Answer to Question #99607 in Management for trushang

Question #99607
Sub: management theory and practice
Questiion:M/s Paper Write Corporation deals with the manufacturing and selling of paper bags.
The company has started this business looking at the opportunity that exists, after plastic
was banned by the government in some states. The company has never used any modern
day management practices and the business continues to function in the traditional way.
Mr. Ajay has been appointed as a Manager to handle the overall functioning of the
business. He notices few things in the company
a) One person reporting to three bosses
b) No specialized worker in the factory
c) Long hierarchy to get any approval
d) No following of rules and regulations
e) No designated place for inventory, tools, equipment’s, etc.
f) The team work among employees is missing.
Advise Mr. Ajay any five of Henry Fayol’s principles which can solve the problems
mentioned above. Explain the same with description.
Expert's answer

Henry Fayol’s principles of management application

During the early 1900s, Henri Fayol, a scientist studied management in practice and developed 14 principles of management which laid the foundations of modern scientific management. These principles aim at helping large organizations make rational decisions and other management actions. It also aims at informing managers on how to organize and interact with staff in a productive way.

Mr. Ajay can apply some of Henry Fayol’s principles to steer the starting company in an effective and efficient manner.

Division of work

The company’s operation is to manufacture and sell paper bags therefore it has employee who have specialized in different areas and have different skills. According to Henry Fayol, different levels of specialization should be distinguished by knowledge areas possessed by the employees from generalist to specialist. Mr. Ajay can guide the company in selecting best people for managerial and technical posts. This distinction would mean that employees are designated job functions that they are good at thus promoting efficient work flow and high productivity.

Authority and responsibility

According to Henry Fayol, establishing decision makers is important for the organization because it ensures things are done as desired. The company needs competent people in decision making positions to give orders to employees/subordinates. He further explains that authority comes with responsibility; that those who are appointed to lead must act responsibly and be accountable for the rest of the group in work operations. The success of this can be measured by the performance of the whole company.

Scalar Chain

Mr. Ajay should guide the company in establishing a hierarchy or chain of command. The chain of command shows the structure of the company relating to relationships and relative ranks of job positions i.e from senior management, middle management and lower levels. Henry Fayol states that there must be clearly defined line of authority from the top to the bottom at all levels. This would be important for Paper Write Corporation to eliminate long hierarchy for getting approvals and help the employees to understand whom they report to during work undertaking or in cases of emergencies.


Henry Fayol describes discipline as a key component of running the organization smoothly. Discipline is all about obedience. Mr. Ajay must ensure that discipline is maintained in the company by developing rules and regulations that must be followed by all people in the company. Employees are expected to have good conduct and respectful interactions with colleagues at the company.

Unity of direction

This management principle by Henry Fayol states that there must be unity and focus in the company to realize success of objectives. Mr. Ajay can promote this by clearly communicating the objectives of the company and encouraging employees to form teams within themselves to carry out tasks. There should be joint action planning and progress monitoring of these activities. Employees enjoy working together to achieve a common goal. They are able to get support from their colleagues whenever they need it and they also learn new knowledge and skills out of team interactions.

The principles of management provided by Henry Fayol can be used to manage Paper Write Corporation in an effective way and also help the company with tools for planning, coordination and control, forecasting and decision making.

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