Henri Fayol developed 14 principles of management that are still widely used today. The principles include division of work, where each employee has clearly defined tasks; authority and responsibility, where authority is delegated proportionate to responsibility; and discipline, where all employees must obey orders and rules. Other principles include unity of command, where each employee reports to one supervisor; unity of direction, where all activities are coordinated to achieve common goals; and remuneration, where pay is fair based on job requirements. The 14 principles provide a framework for effective management in organizations.
1. Henri Fayol's 14 Principles of Management
Major credit of developing the body of principles of
management goes to none other than Mr. Henry Fayol. He is
put forward a set of fourteen principles of management
which has gained a wide area of application in the field of
business. A set of fourteen principles of management,
developed by Henry Fayol can be depicted as follows:
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Management Study Online (MSO)
2. Division of Work
It is an important principle of management. According to
this principle, each and every activity of organization
should be clearly allocated among the employees
according to their abilities, qualifications and aptitudes, so
that every employee can easily understand their tasks and
give their hundred percent contributions for the
achievement of organizational goals.
3. Authority and Responsibility
Authority and responsibility both have inter-
dependence relationship with each-other. In the
absence of authority nobody can take responsibility on
his shoulders in organization for the achievement of
various activities. Hence, it is too important that
authority should be delegated to employees so that
they can take more responsibility whenever need
arises.
4. Method of Discipline
It is also an essential principle of management.
According to this principle all, those are working in
organization as employee and employer should obey
the orders, instructions and rules of leader strictly. In
case any subordinate does not follow the orders and
instructions of leader then he will have to pay plenty
for this. Thus it is clear that discipline should be
maintained in organization.
5. Unity of Command
According to this principle, every individual in organization
must get orders and instructions only from their own
departmental head not from others, because if any
individual will get orders and instructions from other
superiors then conflicts may arise among the departments
as a result of this works cannot be carried out properly by
them. Hence, this principle takes an important place in
organization.
6. Unity of Direction
According to this principle, every group of activities in
organization should have the same objective. It means all
activities must be directed by one superior and with one
plan, so that organization cannot face any difficulties in
course of achieving its per-determined goals.
7. Remuneration
According to this principle, every personnel (employee)
in organization should receive handsome and equitable
remuneration. The differences in payments of personnel
must be on the basis of job differentials, abilities of
personnel, responsibility of personnel and difficulties of
job. Cost of living, price level and financial situation of
enterprise should also be considered for the
determination of remuneration of personnel.
8. Centralization and De-centralization
Centralization and De-centralization both are inter-
related terms. Centralization refers to a system in which
only authorized person can take vital decisions for
the development of organization. No common individual
has right to take decisions. On the other hand De-
centralization refers to a system in which authority can
be transferred from higher level to bottom level among
the personnel to taking vital decisions for the
development of organization. Thus it is clear that both
principles are necessary for organization.
9. Order
According to this principle, each and every activity should
be done by personnel on the basis of proper pattern. It can
only be possible when the tasks are clearly defined among
the personnel according to their abilities, qualifications
and understandings. According to Henry Fayol ‘order’
means right person on the right job and everything in the
place.
10. Scalar Chain
It is a unique principle of management. According to this
principle, all those are working in organization are linked
with each-other in superior-subordinate relationship. its is
best management Concepts.
11. Initiative
According to this principle, in every organization
managers has to create such an environment, where a
group of people can willing to take initiative and
responsibility for doing various activities in the most
efficient way, for all around development of
organization. It can only be possible on the basis of
developing co-operative relationship among the
groups of people. Thus we can say that, it is a vital
principle of management.
12. Subordination of individual interest to group
interest:
According to this principle, the interest of group is above
in comparison to the interest of an individual. It means
organization has to give priority group’s need rather than
individual, because no one organization can achieve its
goals properly without the group’s efforts. Hence, it is
clear that, the interest of group is above in comparison to
the interest of an individual.
13. Stability of tenure of personnel
According to this principle, job security must be provided
by organization to each personnel. In fact, if the personnel
are secured about their jobs than they will give their
hundred percent contributions for the achievement of pre-
determined goals of organization. On the other hand, in
the absence of job security the personnel will not give
their hundred percent contributions for the achievement of
pre-determined goals of organization. Thus tenure of
personnel should be stable.
14. Equity
It is one of the most important principles of
management. According to this principle, all those are
working in organization as superior and subordinate,
both have equal rights as human-beings. In fact, all
groups of people, either they may be authorized or non-
authorized personnel are equal in the eye of
organization. There is no difference among them on the
basis of cast and creed, positions and other things.
15. Espirit-de-corps:
According to this principle, everyone in organization
should do their tasks under the guidance of team spirit.
In fact, any organization cannot attain its predetermined
goals efficiently, in the absence of team efforts. Thus it
is clear that team spirits is too important in organization
among the groups to achieve organizational goals in
efficient way.
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