Explain the following principle of management by Fayol with examples (A) Unity of direction (B) Equity (C) Esprit de corps (D) Order (E) Centralisation and decentralisation (F) Initiative
Explain the following principle of management by Fayol with examples (A) Unity of direction (B) Equity (C) Esprit de corps (D) Order (E) Centralisation and decentralisation (F) Initiative
(A) Unity of direction
Whoever is engaged in the same activity should have a unified goal. This means all the person working in a company should have one goal and motive which will make the work easier and achieve the set goal easily. Example: If an organisation is engaged in the manufacturing of two products, then each should have its own separate department and divisions with their respective heads and plans.
(B) Equity
All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination. Example: if workers from different religions or nationalities are working in the same organisation then no discrimination should be done against any.
(C) Esprit de Corps
This principle recommends that employees should work in unity with each other. They should work as a team. In other words, team spirit should be promoted by the manager. Each employee should have a sense of belongingness. This proves useful especially in large organisations where without team work, achievement of objectives would become difficult. Team sprit increases coordination and mutual understanding among the employees and thereby improves efficiency.
(D) Order
A company should maintain a well-defined work order to have a favourable work culture. The positive atmosphere in the workplace will boost more positive productivity. Example: if files are kept in a certain order then this will help in locating the file easily when required. Violation of this principle leads to chaos and delay in work.
(E) Centralisation and Decentralisation:
Centralisation refers to the consolidation of power and authority to one or only few hands. Here, the decision making power gets reserved to the centre point of an organisation. On the other hand, decentralisation refers to the delegation of authority to more than one level. According to Fayol, the involvement of the employees with the higher authority should be balanced by decentralising the authority to the managers. Example: if the CEO of a company is responsible for decision making for the entire organisation then, this is centralisation of power. On the other hand, if the decision making power is delegated to managers at the middle and lower level then, this will be called decentralisation.
(F) Initiative
According to this principle, workers should be given enough motivation and incentive to work. They should be inspired to come up with suggestions for regarding the work. Although initiatives should be encouraged, but they should be in line with the practices and rules of the organisation. Example: the managers can ask the workers for their inputs over how to increase efficiency. Also, good suggestions can be rewarded
(A) Unity of direction
Whoever is engaged in the same activity should have a unified goal. This means all the person working in a company should have one goal and motive which will make the work easier and achieve the set goal easily. Example: If an organisation is engaged in the manufacturing of two products, then each should have its own separate department and divisions with their respective heads and plans.
(B) Equity
All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination. Example: if workers from different religions or nationalities are working in the same organisation then no discrimination should be done against any.
(C) Esprit de Corps
This principle recommends that employees should work in unity with each other. They should work as a team. In other words, team spirit should be promoted by the manager. Each employee should have a sense of belongingness. This proves useful especially in large organisations where without team work, achievement of objectives would become difficult. Team sprit increases coordination and mutual understanding among the employees and thereby improves efficiency.
(D) Order
A company should maintain a well-defined work order to have a favourable work culture. The positive atmosphere in the workplace will boost more positive productivity. Example: if files are kept in a certain order then this will help in locating the file easily when required. Violation of this principle leads to chaos and delay in work.
(E) Centralisation and Decentralisation:
Centralisation refers to the consolidation of power and authority to one or only few hands. Here, the decision making power gets reserved to the centre point of an organisation. On the other hand, decentralisation refers to the delegation of authority to more than one level. According to Fayol, the involvement of the employees with the higher authority should be balanced by decentralising the authority to the managers. Example: if the CEO of a company is responsible for decision making for the entire organisation then, this is centralisation of power. On the other hand, if the decision making power is delegated to managers at the middle and lower level then, this will be called decentralisation.
(F) Initiative
According to this principle, workers should be given enough motivation and incentive to work. They should be inspired to come up with suggestions for regarding the work. Although initiatives should be encouraged, but they should be in line with the practices and rules of the organisation. Example: the managers can ask the workers for their inputs over how to increase efficiency. Also, good suggestions can be rewarded
