MBA Semester 1 Assignments answers for MB0038 –Q1. Discuss the principles of Management by Henri Fayol.

Answer: There are fourteen principles of management which Henri Fayol enunciated. This has wide acceptance which is described in detail as follows:1. Division of labourWe saw in the case how everyone was doing their own job. For example, playing flute, selling rooms from the front office, massaging feet, etc. When the major tasks and activities of the organisation is divided and carried out by different people in the organisation it is called division of labour.2. Authority and responsibility coexistIf the manager is given the responsibility to run his hotel in a specified manner, he should be given the formal authority to do so and if he has been given the authority, he has to be responsible for the right and wrong things going on.3. Unity of commandThis means that one person should report to only one boss. This principle has undergone considerable changes, and we now have ideas like adhocracy or matrix organisations where a person may report to multiple bosses. However, the principle stands in good stead. Suppose you had two bosses, whom would you listen to? Who will make you follow some discipline, to whom will you be loyal? Will there be confusion and chaos and will you pitch one boss against the other and escape responsibility? Will there be duplication of work and overlapping of efforts? Your candid answers to these questions will make the idea of unity of command clearer to you.4. Unity of directionIf you have many guests checking into Green Path, we need many people to do the foot massage. This needs one plan and one way of doing it. Also it is preferable that the same people serve the welcome drink and carry the baggage to the rooms. If we do that, there will be better direction in the work since these works can be grouped under, receiving the guest, showing hospitality, giving them some physical comfort and then getting him settled in his room. This is creating unity of direction or one head one plan.5. EquityEquity is a combination of fairness, justice, and empathy. It does not mean absence of assertive action rather existence of it to ensure fairness for all. This does not mean giving all the same reward but rewarding according to one’s effort. In fact, the idea of productivitybased incentives emanates from the principle of equity.6. OrderIn the case, we saw how the service staff was moving around smoothly and doing their job. You might have observed how things are kept in order in a Maruti Genuine Workshop as against a wayside workshop. Appointing the most suitable person for a job is also part of this principle of order. In other words, it means doing things systematically.7. DisciplineHaving clearly defined the superiors, subordinates, norms, procedures, rules, and regulations, adherence to these is an essential principle of management. This enhances productivity by increasing the harmony in the workplace activities.8. InitiativeWhen the workers are encouraged to do things which are not strictly defined but which add to the productivity, cost reduction, etc. which are the objectives of management, the workers enjoy doing their job and efficiency and effectiveness increase just like the front office manager who took the initiative to negotiate full room tariff rather than yield to a request for discount.9. FairnessFairness in remuneration and the way people are treated in reward implies reward and recognition keeping in mind the current market rate, the living needs of the workers, safe working conditions, medical facilities, wages being linked to the nature of the work and being reasonable in everything. It implies a dialogue between the employer and the employee. Modern industrial laws are society’s means of ensuring fairness in organisations.10. StabilityIt takes time and effort to train a person to do a job and therefore keeping him stable in the job for a reasonable period is necessary to get returns on this investment. Further, it creates team spirit, smoothness, and enhances productivity. The worker will also be able to take more initiative because of the knowledge gained. In the modern context of frequent change, this may look like an antithesis, but we all know the impact of frequent changes. If it is inevitable, we must take actions to reduce the negative effects of it.11. Scalar chainThe flow of information and exercise of authority has to flow in a chain from top to bottom. This does not mean a strict hierarchy, but it means the existence of a clear flow. This flow may be and should be circumvented during an emergency. This process enables one to coordinate effort, create smoothness, plan, amend plans, and solve problems faster and more efficiently.12. Subordination of individual interest to general interestIndividuals draw their identity and livelihood from the organisation. Others also do that. Therefore, the organisational interest should supersede individual interest because the former affect the interest of many stakeholders.13. Esprit de corpsIt is about creating team spirit and harmony. It is about creating the internal cohesion among workers so that they feel as part of theorganisation. In the modern days, we use terms like employee engagement, involvement, etc which flow from this principle. Fairness, equality, unity of command, etc help in creating esprit de corps. Face-to face communication is more important than written communication to do this.14. Centralisation and decentralisationCentralisation means concentration of authority at the top level and decentralisation means delegating it to the lower levels. While absolute centralisation or decentralisation is not feasible, the principle propagates finding the ideal balance keeping in mind the size, nature of business, experience of superiors and subordinates, dependability and ability of the subordinates, etc. This principle permits people to solve problems speedily and efficiently and enables taking initiative.