Functions of Management : Fayol used the term 'administration' instead of 'management' . He divided the key functions
of administration into five sub groups such as –
Planning - to forecast and provide means for the future.
Organising – provides everything useful to its functioning.
Co-ordinating – binding together, unifying and harmonizing all activities.
Commanding – leads the personnel in a better way.
Controlling – ensuring every thing goes as per plans.
General Principles of Management Fayol has provided fourteen principles to manage the organisation successfully and to
build up an effective organisational structure. They are enumerated as follows –
1. The Division of work – The work is divided into parts, and one person does only
one things rather than doing every thing himself. It is to be adopted to take advantages
of specialization. It gives maximum productivity and efficiency.
2. Parity between Authority and Responsibility – Authority and responsibility go side
by side and should be commensurate to each other.
3. Discipline – Discipline is in essence. It refers to respect for agreements which are
directed at achievements, obedience, energy and respect.
4. Unity of Command – One person should receive order from one superior only. There
should not be multiple bosses to one subordinate because it will lead to division of
responsibility and escapism.
5. Unity of Direction – Fayol observed without unity of direction, unity of action, Co-
ordination of strength and focusing of effort cannot be achieved. According to this
4.7
Principles of Management
Evolution of Management Thought
principle, each group of activities with the same objective must have one head and
one plan.
