Henri Fayol (1841-1925), a French Industrialist offered 14 principles of management for the first time in 1916. His fourteen principles of management serve as a guide in helping managers to manage their organizations. The principles propounded by Fayol can be represented by an acronym called “DAD SEE U USSR CIO”
- Division of Labour: This principle states that there must be job specialization so as to enhance work performance and productivity.
- Authority and Responsibility: According to Fayol if an authority is given to a person, he or she must be made responsible for that duty i.e. employee authority must be in-line with their responsibility.
- Discipline: This implies that every employee must obey orders.
- Scalar Chain: This principle states that there must be a clear line of formal authority and communication from the top hierarchy to the bottom level of the organization.
- Equity: This implies that there must be kindness, fairness, and justice in the treatment of employees if management wants their loyalty and commitments towards given job.
- Espirit de corps: This principle emphasizes that team spirit and cooperation should be encouraged in order to bring about harmony and unity within the organization.
- Unity of Command: This principle obliged all employees to receive orders and be made accountable to one superior at a time so that conflict can be avoided.
- Unity of Direction: This implies that all employees must be geared towards the same direction so as to achieve the common goals of the organization.
- Stability of Tenure: This principle states that the employee period on a given job must be stable and he or she must not be moved or transfer without clearing notification for doing so.
- Subordination of Individual to General Interest: This principle states that the interest of one person should not overshadow the interest of the organization as a whole.
- Remuneration: This means that employees are entitled to fixed wages and salaries and they must be well motivated to ensure higher productivity, thereby boosting organizational profitability.
- Centralization: This implies that all major decisions are concentrated in the hand of one single superior, while decentralization means allowing the subordinates to partake in the decision relating to their respective departments. The degree in which centralization should be adopted depends upon the nature of the organization that the manager is working.
- Initiative: Management should encourage workers to use their initiative and creativity on the given job even though it may lead to wastage or loss on the part of the organization.
- Order: There should be an orderly arrangement of people and materials in the right place, at the right time, doing the right job, in which they are best suited.
14 PRINCIPLES OF MANAGEMENT.
Henri Fayol is claimed to be the real father of modern management. He was a Frenchman born in 1841 and was working as an engineer with a mining company. He improved the condition of the company from virtual bankruptcy to high success. From his practical experience, he developed some techniques. He brought out some 14 basic management principles, which he felt, could be used in all management situations, irrespective of the organizational framework.
He wrote a book entitled, General and Industrial Management, in French that was later on translated into English. It is now considered as one of the classics of management literature. The book mainly covers the aspects of the immutable and repetitive character of the management process and the concept that management can be taught in the classroom or the workplace. He also laid down the principles of management, which he deemed important for any organization.
Contents
- Henri Fayol’s 14 Principles of Management
- 1. Division of Work
- 2. Authority and Responsibility
- 3. Discipline
- 4. One Head One Plan
- 5. Unity of Direction
- 6. Subordination of Individual Interest to General Interest
- 7. Remuneration of Personnel
- 8. Centralization
- 9. Scalar Chain
- 10. Order
- 11. Equity
- 12. Stability of Tenure of Personnel
- 13. Initiative
- 14. Esprit De Corps
Henri Fayol’s 14 Principles of Management
Henri Fayol suggested the following 14 principles as the general principles of management:
1. Division of Work
This is the principle of specialization, which is very well expressed by economists as being a necessary factor for efficiency in the utilization of labor.
In this principle, Fayol conceives authority as a combination of official authority deriving from a manager’s official position and personal authority, which is compounded of intelligence, experience, moral worth, past services, etc.
3. Discipline
Holding the notion that discipline is ‘respect for agreements which are directed as achieving obedience, application, energy and the outward marks of respect’, Fayol declares that discipline requires good superiors at all levels, clear and fair agreements, and judicious application of penalties.
4. One Head One Plan
This is the principle, which states that an employee should receive orders from one superior only.
5. Unity of Direction
According to Fayol, the unity of direction principle implies that each group of activities having some objectives must have one head and one plan. As distinguished from the principle of unity of command, Fayol perceives unity of direction as related to the functioning of personnel.
6. Subordination of Individual Interest to General Interest
In any group, the interest of the group should supersede that of the individual. When the interests differ, it is the function of the management to reconcile them.
7. Remuneration of Personnel
Fayol perceives that remuneration and methods of payment should be fair and also should be able to afford the maximum satisfaction to employees and employers.
8. Centralization
Although Fayol does not use the term, Centralization of Authority, his principle definitely refers to the extent to which authority is concentrated or dispersed in an enterprise. Individual circumstances determine the degree of centralization that gives the best overall yields.
9. Scalar Chain
Fayol thinks of the scalar chain as a line of authority, a chain of superiors from the highest to the lowest ranks. And, because it is an error of a subordinate to depart needlessly from the lines of authority, the chain should be short-circuited.
10. Order
Breaking this principle into material order and social order, Fayol thinks of it as a simple edge for everything. This organization is the principle, which refers to the arrangement of things and persons in an organization.
11. Equity
Fayol perceives this principle as one of eliciting loyalty and devotion from personnel with a combination of kindliness and justice in managers while dealing with subordinates.
12. Stability of Tenure of Personnel
Finding that instability is both the cause and effect of bad management, Fayol points out the dangers and costs of unnecessary turnover.
13. Initiative
The initiative is conceived as the process of thinking out and executing a plan. Since it is one of the keenest satisfaction for an intelligent man to experience, Fayol exhorts managers to sacrifice personal vanity in order to permit subordinates to exercise it.
14. Esprit De Corps
This principle implies that union is strength and an extension of the principle of unity of command. Fall here emphasizes the need for teamwork and the importance of communication in obtaining it.
References:
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//en.wikipedia.org/wiki/Henri_Fayol