Henri Fayol was a renowned scientist. In his book General and Industrial Management (1916), he presented 14 Principles of Management that form the foundations of successful management.
In this lesson, we will briefly discuss each of these 14 principles of management by Henri Fayol.
These 14 Principles of Management are as follows:
1. Division of work – This states that the whole work is divided into small tasks. As per the skills of a person, specific personal and professional development training is done within the labor force which results in the specialization of the workforce. This increases the productivity and efficiency of labor.
2. Authority and responsibility – Authority means the right of a superior to give order to the subordinates; responsibility means an obligation for performance.
3. Discipline – Nothing good was ever achieved without discipline. Discipline is obedience, proper conduct in relation to others, respect of authority, etc. Discipline is necessary for the smooth functioning of all organizations.
4. Unity of command – It states that each subordinate should receive orders and be accountable to one and only one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict.
5. Unity of direction – All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one manager.
6. Subordination of individual interest to mutual interest – The management must put aside personal considerations and put company objectives first. Therefore, the interests of the goals of the organization must prevail over the personal interests of individuals.
7. Remuneration – This acts as a motivational force that keeps the employees fueled to perform the duties well. The method and amount of remuneration payable should be fair, reasonable, and rewarding to the effort. Remuneration could be monetary or non-monetary. In the end, employees must feel that they are appropriately rewarded for their efforts.
8. Degree of centralization – The amount of power wielded with central management depends on company size. Centralization implies the concentration of decision-making authority at the top management.
9. Line of authority/Scalar chain – This refers to the chain of superiors ranging from top management to the lowest rank. The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels.
10. Order – Social order ensures the fluid operation of a company through an authoritative procedure. Material order ensures safety and efficiency in the workplace. The order should be acceptable and under the rules of the company.
11. Equity – Employees should be treated with equality and respect. The manager must be fair and impartial when dealing with employees, giving equal attention to all employees. The manager must ensure that there is no discrimination of any kind happening in the workplace.
12. Stability of tenure of personnel – Stability of tenure of personnel is a principle stating that in order for an organization to run smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization.
13. Initiative – Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for the organization because it provides new and better ideas. Employees are likely to take a greater interest in the functioning of the organization.
14. Esprit de Corps/Team spirit – The management must ensure that the team remains constantly motivated and are cooperative with each other. It is very important to develop mutual trust among employees as it leads to a positive work environment.
