🔄 YESTERDAY RE-KNOCK: Significance of Management Principles
Yesterday, we explored why management principles are considered the compass of the corporate world. We learned that they provide managers with useful insights into reality, ensure optimum utilization of resources, and help in making scientific decisions. We also discussed how these principles evolve to meet changing environmental requirements and fulfill social responsibilities. Today, we finally introduce the architect of general management theory—Henri Fayol—and begin a deep dive into his legendary 14 principles, starting with the two most fundamental ones.
Meet the Legend: Henri Fayol (1841–1925)
Henri Fayol was a French mining engineer who rose to the position of Managing Director of a large mining company. When he took over, the company was on the verge of bankruptcy, but through his systematic approach, he turned it into a financial giant. Known as the "Father of General Management," Fayol was the first to identify the specific functions of management (Planning, Organising, etc.) and laid down 14 principles that are still taught in every MBA classroom from **Ranchi to Harvard**.
2.4 Fayol's Principles of Management
Fayol believed that management is a skill that can be taught once its underlying principles are understood. **In my experience**, Fayol’s principles are like the DNA of an organization; they are invisible but determine exactly how the body functions. Let us look at the first two pillars of his theory.
Principle 1: Division of Work
This principle states that the whole work of an organisation should be divided into small tasks or jobs. Instead of one person doing everything, a specialist who is well-trained should perform each job.
The Logic: SpecialisationFayol argued that when a person performs the same task repeatedly, they become more efficient, accurate, and faster. This leads to **specialisation**. This principle applies to both technical and managerial work.
Local Example: Think of a large bank branch in **Patna**. You don't see one person handling the cash, opening new accounts, processing loans, and managing security. The work is divided: there is a Cashier, a Relationship Manager, a Loan Officer, and a Branch Manager. This division ensures that the bank operates smoothly and errors are minimized.
- Increased Efficiency: Workers become experts in their specific tasks.
- Speed and Accuracy: Repetition reduces the time taken and increases the quality of output.
- Optimal Use of Resources: Less wastage as specialists know exactly how to handle their tools.
- Lack of specialisation.
- Chaos and confusion as everyone tries to do everything.
- Increased wastage of time and resources.
Principle 2: Authority and Responsibility
According to Fayol, there should be a balance (parity) between authority and responsibility.
Authority is the right to give orders and obtain obedience.
Responsibility is the obligation to perform the assigned task on time.
If authority is more than responsibility, a manager may **misuse** their power. If responsibility is more than authority, the manager will be **ineffective** because they cannot get the work done without the power to command resources or people.
**In my experience**, many middle managers in **Siliguri’s** tea trading firms struggle because they are given huge targets (Responsibility) but no power to hire extra staff or spend on marketing (Authority).
- Accountability: Managers can be held responsible for results because they had the power to act.
- Discipline: Subordinates follow orders when they know the manager has the official authority.
- No Misuse of Power: Since authority is matched with responsibility, the manager stays focused on the goal.
- If Authority > Responsibility: Dictatorial behavior and misuse of power.
- If Responsibility > Authority: Non-completion of work and frustration for the manager.
- Delayed decision-making.
NCERT Quick Recap
Division of Work: Small tasks = Specialisation = Efficiency.
Authority & Responsibility: Power must match the Duty. No more, no less.
📝 Day 13: Fayol Part 1 Evaluation
1. "Work should be divided into small tasks to achieve specialisation." This refers to:
a) Authority and Responsibility
b) Discipline
c) Division of Work
d) Unity of Direction
Click to view Answer
Correct Answer: (c) Division of Work.
Logic: Division leads to specialization, which is the core of this principle according to NCERT.
2. If a manager is given the task of achieving a sales target but is not given the power to offer discounts to customers, which principle is violated?
a) Division of Work
b) Authority and Responsibility
c) Centralisation
d) Order
Click to view Answer
Correct Answer: (b) Authority and Responsibility.
Logic: Here, Responsibility is given without the matching Authority (power to offer discounts), creating an imbalance.
3. THE CASE STUDY:
1. Principles Identified:
"Ms. Kavita" is the production head of a furniture factory in **Tatisilwai, Ranchi**. She noticed that one worker was making the whole chair—from cutting wood to polishing. This was taking 5 days per chair. She decided to divide the work: one worker for cutting, one for assembly, and one for polishing. Now, the factory produces 10 chairs in 5 days. However, she also noticed that the supervisor was frequently shouting at workers but had no power to recommend their leaves or overtime pay, leading to the supervisor feeling helpless.
Identify the two principles of Fayol discussed in the case. Explain the positive impact of the first and the negative impact of the second.
Click to view Master Solution
(i) Division of Work (When Kavita divided the chair-making process).
(ii) Authority and Responsibility (When the supervisor had responsibility but no power/authority over leaves).
2. Impacts:
Positive Impact of Division of Work: It led to **specialisation and increased efficiency**, as production jumped from 1 chair to 10 chairs in the same period.
Negative Impact of Authority & Responsibility violation: The supervisor felt ineffective and helpless because his Responsibility was greater than his Authority, leading to poor morale.
Further Reading
- STUDY NOTE: Unit 1: Nature and Significance - Quick Revision Note
- DIRECT QUESTIONS: Unit 2: Principles of Management - Important Direct Questions
- CASE STUDY: Unit 12: Consumer Protection - Practice MCQs
Teaser for Tomorrow: We’ve balanced power and divided work. But how do we ensure everyone follows the rules? And what happens when a worker has two bosses? Tomorrow, we explore Discipline and the most important board exam topic—Unity of Command. We'll see how these play out in the competitive world of **Siliguri’s** logistics industry!
No comments:
Post a Comment