Question

Explain the following principles of management :

(i) Authority and Responsibility

(ii) Initiative

(iii) Subordination of individual interest to common good

Hint:

Define each principle of Fayol and add its use: authority equal to responsibility, freedom to take initiative, and common good before personal interest.

Answer 1

Step 1: Authority and Responsibility:
Authority is the right to give orders and to get them obeyed. Responsibility is the duty to complete the work assigned.
Both go together. Authority should match responsibility, because a manager cannot be held answerable without the power to act.
Too much authority leads to misuse, and too little makes the work impossible. A balance is needed.

Step 2: Initiative:
Initiative means thinking out a plan and carrying it out on his own, even when a mistake may happen.
Managers should encourage workers to take initiative by giving them suitable rewards, whether in money or in status.
It makes the employees more enthusiastic and committed, and it gives the organisation new ideas.

Step 3: Subordination of individual interest to common good:
The interest of the organisation as a whole is above the personal interest of any one person.
When the two clash, the manager must reconcile them with firmness, fair agreements and constant supervision, so that the organisational goal is not harmed.
This protects the organisation from conflict and helps it to move toward a common goal.

Final Answer:
Authority must match responsibility, initiative should be encouraged, and the common good comes before personal interest.