Henri Fayol was a French mining engineer who developed 14 principles of management. He is considered to be one of the most important contributors to the theory of management.
Principles of Management:
The 14 principles of management developed by Henri Fayol are listed and explained below:
- Division of work
- Authority and responsibility
- Unity of command
- Unity of direction
- Sub-ordination of individual interests to general interest
- Remuneration of personnel
- Scalar Chain
- Stability of personnel
- Esprit de corps
1. Division of Work:
In an organisation, work should be divided correctly, according to the time available. The potential of employees increase when they are allowed to do the same work again.
2. Authority and Responsibility:
Authority is the power given to a person to command and get work from his sub-ordinates. It is the right given to managers.
Responsibility is the work expected from workers by their superiors. Wherever authority is present, responsibility occurs.
In an organisation, workers should obey the commands of their superiors.
Hence, discipline is very important for any organisation. It promotes leadership and fair dealing.
4. Unity of Command:
A worker should receive commands from only one person. Commands from multiple superiors lead to conflicts and chaos. Hence, unity of command should be maintained.
5. Unity of Direction:
An organisation might contain several groups, each having a head and an individual objective. All the individual objectives should be directed towards a common objective of developing the organisation.
6. Sub-ordination of Individual interests to General interest:
General interest means interest of the organisation. Individual interest means interest of an employee of the organisation. An employee should sub-ordinate his / her individual interest to general interest.
7. Remuneration of Personnel:
Employees should be paid proper wages to maintain the stability of organisation.
An organization is said to be completely centralised if all power rests in the hands of a single person. An organisation is said to be completely decentralised if power is completely distributed among the sub-ordinates. A firm should neither be completely centralised nor be completely decentralised. Centralisation and decentralisation should be balanced.
9. Scalar Chain:
The line of authority should pass from top level management to bottom level management. Orders and policies should always come from higher level management.
In an organisation men and materials should be distributed correctly at the right place in right time. This improves the productivity of the organisation.
Order is of two types:
- Material Order
- Social Order
All employees in a firm should be treated equally. Superiors should be fair towards their sub-ordinates.
12. Stability of Personnel:
In a firm, the tenure of employees should be high. High employee turnover rate gives heavy losses to an organisation.
If a worker comes up with a new idea or plan, he / she must be encouraged. Initiatives give rise to higher levels of effort.
14. Esprit de Corps:
This signifies the proverb ‘United we stand; Divided we fall’. In a firm, team spirit should be encouraged to promote harmony and unity among workers.