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nashmia khan
Student (MBA), Pakistan
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Are Fayol's Principles of Management also applicable to non-profit organizations?
Fayol's principles of management were written having industrial (mining) firms in mind. Obviously these are for profit companies.
Are the 14 principles also applicable to non-profit organizations? Which principles would have to be changed should we want to apply them to not for profit organizations?
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John Troughton
Sustainable Business Management, Australia
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The Real Principles of Management Management concepts should be universal as it is primarily system to manage human behaviour. Hence it should apply to all institutions. Once neurophysiology figures out how the brain works, we understand human networks and integrate these with the cyberbrain a new conceptual model will arise. Fayol's principles will still be pretty good.
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biresh chaubey
Manager, India
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Henry Fayol's Principles are Applicable to Non-profit Organisations Too! Yes there is no doubt about it. I have been so much attracted by it that I always carry them along with me I have codified them as: "dadu ussr coi pee" this has been codified by taking the first letter of each principle, starting with "division of work" also called specialisation of labour. Its very relevant for even non profit organisations.
The only principle where money is involved is remuneration, which means 'compensation' and nowhere Fayol talked about profit. The 14 principles are the heart and soul for the very existence of every successful organisation, be it profit-making or non-profit-making.
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nashmia khan
Student (MBA), Pakistan
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Difference is Only the Mission of an Organization @Biresh Chaubey: I like that code. Have you coined it?
And can we say that the only difference between both types of organization is just the mission i.e. profit making for one and social welfare for the other?
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Muhammad Shafi
Analyst, Pakistan
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Henry Fayol's Principles are Applicable to Any Organization The emphasis is on value and utilization of humans and structure of an organization... Therefore I agree the principles can be applied and customised for any organization...
Even to an informal setup of people working in any environment...
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Vivek Hattangadi
Management Consultant, India
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Fayol's Principles of Management are Applicable for Non-profit organizations Fayol's principles are still valid even after 100 years of existence.
It holds good for both commercial and non-profit organizations
It can be used to improve the basic effectiveness of the a manager, especially his decision-making skills and capabilities.
It encourages the use of rewards based on performance and merit, thus preempting disturbance in harmony.
Peter Drucker also has similar views.
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nashmia khan
Student (MBA), Pakistan
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Appliction of Fayol's Principles to Non-profit Organizations Is there any principle of management among the 14 that does NOT necessarily needs to be applied in the non profit organization?
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Justin Mwangi, Kenya
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Fayol's Principles are Universal for any Organizations I believe all the 14 principles apply to any organization, therefore they are universal. I don't think there is need for any change.
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biresh chaubey
Manager, India
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DADU USSR COI PEE - Remembering the 14 Principles by Henry Fayol @Nashmia Khan: yes Nashmia, I have coined it for better long lasting remembrance by myself as well as for teaching to students.
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Dr Muhammad Nadeem Anwar, Pakistan
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Applicability of Fayol Principles at Public Colleges and Schools Yes, the 14 principles are applicable to non-profit organizations as well. Just consider the example of government schools/colleges. These are entirely non-profit organizations, but you can observe the 14 principles are applying for effective functioning.
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nashmia khan
Student (MBA), Pakistan
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How can Division of Work Be Applied to a Non-profit Organization? @Dr Muhammad Nadeem Anwar: OK, let's take an example of the first principle: "Division of work that leads to specialization". It seems to be more applicable to the manufacturing sector, so how it can be applied to a non-profit making organization?
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Sabvukutwa
Manager, Zimbabwe
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Application of Fayol in Business and Public Administration Fayol forms the framework of general management. His principles are applicable to any organisation regardless of the organization's mission. Profit or no profit.
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