CLASS-12th BUSINESS STUDIES

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CLASS-12th BUSINESS STUDIES

• Rohit Batra
• PGT-COMMERCE
• K.V.-2 Bikaner.

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PRINCIPLES OF MANAGEMENT
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Henri Fayol

• Henry Fayol was a French industrialist
• In 1860 , he joined as a Engineer and became
  Managing Director in 1888.
• At that time the position of the company was
  very bad. He faced so many problems to control
  the company.
• After long experience he developed 14
  principles of management.

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HENRI FAYOLTHE FATHER OF GENERAL MANAGEMENT

• There were 14 principles of management
• propounded by him
• 1.Division of work
• 2.Authority and Responsibility
• 3.Discipline
• 4.Unity of Command
• 5.Unity of Direction

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• 6.Subordination of Individual Interest to General
  Interest
• 7.Remuneration of Employees
• 8.Centralisation and Decentralization
• 9.Scalar Chain
• 10.Order
• 11.Equity
• 12.Stabillity of Personnel
• 13.Intiative
• 14.Espirit De Corps

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UNITY OF COMMAND
-One and only one boss for every
individual employee.
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MR A, what about my report?????
Come on MR A, You have to do that
IAM FED UP OF THIS
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• According to this principle, an
• employee should receive orders
• from only one superior at a time and
• that employee should be answerable
• only to that superior. If an
• employee gets order from two
• superior at that same time the
• principle of unity of command is violated.
• The principle of unity of command states
• that each participant in a formal
• organization should receive orders from
• and the responsible to only 1 superior.

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Positive Effect of Unity of Command

• There will be no confusion in the mind of
  Subordinates.
• Responsibility can be easily fixed.
• Better performance as subordinates receive from
  one superior only.

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If Unity of Command is violated

• It creates confusion for the subordinates.
• It will be difficult to fix responsibility.
• Lack of discipline.

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SCALAR CHAIN
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SCALAR CHAIN

• An organization consists of superior and
• subordinates. The formal lines of authority
• from highest to lowest ranks are known as
  SCALAR CHAIN.
• According to Fayol, Organization should
  have a chain of authority and communication that
  runs from top to bottom should be followed by
  managers and the subordinates.

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Fayol has explained this principle with the help
of a ladder as shown in the diagram.
A
B
L
M
C
D
N
E
O
GANG PLANK
F
P
Scalar Chain
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• According to Fayol this chain should not
• be violated in the normal course of
• formal communication. If there is an
• emergency then E can directly contact
• O through Gang Plank.
• UTILITY Due to more clear system of
• authority and communication, problems
• can be solved faster.

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• Let us consider a situation where there is one
  head A who has two lines of authority under
  her/ him. One line consists of B-C-D-E-F. Another
  line of authority under A is L-M-N-O-P. If E
  has to communicate with O who is at the same
  level of authority then she / he has to traverse
  the route E-D-C-B-A-L-M-N-O. This is due to the
  principle of scalar chain being followed by this
  situation.

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Thank you