In 1916, French management expert Henri Fayol published "Industrial and General Administration." In this book, he proposed the 14 Principles of Management. These principles are still used today and considered the foundation of modern management practices.
In this blog post, I will be explaining Fayol's 14 principles of management and how they apply to current-day businesses.
His principles are:
1. Division of Work
Based on skills and level of expertise.
The first principle states that all tasks must be divided into smaller jobs so that each person can do only what they are best at. This means that you have to know your job well enough to be able to divide it up into small parts. The work is divided based on skills and level of expertise.
2. Authority and Responsibility
With authority comes responsibility.
This principle says that the manager has authority over subordinates and takes responsibility for their actions. It is vital that managers set clear expectations and hold themselves accountable for meeting them.
3. Discipline
Respect for agreements, obedience.
Discipline is a crucial component of any organization. Without discipline, people won't follow instructions. They'll just do whatever they want. Discipline is a way of ensuring that everyone follows the rules and procedures.
4. Unity of Command
Receive orders from one manager and answerable to them
Unity of command means that there should be a single leader who holds ultimate power in an organization. They make decisions and give orders.
5. Unity of Direction
All employees deliver, leading to a single objective.
A company should have one direction. Everyone should be working toward the same goal. If not, then things will fall apart quickly.
6. Subordination of Individual Interest
Ethics, interests of the organization above personal interests.
This principle says we shouldn't put our own interests ahead of those of the organization. We should always act with integrity and make sure that the needs of others come before our own. In short, give priority to the general interest.
7. Remuneration
Sufficient remuneration to keep employees motivated.
Employee motivation and productivity is key factor in the success of any business. However, if you want to attract and retain quality staff, you need to pay attention to what motivates them. It's not just about paying your team well; it's also about ensuring that they are happy with their working conditions. This can be as simple as providing them with a comfortable work environment or as complex as creating an attractive career path for them.
8. Centralization
The concentration of decision making, good balance
Centralization is when everything is controlled from one place. For example, if the CEO is influencing every aspect of the business, it would be considered centralization. No organization is 100% centralized or decentralized. The level of centralization might vary from company to company.
9. Scalar Chain
A clear line of authority, hierarchy
Scalar chain refers to the chain of command. In organizations, there should always be a clear line of authority. A boss should give instructions to subordinates to perform specific tasks. There should be a clear line of command.
10. Order
Right resources, social order, safe work environment
Social order means the proper relations between people that are governed by rules and laws to protect their rights and interests in a civilized society. This includes:
a) A framework that defines what acceptable or unacceptable behaviour is and who should be responsible for enforcing it;
b) An administration of justice that ensures the law/rule is applied fairly to all;
c) A strong sense of fairness, respect and tolerance;
11. Equity
Justice in management and loyalty in employees
Equity exists when everyone receives precisely what they deserve instead of being treated unfairly. All employees should receive equitable treatment without discrimination regardless of age, gender, race, religion, etc.
12. Stability of Tenure of Personnel
Costs of unnecessary turnover
If an employee needs to change jobs every year, it will cost an employer money because they may end up training someone new, losing sales leads and marketing opportunities along the way.
Employees should have a feeling of job security.
13. Initiative
Employees should be given the necessary level of freedom to create and carry out plans.
Managers should encourage employees to take the initiative. In other words, they should allow the employees to plan for themselves and then let them carry out their planned actions. It's because initiatives bring satisfaction to the employees and give them opportunities for personal development.
14. Esprit de Corps (Team spirit)
Union is strength, teamwork, communication
Esprit de corps is the feeling of belonging to a group. When people feel like part of something bigger than themselves, they'll put more effort into achieving goals.
Conclusion:
These 14 management principles of Henri Fayol are beneficial for managers. You can use these principles to improve your management skills.