Briefly explain any three of the following principles of management given by Henry Fayol:

Question 15:Briefly explain any three of the following principles of management given by Henry Fayol:

a. Unity of command
b. Equity
c. Remuneration
d. Initiative

The correct answer is -Principles of Management given by Henry Fayol:
(a)Unity of Command: According to Fayol there should be one and only one
boss for every individual employee. If an employee gets orders from two
superiors at the 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 be responsible to only one
superior. Fayol gave a lot of importance to this principle. He felt that if this
principle is violated “authority is undermined; discipline is in jeopardy, order
disturbed and stability threatened”. The principle resembles military
organization. Dual subordination should be avoided. This is to prevent
confusion regarding tasks to be done. Suppose a sales person is asked to clinch
a deal with a buyer and is allowed to give a 10% discount by the marketing
manager. But the finance department tells her/ him not to offer more than a
5% discount. Now there is no unity of command. This can be avoided if there is
coordination between various departments.
b) Equity: Good sense and experience are needed to ensure fairness to all
employees, who should be treated as fairly as possible,” according to Fayol.
This principle emphasizes kindliness and justice in the behavior of managers
towards workers. This will ensure loyalty and devotion. Fayol does not rule out
use of force sometimes. Rather he says that lazy personnel should be dealt
with sternly to send the message that everyone is equal in the eyes of the
management. There should be no discrimination against anyone on account of
sex, religion, language, caste, belief or nationality etc. In practice we can
observe that now a days in multinational corporations people of various
nationalities work together in a discrimination free environment. Equal
opportunities are available for everyone in such companies to rise.
( c )Remuneration of Employees: The overall pay and compensation should be
fair to both employees and the organization. The employees should be paid
fair wages, which should give them at least a reasonable standard of living. At
the same time it should be within the paying capacity of the company. In other
words, remuneration should be just and equitable. This will ensure a congenial
atmosphere and good relations between workers and management.
Consequently, the working of the company would be smooth.
(d) Initiative: Workers should be encouraged to develop and carry out their
plans for improvements according to Fayol. Initiative means taking the first
step with self-motivation. It is thinking out and executing the plan. It is one of
the traits of an intelligent person. Initiative should be encouraged. But it does
not mean going against the established practices of the company for the sake
of being different. A good company should have an employee suggestion
system whereby initiative/suggestions which result in substantial cost/time
reduction should be