Authority and Responsibility 3. Equity does not exclude forcefulness or sternness. Consequences of multiplicity of command can be avoided if there is clear definition of authority-responsibility relationships in the organization structure. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Initiative -Inspiration, and innovation to bring about improvements is the bane of management. Harmony among organisational personnel is source of strength. To achieve proper discipline, skilled superiors at all levels, clear and fair agreements and judicious application of penalties etc. Henry Fayol has developed a body of principles of management, the father of modern management. The managers should not give undue favours to some and neglect others. One group is responsible for making collars, other is engaged in stitching buttons, yet another is engaged in packing activities etc. Due to ignorance, ambition, selfishness, laziness, weakness, etc., group interests may sometimes be pushed behind individual interests.

The wages paid must be as per a certain standard of living to the employee at the same time it is within the paying capacity of the company. a. Genex Dynamics is a ballistics company that uses the unity of command, scalar chain, and division of work principles. This is principle of organization relating to things and persons.

Fair remuneration brings about satisfaction to the workers and high productivity for the organization. Equity promotes a friendly atmosphere between superiors and subordinates and encourages loyalty.

Initiative means the power of thinking – ability to conceive a plan and translate it into reality.

Line of authority means the route through which a communication will travel up or down the scalar chain.

Initiative on their part can be a great source of organisational strength. Exploitation of employees in any manner must be eliminated.

-There is a “proper place for everything and everything in its right place”. At the same time, Fayol is against arbitrary use of authority to discipline workers through wage-cut, issuing warn­ing, suspension or dismissal.

Most people have dreamed about launching their own venture at some stage of their lives but the majority do not even take the first step. Subordination of Individual Interest to General Interest.

Responsibility is the essential counter part of authority and the two go hand in hand. Disclaimer 8.

He was a mining engineer and director of mines. This principle relates to arrangement of things and people. The scalar chain principle prescribes that every communication should pass through proper channel. Fayol’s Principles of Management – Underlying Management of all Kinds of Organisations. Similarly, it must flow from F to A via E, D, C and B and coming down to P via L, M, N and O. Fayol suggests that this scalar chain system takes time and therefore, can be substituted by gang plank (dotted line) without weakening the chain of command.

– It refers to the mutually complementary nature of authority and responsibility.

Scalar chain is the chain of superiors ranging from the chief executive or ultimate authority to the lowest level in the organisation. According to Fayol, “The intent of division of work is to produce more and better work from the same effort. In an organisation the employees should be selected and appointed after following a due and rigorous procedure.

4. It makes no dif­ference whether the agreements are imposed on employees or made with their consent. chains of command A hierarchy of authority in which each rank is accountable to the one directly superior. (iv) It helps in fixations of responsibility. scalar principle: Classical-management rule that subordinates at every level should follow the chain of command, and communicate with their seniors only through the immediate or intermediate senior. Also important will be other factors—cost of living, availability of workers to replace those who find more remunerative work elsewhere, financial condition of the orga­nization, remuneration policy of rival organizations and condition of the national economy. 7. The communication has to flow in an order for it to be effective.

Even an employee with all requisite abilities and motivation will need time to get familiar with his work. Esprit de corps - Promoting team spirit will build harmony and unity within the organization. Scalar Chain 10.

He says the mechanism of gang plank will inspire subordinates to accept responsibility.

Fayol says that the principle of division of work should apply to all kinds of work—technical as well as managerial. Discipline (both employer and employee), 5. In a small firm with a limited number of employees, the owner-manager can give orders directly to everyone. However, factors like ambition, laziness, weakness, etc., tend to reduce the importance of general interest. Individual interest must be subordinate to the common interest. One flows from, and is directly the result of, the other.

[1] The family returned to France in 1847, where Fayol graduated from the mining academy "École Nationale Supérieure des Mines" in Saint-Étienne in 1860. They should rather be welded in cohesive and highly interacting work-groups. Now, suppose ‘F’ needs to communi­cate with ‘P’.

It should also take into account factors like cost of living, general economic conditions, and demand for labour and economic state of the business. This is essential for the “unity of action, coordination of strength and focusing of effort”. He classified business activities into six major categories and visualised a mutually complimentary system based on certain principles. Translated by J.D Breeze. He developed the following principles underlying management of all kinds of organizations: Fayol held that authority flows from responsibility. It is personal, when it is the result of his “intelligence, moral worth, ability to lead past services, etc.” and which assures his subordinates that he represents their aspira­tions and will help realize them. Order—Right Persons and Things at Right Place, 12. The success of an organization is closely linked to the freedom that its employees have to express their views and ideas. Fayol observed that if this principle is violated, authority will be undermined, discipline will be in a jeopardy, order will be disturbed and stability will be threatened. Subordination of Individual Interest to General Interest: Common interest must prevail over individual interest. It implies the right man in the right job and right material in the right place for effective utilization of the available resources in an organization.

(ii) An organisation will function smoothly without any hindrance. All the employees should be treated equally & impartially. Henry Fayol’s process approach towards management.

Dual command is a permanent source of conflict. Initiative refers to the first step taken by the employees towards their self motivation.

(ii) It ensures smooth functioning of the organisation. e. none of these. Going by the line of authority, his communication will travel up through ‘E’ ‘D’ ‘C’ ‘B’ up to ‘A’, and from there, through ‘L’, ‘M’ ‘N’ ‘O’ down to its destination: ‘A’ and the response from ‘P’ will. Discipline is essential for the smooth running of business and without it no business can prosper.

There are three requisites of disciplines: iii.

Team spirit is of great importance to accomplish tasks. The management has to decide the extent of authority to be concentrated at the top level and its dispersion among subordinates. Similarly, if two employees are latecomers, same treatment should be given to both defaulters. If there is greater importance to the subordinate’s role decentralization is advisable. Employees remuneration should be just and fair and acceptable to both parties-employer and employees.

Scalar Chain 10. Fayol pre­scribes a formula: A worker should stick to the same operation and process and the manager should deal with the same matters.

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