What are the 14 Principles of Management?
The 14 Management Principles by Henri Fayol (1841-1925) are:
1. Division of Work. Specialization permits the individual to make up experience, and to continuously enhance his skills. Thus he can be more productive and capable.
2. Authority. The right to give commands, together with which must go the balanced responsibility for its function.
3. Discipline. Employees should follow, but this is both-sided: employees will only follow orders if management plays their role by giving good leadership.
4. Unity of Command. Each worker must have only one boss with no conflicting lines or series of command.
5. Unity of Direction. People occupied in the same type of activities should have the similar objectives in a single plan. This is necessary to make sure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not essentially flows from it.
6. Subordination of individual interest (to the general interest). Management should see that the objectives of the firms are always supreme.
7. Remuneration. Payment is a significant motivator although by evaluating a number of possibilities, Fayol points out that there is no thing as a perfect system.
8. Centralization (or Decentralization). This is a matter of degree relying on the situation of the business and the quality of its personnel.
9. Scalar chain (Line of Authority). A hierarchy is essential for unity of direction. But lateral communication is also essential, providing superiors know that such communication is occurring. Scalar chain points to the number of levels in the hierarchy from the final authority to the lowest level in the organization. It must not be over-stretched and comprises of too-many levels.
10. Order. Both material order and social order are essential. The former decreases lost time and useless dealing of materials. The latter is accomplished by organization and selection.
11. Equity. In operating a business a ‘combination of kindliness and justice’ is required. Treating employees well is significant to attain equity.
12. Stability of Tenure of Personnel. Employees work better if job security and career growth are guaranteed to them. An insecure tenure and a high rate of employee turnover will influence the organization badly.
13. Initiative. Permitting all personnel to reveal their initiative in some way is a resource of strength for the organization. Although it may well engage a sacrifice of ‘personal vanity’ on the part of a lot of managers.
14. Esprit de Corps. Management has to foster the confidence of its employees. He further recommends that: “real talent is required to give confidence, keenness, coordinate effort, use each person’s abilities, and rewards every one’s merit with no possible jealousies and troubling harmonious relations.”