Henri Fayol was born in Istanbul in 1841. At the age of 19 he began working as an engineer in a large mining company in France. Eventually he became the director, at a time when the company used more than 1,000 people.
Over the years, Fayol began to develop what he considered to be the 14 most important principles of management. Essentially, they explained how managers should be organised and interacted with staff.
In 1916, two years before his resignation as director, he published his "14 Principles of Management" in the book "Administration Industrielle et Générale". Fayol also created a list of the six main functions of management, which go hand in hand with the Principles.
Fayol "14 Principles" was one of the earliest theories of managing a created being, and remains one of the most complete. It is considered to be among the most influential contributors to the modern management concept, even though people do not refer to "The 14 Principles" often today.
Fayol's 14 Principles of Management Fayol's principles are listed below:
Division of Work – When employees are specialised, output can increase because they become increasingly skilled and efficient.
Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.
Discipline – Discipline must be upheld in organisations, but methods for doing so can vary.
Unity of Command – Employees should have only one direct supervisor.
Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.
Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group. This includes managers.
Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.
Centralisation – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.
Scalar Chain – Employees should be aware of where they stand in the organisation's hierarchy, or chain of command.
Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.
Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.
Stability of Tenure of Personnel – Managers should strive to minimise employee turnover. Personnel planning should be a priority.
Initiative – Employees should be given the necessary level of freedom to create and carry out plans.
Esprit de Corps – Organisations should strive to promote team spirit and unity.
The Management Principles are the underlying essential factors that are the basis of successful management. According to Henri Fayol in his book General and Industrial Management (1916), there are fourteen "management principles".
1. Division of labour - According to this principle all work is divided into small tasks. The specialization of the workforce according to the capabilities of a person, creating a specific personal and professional development within the workforce and, therefore, increasing productivity; It leads to specialization that increases the effectiveness of work.
2. Authority and Responsibility - This is the question of mandates followed by responsibility for its consequences. Authority means the right of a superior to give order to his subordinates; Responsibility means performance obligation.
3. Discipline - It is obedience, proper conduct in relation to others, respect for authority, etc. It is essential for the proper functioning of all organizations.
4. Command unit - This principle states that each subordinate must receive orders and be responsible to one and only one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict.
5. Management Unit - All related activities must be grouped together, there must be an action plan for them and they must be under the control of a manager.
6. Subordination of individual interest to mutual interest - management should set aside personal considerations and set the company's goals first. Therefore, the interests of the organization's objectives must prevail over the personal interests of individuals.
7. Remuneration - Workers must be paid sufficiently, as it is a major motivation of employees and, therefore, greatly influences productivity. The amount and methods of remuneration must be fair, reasonable and rewarding.
8. The degree of centralization - The amount of power administered with the central administration depends on the size of the company. Centralization involves the concentration of decision-making authority in top management.
9. Authority Line / Chain Scale - Refers to the chain of superiors that go from the upper direction to the lower range. The principle suggests that there must be a clear top-down authority line that connects all managers at all levels.
10. Order - The social order guarantees the proper functioning of a company through an authorized procedure. Ordering materials ensures safety and efficiency in the workplace. The order must be acceptable and under the rules of the company.
11. Equity - Employees should be treated with kindness, and justice must be enacted to ensure a fair workplace. Managers must be fair and impartial in dealing with employees, giving equal attention to all employees.
12. Stability of staff tenure - Stability of staff tenure is a principle that for an organization to function smoothly, staff (especially managers) should not enter and leave the organization frequently.
13. Initiative - Using the employee initiative can add strength and new ideas to an organization. Employee initiative is a source of strength for the organization because it provides new and better ideas. Employees are likely to have more interest in running the organization.
14. Esprit de Corps / team spirit - refers to the need for managers to ensure and develop morale in the workplace; Individually and communally. Team spirit helps develop an atmosphere of mutual trust and understanding. Team spirit helps finish the task on time.