Henri Fayol discovered the 14
principles of management.
1. Division of
work
2. Authority and
responsibility
3. Discipline
4. Unity of
command
5. Unity of
direction
6. Subordination
of individual interest to general interest
7. Remuneration
of personal
8. Centralizing
9. Scalar chain
10.
Order
11.
Stability of tenure
12.
Equity
13.
Initiative
14.
Esprit-de-corps
1. Division
of work
This
principle says that work should be divided into different specialization. Specialization
allows the individual to build up experience, and to continuously improve his
skills. Thereby he can be more productive.
2. Authority
and responsibility
Authority
is command or instruction given by the top level management.
Authority may be of two types:
·
Official authority (comes from management)
·
Personal authority (comes from manager)
When we receive authority our
responsibility will start.
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.
3. Discipline
It means the behavior and respect shown by the employees.
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.
4. 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.
Unity
of Command is a very important principle of management.
5.
Unity
of direction (one head & one plan)
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.
6.
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 most importance. If not, the organization
will collapse.
7. Remuneration
of personnel
(salary)
Remuneration is the price for services received. If an organization
wants efficient employees and best performance, then it should have a good
remuneration policy. This policy should give maximum satisfaction to both
employer and employees.
8. Centralization
If all the decision making powers are with the top level
management are known as centralization. And if some decision making powers are
given to the middle level management are known as de-centralization.
There should be a balance between centralization and
de-centralization.
9. Scalar
chain
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. Scalar Chain is
necessary for good communication. Scalar Chain must not be broken in norm
circumstances. However, if quick action is necessary, then this chain can be
broken. This is done using "Gang Plank"
10.
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 orderly placement of the resources such as
Men and Women, Money, Materials, etc. Misplacement will lead to misuse and
disorder.
11. Stability of tenure (job security)
This principle says that without any proper reason no
employee should be remove within a short period of time.
The employees should have job security.
12. Equity (justice + kindness)
Equity is a combination of kindness
and justice. Workers must be treated with fairness and equity. Equity creates
loyalty and devotion in the employees.
13. Initiative
Initiative means to do something without waiting for order of
the superior.
Management should encourage
initiative. That is, they should encourage the employees to make their own
plans and to execute these plans. This is because an initiative gives satisfaction
to the employees and brings success to the organization.
14. Esprit-de-corps
This is the principle of “Unity is strength” and there
should be team sprit between the employees.
Therefore, the management should
create unity, co-operation and team-spirit among the employees. They should
avoid the divide and rule policy.
