HENRY FAYOL'S 14 PRINCIPLES OF MANAGEMENT

Henry Fayol is a french industrialist who wrote the book Administration Industrielle et Générale (french word for "general and industrial management"). 

He is considered to be the father of the general administrative theory of management.

According to Fayol, the success of any organization is more dependent on the administrative ability of its managers than their technical ability.

He came to this conclusion after reflecting on his own experience as the managing director of Compagnie de Commentry Fourchambeau Decazeville.

Henry fayol was the first to identified 5 functions of management. These are planning, organizing, controlling, commanding, and coordination.

In addition to enumerating these five functions of management, Henry fayol also developed fourteen principles of management.

He believes that these fourteen principles will assist organizations in achieving effective management, and many of them have now become standard practices in organizations.

The fourteen principles given by Henry Fayol are Division of work; Authority and Responsibility; Discipline; Unity of command; Scalar chain; Equity; Espirit De Corps; Unity of direction; subordination of individual interest to the general interest; Remuneration; order; Centralization and decentralization; initiative; stability of tenure of personnel.

Division of work (or labour)

This is breaking down a given activity into smaller portions or parts, with each part being handled by a different unit or department within the company.

Fayol believes that dividing this work will allow workers to develop expertise in certain areas, leading to specializations

Workers will become proficient in the task on which they are specialized, resulting in increased efficiency and output.

In a nutshell, division of labour involves delegating tasks to people who can perform them in the best manner, resulting in specialization and efficiency.

Authority and responsibility

Managers must be able to give orders. Authority gives them this right. Authority, according to Henry Fayol, is “the right to give orders and power of exact obedience''.

In other words, authority is the manager's right to give the command and receive obedience from subordinates.

Along with this authority goes responsibility, which is the accountability of authority. 

That is, responsibility occurs when a person is accountable for the duties and tasks assigned to him.

Henry Fayol emphasized that authority and responsibilities must be balanced in an organization as they go hand in hand. 

The right to give orders should correspond with the responsibility for this order.

If the manager has more authority than responsibility, he or she is more likely to misuse it. Conversely, He may become frustrated if he has more responsibility than authority. 

Discipline 

Discipline, according to Calhoon, '' is the force that prompts individuals or groups to observe rules, regulations, and procedures which are deemed to be necessary for the effective functioning of an organization''.

Discipline is meant to ensure orders as well as ensure good behaviour in the workplace. It is one of the most crucial aspects of any management system.

It is very essential to the smooth functioning of an organization.

Fayol believed that using penalties to incentivize discipline and enhance compliance rates was a good idea.

Unity of command 

Every employee should have only one superior and should receive orders from him only. 

The principle of unity of command states that subordinate members of a structure should all be responsible and accountable to a single manager.

When an employee is required to report to multiple bosses or serve two masters, this creates a problem of dual subordination, which always lead to confusion and conflict of interest.

Dual subordination (or dual command) is a permanent source of conflict in the organization.

Unity of command, as Fayol argued, is the single most fundamental principle of management. He claimed that unity of command underpins all other management principles.

Violation of unity of command would undermine authority, threatened stability and jeopardized discipline in the organization.

Unity of direction

Individuals in an organization should have the same goal. This is the idea of the unity of direction. The principle of unity of direction states that the work and efforts of the organization should all be directed in one direction (which is the accomplishment of organizational goals).

So, Instead of pursuing individual goals that may conflict with one another, Fayol believed that the entire organization should be focused on achieving a single common goal or objective.

Subordination of individual interest to the general interest

This is closely related to the preceding principle of unity of direction. To avoid a conflict of interest, individual interests should be subordinated to organizational interest.

Stated differently, the organizational interest should be given precedence over any personal interest. 

That is, no individual's interests should take precedence over the organization's. Otherwise. Management would be a failure.

It should, however, be noted that social and national interests take precedence over organisational interests whenever both run counter to each other.

Remuneration

Salaries and pay are, without doubt, the most significant motivator for working. As per this principle, workers should be remunerated sufficiently and adequately so as to increase their work satisfaction and workers' productivity.

In short, Remuneration means workers should be paid fairly and equitably. By fairness, we mean employee should get the payment he deserves. By equitable, we mean employees of the same level should be compensated equally, regardless of their race, gender, or any status differences.

Fayol believed that factors such as cost of living, business profitability, labour supply should all be considered when establishing a worker pay rate.

In today's competitive environment, This principle is so important that it is now handled by a special department called human resource management

Centralization and decentralization

This denotes whether decision-making power is concentrated in the hands of a few people or distributed throughout the organization among personnel at various levels of management.

By definition, a centralized organization places all authority and decision-making in the hands of the top or middle management.

On the other side, a decentralized organization is one in which authority and decision-making are delegated to personnel at various levels of management

Henry Fayol emphasized that they must be a balance between centralization and decentralization. 

No organization, he believes, should be highly centralized or decentralized. Rather, the organization should be partly centralized and partly decentralized.

This allows employees to show what he calls ''initiative'' while also giving top-level management or employee with adequate knowledge the power to make accurate decisions.

Scalar chain

Communication is critical in any organization, regardless of its size. There must therefore be a clear line of communication and authority in an organization.

The scalar chain is the line of communication and authority that runs from top management to lower management. 

It represents the organization hierarchy, which is usually illustrated through an organizational chart.

The presence of a scalar chain lets employees understand their position in the organizational hierarchy, as well as who they should report to and who they should contact if they have any problems or suggestions.

There will be confusion and chaos in the organization if there is no scalar chain since subordinates will not know who to report to or approach for suggestions or questions.

Order

For the sake of efficiency and coordination, Fayol believes that there should be a place for everything and everything should be in its place. He called this order.

As per this principle, resources such as men and materials must be at the right place and at the right time so as to eliminate or reduce wastage.

It also means that the right person should be in the right job.

Equity

This is a self-explanatory principle. Equity is based on the idea that the right or duty should be apportioned as evenly as feasible among all subordinates.

Simply said, equity means that managers should treat all subordinates with fairness and respect. 

This ensures that there is a peaceful and friendly atmosphere between superiors and subordinates in the organization.

Employee loyalty and dedication are also affected by equity, as well-treated and contented employees are more likely to be committed to their jobs than those who are not treated fairly.

Fayol argued equitable treatment is a prerequisite for effective management. If employees are not treated equally, there are bound to be ineffective.

Stability of tenure of Personnel.

Any organization that wants to achieve its goal successfully must be able to reduce labour turnover.  

At the risk of oversimplifying, labour or employee turnover is the rate at which employees leave an organization and are replaced by new employees.

Stability of tenure refers to the management task of reducing labour turnover, which is necessary for effectiveness and efficiency. 

Stated differently, the Stability of tenure states that there must not be frequent entry and exit of personnel in the organization to ensure effectiveness and efficiency. 

Frequent employee entry and exit do not just waste company resources, it also disrupts output.

So in order to minimize labour turnover, fayol argued that management should make every attempt to retain productive workers.

Initiative 

No manager is an island unto himself. As a result, subordinates' initiative is required.

Employees should be encouraged to present and implement their ideas or suggestions for the organization to function effectively.

This will increase employee interest in the work while also creating a sense of belonging because employees will feel that their opinions and ideas are highly valued and appreciated in the organization.

Espirit de corps

This is the french word for team spirits. Managers should promote teamwork, cohesiveness and cooperation in the organization. 

This will help in developing an atmosphere of peace and trust in the organization.

In order to create team spirits, fayol emphasized that teamwork and communication should be encouraged.

There you have it!. You can get access to our frequent quizzes and resources by subscribing to our telegram channel

Got questions? Feel free to ask me in the comment box

Help us grow our readership by sharing this post

Related Posts

Post a Comment

Subscribe Our Newsletter