14 Principles of Management of Henri Fayol

In this article, Henri Fayol’s 14 management principles are described in a practical way by the administrative theory and the strategic management. Upon reading, you’ll get a good understanding of the fundamentals of this powerful management tool.

Henri Fayol 14 principles of management

14 Principles of Management of Henri Fayol
14 Principles of Management

14 principles of management are declarations based on a basic fact. These management concepts serve as guidelines for decision-making and management activities. They are prepared by observing and analyzing in practice the events managers are experiencing. After years of research, Henri Fayol was able, to sum up 14 management concepts.

1. Division of Work

In practice, staff are specialized in various fields and possess varied qualifications. The knowledge domains can differentiate between different degrees of competence (from generalist to specialist).

This is supported by personal and professional advances. Henri Fayol thinks specialisation boosts work efficiency and output. In addition, personnel have enhanced their discipline, precision and quickness. The 14 management principles govern both technical and management activities. This approach covers 14 management principles.

2. Authority and Responsibility

Management can provide instructions for people to accomplish tasks in an organization. Naturally, accountability lies with this authority. According to Henri Fayol, managers have the right to order suborders by the accompanying power or authority.

The performance may be traced back to accountability, which is why agreements need to be reached.

14 Principles of Management of Henri Fayol
14 Principles of Management

3. Discipline

The third principle of the 14 principles of management is obedience. It is frequently part of the fundamental principles of ethical behavior and courteous interactions in purpose and vision. This management idea is crucial and is considered the oil to make an organization’s motor operate smoothly.

4. Unity of Command

The “command unit” management principle states that an individual employee shall get instructions from one manager and that the employee shall be accountable to that manager.

If more than one management gives the employee duties and related obligations, this might lead to misunderstanding and probable staff disputes. The blame for errors may be easily identified by applying this approach.

14 Principles of Management of Henri Fayol
14 Principles of Management

5. Unity of Direction

The concentration and unity are all about this management concept among the 14 management principles. All personnel carries out the same activities connected to the same goals. All actions have to be performed by one team. These activities have to be included in an action plan.

Ultimately, the manager monitors and is responsible for the development of the defined and planed actions. Employee efforts and collaboration are the focus areas.

6. Subordination of Individual Interest

An organization always has all sorts of interests. Henri Fayol pointed out that personal interests depend on the organization’s claims to have an organization functioning effectively (ethics).

The focus is mostly on the corporate goals and not the individual. This applies to all levels, including managers, of the organization.

14 Principles of Management of Henri Fayol
14 Principles of Management

7. Remuneration

In the seamless working of an organization, motivation and production are closer together. This governance concept of the fourteen management principles says that pay should be adequate to ensure that workers are motivated and productive.

In other words, the non-monetary (a complement, additional liability, credit) and monetary payments exist in two forms (compensation, bonus, or further financial compensation). In the end, the work that has been made is to be rewarded.

8. The Degree of Centralization

14 Principles of Management of Henri Fayol
14 Principles of Management

A firm must have properly balanced management and decision-making authority. This depends on an organization’s volume, size and structure. Centralisation is the concentration of decision-making authority in top management (executive board). Decentralization is called decentralization of Henri Fayol, which shares the decision-making powers with lower levels (middle and lower). Henri Fayol pointed to the need for an organization to aim for a proper balance.

9. Scalar Chain

In each particular organization, hierarchy reveals itself. This differs between top management (executive board) and the organization’s lowest levels. Henri Fayol’s management philosophy believes that a clear line should be drawn between the power (from top to bottom and all managers at all levels). This may be considered a kind of management framework. Without questioning the hierarchy, everyone can call a manager or supervisor during an emergency. Especially if reports to immediate managers/superiors concerning disasters are concerned.

10. Order

14 Principles of Management of Henri Fayol
14 Principles of Management

Under this concept of 14 management principles, individuals in an organization must have the right resources to perform properly. In addition to social order, the workplace must be safe, clean and neat (management responsibilities).

11. Equity

The idea of equity management frequently takes place in a company’s fundamental principles. Employees should be treated freely and fairly, according to Henri Fayol. To perform things correctly, employees must be in the right spot in the company. Managers should monitor and manage this process and deal fairly and neutrally with workers.

12. Stability of Tenure of Personnel

The 14 management principles of the governance concept involve the deployment and administration of the employees and should conform to the company’s services. The Management tries to reduce the turnover of personnel and secure the suitable position for employees. There should be good management of focal points, such as regular position shifts and enough growth.

14 Principles of Management of Henri Fayol
14 Principles of Management

13. Initiative

Henri Fayol suggested that employees should be let to voice fresh ideas with this management philosophy. This stimulates interest and participation and adds value to the firm.

Employee initiatives are a source of strength, according to Henri Fayol. This fosters employee participation and interest.

14. Esprit de Corps

The ‘spirit de corps’ management concept among the 14 management principles is intended to promote employees participation and unity. Managers have a responsibility both personally and in the communication field for morals in the company.

Esprit de corps helps to establish a culture and develops a climate of confidence and understanding.

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