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Question 2

Explain the following Principles of management given by Fayol with examples:
a. Unity of direction
b. Equity
c. Espirit de corps
d. Order
e. Centralisation and decentralisation
f. Initiative

Answer

(a) Unity of direction: Unity of direction means all the units of an organization should be moving towards the same objectives with coordination. According to this principle each group of activities having the same objective must have one head and one plan. And the organization and its members must be directed towards the achievement of the same goal. For example, if my company is manufacturing both mobile and laptop then it should have two different divisions for both of them and each division should have their own incharge, plans and executive resources.

(b) Equity: This principle emphasizes kindness and justice in the behaviour of the manager toward workers. There should be no discrimination against anyone on account of sex, religion, language, caste, belief or nationality etc. there must be given equal opportunity to everyone in the organization without any discrimination and then the employee give their best in the betterment of the organization.

(c) Esprit de Corps: This means that the management should promote a team spirit of unity and harmony among employees. And the manager should replace ‘I’ with ‘WE’ in all his conversation with the workers. This will give rise to a spirit of mutual trust and belongingness between team members. And this will also minimize the need for using penalties.



(d) Order: Order doesn’t mean command it actually means orderliness. According to this principle the right person should be at the right place and the right thing should be placed at the right place. If everything will be at the right place then there will be no hindrance in the activities of business. And this will increase efficiency and productivity. And If the men and material are not placed in an organized manner then not be able to contact the right person at the right time or when required and this will delay work.

(e) Centralization and Decentralization: Centralization means concentration of decision making authority. Here decision making power is given to one or very few people and that is top level management. And decentralization means dispersal of decision making authority among more than one person. According to Fayol there should be a proper balance between centralization and decentralization in the organization. The involvement of the employees with higher authority should be balanced by decentralizing the authority to the managers. Any organization must not be completely centralized or decentralized. There should be a blend of both and this is decided on the basis of size, nature and location.

(f) Initiative: Initiative refers to taking the first step with self motivation. It means thinking out and executing the plans. According to Fayol in this principle workers should be encouraged to develop and carry out their plans for improvement. Initiative should be encouraged but it doesn’t mean going against the established practices and rules. A good company should have an employee suggestion system and any good suggestion should be rewarded.

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