14 Principles of Management
What are the 14 Principles of Management? Description
The 14 Management Principles from Henri Fayol (1841-1925) are:
1.
Division of Work. Specialization allows the individual to build up
experience, an_d to continuously improve his skills. Thereby he can be
more productive.
2. Authority. The right to issue comman_ds, along with which must go the balanced responsibility for its function.
3. Discipline. Employees must obey, but this is two-sided: employees
will only obey orders if management play their part by providing good
leadership.
4. Unity of Comman_d. Each worker should have only one boss with no other conflicting lines of comman_d.
5. Unity of Direction. People engaged in the same kind of activities
must have the same objectives in a single plan. This is essential to
ensure unity an_d coordination in the enterprise. Unity of comman_d does
not exist without unity of direction but does not necessarily flows
from it.
6. Subordination of individual interest (to the general interest).
Management must see that the goals of the firms are always paramount.
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 an_d the quality of 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 an_d consist of too-many levels.
10. Order. Both material order an_d social order are necessary. The
former minimizes lost time an_d useless han_dling of materials. The
latter is achieved through organization an_d selec_tion.
11. Equity. In running a business a ‘combination of kindliness an_d
justice’ is needed. Treating employees well is important to achieve
equity.
12. Stability of Tenure of Personnel. Employees work better if job
security an_d career progress are assured to them. An insecure tenure
an_d 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. Management must foster the morale of its
employees. He further suggests that: “real talent is needed to
coordinate effort, encourage keenness, use each person’s abilities, an_d
reward each one’s merit without arousing possible jealousies an_d
disturbing harmonious relations.”
What is Management? Five elements
Fayols definition of management roles an_d actions distinguishes between Five Elements:
1. Prevoyance. (Forecast & Plan). Examining the future an_d drawing up a plan of action. The elements of strategy.
2. To organize. Build up the structure, both material an_d human, of the undertaking.
3. To comman_d. Maintain the activity among the personnel.
4. To coordinate. Binding together, unifying an_d harmonizing all activity an_d effort.
5. To control. Seeing that everything occurs in conformity with established rule an_d expressed comman_d.
Origin of the 14 Principles of Management. History
Henri
Fayol (1841-1925) was a French management theorist whose theories in
management an_d organization of labor were widely influential in the
beginning of 20th century. He was a mining engineer who worked for a
French mining company Commentry-Fourchamboult-Decazeville, first as an
engineer. Then he moved into general management an_d became Managing
Director from 1888 to 1918. During his tenure as Managing Director he
wrote various articles on administration an_d in 1916 the Bulletin de
la Société de l’ Industrie Minérale, printed his "Administration,
Industrielle et Générale – Prévoyance, Organisation, Comman_dement,
Coordination, Contrôle". In 1949 the first English translation
appeared: ‘General an_d Industrial Management’ by Constance Storrs.
Usage of the 14 Management Principles. Applications
* Change an_d Organization.
* Decision-making.
* Skills. Can be used to improve the basic effectiveness of a manager.
* Understan_d that management can be seen as a variety of activities, which can be listed an_d grouped.
Book: Henri Fayol - General an_d Industrial Management
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