Henri Fayol created 14 Principles of Management in the year 1916 in his book ‘General and Industrial Management’. These 14 principles are based on the fundamental truth and serve as guidance for decision making and any management actions to be taken.
These 14 principles are as follows:
- Division of Work- Division of Work brings about specialization in employees and makes them expertise. Specialization increases productivity and reduces burden of work. It also increases their accuracy and speed of performing any task.
- Authority and responsibility- Management has the authority to get things done through others. The power of authority gives the rights to give orders to the subordinates.
- Discipline- Discipline is needed to ensure smooth flow of work and to let the organisation function smoothly.
- Unity of command- Unity of command refers to the fact that all employees should receive instructions and should obey only one manager. If these instructions are given by more than one manager, it brings about confusion and may lead to conflicts among employees.
- Unity of direction- Unity of direction means that each employee should work on achieving those few objectives and each employee should perform the same activity to continuously achieve the same objective. All of these activities should be described in the plan of action.
- Sub-ordination of individual interest- Henri Fayol suggested that the personal interests of employees should be linked with the interests of the organisation. This will lead to accomplishment of both the interests and the primary focus is on achievement of organisational objectives.
- Remuneration- This principle suggests that the remunerartion given to employees should be sufficient to keep employees motivated. Both, monetary and non-monetary rumuneration is significant to link rewards and to satisfy employees.
- Degree of Centralization- Degree of centralization is closely linked to decision-making. It implies on the fact that decision-making should only be look forward to by the higher authorities, ie, the top management.
- Scaler Chain- Scaler chain refers to the fact that there should be a clear line of command between and among all level of management.
- Order- Order here refers to the fact that the organisation should have the right resources to function properly and also, the work environment should be safe, clean and tidy to work.
- Equity- Equity is a principle which states that everyone must be treated fairly and equally. Managers should ensure that each of their employee is being treated fair and just, without any bias.
- Stability of tenure of personnel- This suggests that the management should ensure that they reduce employee turnover and absenteeism and to have the right man at the right job.
- Initiative- This principle suggests that employees should take the initiative to be creative and to express new ideas at the job for the improvement to the organisation. This will also make employees feel involved and interested in the organisation.
- Esprit De Corps- Esprit De Corps refers to the involvement and unity amongst the employees of an organisation. Managers should increase the morale of the employees and encourage them for individual and group communication as it contributes to the development of culture and creates mutual trust and understanding.
Advantages of Fayol’s principles of management-
- It facilitated organisational structure
- It promoted the concept of teams
- It motivates employees through fair compensation
Disadvantages of Fayol’s principles of management-
- These 14 principles of management are all of Fayol’s own experience and does not involve any research as that of Taylor’s scientific management concept.
- The most important aspect of any business, customer satisfaction is neglected.
- It brings focus on command and control which in today’s world is not relevant.
Inspite of these disadvantages, the principles are still relevant and is used in practice and in forecasting, planning and decision making in all aspects of the working conditions. They are more of a logical principles which are in practice even now.