Principles of Management (Henri Fayol's 14 Principles)

In our previous episode, we learned what is management, what is engineering management, what are the activities and resources of management. In this episode, we will know about the principles of management. 

There are 14 principles of management introduced by Henri Fayol (29 July 1841 - 19 November 1925). These 14 principles are now globally recognized as the principles of management and they are now accepted as the guidelines for completing any managerial task. 

Who is Henri Fayol?

Henri Fayol was a French mining engineer who was also author and director of mines who developed Fayolism that is a general theory of business administration. Though he was an engineer, he worked a lot on management. His books 'Industrial and General Administration' and 'General and Industrial Management' have been translated later. His 14 principle of management is still a very important part of management sector. 

Henri Fayol (Image Source: slideshare.net/sturdybcomer)

Henri Fayol's 14 Principles of Management

14 principles of management are:

1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual to the General Interest
7. Remuneration
8. Centralization and Decentralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps

1. Division of Work

Different employees are specialized in different tasks, different filed; they have different skills. From generalist to specialist, there should be one employee who is worthy of that. Division of work means assigning each employee one task that they can do that well. Multitasking is less productive than one task for one man.

2. Authority and Responsibility

Authority gives the order to do something and it also should be with responsibility. The workers who work for the authority should be working with responsibility. The right balance of authority and responsibility is a must need thing for any company or organization.

3. Discipline

From senior to junior, specialists to generalists, workers to owners all should do everything with discipline. Without discipline, there is no management.

4. Unity of Command

According to Henri Fayol, every employee must receive orders from only one boss or by another on behalf of that boss. And in the same way, every employee will report to only one boss. It is harmful to productivity and management to receive orders from different persons. One cannot work for two bosses with his full creativity, full skill.

5. Unity of Direction

All the members of an organization should work for the same goal. Work can be divided into some divisions and all the divisions can have different goals. But the sum of all those goals is the main goal of an organization.  These teams who have the same goal should be working under one manager's direction. This is what unity of direction.

6. Subordination of Individual Interest to General Interest

In an organization, many kinds of interests are present always. But everyone should focus on the interest of the organization, not the individual. The interest of anyone in an organization should not get more priority over the interest of the organization as a whole. It is very important for an organization and more good management.

7. Remuneration

Henri Fayol suggested that the remuneration should be sufficient to keep every employee happy, motivated and productive. All the employees must be treated with fair salaries, bonuses and other advantages. If any employee works more, giving the company a great service but in return does not receive fair remuneration, he won't be interested in working for that company/organization.

8. Centralization and Decentralization

Here, centralization means taking all the decisions from the center/top management and decentralization means giving the decision-making power to the lower management/employee as well. An organization must keep a good balance between centralization and decentralization. It is harmful for an organization to take all the decisions by the top management and it is also not good to give all the decision-making powers to the lower levels of employees. Henri Fayol suggested that an organization should strive for a balance in this.

9. Scalar Chain

The hierarchy or the line of authority from the top management to lower and lowest ranks is called the scalar chain. This can also be called the chain of command. All communication (orders, reports, suggestions, application) should follow this chain. 

10. Order

Here order refers to keep the right person and right resource in right place. All men, machines, materials should be in a specific place in an organization. 

11. Equity

With respect to justice and kindliness, all the employees in a company/an organization must be treated equally by the authority and others. Managers should monitor this so that equity can be present in an organization.

12. Stability of Tenure of Personnel

This can be termed as the stability of the job. If an employee knows that his job is stable, then he can work more, think more for the betterment of the organization. If people think that they are secure with their career in this place, they are happier, more motivated and more productive.

13. Initiative

It is important to make an employee supporting environment in an organization so that everyone working for the organization can think for the organization, can carry out plans for the development of the organization. Fayol's saying on this is (translated) "At all levels of the organizational ladder, zeal and energy on the part of employees are augmented by initiative."

14. Esprit de Corps

We can say this "Unity is Strength". An organization should promote team spirit and unit. All the employees should work together. 

These were the 14 principles of management. We're going to end our 2nd article of this long series here. See you in the third.