisation.

4. Unity of Command – Each employee should receive orders from only one superior. This avoids confusion, conflict and divided responsibility.

5. Unity of Direction – There should be one head and one plan for a group of activities having the same objective, so that efforts are focused towards a common goal.

6. Subordination of Individual Interest to General Interest – The interest of the organisation as a whole should be given priority over the interest of any individual or group.

7. Remuneration of Employees – Employees should be paid fair and reasonable wages and salaries that give them satisfaction and motivate them to work better.

8. Centralization and Decentralization – There should be a proper balance between centralization (concentration of authority at the top) and decentralization (dispersal of authority), depending on the size and needs of the organisation.

9. Scalar Chain – There should be a clear line of authority from the top level to the lowest level. It shows the path through which orders and information flow.

10. Order – There should be a right place for everything and everyone. Material and human resources should be placed at the right place at the right time.

11. Equity – Managers should treat all employees equally, with kindness and justice, to build loyalty and a healthy working environment.

12. Stability of Personnel – Employees should be given job security and should not be transferred or removed frequently, as this affects efficiency and morale.

13. Initiative – Employees should be encouraged to take initiative and suggest new ideas, which develops their confidence and benefits the organisation.

14. Esprit de Corps – There should be team spirit among employees. Unity and harmony among the workforce make the organisation strong.

These principles provide a systematic framework for managing an organisation and are still widely applied in modern management practice.

Who developed the principles of scientific management?

The principles of scientific management were developed by Frederick Winslow Taylor (1856–1915), an American mechanical engineer. Because of his pioneering work, he is known as the "Father of Scientific Management." He presented these principles in his famous book "The Principles of Scientific Management" (1911). Taylor believed that work could be studied scientifically to find the "one best way" of doing it, replacing the old rule-of-thumb method, and that this would increase both productivity and prosperity for workers and management alike.

Four limitations of scientific management:

1. Exploitation of workers: Scientific management lays too much emphasis on efficiency and production. Workers are treated almost like machines, and the gains of higher productivity are often not shared fairly with them. This leads to overwork, fatigue, and a feeling of being exploited.

2. Neglect of human factor: It gives undue importance to technical and economic aspects of work and ignores the psychological and social needs of workers. It treats workers as factors of production rather than as human beings, which causes frustration and dissatisfaction.

3. Loss of individual initiative and craftsmanship: Under this approach, work is broken into small, repetitive tasks and the "one best way" is fixed by management. Workers have no scope to use their own judgment, skill, or creativity, so individual initiative and craftsmanship are destroyed.

4. Costly and unsuitable for small firms: Scientific management requires large investment in research, time and motion studies, standardization, training, and specialized supervision. It is expensive to introduce and maintain, and therefore is not suitable for small-scale organizations.

(Other limitations that may also be mentioned: unsuited to dynamic and changing conditions, increased unemployment due to over-specialization and mechanization, and resistance from trade unions and workers.)

Administrative management is the branch of management thought that focuses on managing the whole organisation from the top level. It was developed mainly by Henri Fayol, who is called the father of general/administrative management. Instead of studying the work of individual workers (as scientific management did), administrative management studies the functions of managers and lays down general principles that can be applied to any organisation. Fayol identified five functions of management — planning, organising, commanding, coordinating and controlling — and gave 14 principles of management. Its aim is to run the entire enterprise efficiently through proper structure, authority and discipline.

Four principles of administrative management:

1. Division of work — Work should be divided into small tasks and assigned to different persons according to their skill and specialisation. This increases efficiency, speed and quality of work, and also develops specialisation among employees. For example, in a large company there are separate departments for production, marketing and finance.

2. Unity of command — Every employee should receive orders and instructions from only one superior. This avoids confusion, conflict and divided responsibility. If a worker gets orders from two bosses at the same time, he cannot decide whose order to follow first, so discipline and order break down.

3. Scalar chain — There should be a clear line of authority from the top level to the lowest level in the organisation. Every subordinate must know from whom he takes orders and to whom he is answerable. This chain also fixes the path of communication; however, a "gang plank" (direct contact) may be allowed in emergencies to save time.

4. Esprit de corps — "Union is strength." Management should build team spirit and harmony among employees so that they work as one team. This reduces conflict, encourages cooperation and creates a feeling of belongingness towards the organisation. For example, celebrating success together or using the word "we" instead of "I".

These principles are not rigid rules but flexible guidelines that a manager can use according to the situation to achieve organisational goals efficiently.

Principles of Scientific Management

Scientific management, developed by F. W. Taylor, is based on the following principles:

(a) Science, not rule of thumb Under the old method, workers used their own judgement and experience (rule of thumb) to decide how work should be done. Taylor insisted that every task should be studied scientifically — through observation, measurement and experiment — so that the "one best way" of doing it is discovered. Standard time, standard tools and standard methods should replace guesswork. This raises efficiency and removes the uncertainty of personal opinion.

(b) Harmony, not discord There should be friendly cooperation between management and workers instead of conflict. Taylor believed that the interests of both are complementary: the prosperity of the employer depends on the prosperity of the employees. Management should share the gains of higher productivity with workers, and workers should accept the changes introduced by management. This creates a mental revolution on both sides.

(c) Cooperation, not individualism Work should be carried out as a team effort, not by individuals competing against one another. Management and workers must cooperate fully so that the combined effort produces the maximum output. Every worker should feel that he is contributing to a common goal, and competition should be replaced by constructive cooperation.

(d) Development of each person to his or her greatest efficiency and prosperity Each worker should be selected scientifically, given proper training, and placed on the job for which he or she is best suited. Management should provide opportunities for growth so that each employee reaches the highest level of efficiency and earns maximum prosperity. This benefits the worker, the organisation and the nation as a whole.

Conclusion These principles together aim at eliminating waste, increasing productivity and building mutual trust between labour and management. They form the foundation of modern work-study and production management practices.

The principles of scientific management were developed by F. W. Taylor (the "Father of Scientific Management") in his book The Principles of Scientific Management (1911). They aim to replace rule-of-thumb methods with a scientific, systematic approach to work so as to increase efficiency and productivity. The main principles are:

1. Science, not rule of thumb Instead of relying on the personal judgement or experience of workers (rule of thumb), each task should be studied scientifically. Work methods, tools, and time required should be determined through observation, measurement and experiment. This establishes a standard method for doing each job.

2. Harmony, not discord There should be complete harmony and cooperation between management and workers instead of conflict. Management should share the gains of increased productivity with workers, and workers should accept the changes introduced by management. Both should realise that their interests are complementary, not opposed. Taylor suggested a "mental revolution" on both sides.

3. Cooperation, not individualism Work should be carried out through the combined effort of management and workers rather than by individual effort alone. Competition among workers should be replaced by constructive cooperation so that the total output and efficiency of the organisation increase.

4. Development of each person to his/her greatest efficiency and prosperity Every worker should be selected scientifically, given proper training, and placed on the job for which he/she is best suited. Management should also provide opportunities for growth so that each worker attains maximum efficiency and prosperity. This benefits both the worker and the enterprise.

5. Division of work and responsibility (equal division of work between management and workers) Work should be divided almost equally between management and workers. Management should take up planning, organising, directing and controlling, while workers should concentrate on the actual execution of work. This "separation of planning from doing" allows each side to specialise and work efficiently.

Conclusion: These principles together aim at eliminating waste, raising productivity, and securing maximum prosperity for both the employer and the employees.

Scientific management is the school of management thought developed by F. W. Taylor (1856–1915), which applies scientific methods of observation, measurement and experiment to work in place of the old rule-of-thumb. It aims to find the "one best way" of doing each job so as to raise efficiency and productivity. Taylor is therefore called the father of scientific management.

Four principles of administrative management theory (Henri Fayol):

1. Division of work — Work should be divided into small specialised tasks and assigned to individuals according to their ability. This develops skill, brings speed and accuracy, and increases output. It applies to both managerial and technical work.

2. Authority and responsibility — Authority is the right to give orders and the power to get obedience; responsibility is the obligation to perform the assigned duty. The two must go together and be balanced, so that authority is not misused and responsibility is not shirked. Authority may be official (from position) or personal (from knowledge and experience).

3. Unity of command — An employee should receive orders from only one superior. Dual command divides loyalty, creates confusion, weakens discipline and delays work. This principle fixes clear accountability.

4. Scalar chain — There should be a clear, unbroken line of authority from the top to the lowest level, called the chain of command. It shows who reports to whom and the route for communication. Fayol allowed a "gang plank" — direct contact between two employees of the same level with the approval of their superiors — to avoid delay in urgent matters.

(Other acceptable principles: unity of direction, subordination of individual interest to general interest, remuneration, centralisation, order, equity, stability of tenure, initiative, esprit de corps.)