Henri Fayol Principles of Management :: Explain 14 principles of Henry Fayol in detail

14 Principles of Management by Henri Fayol

Henri Fayol was an engineer from France, who lived between 1841 and 1925 (though born in Istanbul, he was a French citizen throughout his adult life). Fayol quickly gained experience in managing people - especially teams of people who were working together to complete a particular project.

Henry Fayol, also known as the ‘father of modern management theory’ gave a new perception of the concept of management. He introduced a general theory that can be applied to all levels of management and every department. The Fayol theory is practiced by managers to organize and regulate the internal activities of an organization. He concentrated on accomplishing managerial efficiency.

The five functions of management as defined by Henri Fayol are Planning, Organizing, Command, Coordination, and Control. These five functions comprise “management”, one of the six industrial activities described in Henri Fayol's management theory. Henri Fayol is widely regarded as the father of modern management.

Fall is famous for developing what is called the 14 principles of management. As their name suggests, these are 14 key principles that any manager ought to adhere to if they want to make a success of their work. Because of this, Fayol is credited with being one of the founders of the modern idea of management theory and practice.

Meaning of management: The word management comes from the Italian word for controlling a horse. In the present day, however, it means something different - though traces of the original idea of controlling something in a measured way are still present in the modern meaning of 'management'. Nowadays, management means organizing and guiding a group of people, and the resources that are used by that group, in order to achieve a given project. Most often, the context in which this is done is the workplace: management is almost always linked to employees managing teams of other employees in order to complete a task as part of their jobs. However, we can also speak more individually of managing our time, and of managing our finances.

The 14 Principles of Management.

A principle is a key axiom. The word principle comes from the Latin for 'first'. A principle, then, is something that we ought to consider first and foremost before embarking on a project. It follows that Fayol's 14 principles of management are the 14 things that he advises managers to consider first and foremost before they start managing a team or a project. But what are these 14 principles? Read on to find out about them.

Henri Fayol's 14 Principles of Management are briefly explained below.

1. Division of Work

The full work of the organization should be divided among individuals and departments. This is because a division of work leads to specialization, and specialization increases efficiency, and efficiency improves the productivity and profitability of the organization.

2. Discipline

Discipline means respect for the rules and regulations of the organization. Discipline may be Self-discipline, or it may be Enforced discipline. Self-discipline is the best discipline. However, if there is no self-discipline, then discipline should be enforced through penalties, fines, etc. No organization can survive without discipline.

3. Authority and responsibility

According to Henri Fayol, there should be a balance between Authority (Power) and Responsibility (Duties). Authority must be equal to Responsibility. If the authority is more than responsibility then chances are that a manager may misuse it. If responsibility is more than authority then he may feel frustrated.

4. Subordination of Individual Interest to General Interest

In an organization, there are two types of interest, viz., the individual interest of the employees, and the general interest of the organization. The individual interest should be given less importance, while the general interest should be given the most importance. If not, the organization will collapse.

5. Remuneration

Remuneration is the price for services received. If an organization wants efficient employees and the best performance, then it should have a good remuneration policy. This policy should give maximum satisfaction to both employers and employees. It should include both financial and non-financial incentives.

6. Centralisation

In centralization, the authority is concentrated only in a few hands. However, in decentralization, the authority is distributed to all the levels of management. No organization can be completely centralized or decentralized. If there is complete centralization, then the subordinates will have no authority (power) to carry out their responsibility (duties). Similarly, if there is complete decentralization, then the superior will have no authority to control the organization. Therefore, there should be a balance between centralization and decentralization.

7. Order

There should be an Order for Things and People in the organization. Order for things is called Material Order. Order for people is called Social Order. Material Order refers to "a place for everything and everything in its place." Social Order refers to the selection of the "right man in the right place". There must be the orderly placement of the resources such as Men and Women, Money, Materials, etc. Misplacement will lead to misuse and disorder.

8. Equity

The managers should use equity while dealing with the employees. Equity is a combination of kindness and justice. Equity creates loyalty and devotion in the employees.

9. Initiative

Management should encourage initiative. That is, they should encourage the employees to make their own plans and execute these plans. This is because an initiative gives satisfaction to the employees and brings success to the organization.

10. Esprit De Corps

Esprit de Corps means "Team Spirit". Therefore, the management should create unity, cooperation, and team spirit among the employees. They should avoid the divide and rule policy.

11. Stability of Tenure

An employee needs time to learn his job and to become efficient. Therefore, he should be given time to become efficient. When he becomes efficient, he should be made permanent. In other words, the employees should have job security.

12. Unity of Direction

All activities which have the same objective must be directed by one manager, and he must use one plan. This is called Unity of Direction. For example, all marketing activities such as advertising, sales promotion, pricing policy, etc., must be directed by only one manager. He must use only one plan for all the marketing activities.

13. Scalar Chain

A scalar Chain is a line of authority. This line joins all the members (managers and employees) from top to bottom. Every member must know who is his superior. He must also know who is his subordinate. A scalar Chain is necessary for good communication. Scalar Chain must not be broken in normal circumstances. However, if quick action is necessary, then this chain can be broken. This is done using "Gang Plank" / "Bridge" / "Direct Contact". Scalar Chain is shown in the diagram below with Gangplank as dotted line FP. The Scalar Chain is shown by a double ladder A to G and A to Q. A is the head of the organization. B and L are the next level, and so on. If quick action is necessary, then a "Gang Plank" "FP" is made. Now F and P can contact each other directly but they should inform E and O about their decisions.

14. Unity of Command
According to this principle, a subordinate (employee) must have only one superior (boss or manager). A subordinate must receive orders from only one superior. In other words, a subordinate must report to only one superior. According to Fayol, if one subordinate receives orders from more than one superior then there will be disorder. This will affect the discipline, efficiency, productivity, and profitability of the organization.

Many, if not all, of Fayol's principles of management, still hold true today. Fayol's ideas are still employed by management theorists throughout the world, and they have been developed and adapted to suit modern contexts. One key adaptation that has been made, for example, has been to take into account the advent of the internet, which has truly transformed workplaces around the world.

Are you a manager, or do you ever need to manage people and resources in your workplace? If so, you may already be using several of Fayol's 14 Principles without even thinking about it! Now that you have read his 14 principles of management, are there any new principles from the list that you would like to incorporate into your working life? Could you pay your employees more fairly, for example, or could you make the workplace more orderly? Why not try and start using them the next time that you go to work and see what difference they make!
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