Management Principles developed by Henry Fayol:

1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure
that effort and attention are focused on special portions of the task. Fayol presented work
specialization as the best way to use the human resources of the organization.

2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority
was defined by Fayol as the right to give orders and the power to exact obedience.
Responsibility involves being accountable, and is therefore naturally associated with
authority. Whoever assumes authority also assumes responsibility.

3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties
should be applied judiciously to encourage this common effort.

4. UNITY OF COMMAND: Workers should receive orders from only one manager.

5. UNITY OF DIRECTION: The entire organization should be moving towards a common
objective in a common direction.

6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL
INTERESTS: The interests of one person should not take priority over the interests of the
organization as a whole.

7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel,
general business conditions, and success of the business, should be considered in
determining a workers rate of pay.

8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the
subordinate role. Decentralization is increasing the importance. The degree to which
centralization or decentralization should be adopted depends on the specific organization in
which the manager is working.

9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each
manager, from the first line supervisor to the president, possess certain amounts of
authority. The President possesses the most authority; the first line supervisor the least.
Lower level managers should always keep upper level managers informed of their work
activities. The existence of a scalar chain and adherence to it are necessary if the
organization is to be successful.

10. ORDER: For the sake of efficiency and coordination, all materials and people related to a
specific kind of work should be treated as equally as possible.

11. EQUITY: All employees should be treated as equally as possible.

12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should
always be a high priority of management. Recruitment and Selection Costs, as well as
increased product-reject rates are usually associated with hiring new workers.

13. INITIATIVE: Management should take steps to encourage worker initiative, which is
defined as new or additional work activity undertaken through self direction.

14.ESPIRIT DE CORPS: Management should encourage harmony and general good feelings
among employees.
MANAGEMENT ANDADMINISTRATION

Management and administration are at times used interchangeably; however, they are two
different levels of the organization. The administration is the top level of the organization with
the decisive functions. They are responsible for determining the policies and objectives of the
organization or the firm. Management, on the other hand is the middle level executive function.
They implement the policies and objectives as decided by the administration.The administration
includes the people who are either owners or partners of the firm. They usually contribute to the
firms capital and earn profits or returns on their investment. The main administrative function is
handling the business aspects of the firm, such as finance. Other administrative functions usually
include planning, organizing, staffing, directing, controlling and budgeting. Administration must
integrate leadership and vision, to organize the people and resources, in order to achieve
common goals and objectives for the organization.

Management Administration
Definition Art of getting things done
through others by directing
their efforts towards
achievement of pre-determined
goals.
Formulation of broad
objectives, plans & policies.
Nature executing function, doing
function
decision-making function,
thinking function
Scope Decisions within the
framework set by the
administration.
Major decisions of an
enterprise as a whole.
Level of authority Middle level activity Top level activity
Status Group of managerial personnel
who use their specialized
Consists of owners who invest
capital in and receive profits
knowledge to fulfill the
objectives of an enterprise.
from an enterprise.
Usage Used in business enterprises. Popular with government,
military, educational, and
religious organizations.
Influence Decisions are influenced by the
values, opinions, beliefs and
decisions of the managers.
Influenced by public opinion,
government policies, customs
etc.
Main functions Motivating and controlling Planning and organizing
Abilities Handles the employees. Handles the business aspects
such as finance.



Management as a science
Management as a science, it has systematized body of knowledge, concept and principles.
Management deals different problems and issues by using quantitative models and decision
making techniques and issues by using quantitative models and decision making techniques to
arrive at right decisions. As a science management contains concepts, hypothesis, theories,
experimentation all verified and tested accordingly to clarify about cause and effect relationship
between many facts or events occurred.
management is systematic body of knowledge with theories, concepts, principles, experiments
and functions which are systematically and logically analyzed
the theories related to management are applicable and used in all types of organization
irrespective of size, type, capital and so on. However, the usage and method may vary according
to the situation of organization and time.
all the managerial knowledge and practices are developed through various observations and
experiments which are researched and experiment based
tests of management theories are applied in situational and judgmental cases which help in
prediction of future events.
management is not a pure science but a social science
management relates itself to cause and effect relationship. Results of modern management are
acceptable to all employees. Good and efficient management system enhances the purity in
organization.
Management as an art
Management includes the activities of planning, organizing, direction, decision making,
regulating and integration of all resources which requires special skill and art. According to
Mary Parker, management is an art of getting things done through others. Management enables
a manager to get thongs done through employees.
management performs non programmed and non routine work using creativity and innovations
management accomplishes any job within time and budget to achieve organizational goals
with ease.
managers apply their interest, ability and skills for solving contemporary issues through
decisions which ignite their creativity. They can use their skills in field of job performance,
solving exceptional issues, forming objectives etc.
managers must posses practical knowledge not only theoretical acquired from experiences
which helps in working according to situation
managerial activities are practices by using knowledge, ability and skill to solve the problems.
Management as a profession
In general sense, profession means occupation. Occupation is rendering service. Similarly
management is a distinct profession backed up by specialization. As a professional activity all
management efficient people should have academic qualification and personal qualification from
any body. Here profession is not only an occupation of specialized skill but these skills should be
applicable in large scale and interest of society as a whole.
management is a separate discipline which includes research, observations and practice
management requires formal education and training with updates of professionalism.
professional managers must be joined in an association that follow rules and regulation
according to the objectives set.
a professional association requires code of conduct to maintain self discipline ethical behavior.
Violation of code must be punishable
organizations should be responsible towards society. An organization gets its birth in a
society, lives and grows in a society and finally liquidates or dissolves in a society. Thu, an
organization has responsibility towards members of society such as consumer, investors,
employees and shareholders.