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March 1, 2019

14 Principles of Management - Henri Fayol


1, Division of Work


The object of division of work is to produce more and better work with the same effort. The worker always on the same part, the manager concerned always with the same matters, acquire an ability, sureness, and accuracy which increase their output. Each change of work brings in its train an adaptation which reduces output.

2. Authority and Responsibility

Authority is the right to give orders and the power to exact obedience. Distinction must be made between a manager’s official authority deriving from office and personal authority, compounded of intelligence, experience, moral worth, ability to lead, past services, etc. In the make up of a good head personal authority is the indispensable complement of official authority.

3. Discipline

Discipline is in essence obedience, application, energy, behaviour, and outward marks of respect observed in accordance with the standing agreements between the firm and its employees, whether these agreements have been freely debated or accepted without prior discussion, whether they be written or implicit, whether they derive from the wish of the parties to them or from rules and customs, it is these agreements which determine the formalities of discipline.

4. Unity of Command

For any action whatsoever an employee should receive order from, one superior  only.

5. Unity of Direction

This principle is expressed as: one head and one plan for a group of activities having the same objective.

6.Subordination of Individual Interest to General Interest

This principle calls to mind the fact that in a business the interest of one employee or group of employees should not prevail over that of the concern, that the interest of the home should come before that of its members and that the interest of the State should have pride of place over that of one citizen or group of citizens.

7.Remuneration of Personnel

Remuneration of personnel is the price of services rendered. It should be fair and, as far as is possible, afford satisfaction both to personnel and firm (employee and employer).

8, Centralization

Centralization belongs to the natural .Order; this  turns on the fact that in every organism, animal
or social, sensations converge towards the brain or directive part, and from the brain or directive part orders are sent out which set all parts of the organism in movement. Centralization is is always present to a greater or less extent in organizations. The question of centralization or decentralization, is a simple question of proportion, it is a matter of finding the optimum degree for the particular concern. In small firms, where the manager’s orders go directly to subordinates there is absolute centralization; in large concerns, where a long scalar chain is interposed between manager and lower grades, orders and counter-information too, have to go through a series of intermediaries. Each employee, intentionally or unintentionally, puts something of himself into the transmission and execution of orders and of information received too.  What appropriate share of initiative may be left to intermediaries depends on the personal character of the manager, on his moral worth, on the reliability of his subordinates, and also on the condition of the business. The degree of centralization must vary according to different cases. The objective to pursue is the optimum utilization of all faculties of the personnel.

9. Scalar Chain

The scalar chain is the chain of superiors ranging from the ultimate authority to the lowest ranks. The line of authority is the route followed — via every link in the chain — by all communications which start from or go to the ultimate authority. This path is dictated both by the need for some transmission and by the principle of unity of command

10. Order

The formula is known in the case of material things “A place for everything and everything in its place.” The formula is the same for human order “ A place for everyone and everyone in his place.”

11, Equity

Justice is putting into execution established conventions, but conventions cannot foresee
everything, they need to be interpreted or their inadequacy supplemented. For the personnel to be encouraged to carry out its duties with all the devotion and loyalty of which it is capable it must be treated with kindliness, and equity results from the combination of kindliness and justice. Equity
excludes neither forcefulness nor sternness and the application of it requires much good sense, experience and good nature.

12.Stability of Tenure of Personnel
Time is required for an employee to get used to new work and succeed in doing it well, always assuming that he possesses the requisite abilities. If when he has got used to it, or before then, he is removed, he will not have had time to render worthwhile service.

13. Initiative

Thinking out a plan and ensuring its success is one of the keenest satisfactions for an intelligent man to experience. It is also one of the most powerful stimulants of human endeavour. This power of thinking out and executing is what is called initiative, and freedom to propose and to execute
belongs too, each in its way, to initiative. At all levels of the organizational ladder zeal and energy on the part of employees are augmented by initiative.

14. Esprit de Corps

“Union is strength.” Business heads would do well to ponder on this proverb. Harmony, union among the personnel of a concern, is great strength in that concern. Effort, then, should be made by managers to establish it.

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