14 Principles of Management - Henri Fayol

About three years ago I wrote an article on Henri Fayol, a management theorist. The net at the
time had about 14 posts about the man, but very little about his theories on management. I posted
the article and I'm glad to report that there are 43,000 posts about him today.
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Henri Fayol (1841-1925) was a French management theorist whose theories in management and
organisation of labour were widely influential in the beginning of 20th century. He was a mining
engineer who worked for a French mining company Commentry-Fourchamboult-Decazeville,
first as an engineer, then moved into general management and Managing Director from 1888 to
1918.

During his tenure as MD he wrote various articles on administration and in 1916 The Bulletin de
la Société de l’ Industrie Minérale, printed his Administration, Industrielle et Générale –
Prévoyance, Ogranisation, Commandement, Coordination, Contrôle.

In 1949 the first English translation appeared and titled 'General and Industrial Management' by
Constance Storrs.

Fayol was the first to identify the four functions of management: planning, organizing, directing,
and controlling, as known today.
His original definition of management comprised of five elements: forecast & plan, organise,
command, coordinate, and control.

His 14 principles are:

Division of work - specialisation provides the individual to build up experience, continuous
improvement in skills, and thereby be more productive.

Authority - the right to issue commands, along with which must go the balanced responsibility
for its function

Discipline - which is two-sided, for employees only obey orders if management play their part
by providing good leadership.

Unity of Command - each worker should have only one boss with no other conflicting lines of
command.

Unity of direction - people engaged in the same kind of activities must have the same objectives
in a single plan

Subordination of individual interest to general interest - management must see that the goals
of the firms are always paramount.

Remuneration - payment is an important motivator although by analysing a number of

possibilities, Fayol points out that there is no such thing as a perfect system
Centralisation or decentralisation - this is a matter of degree depending on the condition of the
business and the quality of its personnel

Scalar chain (line of Authority) - a hierarchy is necessary for unity of direction but lateral
communication is also fundamental as long as superiors know that such communication is taking
place.

Order- both material order and social order are necessary. The former minimises lost time and
useless handling of materials. The latter is achieved through organisation and selection.

Equity - in running a business a 'combination of kindliness and justice' is needed in treating

employees if equity is to be achieved.

Stability of tenure - this is essential due to the time and expense involved in training good
management.

Initiative - allowing all personnel to show their initiative in some way is a source of strength for
the organisation even though it may well involve a sacrifice of 'personal vanity' on the part of
many managers

Esprit de corps - management must foster the morale of its employees. He further suggests that,
"real talent is needed to coordinate effort, encourage keenness, use each person's abilities, and
reward each one's merit without arousing possible jealousies and disturbing harmonious
relations." Harmony and pulling together among personnel.

Although the principles are 90 years old, I believe that they still apply today.
1. Division of labour:- work is divided between the levels of authority in an
organisation, with each level having its own duties and responsibilities.
2 authority of responsibility:- there must be a clear line of authority and when
the responsibility is assigned, there must be an authority to perform the task.
3. discipline:- workers must be obiedient and respectful to the organisation.
4. unity of commond:- employee must receive order from one person with
authority.
5.
lolz.. its easy dude... if u wanna ask more u can mail me at
ethereal_bloke@hotmail.com
Henri Fayol

Henri Fayol (born 1841 in Istanbul; died 1925 in Paris) was a French
management theorist. He was referred to as "the father of modern
operational management theory". Often associated with Frederick Winslow
Taylor, his theories deal with the organisation of production in the context of
a competitive enterprise that has to control its production costs. Fayol was
the first to identify the four functions of management: planning, organizing,
leading and controlling, although his version was a bit different: plan,
organize, command, coordinate, and control. He believed that the number of
management principles that might help improve an organization's operation
is potentially limitless. His real contribution, however, was not 14 principles,
but his formal recognition and synthesis of these principles.

Fayol graduated from the mining academy of St. Etienne (脡 cole des Mines
de Saint-脡 tienne) in 1860. The nineteen-year old engineer started at the
mining company Compagnie de Commentry-Fourchambeau-Decazev...
ultimately acting as its managing director from 1888 to 1918. Based largely
on his own management experience, he developed his concept of
administration. These 14 principles of management were discussed in detail
in his book published in 1917, Administration industrielle et g 茅 n 茅 rale. It
was published in English as General and Industrial Management in 1949 and
is widely considered a foundational work in classical management theory.

1. Specialization of labour. Specializing encourages continuous improvement

in skills and the development of improvements in methods.
2. Authority. The right to give orders and the power to exact obedience.
3. Discipline. No slacking, bending of rules. The workers should be obedient
and respectful of the organization.
4. Unity of command. Each employee has one and only one boss.
5. Unity of direction. A single mind generates a single plan and all play their
part in that plan.
6. Subordination of Individual Interests. When at work, only work things
should be pursued or thought about.
7. Remuneration. Employees receive fair payment for services, not what the
company can get away with.
8. Centralization. Consolidation of management functions. Decisions are
made from the top.
9. Chain of Superiors (line of authority). Formal chain of command running
from top to bottom of the organization, like military
10. Order. All materials and personnel have a prescribed place, and they
must remain there.
11. Equity. Equality of treatment (but not necessarily identical treatment)
12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for
good workers.
13. Initiative. Thinking out a plan and do what it takes to make it happen.
14. Esprit de corps. Harmony, cohesion among personnel. It's a great source
of strength in the organisation. Fayol stated that for promoting esprit de
corps, the principle of unity of command should be observed and the dangers
of divide and rule and the abuse of written communication should be
avoided.
1. Division of work:
The work in an organization must be divided among individuals and departments.
Different departments differing jobs

2. Authority and Responsibility:

There should be a proper balance between authority and responsibility.
Higher up the ladder should have more responsibility

3. Discipline:
The best means of maintaining discipline is to have:
Disciplined superiors at all levels,
Clear and fair agreements, and
Judicious use of all penalties.

4. Unity of Command:
It means a subordinate should receive orders from only one superior. There should
not be multiple bosses.

5. Unity of Direction:
There should be 'one head, and one plan' for a group of activities having the same
objective.
For instance, if there are 10 salesmen, selling the same product in the same area,
and if there are 2 sales supervisors, each in charge of 5 men, then every salesman
would take orders from their respective supervisors. There will be unity of direction
only when all the sales plans are coordinated at a higher level.

6. Subordination of individual interest to general interest:

In other words, the interest of the organization should come first and then individual
or group interest. This can be ensured by:
Good example on the part of superiors,
Having fair agreements, and
Constant supervision.

7. Remuneration:
Wages and salaries should be fair. It should depend on circumstances, such as cost
of living, ability of the company to pay, prevailing wage rates in the industry.
Apart from financial benefits, non-financial benefits be provided such as good
working conditions, canteen facilities, recreation facilities, etc.
8. Centralization:
Certain matters are to be centralized and others to be decentralized. There is a
need to have a proper balance between centralization and decentralization.

9. Scalar Chain:
It refers to the line of command from top level to the lowest level.
the scalar chain can be short-circuited or broken if the situation so demands in the
interest of the organization.

10. Order:
This principle requires the orderly organization and placement of men, machines
and other resources. Misplacement would lead to misuse and disorder.

11. Equity:
All members of the organization should be treated equally, depending upon the
performance and circumstances.

12. Stability of Tenure:

Managers as well as non-managers need time to learn and understand their jobs. If
they leave or are removed within a short period of time, the learning time will be
wasted.
In other words, employees should not be kept temporary for a long period of lime.
Employees should be made permanent so that they do not leave the organization.
However, incompetent persons need to be removed or replaced and those who
perform well must be rewarded

13. Initiative:
The superior must sacrifice his own vanity to encourage and inspire those under
him to show initiative. Subordinates should be given freedom to come up with
suggestions and ideas.

14. Esprit de Corps:

The superior must encourage esprit de corps (team spirit) among his subordinates.
It is the team spirit that results in loyalty, and dedication and commitment of the
employees.