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Question

Explain the following principles of management given by Fayol

(i) Unity of Direction

(ii) Equity

(iii) Esprit De Corps

(iv) Order

(v) Centralisation and Decentralisation

(vi) Initiative

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Solution

(i) Unity of Direction: It implies that there should be one head and one plan for a group of activities having the same objective. All the related activities should be put under one group, and they should be in the control of one manager.

(ii) Equity: This principle emphasises kindliness and justice in the behaviour of managers towards workers.

There should be no discrimination against anyone on account of sex, religion, language, caste or belief, and equal opportunities should be available for all.

(iii) Esprit De Corps: It means the union is the strength. Fayol emphasised on teamwork. This spirit brings harmony in the groups and they strive to work hard to achieve the targets of an organisation. For this. managers should replace 'I' with 'We' in all his conversations.

(iv) Order: According to this principle, there should be an orderly arrangement and a specific place for everything (material order) and everyone (social order) in the organisation.

(v) Centralisation and Decentralisation: The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, an organisation should strive to achieve a proper balance between centralisation and decentralisation according to the size of organisation, the ability of superiors, the ability of subordinates, etc. In general, large organisations have more decentralisation than small organisations.

(vi) Initiative: Fayol suggested that employees at all levels should take initiatives or actions without any force or foundations. They should be encouraged to develop and carry out plans for improvements. Initiative means taking the first step with self-motivation.


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