Henry Fayol was the Frenchman who introduced the General Principles of Management for the first time during his job as Junior Engineer in a Coal Mining and Iron Foundry Company. 14 Principles of management by Henri Fayol has emerged as a theoretical framework for the managers to enhance their skills. Because of this Henri Fayol is known as ‘Father of Modern Management’ or ‘Father of Management Studies and Thoughts’.
Fayol Suggested 14 Principles of management .These statements serve as a guidelines for decision -making and management actions.
- Principle of Division of Work
- Principle of Authority & Responsibility
- Principle of Discipline
- Principle of Unity of Command
- Principle of Unity of Direction
- Principle of Subordination of Individual Interest to Organisational Interest
- Principle of Centralization
- Principle of Remuneration
- Principle of Scalar Chain
- Principle of Order
- Principle of Equity
- Principle of Stability of Tenure
- Principle of Initiative
- Principle of Esprit de corpse (Team work)
Principle of Division of Work :-Division of work is also known as Principle of Specialization. This principle states that all the work should be divided into smaller tasks. Then the work should be divided on the basis of the qualifications, experience, skills and knowledge. This will lead to improved efficiency of the employee in completing the job. Fayol stated that this principle applies to all kinds of work may it be managerial or technical.
Principle of Authority & Responsibility:-Authority is the right to take decisions. It is necessary to get the things done appropriately from subordinates. Authority always comes with the responsibility. If the manager is given the authority to complete the task within a given time .he should be held responsible if he does not complete the work in given time ,Manager should have proper authorities to take managerial decision on his own in respect to the goal.
Principle of Discipline :- According to Fayol, discipline is the most essential things in the organisation. Employee must obey and respect the rules that govern the organisation. Discipline helps to achieve the goals in the organisations . Good discipline is the result of effective leadership. There must be a clear understanding between the management and workers regarding the organization's rules. Basic discipline should be observed at all level of management.
Principle of Unity of Command :-Each member of organization should receive orders from only one superior. This principle helps in managing conflicts and solving disputes among people in organization. It also help in avoiding confusion. If an employee receives commands from more than one authority .he will get confused and will not be able to take decision about whose orders should be followed. This is wrong approach. For this organizational hierarchy should be well defined. Each employee should know his immediate superior and should receive orders from him only.
Principle of Unity of Direction :- The Principle state that ‘there should be one head and one plan’ in every organisation. Each group in the organisation should have the same objective and the group should be directed by one manager using single plan.
Principle of Subordination of Individual Interest to Organisational Interest:-According to this principle, there should be reconciliation between the individual and common interests. If there is any conflict or clash between the two, the interests of the organization should prevail over the individual interest. Manager must take all the decisions in the organization by giving priority to organizational interest and not his personal interest. The manager can ensure this by his exemplary behavior by not misusing his authority for personal favors. The agreement between employers and employees should be fair and there should be constant vigilance and supervision.
Principle of Centralization :-Centralization refers to concentration of authority or power in few hands at the top level. Decentralization means evenly distribution of power at every level of management. According to Fayol, a company must not be completely centralized or completely decentralized but there must be combination of both depending upon the nature and size of the organization.
In small organization, centralization can be preferred but in large organizations, where there is large number of intermediaries, the decentralization should be adopted.
Principle of Remuneration :- Appropriate remuneration to staff or employees is the principle to keep them satisfied fianancially as well as retain them for a long span of time within the organization. The Fair remuneration affects on the productivity and efficiency level in total. The remuneration should be fixed by taking into consideration the skill, expertise, knowledge ,tenure, cost of living ,Market trend, profitability of organization etc.
Principle of Scalar Chain :- Scalar chain means chain of superiors ranging from top management to the lowest rank. This principle focuses that every communication must follow prescribed routes. It can be short circuited only in special circumstances or in emergency situations when its rigid following is feared to be detrimental to the organization. The information should be communicated through gang plank in case of emergency situations. Gang plank permits direct communication between the employees working in different positions without following the scalar chain.
Example: If the employee at lowest level wants to communicate some urgent information to the CEO of the company, he can use the gang plank. But generally workers cannot directly communicate with CEO but through gang plank it is possible.
Principle of Order:- This principle is based on ‘A place for everything and everything in its place’ Human resources and material should be in the right place at the right time for maximum efficiency. Human resources should be placed at right place and on right job. This principle focuses on the proper utilization of physical and human resources.
Principle of Equity :-Equity refers to kind, fair and just treatments to the employees. The superiors should be fair and impartial in their dealings with the subordinates. They should give similar treatment to all the people working in the similar positions. Equity helps in creating cordial relations between management and workers and brings only loyalty in the organization.
Principle of stability of Tenure :-Stability of Personnel ensures no frequent termination or transfer of the employees. Fayol was of the view that job security is important for an employee to give his best at the job. High labor turnover is bad for the organization. So the management should adopt such policies that make the employees feeling connected to the organization.
Principle of Initiative :-Initiative means doing something without being asked to do. It refers to freedom to think for oneself and use of discretion in doing work. Fayol says that employees at all levels in the organization should be given the opportunity to show initiative and exercise judgment in the formulation and execution of plans. It increases their zeal and energy and encourages them to act in an efficient way.
Principle of Esprit de corpse (Team work) :-Henry Fayol has given emphasis on team work. Esprit de corps means union is strength.
Running organization is a group activity and human resources are the valuable asset of the organization. If all employee are working as a union and with mutual trust, the difficulties can be solved quickly. Therefore as a leader , manger should create a spirit of team work and understanding among employees to achieve organizational goal easily. Fayol stresses that only those organizations can be successful which act as a team.
Above 14 principles of Henry Fayol are very useful to manage the organization efficiently and effectively. These are also supportive to functions of management. These principles are very logical and therefore are applicable in modern management era.