Henri Fayol's POM

Fayol’s principal

1. Authority and Responsibility:
   • Authority refers to the right of an individual to command his subordinates.
   • Responsibility is the obligation of a subordinate to perform the assigned duty
   • Both should go side by side and should be well balanced.
   • A manager should have the right to punish a subordinate for willfully not obeying a legitimate order but only after sufficient opportunity has been given to a subordinate for presenting her/his case

2. Centralization and decentralization

• Decision-making authority is retained by higher management levels
• Generally exists in a smaller organization
• Process of giving authority at the lowest level of management to take decisions within their powers
• Suitable for a large organization and complex organization

3. Discipline

• Discipline is the obedience to organizational rules and employment agreements that are necessary for the working of the organization.
• Discipline requires good superiors at all levels, clear and fair agreements and careful application of penalties
• That the workers and management both honor their commitments without any injustice towards one another

4. Division of work: -
   • • • Every task should be divided into the small task and assigned to the right person who is capable of doing that job. 
       • A person doing the same job will over time specialize in that job
       • In business work can be performed more efficiently if it is divided into specialized tasks; each performed by a specialist or trained employee. This results in efficient and effective output

5. Espirit –de-corps

• There should be cooperation and teamwork among the members of an organization.
• Management should promote teamwork, especially in large organizations because otherwise, Objectives would be difficult to realize.
• A manager should replace ‘I’ with ‘We’ in all his conversations with workers to encourage team spirit. This will give rise to a spirit of mutual trust and belongingness among team members. It will also minimize the need for using penalties.

6. Equity:

• Management should be kind, fair and impartial in its dealing with its subordinates.
• Fayol does not rule out the use of force sometimes.
• For example, there should be no discrimination about the position, sex, age, etc while granting medical leave to the employees

7. Initiative

• Workers should be encouraged to develop and carry out their plans for improvements
• Freedom to think and execute a plan is known as initiative.
• But it does not mean going against the established practices of the company for the sake of being different.
• A good company should have an employee suggestion system whereby initiative/suggestions which result in substantial cost/time reduction should be rewarded

8. Order

• People and materials must be in suitable places at appropriate
• Implies the right man to the right job and the right material in the right place.
• if there is a fixed place for everything and it is present there, then there will be no hindrance in the activities of business/ factory

9. Fair remuneration:

• The employees should be paid fair wages, which should give them at least a reasonable standard of living.
• It should be within the paying capacity of the company and the capability of the employee.
• Organization Decide the most reasonable method of calculating wages

10. Scalar Chain.

• Chain of superiors ranging from top management to the lowest rank
• There should be a clear line of authority from top to bottom linking all managers at all levels.

Gang plank

• Subordinates may contact a superior or his superior in case of an emergency, disregarding the hierarchy of control.
• This is a shorter route and has been provided so that communication is not delayed.
• However, the immediate superiors must be informed about the matter

7. Stability of Tenure

• Employees should not be shifted from their position frequently.
• It takes time for an employee to get used to his work and he cannot give useful service if he is removed before he gets familiar with the work assigned to him

• They should be given reasonable time to show results.
• Otherwise, it will create instability/insecurity among employees. They would tend to leave the organization.

8. Subordination of individual interest to group/general interest

• The management must put away personal interests and put company objectives first.
•  Interests of goals of the organization must overcome the personal interests of individual’s pressure on the company.
• A manager can ensure this by her/his excellent behavior.
• A manager should not misuse her/his powers for individual/ family benefit at the cost of the larger general interest of the workers/company.

9. . Unity of command

• Employee should receive orders from only one superior.
• If he gets orders from more than one superior at a time then he will be confused as to which superior’s orders should be carried out first.
• Dual subordination should be avoided. This is to prevent confusion regarding tasks to be done

14. Unity of direction:

• There should be “one head and one plan for a group of activities having the same objective to pursue.”
• An organization or group having different plans and more than one head cannot achieve the desired results.