Specialization allows theindividual to build up experience,and to continuously improve hisskills. Thereby he can be moreproductive.
The right to issuecommands, along with whichmust go the balancedresponsibility for its function.
Each worker shouldhave only one boss with no otherconflicting lines of command.
People engaged in thesame kind of activities must havethe same objectives in a singleplan. This is essential to ensureunity and coordination in theenterprise. Unity of commanddoes not exist without unity ofdirection but does not necessarilyflows from it.
In running a business a„combination of kindliness andjustice‟ is needed. Treatingemployees well is important toachieve equity.
Both material order andsocial order are necessary. Theformer minimizes lost timeand useless handling ofmaterials. The latter isachieved through organizationand selection.
Employees must obey, butthis is two-sided: employees willonly obey orders if managementplays their part by providing goodleadership.
Allowing all personnel toshow their initiative in someway is a source of strength forthe organization. Even thoughit may well involve a sacrificeof „personal vanity‟ on the partof many managers.
Payment is animportant motivator although byanalyzing a number ofpossibilities, Fayol points out thatthere is no such thing as a perfectsystem.
Employees workbetter if job security andcareer progress are assured tothem. An insecure tenure anda high rate of employeeturnover will affect theorganization adversely.
A hierarchy is necessaryfor unity of direction. But lateralcommunication is also fundamental, aslong as superiors know that suchcommunication is taking place. Scalarchain refers to the number of levels inthe hierarchy from the ultimateauthority to the lowest level in theorganization. It should not be over-stretched and consist of too-manylevels.
Management must seethat the goals of the firms arealways paramount.
Management mustfoster the morale of itsemployees. He further suggeststhat: “real talent is needed tocoordinate effort, encouragekeenness, use each person‟sabilities, and reward each one‟smerit without arousing possiblejealousies and disturbingharmonious relations.”
This is a matter of degreedepending on the condition of thebusiness and the quality of itspersonnel.
Principles of managementare the essential,underlying factors thatform the foundation ofsuccessful management.