Henry Fayol 14 Principles of Management – Father of Modern Management Theory | POM

Henry Fayol 14 Principles of Management

In 1916, Henry Fayol offered fourteen principles of management for the first time. Between 1920 and 1940, many authors worked hard to develop and test various management principles in the U.S. The concept of management was redefined by Henry Fayol, also called the ‘father of modern management theory.’ A general theory was introduced by him that can be applied to all management levels and departments.

An organization’s internal activities are organized and regulated according to the Fayol theory. It was his goal to achieve managerial efficiency.Following are the fourteen principles of management developed by the Henry Fayol:

  1. Division of Work
  2. Authority and Responsibility
  3. Discipline
  4. Unity of Command
  5. Unity of direction
  6. Subordination of individual interests to general interests
  7. Fair Remuneration to employees
  8. Centralization and Decentralization
  9. Scalar Chain
  10. Order
  11. Equity
  12. Stability of use of personnel
  13. Initiative
  14. Spirit of Co-operation (Spirit de crops)

1) Division of Work

According to Henry Fayol, if each worker and manager is concerned with the same task all the time, they will acquire an ability, sureness, and accuracy that will increase their output. As a result of division of labor, specialization occurs. As a result of this principle, no one is capable of doing all types of work.

A specialist should be assigned to each job and task. By limiting the scope of an organizational member’s responsibilities, division of work promotes efficiency. Not only at the factory level, but also at the management level, Fayol wanted to divide work.

2) Authority and Responsibility

There is a coexistence between authority and responsibility. The two sides of the coin are authority and responsibility. Anyone who is given responsibility for a job should also have the authority to carry it out. An efficient manager utilizes his authority to the fullest extent possible and does not escape responsibility as Fayol’s principle of management suggests.

The responsibility is exercised when the authority is exercised. When authority is exercised, responsibility is generated automatically.

3) Discipline

Henry Fayol defined discipline as sincerity about the work and enterprise, conformity to orders and instructions of superiors, and faith in business policies and programs, in other words obedience, application, energy, and respect for the superior. For maintaining discipline, Fayol does not advocate warming, fines, suspensions, or dismissals.

Punishments of this nature are rarely handed down. The quality and quantity of production can be improved by having a well-disciplined workforce.

4) Unity of Command

The boss should be the only one who gives orders to the subordinate, and the subordinate must answer to him. According to him, violating the unit of command undermines authority, puts discipline at risk, disturbs order, and threatens stability. There will be serious consequences if this principle is violated.

Thus, the unity of command principle ensures that the enterprise is disciplined, stable, and orderly. A harmonious relationship between officers and subordinates is created, as is a congenial work environment. This is an important element of Fayol’s management philosophy.

5) Unity of direction

According to Fayol, a group effort should be led and directed by one person, taking account of the interests of all involved. Efforts and energy can be coordinated effectively this way. By doing this, unity of command can be achieved and uniformity will be achieved in the same kind of work.

Hence, dedication to purpose and loyalty are created by the principle of direction. The goal is to achieve a common goal under one roof.

6) Subordination of individual interests to general interests

Business enterprise interests should come before the interests of individual employees. Therefore, employees should put the company’s general interest before their personal interests. There are times when employees overlook the interests of the organization because of ignorance, selfishness, laziness, carelessness, and emotional pleasure. Enterprises are adversely affected by this attitude.

7) Fair Remuneration to employees

In accordance with Fayol, wage rates and methods of payment are to be fair, appropriate, and satisfactory. There should be agreement between ex-employers and employees. It creates a harmonious relationship between workers and management, creates a pleasing working environment and reduces tension and differences between them. Fayol also recommends providing residential facilities, such as electricity, water, and other amenities.

8) Centralization and Decentralization

All parts of the organization should be controlled and directed by one central point. Authority should be centralized to the extent necessary, depending on the circumstances. Fayol suggests centralization in small units and proper decentralization in large organizations. According to Fayol, if a business wants to achieve maximum objectives, centralization and decentralization should be properly and effectively adjusted in order to achieve maximum objectives.

After considering the nature of work and the efficiency, experience, and decision-making capacity of the executives, a decision should be made between centralization and decentralization.

9) Scalar Chain

Scalar chains are hierarchical chains of supervisors from top to bottom. This should be short-circuited. Scalar chain contact should be necessary for an employee to feel secure. This scalar chain communicates authority and responsibility. Scalar chains are defined by Fayol as “the hierarchy of superiors from the highest to the lowest.” Management must communicate with workers through the flow of information.

It is imperative to avoid business opportunities as soon as possible. Therefore, we must contact the employee directly. Scalar chains do not always work for business problems that require immediate solutions. In order to accomplish this, direct contact must be established.

10) Order:

According to Fayol, land, raw materials, tools and equipment, and employees must be arranged in a systematic and orderly manner. For each article and each commodity to be used effectively, there should be a safe, appropriate and specific location. The principle that every piece of land and every product should be used as efficiently, effectively, and efficiently as possible.

Every job should be filled by the most suitable candidate. It is important that everyone has their own place and that everyone has their own place. Every employee on every job is also selected and appointed scientifically according to this principle.

11) Equity:

All levels of management should follow and apply the equality principle. Discrimination should not be tolerated based on caste, gender, or religion. The management of an organization should always be sympathetic and humane. It is important for the management to treat the employees with kindness, honesty, and impartiality.

To put it another way, management should treat their subordinates with kindness and justice. Employee loyalty and devotion will be created as a result. As a result, workers should be treated equally at all levels.

12) Stability of use of personnel:

A stable organization is characterized by long tenures of its personnel. An efficient management always builds a team of good workers since production is a team effort. The entire production process will be disrupted if the members of the team continue to change.

In order for an enterprise to succeed, its trusted, experienced, and trained employees must not leave. When jobs are stable, workers feel a sense of belonging, which in turn encourages them to improve quality and quantity.

13) Initiative:

An effective management provides its employees with the opportunity to share their new ideas, experiences, and more convenient work methods under this principle. People who have worked on a particular job for a long time now discover better ways and techniques to do the job. Providing employees with the initiative to do so will be more helpful. In other words, planning should be well formulated before implementation in order to ensure success.

14) Spirit of Co-operation (Spirit de crops)

It is essential to integrate and coordinate the efforts of individuals and groups in order to achieve the best possible results. To be successful in production, all members at all levels must give their wholehearted support and cooperation. Achieving the best results requires everyone to sacrifice their personal interests.

Loyalty, faithfulness, followed by cohesion, an informal community of mutual support among group members, and a positive approach by management towards workers’ welfare, are terms that describe the motivation to recognize and value each member’s valuable contribution, effective coordination, and a positive and constructive approach by management towards workers’ welfare.

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