Organization is employed to achieve the overall objectives of business firms. Organization focuses attention of individuals objectives towards overall objectives. Optimum use of resources. Work should be divided and right people should be given right jobs to reduce the wastage of resources in an organization.

Staffing

Benefits to the organisation that its proper application in the firm will ensure. Proper staffing ensures the following benefits to the organization- (i) helps in discovering and obtaining competent personnel for various jobs; (ii) makes for higher performance, by putting right person on the right job; (iii) ensures the continuous survival and growth of the enterprise through the succession planning for managers; (iv) helps to ensure optimum utilisation of the human resources. By avoiding overmanning, it prevents under-utilisation of personnel and high labour costs. At the same time it avoids disruption of work by indicating in advance the shortages of personnel; and (v) improves job satisfaction and morale of employees through objective assessment and fair rewarding of their contribution.

The fourteen principles of management created by Henri Fayol are explained below.

1. Division of Work-

Henri believed that segregating work in the workforce amongst the worker will enhance the quality of the product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy, and speed of the workers. This principle is appropriate for both the managerial as well as a technical work level.

2. Authority and Responsibility-

These are the two key aspects of management. Authority facilitates the management to work efficiently and responsibility makes them responsible for the work done under their guidance or leadership.

3. Discipline-

Without discipline, nothing can be accomplished. It is the core value for any project or any management. Good performance and sensible interrelation make the management job easy and comprehensive. Employees good behavior also helps them smoothly build and progress in their professional careers.

4. Unity of Command-

This means an employee should have only one boss and follow his command. If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion.

5. Unity of Direction-

Whoever is engaged in the same activity should have a unified goal. This means all the person working in a company should have one goal and motive which will make the work easier and achieve the set goal easily.

6. Subordination of Individual Interest-

This indicates a company should work unitedly towards the interest of a company rather than personal interest. Be subordinate to the purposes of an organization. This refers to the whole chain of command in a company.

7. Remuneration-

This plays an important role in motivating the workers of a company. Remuneration can be monetary or non-monetary, however, it should be according to an individual’s efforts they have made.

8. Centralization-

In any company, the management or any authority responsible for the decision-making process should be neutral. However, this depends on the size of an organization. Henri Fayol stressed on the point that there should be a balance between the hierarchy and division of power.

9. Scalar Chain-

Fayaol one the principles highlights that the hierarchy steps should be from top to the lowest. This is necessary so that every employee knows there immediate senior also they should be able to contact any if needed.

10. Order-

A company should maintain a well-defined work order to have a favorable work culture. The positive atmosphere in the workplace will boost more positive productivity.

11. Equity-

All the employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination.

12. Stability-

An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees.

13. Initiative-

The management should support and encourage the employees to take initiatives in an organization. It will help them to increase their interest and make then worth.

14. Esprit de Corps-

It is the responsibility of the management to regularly motivate their employees and be supportive of each other. Developing trust and mutual understanding will lead to a positive outcome and work environment.

 Strategy: Strategies refer to those plans which an organization prepares to face various situations, threats and opportunities. When the managers of an organization prepare a new strategy for the business it is called internal strategy and when some strategies are prepared to respond to the strategies of the competitors, then such strategies are called external strategies. Examples, selection of the medium of advertisement, selection of the channel of distribution etc.

Liquidation is the process of winding up of a firm by selling off companies inventory and its free assets to convert them into cash to pay firms unsecured creditors or anyone the company owes money to.Once all the assets are sold the business is shut down.

Communication through the scalar chain may involve delays when two subordinates or employees at the same level want to exchange ’ information. Thus, Fayol suggested the concept of ‘Gang Plank’ to avoid delays and allow direct communication between two subordinates at the same level. Gang Plank is useful as it helps in making direct contact in case of emergency. This idea of Fayol shows that his principles are flexible and can be modified as per the situation.

In the figure shown, F and G can directly communicate in case of urgency, as per the concept of Gang Plank, without following the formal lines of communication.