PRINCIPLES OF

MANAGEMENT

BY SANTHRA
12 B
EKYA ITPL
 STARBUCKS
 Starbucks Corporation is an American
coffee company and coffeehouse chain.
Starbucks was founded in Seattle,
Washington in 1971. As of November 2016,
it operates 23,768 locations worldwide.
 Starbucks is considered the main
representative of "second wave coffee",
initially distinguishing itself from other
coffee-serving venues in the US by taste,
quality, and customer experience while
popularizing darkly roasted coffee. Since the
2000s, third wave coffee makers have
targeted quality-minded coffee drinkers
with hand-made coffee based on lighter
roasts, while Starbucks nowadays uses
automated espresso machines for efficiency
and safety reasons.
 Starbucks locations serve hot and cold
drinks,- espresso, café latte, tea and fresh
juices. Many stores sell pre-packaged food
items.
 The present CEO is Kevin Johnson. He
assumed the role on April 3, 2017.
 HENRY FAYOL
 Henri Fayol (Istanbul, 29 July
1841 – Paris, 19 November 1925)
was a French mining engineer,
mining executive, author and
director of mines who developed
general theory of business
administration that is often called
Fayolism. He and his colleagues
developed this theory
independently of scientific
management but roughly
contemporaneously. Like his
contemporary, Frederick Winslow
Taylor, he is widely acknowledged
as a founder of modern
management methods.
 Fayol was born in 1841 in a suburb
of Istanbul. His father (an
engineer) was in the military at the
time and was appointed
superintendent of works to build
Galata Bridge, which bridged the
Golden Horn.
 DIVISION OF LABOUR
 In practice, employees are specialized
in different areas and they have
different skills. Different levels of
expertise can be distinguished within
the knowledge areas (from generalist
to specialist). Personal and
professional developments support
this.
 According to Henri Fayol
specialization promotes efficiency of
the workforce and increases
productivity. In addition, the
specialization of the workforce
increases their accuracy and speed.
 This management principle of the 14
principles of management is
applicable to both technical and
managerial activities.
 AUTHORITY &
RESPONSIBILITY
 In order to get things done in an
organization, management has the
authority to give orders to the
employees. Of course with this
authority comes responsibility.
According to Henri Fayol, the
accompanying power or authority
gives the management the right to
give orders to the subordinates.
 The responsibility can be traced
back from performance and it is
therefore necessary to make
agreements about this. In other
words, authority and responsibility
go together and they are two sides
of the same coin.
 DISCIPLINE
 Discipline is essential for any
successful work performance.
Fayol considers discipline to
mean obedience, respect for
authority and observance.
 Discipline can be established by
providing good supervision at
all levels, clearly explaining the
rules and implementing a
system of reward and
punishment.
 UNITY OF COMMAND
 The management principle ‘Unity
of command’ means that an
individual employee should receive
orders from one manager and that
the employee is answerable to that
manager.
 If tasks and related
responsibilities are given to the
employee by more than one
manager, this may lead to
confusion which may lead to
possible conflicts for employees. By
using this principle, the
responsibility for mistakes can be
established more easily.
 UNITY OF DIRECTION
 This management principle of
the 14 principles of management
is all about focus and unity. All
employees deliver the same
activities that can be linked to
the same objectives. All activities
must be carried out by one group
that forms a team.
 These activities must be
described in a plan of action. The
manager is ultimately
responsible for this plan and he
monitors the progress of the
defined and planned activities.
Focus areas are the efforts made
by the employees and
coordination.
 SUBORDINATION
 There are always all kinds of
interests in an organization.
In order to have an
organization function well,
Henri Fayol indicated that
personal interests are
subordinate to the interests of
the organization (ethics).
 The primary focus is on the
organizational objectives and
not on those of the individual.
This applies to all levels of the
entire organization, including
the managers.
 REMUNERATION OF
EMPLOYEES
 Motivation and productivity are
close to one another as far as the
smooth running of an
organization is concerned. This
management principle of the 14
principles of management argues
that the remuneration should be
sufficient to keep employees
motivated and productive.
 There are two types of
remuneration namely non-
monetary (a compliment, more
responsibilities, credits) and
monetary (compensation, bonus
or other financial compensation).
Ultimately, it is about rewarding
the efforts that have been made.
 CENTRALISATION
 Management and authority for
decision-making process must be
properly balanced in an
organization. This depends on
the volume and size of an
organization including its
hierarchy.
 Centralization implies the
concentration of decision making
authority at the top
management (executive board).
 Sharing of authorities for the
decision-making process with
lower levels (middle and lower
management), is referred to as
decentralization by Henri Fayol.
 Henri Fayol indicated that an
organization should strive for a
good balance in this.
 SCALAR CHAIN
 Hierarchy presents itself in any given
organization. This varies from senior
management (executive board) to the
lowest levels in the organization.
 Henri Fayol ’s “hierarchy”
management principle states that
there should be a clear line in the area
of authority (from top to bottom and all
managers at all levels).
 This can be seen as a type of
management structure. Each employee
can contact a manager or a superior in
an emergency situation without
challenging the hierarchy.
 Especially, when it concerns reports
about calamities to the immediate
managers/superiors.
 ORDER
 According to the principle of
order, a right person should be
placed at the right job and a
right thing should be placed at
the right place.
 Every enterprise should have
two different orders- material
order for physical resources
and social order for human
resources.
 consequently, all the available
resources in the organization
will be utilized properly.
 EQUITY
 The management principle of
equity often occurs in the core
values of an organization.
According to Henri Fayol,
employees must be treated
kindly and equally.
 Employees must be in the
right place in the organization
to do things right. Managers
should supervise and monitor
this process and they should
treat employees fairly and
impartially.
 STABILITY OF
PERSONNEL
 This management principle of the
14 principles of management
represents deployment and
managing of personnel and this
should be in balance with the
service that is provided from the
organization.
 Management strives to minimize
employee turnover and to have the
right staff in the right place. Focus
areas such as frequent change of
position and sufficient
development must be managed
well.
 INITIATIVE
 Henri Fayol argued that with
this management principle
employees should be allowed to
express new ideas. This
encourages interest and
involvement and creates added
value for the company.
 Employee initiatives are a
source of strength for the
organization according to Henri
Fayol. This encourages the
employees to be involved and
interested.
 ESPIRIT DE CORPS
 The management principle
‘esprit de corps’ of the 14
principles of management stands
for striving for the involvement
and unity of the employees.
 Managers are responsible for the
development of morale in the
workplace; individually and in
the area of communication.
 Esprit de corps contributes to
the development of the culture
and creates an atmosphere of
mutual trust and understanding.
 CONCLUSION
 The 14 principles of management
can be used to manage
organizations and are useful tools
for forecasting, planning, process
management, organization
management, decision-making,
coordination and control.
 Although they are obvious, many
of these matters are still used
based on common sense in current
management practices in
organizations.
 It remains a practical list with
focus areas that are based on
Henri Fayol ’s research which still
applies today due to a number of
logical principles.