Henri Fayol's 14 principles of management:

Henri Fayol (29 July 1841 - 19 November 1925) was a French mining
engineer & director of mines who developed a general theory of business
administration. Fayol's work was one of the first comprehensive
statements of a general theory of management. Fayol was a successful
mining engineer and senior executive prior to publishing his principle of
administrative science. He was not primarily a theorist, but rather a
successful senior manager who sought to bring order to his personal
experiences.
Fayol's five principle roles of management are still actively practised
today. He has founded Plan, organise, command, co-ordinate and
control written on more than one manager's whiteboard during his
career.

Fayol ideas had a major effect on how management functions in most

established organisations
In many ways, they are the bible of management and the source of idea
is even today is certainly used by all managers
1, Division of work:
According to this principle, the whole work must be divided into small task
or units andinstead of assigning the whole work to one person. One task
or job should be assigned to one person according to the capability,
qualification and experience of the person.
When a person is performing apart of job again and again he will become
perfect and specialised in that job and efficiency will improve. This
principle is very useful for any organisation be it private or public. It
enhances overall performance of an organisation because specialists
perform consistently.
For example an organisation having different departments.
2. Authority and Responsibility:
Authority means power take decision. Responsibility means obligation to
complete the job on time. So according to principle there should balance
and parity between authority and responsibility . Excess of authority may
bring negative results and Excess of responsibility will not allow the
worker to complete the work on time.
 misuse of authority and it also
Balance b/w both of them will result in no
helps in meeting responsibility on tie without any delay.
Subordinate
Managor

Rosponsitbility
Authority

Accountability

3. Discipline:
working of an
Discipline refers to general rules , regulation for systematic means
it also
organisation. It doesn't mean only rules and regulation but
organisation . It also
developing commitment in the employees towards
for
means obedience to organisational rules that are necessary
functioning of an organisation. It includes -
Good supervision at all level
Clear and fair agreement

Application of penalties judiciously

Employees must honor the commitment made by them and management
orderliness and
must meet its promises. On one hand it enforces
motivates on other side.

4. Unity of Command:
There should be one & only one boss for every individual employees
working in an organisation. If employees get order from 2 superiors at
same time then they will get confused and not able to understand that
whose orders must be executed.

Thus unity of command avoids confusion and conflicts. It also helps in

harmonious relations and fixation of responsibility. If this principle is
violated then there will be ego clashes as employees should receive order
from one boss only. This principle helps to create peace in same as well
as lower levels.
 Right Approach Wrong Approach

Superior

Subordinate

5. Subordination of individual interest to general interest:

The interest of an organisation should take priority over the interest of
any individual employee. If objectives of both organisation and individual
are in different directions then managers must try to reconcile individual
interest with organisation goal and if it is not possible then individual goal
must be sacrificed for achieving organisational goal.
Employees are required to give up carelessness, selfishness, lethargy and
personal interest. it ensures no ego clashes as credit goes to group and
cOordination between individual and organisation.

6. Remuneration to employees:
The overall pay and compensation should be fair to employees and
workers to give them at least areasonable standard of living.
Remuneration paid to employees must be fair because if employees are
unpaid they will not be satisfied and an unsatisfied person can never
contribute his maximum. Dissatisfaction will lead to increase in
employees' turnover.
This ensures congenial atmosphere b/w the management and workers. In
healthy atmosphere, workers put their best efforts to contribute
maximum. it ensures smooth functioning and motivates them.
 Z. Centralisation:
the top
Lentralisation refers to concentration of authority in few hands at
level.
Decentralisation means evenly distribution of power at every level or
management. According to fayol, a company must not be completely
centralised or completely decentralised but there must be both depending
upon the nature and size of the organisation. A company must be
properly balanced i.e.; it should not be completely centralised or
decentralised. This principle leads to positive effects that are
I. Fast decision at operational level and strict control by top level

II. Benefits of centralisation as well as decentralisation.

8. Scalar Chain:
Scalar chain means line of authority or chain of superiors from highest to
lowest rank. Organisation should have a chain of authority and
responsibility that runs from top to bottom and should be followed by
manager.
Every piece of information must pass through every key of this chain, no
skipping of any one key should be allowed. In case of emergency when
information has to be passed so Fayol has permitted a short cut in the
chain which is called "gang - plank". Gang plank permits direct
communication between the employees working at the same level of
authority without following scalar chain. It leads to systematic flow of
chain.

GEF

45ANG PLANK
ERIDGE)
12. Initiative:
Workers should be encouraged to develop and carry out their plans for
improvement
Initiative means first step with self motivation. Fayol said that employees
must be given an opportunity to take some initiative in making and
executing a plan. So managers must welcome the suggestion and ideas of
employees before framing plan. Employees must be given freedom to
come ahead and use their skills to achieve expected goal. Positive effects
are -

i. Develops feeling of belongingness in employees.

ii. Employees achieve target on time if they are set up with their
consultation.

13. Esprit-de-corps:
Management should promote a team spirit of unity and harmony among
employees. In order to achieve organisational goal, mgt should promote
team work and coordination. Espirit De Corps means union is strength.
Fayol suggested that every employee in the organisation must consider
him as apart of a team and try to achieve team goal because team
contribution is always better than individual.
The feeling of "I" should be replaced with "WE". It helpsto develop a
feeling of mutual trust and understanding and achieve goal with efficiency
and effectiveness.

14. Unity of Direction:

Efforts of all the members and employees of an organisation must be
directs towards one direction that is achievement of common goal. This
helps in bringing unity of action and coordination in an organisation. Each
department and groups having common objective must have one head
and one plan only.
All the units of an organisation should be moving towards the same
objectives through coordinated and focused efforts. Positive effects are

Achievement of organisation goal

Efforts of all the employees get unified towards one direction only.
9. Order:
time for
People and material must be in suitable place at appropriate
orderliness in the
maximum efficiency. In other words, there must be
organisation
material order. It
a) Material order - arrangement of things is called
and
ensures proper & fixed place for various materials, tools,
equipments.
order,
b) Social order - arrangement of people is referred to as social
It ensures proper & fixed place for each employee in an
organisation.

It results in increase in productivity and efficiency and smoothly functions

without hindrance.
10. Equity:
Good sense and experience are needed to ensure fairness to alI
employees , who should be treated as fairly as possible.
Equity means to be kind, fair, and just treatment to employees.
Employees will put their maximum efforts when they are treated with
kindness and justice. This will ensure loyalty and devotion.

There should be no discrimination against anyone on a/c of sex, religion,

language, caste, belief or nationality. If a manager is biased in dealing
with employees then they will get dissatisfaction and will not contribute to
their maximum capacity. Employees seek to become loyal and devoted
equally treated.
11, Stability of Tenure:
Employees turnover should be minimized to maintain organisational
efficiency. In an organisation the employees should be selected and
appointed after following adue and rigorous procedure., Once they are
appointed they should be for fixed period.

Management must provide the feeling of job security among the

employees because with the feeling of insecurity they can't contribute to
maximum. Frequent turnover of employees is bad for organisation and
should be done when necessary. Not only turnover but freguent transter
r rotation should be avoided as it takes some time fora person to leari
andsettle for the job and it also reduces wastage of time and money
 VSM4RD
ethhala

Subject:Human Resource Management

ProductionofCoursewara
Contnt for Post Graduate Coursos RDYNHRM

Iy
Paper 02:Dewlopmnt of Maagenent Thoughts, Prncipl:nl
Module 1A:Fuo1% of Managor: )SDCORB
MHAD
Pathehala
eGqrsITGT
Development Team
Prof lpshita Bansal
Principal Investgator: Department.ofManagement Studies
BRS Womern UniveTSItya Khanpur Kalan Sonepat

Paper COOroliator I kalan, Sonepat

DVishal Kumar
Content Writer School of Management
Maharaja Agrasen DhiversitY, Baddi (HP.)

Content Reviewer: pLr kewac Hanyana

Items Description of Module

Subject Name Human Resource Management

Paper Name Development of Management Thoughts, Principles and Types

Module Title Functions of Manager: POSDCORB

Module Id Module no-14

Pre- Requisites Basic knowledge about functions of manager with special reference to
POSDCORB.

Objectives To study the functions of manager with special reference to POSDCORB.

Tostudy the qualities of a good manager
Keywords Manager, Functions of managers, POSDCORB
 QUADRANT-I

Module 14: Functions of Manager: POSDCORB

14.1 Leaning Objcctive
14.2 Introduction
14.3 POSDCORB
14.4 Qualities of a good manager
14.5 Summary

Learning Objective
After completing this module, you will be able to:
Understand the functions of manager with special reference to POSDCORB.
ii Understand various steps to perform such functions.
Know about the qualities of a good manager.

FUNCTIONS OF MANAGER-POSDCORB
Introduction

Management is a creative process which integrates and uses various available resources
effectively to accomplish certain goals. For this, an individual is responsible to develop ideas and
get things done through others. This individual is called manager. So, any person who
performs
the functions of planning, organizing, staffing, directing and controlling for the
accomplishment
of pre determined organization goals is called as manger. Manager is not actually to do the
work
but guide others to do things correctly. Managerial functions refer to the roles and
responsibilities of managers and to perform these functions effectively managers need certain
skills.

According to Peter F. Drucker that every job should be designed as an integrated set of
operations which are varied enough to reduce boredom. The workers should be given a sufficient
measure of freedom to organize and control their work environment. It is the duty of every
manager to cducate, trainand devclop pcople bclow bim so that they may use their potcntialities
and abilities to pertomm the vork allocated to them, He bas also helped them in satistying their
needs and aspirations through incentives and other things. He must provide proper worKing
environnment to the subordinates so that they work to the optimum level. So, the job of
the
desircd results.
manager IS Very complex and requires some cxtra-ordinary qualities to get the
The manager should have the capacity and capabilities to mect the challenges of his job.

POSDCORB
POSDCORB" which
Luther Gulick states seven functions of manager under the catch word
stands for Planning.Organizing, Staffing, Directing,Coordinating, Reporting, and Budgeting.
organization,
Thus, Manager is getting things done through others. He prepares plan, build an
plans for the
recruit and train thc employces, direct and motivate the employccs according to
conformity with the
purpose of achieving organizational goals and ensure that performance in
organization, prepare budget
plans adopted, the instructions issued, coordinate the activities of
the organization.
and report to the management about the progress and issues faced by
objectives and charting out
1. Planning: planning is a process of deciding the business
of what is to be done,
the methodsof attaining those objectives. It is the determination
results are to be evaluated.
how and where it is to be done, who is to do it and hoe
the process of
Planning is the primary function of management and involves
and selecting an
determining objectives, discovering alternative courses of action,
words, planning is the
appropriate course of action for achieving objectives. In other
Before starting of
determination of a future course of action to achieve a desired result.
otherwise, the objectives ofa
a job all above mentioned activities must be considered
under this the following
business cannot be achieved. Planning is a long process and
steps are taken:
Determination of Objectives: This is the first step in planning process. It is a
what is to be achieved
starting point as everybody in the organization must know
after identifying the
in future. So, first of all, objectives are laid down
point
opportunities available to a business organization. Objectives are the key
clear, definite and simple so
of the process of planning. Objectives should be
that it should be clear to every employee of organization.
Establishing Planning Premises: The second step in planning is to establish
on the basis of
planning premises, that is, certain assumptions about the future
which the plan will be ultimately formulated. If these assumptions are accuratc,
factors which affect
theplanning process will be more useful. So, in this various
external and
the activities of an organization are determined. These are the
the
internal factors. External factors have no control and may be the policy of
the other hand
governnent, conpetition, change in customer habit etc. On
 intemal tactors include capital, labour, machinc, raw material cte. Planning
will operate.
premises point out the business environment in which the plans
Collection, Analysis and Classification of lnformation: For effective
planning. all relevant data should be collected, analyzed and classificd
Suggestions should also invite from enmployee for the betterment. The data so
collected should be presented in tabulated form, diagrams and graphs to facilitate
analysis.
Finding Alternative Courses of Action: The fourth step in planning is to search
for and examine alternative courses of action. ln other words, the next step in
planning will be choosing the best course of' action. There are a number of wavs
ot doing a thing. AIl the available alternatives should study and then a final
selection will be made. Best results will be achieved only when best way of
doing awork isselected.
Examination of alternative courses of Action: After looking into the entire
alternative course, the next step is to evaluate these alternatives courses
technically in the light of the premises and objectives. Each alternative is
evaluated on the basis of its outcome and advantages. The strong and weak point
of each alternative should be carefully noted and this is done with the help of
quantitative techniques and operation research.
Selecting the best alternative: The next step is to select the best alternative. The
selection should be made carefully and no partiality is shown while selecting the
alternative.
Developing Derivative Plans: When the plan for the organization has been
formulated, middle and lower level managers must draw up the appropriate plans
for their sub-units. To support the master plan, each department head prepares a
plan for his department. So, these are the plans required to support the basic
plan.
Establishing and deploying action plans: Managers possessing litle
understanding of how the organization operates may not know how to turn the
derivate plans into action. The action plan identifies particular activities
necessary for this purpose and specifies who, what, when, where and how of
each action item. A draft version of the action plan should be communicated
Follow-up action or controlling the progress: The process of planning does
not end with the implementation of plans. The plans are formulated for future
which is uncertain. There must be a constant review of the
planning to ensure the
success. Managers need to check progress of their plans so that they can make
changes in the plan or take some remedial measure to bridge the gap, if t
1S
unrealistic or impractical.
Z. Organizing: When the plans arc laid down andthe objectivcs spccified, tne ie
IS to give practical slhape to the work to be nerformed to attain those objectives. Ths
task 1S accomplished by the managerial function of organizing. Or We can oo
ne proceSs of creating this structure of roles is known as organizing. Planning lS Just
t0 put some idca in writing, but to convert that idca into rcality, a group ot people s
needed. urther, to streamline the activities of this group of people, organiZing S
required. In anutshell, organizing is structuring of functions and duties to be
performed by agroup of people for the purpose of attaining enterprise objectives.
Following steps are taken to conmplete the organizing function of management:
ldentification of activities: In this stage of organizing process, a managei
identifies and determines those activities that are to be performed for achieving
Common goals. It includes the division of all activities in order to achieve the
objectives of the organization. The cntire work is divided into various parts and
again cach part is divided into various sub-parts.
Grouping of activities: The grouping of activities starts once the various
activities have been designed to achieve the objectives of the company. The
acuvities of the same nature are grouped together and assigned to a particular
department like purchase department, sales department.
Allotment of Duties: In order to ensure effective performance, the grouped
activities are allotted to specific persons. At the time of making such assignment,
it is ensured that the department has required competence and resources for
performing that group of activities.
Delegating Authority: A manager in the organization cannot himself do all the
task necessary for the accomplishment of group objectives.Because, his capacity
to do work and take decisions is limited. He, therefore, assign some part of his
work to his subordinates and also gives them required authority to make
decisions within the area of their assigned duties. This downward pushing of
authority to make decisions is known as delegation of authority.
Coordinating Activities: In the process of organizing, attempts are also made
for coordinating working of individual with respective department, and finally to
coordinate functioning of various departments towards the achievement of
common goals.
3. Staffing: It refers to knowing about the manpower requirements in the organization and
filled the various posts with suitable employees. An organization may succeed only if it
has trained staff in cach and every department and this work is done by staffing. So,
Staffing refers to placement of right person in the right jobs. Staffing includes selection
of right persons, training to those needy persons, promotion of the best persons,
retirement of old persons, performance appraisal of all the personnel's, and adequate
remuneration of personnel. Thus staffing is regarded as a unique and very important
 resourccs of the
force that all othcr
function becausc it is only through human
organization are utilized optimally.
function of management:
Following steps are taken to complete the staffing as they open up.
Recruitment or gettinggapplicants for the jobs scek the job.
who
Selection of the best qualified fromthose performtheir work effectively or
to
to
Training those who need further instructions
qualify for promotion. promotion
the basisfor job change or
Performance appraisal, since it serves as important factor in both getting
since it is
Administration of Compensation plans,
and holding qualified people. and motivating
management involves guiding, leading
4. Directing: Directing function of objectives. It is
that they contribute towards achieving organizational and
Subordinates so
instruction to them regarding the assigned work,
done by giving necessary asatisfactory manner.
Communication, motivation and
motivat1ng them to perform in directing function. These are
discussed as
essential elements of
leadership are the
below: views
Communication is the transmission of human thoughts,
Communication: always tell the
one person to another. A manager has
and opinions from where it is to be done, how it is
to be done
subordinates that what has to be done,
order
be done. Thus communication is very important element in
and when it is to
efectively.
toperform all activities of organizationwhich excites people to work for achievement
Motivation: - It refers to that process result in the
objective. If the worker feels motivated his behavior will
of desired
performance of desired action.
management that deals with 'getting
Leadership: Leadership is at very centre of his
incremental influence of a manager over
work done through others'. This
and passionately cooperate in the
subordinates, because of which they willingly
as leadership. The person who tries
attainment of organizational goals, is referred to
to influence are called leader. implemented
Co-ordination: Coordination is a process which has to be designed and
5. they, at the
divide work into specialized functions,
by the manager. When managers It is often said, the greater
co-ordination of all activities,
same time create a need for the involved
division of labour, the greater the need for c0ordination. The technique
the
different from group to group or organization to organization. The manager is
may be
the implementation of the task of
responsible for effective coordination and for
Following criteria have been
coordination; he has to follow a system approach.
coordination:
suggested by Dalton for successful
fostered by managers wh0
It is not forced by autocratic direction, but is
understand the value of participative management.
 organization
" t is timcly and extends in a balanccd fashion to all parts of the
and operates horizontally and vertically. suggested the
In addition to above Suggestions Mary Parker Follett has
following three considerations for successful coordination:
It must be continuing process.
It must be direct between the personsimmediately concerned.
It must start at the outset of activity.
information meant for the
6. Reporting: Report is afactual document which contains the fundamental object
superiors. Manager may make report for the top management. The made, the idea
of preparing the report is to inform the top management of the progress
te
about the future performance, the causes responsible for any deviation trom between the
causes for the difference
COurse and suggestions nade to remove the
provided by the manager
planning and performance. Thus, the feedback information is
workers' problems have not been solved by
to the top management people. Sometimes, authorities.
the manager, if so; the same should be communicated to the top
planning and controlling tne
7. Budgeting: Budgeting is a managerial technique ofas wellas managers to draw out
operations of an organization. It enables management
acceptable decisions and to control it
the future course of action through mutually expenditure is
actual
through performance dynamics. It is the planning made before the monetary terms and
incurred.Budgeting prepares the blue print both in quantity and
relevant data, analysis of the
reflects the objectives of the firm. Itinvolves collection of
selection of the most
information available, preparation of various alternative plans and
allocation of financial resources is the
profitable one. In today's scenario the efficient
most important function of a manager.
with the planning function and
8. Controlling: The process of management begins between the actual
concludes with the controlling function. It involves comparison
corrective steps when there is
work performance and the planned standards, and taking
management and has
a difference between the two. So, it is an important function of
following steps:
its activities in
" Establishing performance standards: Every enterprise plans
advance. On the basis of plans, the objectives and goals of every department,
branch, etc. are fixed. Standards may be quantitative or qualitative. Most of the
standards are expressed in terms of quantity. Number of units produced, number of
men, hours employed, total cost incurred, revenue earned, the amount of investment
etc.
Measurement of actual performance: The performance should be compared with
the established standards. So, neccssary information should be collected about the
performance. The effective management information system provides the necessary
information. There are several techniques which are used by the management to
measure the performance.
 next step in control
Comparison of actual performance with standards: The
the standards set. Necessary
process is the comparison of actual performance with
steps are aken so that performance is not adversely affected.
out the causes of deviation
Taking corrective action: Managemcnt has to find
deviation may be due to ineffective
before taking corrective measure. The causes of
wage payment, defective
and inadequate communication, defective system of
lack of motivation,
System of sclection of personnel, lack of proper training, corrective action
ineffective supervision, etc. the management has to take necessary
on the basis of nature of causes of deviation.

Qualities of a Good Manager

The job of a manager is very complex and a mixture of many types of skills, whether he belongs
cducational institution, a hospital
t0 any type of organization such as, a business organization, an
or a club. A manger is successful when he is able to makea smooth function team of people
working under him. He is to reconcile,coordinate and appraise the various view point and talents
of people working under him towards the organization goals. In order to succeed in managing, a
manager should possess the following qualities.
Education: Amanager must be well educated. He must have basic education along with
the knowledge of business environment in order to deal with the problems which the
organization may have to face in the future.
Training: management skills are not inborn qualities. It may be acquired through
training. Thus, it is necessary for the managers to have some sort of training in the branch
of management where he is working or going to work.
Leadership: A manager should be able to channelize the energies of the subordinates for
the achievement of organizational goals. A manager can motivate the subordinates
effectively if he has got leadership qualities.
Self confidence: Amanager should have self confidence. He should take decision after
analysis of every aspect of the problem and also implement the decision with full
dedication and honesty. He should not shrink in taking initiative.
Technical Knowledge: Amanager should have knowledge of the techniques of
production being used in the organization. So manager should have a technical
knowledgeabout the instruments and machines which is used during the process of
production in an organization.
Positive attitude: Amanager should treat his subordinates as human being. a manager
should try to maintain good relations with them. He shouldunderstand their problems and
offer helping hand to them.
Intelligence: a manager should have somewhat higher level of intelligence than the
average human being. He should have the ability to think scientifically and analyze the
problem accurately.