Henry Fayol, a French Industrialist, is now recognized as the Father of Modern Management. In 1916, he wrote a book - "Industrial & General Administration" in which he mentioned 14 Principles of Management.
Henry Fayol's of 14 Principles of Mangement are
- Division of work
- Authority & Responsibility
- Discipline
- Unity of Command
- Unity of Direction
- Subordinate of Individual Interest
- Renumeration
- Centralization
- Scalar Chain
- Order
- Equity
- Stability of Personnel
- Initiative
- Espirit de corps
1. Division of work
This principle states that work should be divided and allocated to individuals this allows employees to focus on specific tasks and bring efficiency in the work
2. Authority & Responsibility
- Authority refers to the right to give orders and power to enforce obedience.
- Employees have the responsibility to carry out those orders
- Authority and responsibility should be balanced to ensure effective management.
3. Unity of Command
A sub-ordinate (employee) should have only one supervisor (boss).\
5. Unity of Direction
In the organization, making sure that everyone working towards a common goal.
6. Sub-ordinate of Individual Interest
- In an organization, there are two types of interest i.e the individual interest of the employees, and the general interest of the organization.
- The individual interest should be given less importance, while the general interest should be given greater importance. If not, the organization will collapse.
- The main concept is individual goals should align with company's goals.
7. Renumeration
Fair compensation (good salaries + bonus pay) should be provided to employees for their efforts and contributions. It helps motivate employees, improve job satisfaction and put their full efforts on work.
8. Centralization
It states that important decision Making should be centralized with in an organization (Authority is in the hands of higher level of management).
- Fayol also believed that too much centralization can lead to slow decision making and lack of creativity, so a balance must be there between centralization and decentralization.
9. Scalar Chain
Organizations should have a chain of authority and communication that runs from top to bottom and should be followed managers and their subordinates.
10. Order
- People & material must be in suitable places at appropriate time for maximum efficiency.
- If there is fixed place for everything then there would be no confusion.
11. Equity
There should be no discrimination on any basis towards anyone. There should be fair treatment to all workers.
12. Stability of Personnel
Organization should provide security of employment for workers.
13. Initiative
- Workers should be encouraged to develop and carryout their plans for improvement.
- It can be done by allowing suggestions from all managers and staff in the company.
14. Espirit de corps
- Promote unity among workers.
- Management should promote a team spirit of unity and harmony among employees.
- A manager should replace "I" with "we" in his all conversations.
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