In 1916, Henri Fayol published his "14 Principles of Management" in the book "Administration Industrielle et Generale. " Fayol also created a list of the six primary functions of management, which go hand in hand with the Principles. Fayol's "14 Principles" was one of the earliest theories of management to be created, and remains one of the most comprehensive. 14 Management Principles developed by Henri Fayol are : 1. Division of work : Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task.
Fayol presented work specialization as the best way to use the human resources of the organization. 2. Authority : The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.
3. Discipline: Employees must obey and respect the rules that govern the organization.Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organization's rules, and the judicious use of penalties for infractions of the rules. 4. Unity of command: Every employee should receive orders from only one superior. like from top to bottom in an organization.
5. Unity of direction : Each group of organizational activities that have the same objective should be directed by one manager using one plan. 6.Subornation of individual interest to the general interest : The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.
7. Remuneration: Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system. 8. Centralization (or Decentralization): This is a matter of degree depending on the condition of the business and its personnel . 9.
Scalar chain (Line of Authority): A hierarchy is necessary for unity of direction.But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels. 10.
Order: People and materials should be in the right place at the right time. 11. Equity: In running a business a ‘combination of kindliness and justice’ is needed. Treating employees well is important to achieve equity.
2. Stability of Tenure of Personnel: Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative: Allowing all personnel to show their initiative in some way is a source of strength for the organization.
Even though it may well involve a sacrifice of ‘personal vanity’ on the part of many managers. 14. Esprit de corps : Promoting team spirit will build harmony and unity within the organization.
