Fayol introduced general principles of management. Some of them have been explained below
(a) Unity of Direction : All the units of an organisation should be moving towards the same objective. Each group of activities having the same objective must have one head and one plan. If a company is manufacturing both motor cycles and cars, then it should have two separate divisions for both of them. Each division should have its own in charge. Plans and execution resources. Their working should not overlap.
(b) Equity : This principle emphasises kindliness and justice in the behaviour of managers towards workers. This will ensure loyalty and devotion. Lazy personnel should be dealt sternly and strictly. There should be no discrimination against anyone on account of gender, religion, caste, language or nationality. All decisions should be merit based. Now a days we see in multinational companies, people of various nationalities work together in a discrimination free environment. For example, India born CEO Rajat Gupta heads Mckinsey Inc.
(c) Espirit de Corps: This principle emphasises on building harmony and team spirit among employees. In a large organisation with a large work force, teamwork is very important. Teamwork leads to better co-ordination while working. The head of each team should give credit for good result to the whole team rather than confining it to themselves.
(d) Order: A place for everything and everyone in his/her place. Basically it means orderliness. If there is a fixed place for the different things in a factory and they remain in their places, then no time is wasted in locating them. In the same way if every personnel is allocated an area to operate from then their co-workers, head or subordinates, can contact them easily.
(e) Centralisation and Decentralisation: Concentration of decision making authority in a few hands is centralisation and its dispersal among more number of people is decentralisation. Fayol believed that an organisation should not work with anyone of them in isolation A combination of both is important. Simple, easy and routine work should be decentralised and critical important – work should be centralised In our country village panchayats have been given more powers to decide and spend funds granted to them by the Government, for the welfare of their concerned villages. This is decentralisation at the national level.
(f) Initiative: Initiative means taking the first step with self-motivation. Workers should be encouraged to develop and carry out their plans for improvements. According to Fayol, initiatives should be encouraged. A good company should invite suggestions from employees which can result in substantial cost/time reduction. Rewards can be given to fruitful suggestions.
