In 1916, there were many large businesses and factories in existence.

However, there weren’t many formal management models in existence.

This meant that unlike today, managers had nowhere to turn to develop
their management skills. It is for this reason that Fayol is often considered
one of the founding fathers of management theory.
1) Division of Work:
ADVERTISEMENTS:

This principle of Fayol tells us that as far as possible the whole work
should be divided into different parts and each individual should be
assigned only one part of the work according to his ability and taste
rather than giving the whole work to one person.

When a particular individual performs the same job repeatedly, he

will become an expert in doing that particular part of the whole job.
Consequently, the benefits of specialisation will become available.

For example, a furniture manufacturer gets an order for

manufacturing 100 lecture stands. He has five workers who will do
the job. There are two ways to complete this order. First, every
worker should be asked to complete 20 lecture stands.

The second method can be distributing different parts of the lecture

stand-legs, top board, centre support, assembling and polishing-to
all the five workers in a manner that only one worker does the same
job for all the 100 lecture stands. Here, Fayol’s indication is to the
second way to do this job and not the former one.

ADVERTISEMENTS:

The principle of division of labour applies not only to the workers

but also equally to the managers. For example, if a manager is tuned
to work on the same kind of activities for a long period of time, he
will certainly be an expert in his particular job. Consequently, more
and beneficial decisions can be taken in a comparatively less time by
him.

Positive Effect advantages of specialisation are obtained, such as

increase in the quality of work, increase in the speed of production,
decrease in the wastage of resources.

Violating Effect the above-mentioned positive effects of

specialisation will not be available.

(2) Authority and Responsibility:

ADVERTISEMENTS:

According to this principle, authority and responsibility should go

hand in hand. It means that when a particular individual is given a
particular work and he is made responsible for the results, this can
be possible only when he is given sufficient authority to discharge
his responsibility.

It is not proper to make a person responsible for any work in the

absence of authority. In the words of Fayol, “The result of authority
is responsibility. It is the natural result of authority and essentially
another aspect of authority and whenever authority is used,
responsibility are automatically born.”

For example, the CEO of a company has doubled the sales target of
the sales manager for the coming year. To achieve this target,
authority for appointing necessary sales representatives, advertising
according to the need, etc. shall have to be allowed. In case these
things are not allowed the sales manager cannot be held responsible
for not

(3) Discipline:
ADVERTISEMENTS:

Discipline is essential for any successful work performance. Fayol

considers discipline to mean obedience, respect for authority, and
observance of established rules.

Discipline can be established by providing good supervision at all

levels, clearly explaining the rules, and implementing a system of
reward and punishment. A manager can present a good example to
his subordinates by disciplining himself.

For example, if the employees break their promise of working up to

their full capacity, it will amount to the violation of obedience.
Similarly a sales manager has the authority to do business on credit.

But in case he allows this facility not to the general customers but
only to his relatives and friends, then it will amount to ignoring his
respect to his authority. (Note: Both these examples give a message
of indiscipline which is an undesirable situation.)

(4) Unity of Command:

According to the principle of unity of command, an individual
employee should receive orders from only one superior at a time
and that employee should be answerable only to that superior. If
there are many superiors giving orders to the same employee, he
will not be able to decide as to which order is to be given priority.
He thus finds himself in a confused situation.
Such a situation adversely affects the efficiency of the subordinates.
On the other hand, when there are many superiors, every superior
would like his orders to be given priority. This ego problem creates
a possibility of clash. Consequently, their own efficiency is likely to
be affected.

(5) Unity of Direction:

Unity of direction means that there should be one head for one plan
for a group of activities having the same objective. In other words,
there should be one plan of action for a group of activities having
the same objective and there should be one manager to control
them.

For example, suppose an automobile company is manufacturing

two products, namely, scooters and cars, hence having two
divisions.

As each product has its own markets and problems therefore each
division must have its own targets. Now each division must plan its
target as per its environmental conditions to get better results. It is
necessary to distinguish between the meaning of the unity of
command and the unity of direction.

Unity of command means that there should be only one manager at

a time to give command to an employee, while the unity of direction
means that there should be only one manager exercising control
over all the activities having the same objective.

Unity of Command & Unity of Direction

I5n this connection Fayol feels that for the efficient running of an
organisation the unity of direction is important, while the unity of
command is important to enhance the efficiency of the employees.

ADVERTISEMENTS:

(6) Subordination of Individual Interest to General

Interest:
This principle can be named ‘Priority to General Interest over
Individual Interest.’ According to this principle, the general interest
or the interest of the organisation is above everything. If one is
asked to place individual interest and the general interest in order
of priority, definitely the general interest will be placed at the first
place.

For example, if a manager takes some decision which harms him

personally but results in a great profit to the company, he should
certainly give priority to the interest of the company and take the
decision accordingly. On the contrary, if some decision helps the
manager personally but results in a great loss to the company, then
such a decision should never be taken.

For example, a purchase manager of a company has to purchase 100

tonnes of raw material. His son happens to be a supplier along with
other suppliers in the market. The manager purchases the raw
material from the firm of his son at a rate higher than the market
rate. This will profit the manager personally, but the company will
incur heavy loss. This situation is undesirable.

ZADVERTISEMENTS:
(7) Remuneration to Employees:
Fayol is of the opinion that the employees should get a fair
remuneration so that the employees and the owners find equal
amount of satisfaction. It is the duty of the manager to ensure that
employees are being paid remuneration according to their work. If,
however, they are not paid properly for their work, they will not do
their work with perfect dedication, honesty and capacity.

As a result, the organisation shall have to face failure. Proper

remuneration depends on some factors like the cost of living,
demand of labour and their ability. Fayol feels that in order to
motivate the employees, apart from general remuneration, they
should be given some monetary and non-monetary incentives.

For example, suppose that the things are getting dearer and dearer
and the company is getting good profits. In such a situation, the
remuneration of the employees should be increased even without
their asking. If this is not done, the employees will leave the
company at the first opportunity. Expenses shall have to be incurred
on new recruitment which shall bring loss to the company.

(8) Centralisation and Decentralisation:

According to this principle, the superiors should adopt effective
centralisation instead of complete centralisation and complete
decentralisation. By effective centralisation, Fayol does not mean
that authority should be completely centralised.

He feels that the superiors should keep the authority of taking

important decisions in their own hands, while the authority to take
daily decisions and decisions of less importance should be delegated
to the subordinates.

The ratio of centralisation and decentralisation can differ in

different situations. For example, it is advantageous to have more
centralisation in a small business unit and more decentralisation in
a big business unit.

For example, the decisions in respect of determining the objectives

and policies, expansion of business, etc. should remain in the hands
of the superiors. On the other hand, authority for the purchase of
raw material, granting leave to the employees, etc. should be
delegated to the subordinates.

Positive Effect
(i) Decrease in the workload of superiors

(ii) Better and quick decisions

(iii) Increase in the encouragement to the subordinates

Violating Effect
(i) Unnecessary increase in the workload of the superiors in case of
centralisation and of the subordinates in case of decentralisation

(ii) Impatient and wrong decisions by the superiors in case of

complete centralisation and weak decisions by the subordinates in
case of complete decentralisation

(iii) Decline in the encouragement to subordinates in case of

complete centralisation
(9) Scalar Chain:
(i) Meaning of Scalar Chain:
It refers to a formal line of authority which moves from highest to
the lowest ranks in a straight line,

(ii) Fayol’s Opinion:

This chain must be followed in a strict manner. It means each
communication must move from top to bottom and vice versa in a
straight line. The important condition here is that no step (post)
should be overlooked during communication.

(iii) Fayol’s Ladder:

Fayol has explained this principle with the help of a ladder.

For example, in a company the employee ‘F’ wants to have contact

with the employee ‘P’. According to the principle of scalar chain ‘F’
shall have to reach ‘A’ through the medium of E,D,C,B and then
having contact with L,M,N,0 shall reach ‘P’. Thus ‘F’ shall have to
take the help of all the nine steps (posts) to have business contact
with ‘P’.

(iv) Utility:
Due to more clear system of authority and communication,
problems can be solved faster.

(v) Gang Plank:

It is the exception of the principle of scalar chain. This concept was
developed to establish a direct contact with the employee of equal
rank in case of emergency to avoid delay in communication.
For example, as shown in the diagram employee ‘F’ can have direct
contact with employee ‘P’. But for doing so employees ‘F’ and ‘P’
shall have to seek the prior permission of their immediate bosses ‘E’
and ‘O’. The details of their talk also shall have to be given to them.

(10) 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.
According to Fayol, every enterprise should have two different
orders-Material Order for Physical Resources and Social Order for
Human Resources.

Keeping the physical resources in order means that ‘a proper place

for everything and everything in its right place’. Similarly, keeping
the human resources in order means ‘a place for everyone and
everyone in his appointed place’.

Maintaining these two orders properly will ensure that everybody

knows his workplace, what he is to do and from where he would get
his required material. Consequently, all the available resources in
the organisation will be utilised properly.

Gang Plank: A Special Note

Gang Plank can only be established with the employees of the equal
or same level. For example, in the present example no gang plank
can be established between F and O.

For example, an employee working in a factory should know the

place or source from where he can get his tools in case of need.
Similarly, he should know the place where his supervisor will be
available in case of any need.
It is, however, important to note that it is not sufficient to have an
allotted place for a toolbox and for the supervisor but the
availability of both at their decided place is absolutely important. If
this is not the case, it can lead to a heavy loss as a result of damage
to the machines.

(11) Equity:
This principle tells that the managers should treat their
subordinates in a just and kind manner so that they develop a
feeling of dedication and attachment for their work. All the
employees should be treated equally and impartially.

Fayol tells us in connection with this principle that there should not
be any equality of treatment between a person whose work is really
good and a person who is a shirker by nature.

Rather, the latter should be treated sternly. Doing so would be

equitable. It is because of this point of view that Taylor has
presented his differential remuneration method.

(12) Stability of Personnel:

From the point of view of management it is absolutely harmful to
change the employees frequently as it is a reflection of inefficient
management. Therefore, according to this principle there should be
stability of tenure of the employees so that the work continues
efficiently.

Fayol thinks that instability in the tenure of employees is a cause of

poor management and results. High rate of labour turnover will
result in increased expenses because of selecting them time and
again, and giving them training afresh.
It also lowers the prestige of the organisation and creates a feeling
of insecurity among the employees which keeps them busy in
finding out new avenues of work. Consequently, the sense of
dedication cannot be created among them.

For example, it is true that if the workers in a company are not

treated well and the atmosphere in the company is also unhealthy,
the employees will not stay for a long time. In other words, they will
leave the company at the first opportunity available. This situation
is absolutely harmful.

For example, a labourer completes 10 units of goods in a day.

Another labourer who happens to be a relative of the supervisor
completes 8 units but both get equal remuneration. This violates the
principles of equality. The second labourer should get less
remuneration than the first one.

(13) Initiative:
Initiative means the capacity to work while expressing one’s
thoughts. According to Fayol, it is the duty of the manager to
encourage the feeling of initiative among his employees for doing
some work or taking some decision but within the limits of
authority and discipline.

It will be possible only when the manager will welcome the thoughts
of his/her subordinates. By doing so the subordinates will present
new and useful ideas time and again and gradually they will become
an integral part of the organisation. In order to make this process a
success a manager will have to abandon his false sense of prestige.
For example, a salesman suggests to his sales manager to
implement a new advertisement technique. The sales manager
sends him away by telling him that it is not possible and ignores the
suggestion altogether.

In such a situation the salesman, who has been admonished and

belittled, will never venture to offer any suggestion in future
because his desire of taking initiative has been suppressed.

On the contrary, if his suggestion had been listened to carefully

(even though not to be implemented) he could have taken the
courage to offer some suggestion in future. Such an action would
simply have encouraged his initiative.

Positive Effect
(i) Increase in the thinking power of the employees

(ii) Cooperation of the employees in implementing decisions

(iii) Increase in the sense of attachment to the organisation

Violating Effect

(iv) Decline in the thinking power of the employees

(v) An atmosphere of non-cooperation

(vi) Decline in the employees’ attachment to the company

(14) Esprit de corps:

As per this principle, a manager should continuously make efforts
to develop a team spirit among the subordinates. To do this, he/she
should use the word ‘We’ instead of” during the conversation with
subordinates.

Principles of management propounded by Henri Fayol are: 1.

Division of Work 2. Authority and Responsibility 3. Discipline 4.
Unity of Command 5. Unity of Direction 6. Subordination of
Individual Interest to General Interest 7.Remuneration of
Employees 8. Centralisation and Decentralisation 9. Scalar Chain
10. Order 11. Equity 12. Stability of Personnel 13. Initiative 14.
Espirit de Corps!

1. Division of Work:
The entire work is divided into small tasks/jobs and each task/job is
performed by a trained specialist.

According to Fayol, “The intent of division of work is to produce

more and better work from the same effort. Specialisation is the
most efficient way to use human effort.”

ADVERTISEMENTS:

According to this principle, work can be performed more efficiently

if it is divided in different tasks and each task is then performed by a
specialist or trained worker. It is on the basis of this principle that
one can find separate departments for finance, production,
marketing, human resource etc. in an organisation.

The whole process of any work should be subdivided so that each

subdivided part can be performed efficiently and accurately.
Division or sharing of work makes people specialists in their
respective functions. This principle is very helpful for any
organization, be it private, public or government organisation. It
enhances overall performance of an organisation because specialists
perform consistently well as compared to generalists.

For example, Peter England, a famous brand name among quality

shirts has divided its work among various groups. One group is
responsible for making collars, other is engaged in stitching
buttons, yet another is engaged in packing activities etc.
ADVERTISEMENTS:

Advantages of Principle of Division of Work:

(a) It ensures specialisation in the organisation.

(b) It increases efficiency of employees.

(c) It results in increase in output.

ADVERTISEMENTS:

(d) It reduces workload

2. Authority and Responsibility:

According to Fayol. “Authority is the right to give orders and obtain
obedience and responsibility is the corollary of authority.”

Authority means power to take decisions and responsibility means

obligation to carry out an assigned job. According to Fayol, there
should be a balance between authority and responsibility e.g. if any
employee has been assigned any responsibility, he must be given
sufficient authority to do his job efficiently and vice-versa. Granting
authority without giving responsibility will create chances of misuse
of power whereas assigning responsibility without providing
authority will not enable employees to perform their duty properly.
According to Fayol, “The result of authority is responsibility. It is
the natural result of authority & essentially another aspect of
authority & whenever authority is used, responsibility is
automatically born”.

The positive effects of the principle of parity of authority and

responsibility are as under:

ADVERTISEMENTS:

(i) Builds safeguards against abuse of managerial power.

(ii) Misuse of authority is minimized.

For example, Mr. Abdul Aziz, who is working as sales manager, has
to settle a deal with a buyer. He finds out that if he offers a credit
period of 30 days he is likely to settle the deal which will bring a net
profit of Rs.55 crores to the company. Suppose the company gives
power to Mr. Aziz to offer a credit period of only 20 days, he may
not be able to settle the deal. Thus obviously, be the manager should
granted authority to offer credit period of 30 days which would be
in the best interest of the company.

3. Discipline:
Discipline means obedience to organizational rules and
employment agreement that are necessary for functioning of any
organisation. According to Fayol, discipline requires:

ADVERTISEMENTS:

(i) Good supervision at all the levels of management.

(ii) Clear and fair agreement

(iii) Application of penalties judiciously.

In any organisation, many people with diverse profiles aim for

achieving common organisational goals. All these people have to
function as a cohesive team as per organisational discipline. They all
should honour and follow a common system and code of conduct
viz. reporting time, leave rules, overtime allowances, bonus etc.
Discipline is necessary for the smooth functioning of the
organisation.

ADVERTISEMENTS:

For example, an agreement has been entered by the management

and the labour union whereby the workers have agreed to work an
hour extra without additional wages to take out the company from
losses and in return the management has promised to increase
wages of the worker when the mission is completed. Here, discipline
would mean that both workers and the management will fulfill their
commitment without any prejudice towards each other.

Discipline is a double-edged tool. On the one hand it enforces

orderliness and on the other hand, it motivates them. Personnel
entrusted with implementing it are expected to be competent and
capable of achieving this balance. Employees must honour the
commitment made by them and management must meet its
promises viz. increase in wages, declaration of bonus etc. To achieve
proper discipline, skilled superiors at all levels, clear and fair
agreements and judicious application of penalties etc. are required.

4. Unity of Command:
According to this principle an individual employee should have only
one superior from whom he should receive orders and to whom he
should be responsible. If an employee receives orders from more
than one person at a time it creates confusion and conflict. Thus
principle of unity of command avoids confusion and leaves no
option for conflict on the part of employees.

For example, Mr. Abdul (Sales Executive), gets instructions from

Mr. Parminder (Sales Manager) to sell more to reach targetted
sales. At the same time, Mr. Abdul receives orders from Mr. John
(Production Manager) to go slow in selling due to shortage of raw
materials. In this case, conflict occurs in Mr. Abdul’s mind as to
whose instructions he should follow.

ADVERTISEMENTS:

Advantages of following this principle:

(i) It helps in preventing the conflict regarding tasks to be done.

(ii) Harmonious relations between superior and subordinates.

(iii) Improves efficiency.

(iv) It helps in fixations of responsibility.

Disadvantages of violating this principle:

(i) Authority is undermined.

(ii) Lack of discipline in the organisation.

(iii) It will result in disturbance and lack of stability.

5. Unity of Direction:
According to this principle, activities having the common goal must
have one head and one plan. This helps in bringing unity of action
and coordination in an organisation. For example, if a company is
manufacturing two different products, it should have two separate
divisions or departments for both the products. Each division or
department should have their separate incharge, plans and
resources.

Advantages of following the principle of Unity of

Direction:
(i) It helps in preventing overlapping of activities.

(ii) It ensures unity of action and focused efforts.

(iii) It promotes coordination.

6. Subordination of Individual Interest to General

Interest:
According to Fayol, organisational interest should be given more
priority as compared to individual interest of an employee. An
organisation has its own objective while an individual worker has
his own individual interest for working in a company. The interests
of the group must supersede that of the individual. For the
attainment of common goals of an organisation, employees are
required to give up carelessness, selfishness, lethargy and their
personal interests. They all should focus their efforts on the
achievement of common goals.

The positive effects of the principle are as follows:

(i) Ensures coordination between individual and organizational
goals.

(ii) Helps in achievement of organizational goals.

(iii) No ego clashes as it gives credit for success of group efforts.

7.Remuneration of Employees:
According to this principle, the remuneration payable to the
employees should be fair to both employees and the employer. The
employees should get fair wages which ensure at least a reasonable
standard of living.

On the other hand, it should also be within the paying capacity of

the business. In short, overall pay and compensation payable to
workers should be fair and equitable. This ensures congenial
atmosphere between the management and workers. In a healthy
atmosphere, satisfied workers put in their best efforts to contribute
their maximum.

Advantages of following the principle of remuneration of

employees:
(i) This ensures healthy atmosphere and good relations between the
employees and the management.

(ii) It ensures smooth functioning of the organisation.

(iii) It motivates employees to contribute their maximum.

8. Centralisation and Decentralisation:

Centralisation is the process of the concentration of power of
decision making with one person while decentralisation means
dispersal of power of decision making among more than one
person. The degree of centralisation or decentralisation depends on
how large a company is. Generally, large organisations are more
decentralised as compared to others. The panchayat system in our
country is a very good example of decentralisation at the national
level.

According to Fayol, “There is a need to balance subordinate

involvement through decentralization with managers’ retention of
final authority through centralisation”. A company must be properly
balanced i.e. it should neither be completely centralized nor
decentralized. Hence, depending upon the profile of the
organization there must be some element of centralization &
decentralization in every organisation.

9. Scalar Chain:
According to Fayol, “Organisations should have a chain of authority
and communication that runs from top to bottom and should be
followed by managers and the subordinates.”

Thus, Scalar chain refers to the formal lines of authority from

highest rank to the lowest rank. The principle of scalar chain
suggests that there should be a clear line of authority from top to
bottom, linking superiors and subordinates at all levels. The scalar
chain serves as a chain of command as well as communication. In
normal circumstances, the formal communication is required to be
made by following this chain.

For example, in an organisation a worker normally cannot directly

communicate with the CEO. He has to follow the formal levels i.e.
Foreman, Superintendent, Manager, Director etc.

In the given figure the head ‘O’ has two lines of authority under him.
One line consists of A-B-C-D-E and another consists of P-Q-R-S-T.
Now suppose if D has to communicate with ‘S’ who is also at the
same level as D then he has to follow the route D-C-B-A-O-P-Q-R-S
according to the principle of Scalar Chain.

Fayol suggested that in normal course of action this chain should be

strictly followed. However, in case of emergency D can directly
communicate with S through Gang Plank. Gang plank is a shorter
route in a scalar chain which allows employees at the same level to
communicate with each other directly. It should be ensured that
gang plank does not become a normal practice.
It should be used only in case of emergency, to prevent any likely
distortion of message and to facilitate expeditious coordination.

10. Order:
According to this principle, in an organisation there should be a
suitable place for everything and everyone, and everything and
everyone should be at its right place. In other words, we can say that
there must be orderliness in the organisation.

According to Fayol, “People and material must be in suitable places

at appropriate time for maximum efficiency”. The principle of Order
is concerned with proper arrangement of things and placement of
people.

The Order can be of following types:

(i) Material Order:
Arrangement of things is called material order. It ensures proper
and fixed place for various materials, tools and equipments.

(ii) Social Order:

Arrangement of people is referred to as social order. It ensures
proper and fixed place or seat/cabin etc. for each employee in an
organization.

Advantages of following this principle:

(t) It results in increase in productivity and efficiency.

(ii) An organisation will function smoothly without any hindrance.

(iii) Minimization of wastage of time/cost in search of men and/or

material.

11. Equity:
According to Fayol, “Good sense and experience are needed to
ensure fairness to all employees, who should be treated as fairly as
possible”. This principle states that managers should be kind and
fair towards their workers. All workers should be treated alike and
there should be no discrimination on the basis of sex, religion,
caste, belief etc. All the employees should be treated equally &
impartially.
For example, in a multinational corporation, people of various
nations work together in an environment which is free from any
kind of discrimination. Equal opportunities for growth and
development are available to each employee.

Employees seek to become loyal and devoted if such treatment is

given. Subordinates performing similar jobs, like two clerks, should
be paid the same wage rate. Similarly, if two employees are
latecomers, same treatment should be given to both defaulters.
However, Equity does not mean that in an organization equal salary
should be fixed for all types of works, instead it obviously has to be
based on work profile.

The positive effects of principle are as follows:

(i) Satisfaction of employees leads to boosting up of their morale.

(ii) Development of cordial and harmonious relations among

superiors and subordinates.

12. Stability of Personnel:

According to Fayol, “Employee Turnover should be minimized to
maintain organisational efficiency”. In an organisation the
employees should be selected and appointed after following a due
and rigorous procedure. Once they are appointed they should be
kept at their positions for a minimum fixed period.

According to this principle, worker should have stability of tenure

and should be given sufficient time to show their performance.
Moreover, frequent transfers or rotations should also be avoided. If
an employee receives transfer order by the time he learns and gets
settled in a job it will be leading to wastage of resources and he will
not be able to contribute his best to the organisation.

Advantages of following this principle:

(i) Rate of labour turnover will be slow.

(ii) Cost of recruitment, selection and training can be minimised.

(iii)It helps in maintaining organisational efficiency.

13. Initiative:
According to Fayol, “Workers should be encouraged to develop and
carry out their plans for improvement”. Initiative refers to the first
step taken by the employees towards their self motivation. This
principle states that employees at all levels should be given freedom
to some extent so that they can come forward and use their skills to
achieve expected goals.

It is worth mentioning that while applying the principle of initiative,

the established practices of the enterprise should not be bypassed.
For creating a healthy environment, employees’ suggestion system
should be developed whereby initiatives or suggestions from the
employees are invited. Some of those may certainly result in
substantial reduction in cost and time.

Advantages of following this principle:

(i) It develops sense of belongingness in employees.

(ii) Employees get satisfaction.

14. Espirit de Corps:

According to Fayol, “Management should promote a team spirit of
unity and harmony among employees.” In order to achieve
organisational objectives, management should promote team work
and coordination. The feeling of ‘I’ should be replaced with ‘We’ in
the managers while having a conversation with the workers.

Espirit de corps refers to team spirit i.e. harmony in work group and
mutual understanding among workers. It helps to develop an
atmosphere of mutual trust and understanding. It also concentrates
on the famous saying viz ‘union is strength’.

In case of sports, all team members and in case of armed forces, all
personnel play/work for their respective teams. They should not
have a thinking that if they win, it is the Captain/Commander alone
who will be rewarded. They must work for the team. Similar feeling
should be developed among all members of the organization, so that
the desired goals of the organization can be achieved with greater
effectiveness and efficiency.
Positive effects of ‘espirit de corps’ are as follows:
(i) Develops coordination, mutual trust and belongingness among
the employees.

(ii) Team spirit helps to achieve group goals with greater

effectiveness and efficiency