This article explains the administrative theory of the 14
Principles of Management by Henri Fayol in a practical way. After reading you
will understand the basics of this powerful management tool.
Management
In the last century, organizations already had to deal with management in practice. In the early 1900s, large organizations, such as production factories, had to be managed too. At the time there were only few (external) management tools, models and methods available.
14 Principles of Management
1. Division of Work
Management
In the last century, organizations already had to deal with management in practice. In the early 1900s, large organizations, such as production factories, had to be managed too. At the time there were only few (external) management tools, models and methods available.
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14 Principles of Management
14 principles of Management are statements that are based on a fundamental
truth. These principles of management serve as a guideline for decision-making
and management actions. They are drawn up by means of observations and analyses
of events that managers encounter in practice. Henri Fayol was able to
synthesize 14 principles of management after years of study, namely:
1. Division of Work
In practice, employees are
specialized in different areas and they have different skills.Different levels
of expertise can be distinguished within the knowledge areas (from generalist
to specialist).Personal and professional developments support this. More about Division of work
2. Authority and Responsibility
In order to get things done in
an organization, management has the authority to give orders to the employees.
Of course with this authority comes responsibility.
3. Discipline
This third principle of the 14
principles of management is about obedience. It is often a part of the core
values of a mission and vision in the form of good conduct and respectful
interactions. More about Discipline
4. Unity of Command
The management principle ‘Unity
of command’ means that an individual employee should receive orders from one
manager and that the employee is answerable to that manager. More about Unity of command
5. Unity of Direction
This management principle of
the 14 principles of management is all about focus and unity. All employees
deliver the same activities that can be linked to the same objectives. All
activities must be carried out by one group that forms a team. These activities
must be described in a plan of action. More about Unity of Direction
6. Subordination of Individual
Interest
There are always all kinds of
interests in an organization. In order to have an organization function well,
Henri Fayol indicated that personal interests are subordinate to the interests
of the organization (ethics).
7. Remuneration
Motivation and productivity are
close to one another as far as the smooth running of an organization is
concerned. This management principle of the 14 principles of management argues
that the remuneration should be sufficient to keep employees motivated and
productive. More about Remuneration
8. The Degree of Centralization
Management and authority for
decision-making process must be properly balanced in an organization. This
depends on the volume and size of an organization including its hierarchy. More about The degree of centralization
9. Scalar Chain
Hierarchy presents itself in
any given organization. This varies from senior management (executive board) to
the lowest levels in the organization. Henri Fayol ’s “hierarchy” management
principle states that there should be a clear line in the area of authority
(from top to bottom and all managers at all levels). More about Scalar chain
10. Order
According to this principle of
the 14 principles of management, employees in an organization must have the
right resources at their disposal so that they can function properly in an
organization. In addition to social order (responsibility of the managers) the
work environment must be safe, clean and tidy.
11. Equity
The management principle of
equity often occurs in the core values of an organization. According to Henri
Fayol, employees must be treated kindly and equally. Employees must be in the
right place in the organization to do things right. More about Equity
12. Stability of Tenure of
Personnel
This management principle of
the 14 principles of management represents deployment and managing of personnel
and this should be in balance with the service that is provided from the
organization. Management strives to minimize employee turnover and to have the
right staff in the right place. More about Stability of tenure of personnel
13. Initiative
Henri Fayol argued that with
this management principle employees should be allowed to express new ideas.
This encourages interest and involvement and creates added value for the
company.
14. Esprit de Corps
The management principle
‘esprit de corps’ of the 14 principles of management stands for striving for
the involvement and unity of the employees. Managers are responsible for the
development of morale in the workplace; individually and in the area of
communication.
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