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No organization can be completely centralized or decentralized.

However, in decentralization, the authority is distributed to all levels of management.

In centralization, the authority is concentrated only in a few hands. It is always present to a greater or lesser extent, depending on the size of the company and the quality of its managers. It should include both financial and non-financial incentives.Ĭompensation should be based on a systematic attempt to reward good performance. This policy should give maximum satisfaction to both employers and employees. If an organization wants efficient employees and the best performance, then it should have a good remuneration policy. Pay should be fair to both the employee and the firm. Remuneration is the price for services received. The interest of the organizational goal should not be sabotaged by the interest of an individual or of the group. The individual interest should be given less importance, while the general interest should be given the most importance. The interest of one individual or one group should not prevail over the general good. Subordination of Individual Interests to the General Interest Unity of direction means activities aimed at the same objective should be organized so that there are one plan and one person in charge. He must use only one plan for all the marketing activities. One manager must direct all activities which have the same objective, and he must use one plan.įor example, all marketing activities, such as advertising, sales promotion, pricing policy, etc., must be directed by only one manager. One head and one plan for a group of activities with the same objective. It helps in preventing dual subordination. This decreases the possibility of “Dual subordination,” which creates a problem in managers’ functions. To put it another way, a subordinate must report to only one superior. Unity of CommandĪccording to this principle, a subordinate (employee) must have and receive orders from only one superior (boss or manager). To establish discipline, good supervision and impartial judgment are needed. The workers must respect the rules that run the organization. No slacking or bending of rules, not allowed in any organization. Discipline may be Self-discipline, or it may be Enforced discipline. Outward mark of respect in accordance with formal or informal agreements between a firm and its employees.ĭiscipline means respect for the rules and regulations of the organization. If responsibility is more than authority, then he may feel frustrated. If the authority is more than responsibility, then a manager may misuse it. The right to give orders should not be considered without reference to responsibility. Balancing Authority and ResponsibilityĪuthority must be equal to responsibility.Īccording to Henri Fayol, there should be a balance between Authority (Power) and Responsibility (Duties). He had been managing director of a large French mining company, and was concerned with efficiency at an organisational level rather than at the level of the task.Division of work leads to specialization, and specialization helps to increase efficiency and efficiency, which results in improvements in the productivity and profitability of the organization. Who is the father of classical management?ġ Classical management theory (Fayol and Urwick) Henri Fayol (1841–1925) is often described as the 'father' of modern management. Henri Fayol theorized that these functions were universal, and that every manager performed these functions in their daily work. Henri Fayol identified 5 functions of management, which he labelled: planning, organizing, commanding, coordinating and controlling. What did Henry fayol say about management? His management theories, mostly developed and published in the early 1900s, were a major influence on the development of industrial management practice throughout the twentieth century. Henri Fayol is widely regarded as the father of modern management. Now, we have got the complete detailed explanation and answer for everyone, who is interested! This is a question our experts keep getting from time to time. Why henry fayol is called father of management?