whenever we talk about management studies or business studies, we can't simply move further without studying these 14 principles by Henri Fayol, which are also known as principles of administrative management. i have tried to provide a simple trick to learn all of these principles in a minute. just go through it.
2. Henri Fayol (29 July 1841 – 19 November 1925) was a
French mining engineer, mining executive, author and
director of mines at a large mining company in France.
Through the years, Fayol began to develop what he
considered to be the 14 most important principles of
management. Essentially, these explained how managers
should organize and interact with staff.
In 1916, he published his "14 Principles of Management"
in the book " "Administration Industrielle et Générale”
‘General and Industrial Administration’-1929(In English)
The Father of Administrative
Management- HENRY FAYOL
3. ." Fayol also created a list of the six primary functions
of management, which go hand in hand with the
Principles.
Forecasting.
Planning.
Organizing.
Commanding.
Coordinating.
Controlling.
4. 14 Principles of Administrative
Management:
Division of work
Authority and Responsibility
Discipline
Unity of Command
Centralization & Decentralization
Unity of Direction
Scalar Chain
Stability of Tenure of Personnel
Remuneration
Order
Initiative
Subordination of Individual Interests to the General Interest
Equity
Espirit de corps
6. D-Division of work
A- Authority and Responsibility
D- Discipline
U- Unity of Command
C- Centralization & Decentralization.
U- Unity of Direction
S- Scalar Chain
S- Stability of Tenure of Personnel
R- Remuneration
O- Order
I- Initiative
S- Subordination of Individual Interests to the General Interest
E- Equity
E- Espirit de corps
7. Division of Work
In practice, employees are specialized in
different areas and they have different skills.
Different levels of expertise can be
distinguished within the knowledge areas (from
generalist to specialist)
8. Authority & Responsibility
Authority is the power to give orders and get it
obeyed or in other words it is the power to take
decisions.
Responsibility means state of being accountable or
answerable for any obligation, trust, debt or
something or in other words it means obligation to
complete a job assigned on time and in best way.
9. Discipline
Discipline means obedience, respect for authority,
and observance of established rules.
Fayol has emphasized that a sense of discipline
should be present in all employees of the
organization at all level so that the organization
can perform and achieve its objectives in the best
possible way.
10. Unity of Command
Unity of Command means getting orders/
command from only one supervisor.
Fayol has stated “As soon as two superiors
impose their authority over the same person or
department, uneasiness makes itself felt. Dual
command is a perpetual source of conflict.”
This principle states that an individual should
get orders from a single superior so that he
does not get confused and can discharge his
duties effectively.
11.
12. Centralization & Decentralization
When the power to take decision rests with the top
management it is called as ‘Centralization’.
When the power to take decision is given to the person
performing the job it is called as ‘Decentralization’.
There should be a proper balance between centralization
and decentralization. An organization must not be
completely centralized or decentralized, there should be a
match between the two depending upon the size, nature and
location of business.
The top management must keep the authority to take
important decisions of the organization but adequate
authority must be delegated to the lower level employees to
take the department level decisions.
13. Unity of Direction.
This principle states ‘One Head One Plan’.
Unity of action
This principle is often confused with the principle of
‘Unity of Command’ as both sound the same. But the
difference between them is quite clear as ‘Unity of
command’ is concerned with taking command from one
boss whereas the principle of ‘Unity of Direction’ is
concerned with the direction of the efforts of the
employees of one division towards the achievement of
the objectives of that division.
14. Scalar Chain
The line of authority from top management to the
lowest ranks represents the scalar chain.
Communications should follow this chain. However if
someone needs to communicate some other person in
emergency he/she might use "Gang Plank".
According to “Gang Plank”, two executives of the
organization of different department at the same level
can communicate directly in case of emergency, so
that speedy decisions and actions could be taken.
15. Stability of Tenure of Personnel
The management of the organisation should
ensure that there must be stability in the job and
frequent changes and shuffling of position should
be avoided.
It means no frequent change, termination and
transfer etc. In an organization whenever an
employee is appointed for a job, he/she shouldn't
be removed from that position frequently.
16. Remuneration
All Workers must be paid a fair wage for their
services. The wages paid must be as per a certain
standard of living to the employee at the same
time it is within the paying capacity of the
company.
17. Order
This principle is concerned with systematic
arrangement of men, machine, material etc. There
should be a specific place for every employee in an
organization. That is 'a place for everything
(people) and everything has a place'
18. Initiative
‘Initiative’ means to start, to begin or to instruct
in a project. Here, in this principle fayol suggested
that each employee should be given an opportunity
to take some initiative in framing the functional
plan as well as in determining the steps to be
taken at each level for proper execution of the
plan.
19. Subordination of Individual
Interests to the General Interest
This principle states that general interest is
superior to the individual interest. And the
manager must try to integrate the individual goal
with the organizational goal in such a manner so
that both the objectives are accomplished with
efficiency and effectiveness. The manager directs
the employees in such a manner that they work for
their objective and ultimately the organizational
objective is achieved.
20. Equity
All the employees in the organization must be
treated equally with respect to the justice and
kindliness.
21. Espirit de corps
'ESPIRIT DE CORPS' here means team spirit and
team work. This principle emphasizes on team
work. 'UNITY IS STRENGTH' is the essence of
this principle. Fayol suggested that there should
be a team spirit in the organization and all the
employees must consider themselves as member of
the organization.
