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Management Principles-14 Principles of Management (Henri Fayol Notes)

Management Principles-14 Principles of Management (Henri Fayol Notes)
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Read this article to learn about the 14 basic principles of management or management principles which are given by famous management writer Henri Fayol…

Principles of Management

This includes 14 fayol’s principles like:

  • Principle of Division of Work.
  • Principle of Authority and Responsibility.
  • Principle of Discipline.
  • Principle of Unity of Command.
  • Unity of Direction.
  • Subordination of Individual Interest to General Interest.
  • Principle of Remuneration of persons.
  • Principle of Centralisation to Decentralisation.
  • Principle of Scalar Chain.
  • Principle of Order.
  • Principle of Equity.
  • Stability of Tenure of Personnel.
  • Principle of Initiative.
  • Principle of Espirit de Corps.

1. Principle of Division of Work:

According to this principle, the total work must be categorized into small units or tasks and instead of assigning the total work to one person one unit or task of work should be assigned to one person according to the qualification, experience, and capability of the person.

Fayol said not only the factory work but managerial, skill and technical jobs should also be divided into small parts for specialization.

For Example, in a cloth company, one person asked to cut the cloth pieces, one to join them, one to polish, one to give finishing touch to clothes. With this division, each individual will become specialized in his part of the job and his efficiency improves.

2. Principle of Authority and Responsibility:

Authority means the right to take the decision. Responsibility means a commitment to complete the job assigned on time. According to this principle, the balance of authority and responsibility is very necessary to make things successful.

Authority without responsibility may create negative results and responsibility without authority will not allow the employee to accomplish his job on time.

3. Principle of Discipline:

Discipline means general rules and regulations for systematic working in an organization. Discipline does not mean only rules and their regulations but is also mean developing commitment in the workers towards the organization as well as towards each other.

Fayol suggests discipline is required at all levels of management (whether it is a superior level or subordinate level).

For Example, the workers must honor their commitments towards the organization by working efficiently and effectively. On the other hand, managers must also meet their commitments by meeting their promises of promotions, increments, etc.

4. Principle of Unity of Command:

Principle of Unity of Command
Principle of Unity of Command

According to this principle, a worker should accept orders from one manager only because if he is receiving orders from more than one superior then he will get confused and will not be able to understand that.

To remove this confusion and to give no chance of excuse to an employee, the orders must come from one superior only. If there are more superiors it can create a problem of ego-clash between the superiors.

5. Unity of Direction:

According to this principle, “one unit means one plan”, that is the efforts of all the employees and members of the organization must be moved towards one direction that is the accomplishment of a common goal.

Fayol suggests, each group or a department having a common goal or objective must have one head one plan only.

Difference between Unity of Command and Unity of Direction
Comparison of Unity of Command and Unity of Direction

6. Subordination of Individual Interest to General Interest:

According to this principle, the interest of a business company must replace the interest of employees or individuals. In the organization, all the workers are working with some objective and there is always the same objective of the organization.

If the objective of all individual is the same to an organization then there is no problem but if the objective of an individual is different from the organization then this creates a problem.

Fayol said that the goals of an individual or an organization should be both same.

7. Principle of Remuneration of persons:

According to this principle, workers in the organization must be paid adequately and fairly to give them maximum satisfaction. The remuneration must be fair because if workers are underpaid they will not be satisfied and an unsatisfied individual can never contribute his maximum.

An organization should be provided to the fair wages to our employees and the fair or adequate wage is calculated according to:

  • financial capacity of the business
  • the salaries and wages paid by the competitors.

8. Principle of Centralisation and Decentralisation:

Centralization means to a concentration of power or authority in a few hands at the top level. Decentralization means equal distribution of power at every level of management.

Fayol suggests, an organization must not be completely centralized or completely decentralized but there be a combo of both depending upon the size and nature of the organization.

9. Principle of Scalar Chain:

Principle of Scalar Chain
Principle of Scalar Chain

Scalar refers to a line of authority or chain of superiors from the highest level to the lowest level. Fayol suggests that this chain must be followed strictly in the organization. Every and each information must pass through every key of this flow of chain, no skipping of any one key should be allowed.

But in some case, if the information to be passed is very important, then we break the line of the scalar chain and share the information to another department. This process of the chain is known as “Gank Plank“.

10. Principle of Order:

In this principles of management, the order does not mean command but it means to the orderly arrangement of material and men that is a fixed place for everything and everybody in the organization.

Fayol suggests that there must be a stable place to keep every material and thing used in the organization and fixed place or cabin for every worker of the organization so that no energy and time is wasted in search of any person or material.

11. Principle of Equity:

Equity means to fair, kind, and just treatment to workers. Workers will put their maximum efforts only when they are treated with justice and kindness.

Equity does not mean equal salary or compensation to a peon and a supervisor but equity refers to the application of the same rules and regulations, leave rules in the same method irrespective of their position, grade, and gender.

For Example, the roles for granting leave to a worker should be the same irrespective of their grade, position, or gender.

12. Stability of Tenure of Personnel:

It means no frequent transfer or termination. In this principle, the management must provide the stability of a job among the employees and helps to remove the fear of instability of the job. It includes various points like:

  • Remove the wastage of time and resources.
  • Improves the efficiency of employees.

13. Principle of Initiative:

Principle of Initiative
Principle of Initiative

Initiative means the charge out the plan and then implementing the same. Fayol refers that workers in the organization must be given an opportunity to take some initiative in executing and making a plan. It gives optimum satisfaction to employees and the chance to participate in the method of planning.

For Example, before framing up of plan the superior must welcome the ideas and suggestions of employees to allow their optimum participation. But once the plan is made every employee must implement it and follow it.

14. Principle of Espirit de Corps:

This principle means unity is the power of strength. Fayol highlighted on the teamwork. He told that every worker in the organization must consider him as a member or part of a team and try to accomplish the team goal because team contribution is always good or more than individual contribution.

Management must create a feeling of friendship between the workers as they must feel like a part of an organization’s team and contribute maximum to attain the team’s goal.

So, these are the 14 important points of the principles of management by the famous writer henri fayol…

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