Henri Fayol's 14Principles of Management

Henri Fayol, (1841-1925) a
French mining engineer,
developed 14 principles of
management based on his
management experiences. These
principles provide modern-day
managers with general
guidelines on how a supervisor
should organize her department
and manage her staff. Although
later research has created
controversy over many of the
following principles, they are still
widely used in management
theories.
· Division of work: Division of
work and specialization
produces more and better work
with the same effort.
· Authority and responsibility:
Authority is the right to give
orders and the power to exact
obedience. A manager has
official authority because of her
position, as well as personal
authority based on individual
personality, intelligence, and
experience. Authority creates
responsibility.
· Discipline: Obedience and
respect within an organization
are absolutely essential. Good
discipline requires managers to
apply sanctions whenever
violations become apparent.
· Unity of command: An employee should recieve orders from only one superior.
Unity of direction:
Organizational activities must
have one central authority and
one plan of action.
· Subordination of individual
interest to general interest: The
interests of one employee or
group of employees are
subordinate to the interests and
goals of the organization. This is
necessary to maintain unity and
to avoid friction among the
employees
· Remuneration of personnel:
Salaries - the price of services
rendered by employees - should
be fair and provide satisfaction
both to the employee and
employer.
· Centralization: The objective of
centralization is the best
utilization of personnel. The
degree of centralization varies
according to the dynamics of
each organization.
· Scalar chain: A chain of
authority exists from the highest
organizational authority to the
lowest ranks.
· Order: Organizational order for
materials and personnel is
essential. The right materials and
the right employees are
necessary for each
organizational function and
activity.
· Equity: In organizations, equity
is a combination of kindliness
and justice. Both equity and
equality of treatment should be
considered when dealing with
employees.
· Stability of tenure of
personnel: To attain the
maximum productivity of
personnel, a stable work force is
needed.
· Initiative: Thinking out a plan
and ensuring its success is an
extremely strong motivator. Zeal,
energy, and initiative are desired
at all levels of the organizational
ladder.
· Esprit de corps: Teamwork is
fundamentally important to an
organization. Work teams and
extensive face-to-face verbal
communication encourages
teamwork.
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Fundamentals of Management : Introduction [BBA 2305]