HENRY FAYOL
14 PRINCIPLES OF MANAGEMENT
DIVISION OF WORK
AUTHORITY AND RESPONSIBILITY
DISCIPLINE
UNITY OF COMMAND
CENTRALIZATION
DECENTRALIZATION
SCALAR CHAIN
ORDER
EQUITY
STABILITY OF TENURE PERSONNEL
INITIATIVE
ESPRIT DE CORPS
4 FUNCTIONS OF MANAGEMENT
PLANNING
ORGANIZING
DIRECTING
CONTROLLING
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2. • According to [Henri Fayol] (1841-1925)
in his book General and Industrial
Management (1916)
• THERE ARE 14 PRINCIPLES OF
MANAGEMENT
• these can be used to:
• initiate and aid the processes of change
• organization
• decision making
• skill management and;
• the overall view of the management function.
3. • DIVISION OF WORK
• Specialization
• productive
• AUTHORITY AND RESPONSIBILITY
• Authority: the right of the superior to command
• Responsibility: the subordinates need to follow the
command
4. • DISCIPLINE
• Employees need to obey but there must be a
good leadership
• UNITY OF COMMAND
• Each worker should only have one boss
• To avoid the confusion and conflict of
command
5. • UNITY OF DIRECTION
• Same kind of activities should have same objective of a single
plan
• should be under in one manager
• SUBORDINATION OF INDIVIDUAL INTEREST
• Must put aside personal considerations and put company
objectives first
• Management must see that the goals of the firms are always
paramount
• REMUNERATION
• Payment is an important motivator that influences the productivity
of workers.
• Although according to Fayol there is no perfect system
6. • CENTRALIZATION (or DECENTRALIZATION)
• Centralization: concentration of decision making authority on the
top of the management
• Decentralization: sharing of the authority on the lower levels
• SCALAR CHAIN
• chain of superiors ranging from top management to the lowest
rank
• It should not be over-stretched and consist of too-many levels.
• Order
• Both managerial order and social order are necessary
• minimizes lost time and useless handling of materials
• EQUITY
• ‘combination of kindliness and justice’
7. • STABILITY OF TENURE PERSONNEL
• The period of service should not be too short and employees
should not be moved from positions frequently
• INITIATIVE
• add strength and new ideas to an organization
• source of strength for the organization
• Employees are likely to take greater interest in the functioning
of the organization
• ESPRIT DE CORPS
• must foster the morale of its employees
• Team spirit helps develop an atmosphere of mutual trust and
understanding
8. • PLANNING
• is the core area of all the functions of management
• The planning process is ongoing
• the manager will create a detailed action plan aimed at some
organizational goal.
• During strategic planning, management analyzes internal and
external factors that do and may affect the company, as well as
the objectives and goals
• ORGANIZING
• Management will then divide up the work that needs to be done,
determine appropriate departments, and delegate authority and
responsibilities
9. • DIRECTING
• management is able to influence and oversee the behavior of the
staff in achieving the company's goals
• assisting them in accomplishing their own personal or career goals
• influence can be gained through motivation, communication,
department dynamics, and department leadership
• CONTROLLING
• It involves establishing performance standards based on the
company's objectives, and evaluating and reporting actual job
performance
• management is able to identify any potential problems and take
the necessary preventative measures
• In order for management to be considered successful, it must
attain the goals and objectives of the organization.
10. • Leadership inspires, management plans.
• Leadership is there first, management
does it again.
• Leaders praise, managers find fault.
• Leaders ask questions, managers give
directions.
• Leaders help others achieve, managers
expect support.