14 Principles of Management by Henri Fayol

Timeless Principles for Modern Management Excellence. , Dec-28-2024

Fayol's Principles of Management

Fayol's 14 Principles of Management

1. Division of Work
   • Work should be divided into specialized tasks based on competence, qualification, and experience.
   • Promotes efficiency and specialization (e.g., separate departments for finance, marketing, and production).
2. Authority and Responsibility
   • Authority is the right to give orders, and responsibility is the duty to fulfill tasks.
   • Balance between authority and responsibility prevents misuse and ensures accountability.
3. Discipline
   • Requires good supervision, fair agreements, and judicious application of penalties.
   • Managers must honor commitments and enforce adherence to rules.
4. Unity of Command
   • Employees should report to only one superior to avoid confusion and conflict.
5. Unity of Direction
   • All organizational units should work towards common objectives under one plan and leadership.
6. Subordination of Individual Interest to General Interest
   • Organizational goals should take precedence over personal interests.
7. Remuneration of Employees
   • Employees should receive fair wages that balance a reasonable standard of living with the company’s paying capacity.
8. Centralization and Decentralization
   • Centralization: Concentrated decision-making.
   • Decentralization: Distribution of decision-making authority.
   • A balance is needed based on organizational needs.
9. Scalar Chain
   • A clear line of authority from top to bottom should be maintained.
   • Gang Plank: A shortcut in communication for emergencies while respecting hierarchy.
10. Order
    • "A place for everything and everything in its place" ensures smooth operations for resources and personnel.
11. Equity
    • Managers should treat employees with justice and impartiality to foster loyalty and cooperation.
12. Stability of Personnel
    • High turnover creates instability and increases costs. Stability ensures expertise and trust.
13. Initiative
    • Employees should be encouraged to take initiative in planning and execution for organizational improvement.
14. Esprit de Corps
    • Promotes team spirit and unity among employees.
    • Managers should emphasize "we" over "I" to foster collaboration and harmony.

Concept of Scientific Management

• Scientific Management applies scientific principles to managerial processes, as advocated by Frederick Taylor.
• It is systematic, objective, and logical.
• Focuses on efficiency and cost reduction.
• Ensures tasks are performed in the best possible way.