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Principles of Management: Fayol and Taylor

Principles of management are broad, flexible guidelines that help managers decide and act. They are universal, general, formed by practice, behavioural, cause-and-effect and contingent. Henri Fayol gave 14 principles for the whole organisation, like unity of command and scalar chain. F.W. Taylor gave scientific management for the shop floor: find the one best way by study, harmony and cooperation, and techniques like functional foremanship, standardisation, time and motion study and differential piece wages.

🎬 Step-by-step story

  1. Principles are guide rails, not a cage. They show managers the usual right path but can bend to fit the situation.
  2. Henri Fayol gave 14 principles. The first seven: division of work, authority and responsibility, discipline, unity of command, unity of direction, common interest first, fair pay.
  3. The next seven: centralisation balance, scalar chain, order, equity, stability of tenure, initiative and team spirit.
  4. F.W. Taylor said: stop guessing. Study the work, find the one best way, and make workers and managers partners.
  5. Taylor's tools: eight specialist bosses, standard tools and methods, time, motion and fatigue studies, and a pay scheme that rewards efficiency.
  6. Free play: change units made by two workers and see how differential piece wages jump at the standard.

Tip: drag the 3D scene to turn it. Use two fingers to zoom.

🤔 Common doubts, cleared

If principles are flexible, are they useless?

No. They show the usual right path. A manager adapts them to the situation, like guide rails that still keep you on the road.

What is the difference between unity of command and unity of direction?

Unity of command: one boss per worker. Unity of direction: one plan and one head for a group of activities.

What is a gang plank?

A short-cut in the scalar chain: two staff at the same level can talk directly in an emergency, then inform their bosses.

What does mental revolution mean?

Managers and workers stop fighting over sharing the profit and work together to make the profit bigger.

Why did Taylor use eight bosses?

One foreman cannot be expert in everything. Each of the eight is a specialist, which raises efficiency, even though it breaks unity of command.

How does differential piece wage push efficiency?

Crossing the standard raises the rate for every unit, not just the extra ones. Try it in free play and watch the bar jump.

Nature of principles of management

A principle is a basic truth that guides thinking and action. Principles of management are general guidelines for decisions. They are not rigid like laws of physics.

Significance of principles of management

Fayol's 14 principles of management

Henri Fayol (1841–1925), a French mining engineer, is called the father of general management.

  1. Division of work: split work into small tasks; each person specialises.
  2. Authority and responsibility: power to give orders must match the duty given.
  3. Discipline: follow rules and agreements; good superiors and fair penalties.
  4. Unity of command: each worker gets orders from only one boss.
  5. Unity of direction: one head and one plan for a group of activities with the same aim.
  6. Subordination of individual interest to general interest: the firm's goal comes first.
  7. Remuneration of employees: fair pay that gives a decent living.
  8. Centralisation and decentralisation: keep a balance between keeping power at the top and sharing it.
  9. Scalar chain: a formal line of authority from top to bottom. In an emergency, a gang plank lets two people at the same level talk directly.
  10. Order: a place for everything and everyone, and everything in its place.
  11. Equity: kindness and justice to all, no bias of caste, gender or religion.
  12. Stability of tenure: staff should not be moved or removed too often.
  13. Initiative: encourage workers to suggest and try new ideas.
  14. Esprit de corps: team spirit and unity; managers say "we" not "I".

Unity of command vs unity of direction

Unity of command is about one boss per worker and stops confusion of orders. Unity of direction is about one plan per group of activities and stops overlap of work.

Taylor's scientific management: principles

F.W. Taylor (1856–1915), an American engineer, is called the father of scientific management. Scientific management means doing work by the one best way found through study, not by guesswork.

Techniques of scientific management

Fayol and Taylor compared

Fayol looked from the top (general management, any organisation). Taylor looked from the shop floor (production efficiency). Fayol stressed unity of command; Taylor's functional foremanship used many bosses. Both help each other.

Key formulas and definitions

Worked examples

1. A salesman gets orders from both the sales manager and the regional head, and they conflict. Which principle is broken?

Unity of command (one worker, one boss).

2. A company makes both shampoos and biscuits, each run by one head with its own plan. Which principle is followed?

Unity of direction: one plan and one head for each group of activities.

3. Standard output is 20 units a day. Rates: ₹6 per unit at or above standard, ₹5 below. Ravi makes 21 units, Sita makes 19. Find their wages.

Ravi: 21 × 6 = ₹126. Sita: 19 × 5 = ₹95. Two units' difference gives ₹31 more pay.

4. In the case above, how much would Sita earn if she made just one more unit?

20 units reaches standard, so 20 × 6 = ₹120. That is ₹25 more than ₹95, a strong push to reach the standard.

5. A factory studies each movement of a worker packing boxes and removes three useless movements. Which technique?

Motion study.

6. A manager is given duty to raise sales by 20% but no power to hire staff or give discounts. Which principle is broken?

Authority and responsibility: the duty given is not matched by power.

Common mistakes

Practice quiz

1. Principles of management are:
2. One employee should get orders from only one superior. This is:
3. "Gang plank" is linked to:
4. Taylor's "mental revolution" means:
5. How many specialist bosses in functional foremanship?

Practice: answer these yourself

Type or choose your answer, then press Check. Use a hint if you are stuck; the full solution appears after you answer.

Frequently asked questions

What are Fayol's 14 principles of management?

Division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest, remuneration, centralisation, scalar chain, order, equity, stability of tenure, initiative and esprit de corps.

What is scientific management?

Taylor's approach of finding the one best way to do work through study and experiment, instead of guesswork, with harmony and cooperation between managers and workers.

What is the differential piece wage system?

A pay scheme with two rates: a higher rate per unit for workers who reach the standard output and a lower rate for those who do not.

Where this is taught

CBSE (India)Class 12Principles of Management

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