Henri Fayol developed 14 principles of management that are considered universally applicable to organizations. The principles include division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interests, remuneration, centralization, line of command, order, equity, stability of tenure, initiative, and esprit de corps. Fayol also identified six primary functions of management: forecasting, planning, organizing, commanding, coordinating, and controlling. The document provides details on each of Fayol's principles and functions of management.
2. HENRI FAYOL (1841-1925)
Fourteen Principles of as one of the classical organization
theory that is PRINCIPLES OF MANAGEMENT were
developed by Henri Fayol and have been considered universally
applicable to every type of organization.
3. PRINCIPLES OF MANAGEMENT
DIVISION OF WORK OR SPECIALIZATION
AUTHORITY AND RESPONSIBILITY
DISCIPLINE
UNITY OF COMMAND
UNITY OF DIRECTION
SUBORDINATION OF INDIVIDUAL TO GENERAL
REMUNERATION
CENTRALIZATION
LINE OF COMMAND/SCALAR CHAIN
ORDER
EQUITY
STABILITY OF TENURE
INITIATIVE
ESPRIT DE CORPS
4. DIVISION OF WORK OR SPECIALIZATION
Division of work makes a man specialist. The reason is that
division of work helps to specialize in an activity which
increases the output with perfection. It also avoids wastage of
time. Division can be applied to both technical and managerial
kind of work.
5. AUTHORITY AND RESPONSIBILITY
Management is getting things done by others. A superior
gives direction to his sub-ordinates to perform the job. Then
the super-visor may exercise his authority. The post he holds
invests him with this authority. Authority is closely
connected with responsibility. Responsibility is shouldered
whenever authority is exercised . Responsibility is essential to
perform a job correctly.
6. DISCIPLINE
Discipline is essential in all levels of management. Discipline
is obtained through judicial application of penalties. Limits of
acceptable behavior are absolutely necessary to define, so that
everyone in an organization knows what can and cannot be
done. Often this principle is difficult for a supervisor to apply
impartially.
7. UNITY OF COMMAND
An employee should receive orders from only one
supervisor. Yet, because of a number of interacting
variables in any job situation, line and staff as authority
become opposed to line and staff as function
8. UNITY OF DIRECTION
There should be only one plan, and the person should be
responsible for supervising it; all activities have the same
objective, should be supervised by one person.
9. SUBORDINATION OF INDIVIDUAL TO
GENERAL
The individual should subordinate self-interest to the general
good. It is incumbent upon management to reduce conflict
between the individual and the general well being wherever
possible.
10. REMUNERATION
Remuneration for work must be fair and accurate, affording
maximum satisfaction for both employee and employer. The
manager must examine tasks, identify responsibilities, and
decide upon a just level of compensation.
11. CENTRALIZATION
Fayol thought centralization of authority to be desirable, at
least for overall control. Certainly, both formulation of
policy and the generation of basic rules and procedures ought
to be centralized.
12. LINE OF COMMAND/SCALAR CHAIN
Organizations need a formalized hierarchy that reflects the flow
of authority and responsibility. Fayol suggested that a chain of
command is necessary most of the time, but, at times, it is best
ignored. The communication flows to top to bottom or bottom
to top. It should be proper.
13. ORDER
It is applied to both material and men. The material
should be kept in order in the place where it is necessary.
The personnel are selected scientifically and assigned
duties according to there qualification and ability.
14. EQUITY
Employees must be seen as persons, not things to be
manipulated. If managers hope to create a good working
environment, they must treat everyone fairly and with
equity. Equity refers to a combination of fairness, kindness
and justice.
15. STABILITY OF TENURE
The management should ensure stability or security of
job to every employee of the undertaken.
16. INITIATIVE
The power of thinking out, proposing and executing.
Management should encourage employees to originate and
carry out plans. This urging tends to boost levels of effort.
17. ESPRIT DE CORPS
This means union is strength or Team Spirit. He felt that all
successful organizations survive only when a feeling of unity
pervades the group and that viable organizations cleat with
crises as a team.
18. FUNCTIONS OF MANAGEMENT
Fayol's six primary functions of management, which go
hand in hand with the Principles, are as follows:
Forecasting.
Planning.
Organizing.
Commanding.
Coordinating.
Controlling.