BUSINESS KNOWLEDGE || Get to understand 14 Principles of management by Henri Fayol

The 14 Principles of Management are the factors that shape the successful in management. As put forward by Henri Fayol in his book “General and Industrial Management (1916) are the factors that all managers have to follow on managing process.
These factors are as followings;
1. Division of Work
According to Henri Fayol, employees are specialized in different areas regarding to skills they have. Moreover, workers can be distinguished into different tasks according to specific personal levels of knowledge and professional. Works focus and efficiency and effectiveness so as to increase productivity hence specialization of the workforce applied as to increases workers accuracy and speed to attain expectation.

2. Authority and Responsibility
According to Henri Fayol, Authority means the right of a superior to give enhance order to his subordinates, while responsibility means obligation for performance. Management has the authority to give orders to the employees and employees have to respond for the given order as their responsibilities accordingly. Fayol said, authority and responsibility go together and they are two sides of the same coin. In order to get things done in an organization authorities and responsibilities have to collorate effectively.


3. Discipline
According to Henri Fayol this principle is about obedience, good conduct, adherence to rules and respectful interactions. It is a part of the core and essential for the performance of all organizations. Obedience, proper behavior and respect accordance are efficiency to the effectiveness in productivity of organization and also they influence proper relationship affairs between management and employees in organization.

4. Unity of Command
In an organization’s daily activities, an employee should receive instructions from superior. He/she supposed to receive orders from only one superior. Henri Fayol stated this principle that, each subordinate should receive orders and be accountable to one and only one superior. He also said, an employee receives orders from more than one superior, it is likely to create confusion and conflict.

5. Unity of Direction
This principle is about focus and unity. All related activities must be carried out by one group that forms a team. According to Henri Fayol, there must be one plan of action for the group, and they should be under the control of one manager. The manager has many responsibilities in this plan as to monitors the progress of the defined and planned activities.

6. Subordination of Individual Interest to Mutual Interest
Henri Fayol stated that, one employee's interests should not prevail over the organization’s interest. The organizational interest and objectives are not as those of the individual. They should be separated, this must be applied to all levels of the employees in organization, including the managerial and upper one.

7. Remuneration
This principle is about compensation to workers, the remuneration should be fair, reasonable and rewarding of effort so as to keep employees motivated satisfied and hence increase productivity force. According to Henri Fayol, There are two types of remuneration namely monetary and non-monetary. That, non-monetary is a compliment, more responsibilities, credits and monetary is a compensation, bonus or other financial compensation.

8. The Degree of Centralization
In an organization there should be balance in management and authority for proper decision-making process. The power by management depend much on the volume and size of an organization. According to Henri Fayol, Centralization implies the concentration of decision making authority at the top management (executive board). Sharing of authorities for the decision-making process with lower levels (middle and lower management). From his view, he indicates that an organization should emphasize in good balance on it.


9. Line of Authority/Scalar Chain
This can be seen as a type of management structure. Is the chain of superiors ranging from top management to the lowest level. This varies from senior management (executive board) to the lowest levels in the organization. The scalar chain of command of reporting relationships from top executive to the ordinary shop operative. The principle states that there should be a clear line in the area of authority from top to bottom and all managers at all levels.

10. Order
According to Henri Fayol, employees in an organization have to receive instructions and command from superior about the function they should perform so as they can work on huge effectiveness and increase productivity in an organization. In other side they should be aware with the command and they take. Fayol says the policies, rules, instructions and actions should be understandable, understood and acceptable.

11. Equity
This principle is about fairness and a sense of justice, employees must be treated kindly and equally. The management should fair when deals with employees. Management has the responsibilities to enacting justice and principles to ensure employee are treated accordingly thus they will increase effectiveness and productivity force.

12. Stability of Tenure
According to Henri Fayol, in order to an employee to adapt to his work and perform it effectively, much time is needed. He stated that, in order for an organization to run well and managerial personnel must not frequently enter and exit the organization. Deployment and managing of personnel and this should be in balance with the service that is provided from the organization.