Any organization that wishes to be efficient and achieve its goals needs good management. Management has four basic functions – planning, organizing, leading, and controlling, also called the POLC framework in management. Without these in place, there would be little to no structure and focus in an organization.
Henri Fayol (1841-1925), a French Industrialist offered 14 principles of management for the first time in 1916. His fourteen principles of management serve as a guide in helping managers to manage their organizations. The principles propounded by Fayol can be represented by an acronym called “DAD SEE U USSR CIO”.
By placing the focus on managerial skills over technical skills, these principles give us a foundation for what we call “good management”.
Henry Fayol’s 14 Principles of Management are as follows
- Division of Labour: This principle states that there must be job specialization so as to enhance work performance and productivity.
- Authority and Responsibility: According to Fayol if an authority is given to a person, he or she must be made responsible for that duty i.e. employee authority must be in-line with their responsibility.
- Discipline: This implies that every employee must obey orders.
- Scalar Chain: This principle states that there must be a clear line of formal authority and communication from the top hierarchy to the bottom level of the organization.
- Equity: This implies that there must be kindness, fairness, and justice in the treatment of employees if management wants their loyalty and commitments towards given job.
- Espirit de corps: This principle emphasizes that team spirit and cooperation should be encouraged in order to bring about harmony and unity within the organization.
- Unity of Command: This principle obliged all employees to receive orders and be made accountable to one superior at a time so that conflict can be avoided.
- Unity of Direction: This implies that all employees must be geared towards the same direction so as to achieve the common goals of the organization.
- Stability of Tenure: This principle states that the employee period on a given job must be stable and he or she must not be moved or transfer without clearing notification for doing so.
- Subordination of Individual to General Interest: This principle states that the interest of one person should not overshadow the interest of the organization as a whole.
- Remuneration: This means that employees are entitled to fixed wages and salaries and they must be well motivated to ensure higher productivity, thereby boosting organizational profitability.
- Centralization: This implies that all major decisions are concentrated in the hand of one single superior, while decentralization means allowing the subordinates to partake in the decision relating to their respective departments. The degree in which centralization should be adopted depends upon the nature of the organization that the manager is working.
- Initiative: Management should encourage workers to use their initiative and creativity on the given job even though it may lead to wastage or loss on the part of the organization.
- Order: There should be an orderly arrangement of people and materials in the right place, at the right time, doing the right job, in which they are best suited.
Henry Fayol’s 14 principles of management are universally accepted and continually used as a guideline for managers across the world. Though these principles of management are more than 100 years old, without them, it would push us back hundreds of years back when technical skills reigned supreme and people lacked managerial responsibility.