Principles of Management

Fayol’s Principles of Management

Robert Half said, “Delegating work works, provided the one delegating works, too.” Management is all about delegation of work. Business Studies gives you the basics of how management works. Many prominent theorists of the past like Henri Fayol have laid down several rules for management. While we learn far more about the skill of management when we are on ground zero, still having some knowledge of the basic rules can make navigation easier.

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Principles of Management by Henri Fayol

Henri Fayol was a prominent scientist who was considered to be among the first few who laid a foundation for scientific management. He gave us 14 principles of Management which are based on certain fundamental truths and act as guiding principles for decision making and other managerial responsibilities.

Let’s discuss all of these 14 principles by Henri Fayol one by one and understand the purpose behind them.

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1] Division of Work

Dividing work among the workforce helps improve the quality of the overall product. Henri Fayol said that specialization in work increases the productivity and improves efficiency. Division of labour also leads to the specialization, accuracy, and speed of the workers. This principle is applicable both in managerial as well as technical work.

2] Authority and Responsibility

These are the two key things in management. They work hand in hand. While authority enables the management to delegate work, responsibility makes them accountable for any work done under their leadership.

Henri Fayol said that the power of authority accompanying responsibility gives the management the right to order subordinates along with a duty to be liable for acts of their subordinates.

3] Discipline

Nothing good was ever achieved without discipline. The third principle propagated by Henri Fayol was discipline. It is one of the core values in any system. Good behavior and civilized interactions make the management work smoothly and efficiently. Good conduct by employees also helps them smoothly progress in their careers.

4] Unity of Command

It basically means following a chain of command. A person should ideally answer to just one boss. If an employee is given work from more than one boss, there arises a conflict of interest. This can lead to confusion among the employees and hard to pin accountability. Thus, it is very crucial to follow unity o command.

5] Unity of Direction

For any corporate to prosper, there must be a unified goal. This principle is crucial as it incorporates the idea of a workforce working a singular direction with a unified aim. The responsibility of planning falls on the manager and he also must monitor the progress towards said goal.

6] Subordination of Individual Interest

The standard rule for any organization is the work on the collective interest of the organization as a whole rather than personal interest of an individual. This principle states that the interest of an individual will. Be subordinate to the objectives of the organization. This applies to the entire chain of command in the organization.

7] Remuneration

We all love an appreciation for our efforts. Remuneration in an organization play as a motivational force that keeps the employees fuelled to do well. This remuneration should be in tandem with the efforts that they put in. Remuneration may be monetary or non-monetary. At the end, the employee must feel that he was appropriately rewarded for his efforts.

8] Centralisation

Depending on the size of the organization, it is important that the power is centralized to an extent that the decision making is judicious at all levels and not arbitrary. This will also depend on the size of the organization. Henri Fayol said that there must be a balance in the hierarchy and division of power.

9] Scalar Chain

Henri Fayol talks about a clear line of hierarchy from the top rung to the lowest. So that every employee knows who is their immediate senior in the times of conflict or crisis. But also the employee must be able to contact any person in the hierarchy without hesitation during a time of crisis.

10] Order

There must be a proper defined order maintained at the work premises so that it makes for a conducive work environment. The right environment in the place of work will boost productivity.

11] Equity

Employees should be treated with equality and respect. This is among the core values of management. It will fall on the manager to ensure that there is no discrimination of any kind happening in the workplace.

12] Stability

An employee is able to deliver better when he is secure in his job. It is the duty of the management to offer job security to their employees along with a promise of growth. Minimizing employee turn over is important and beneficial to the management as well.

13] Initiative

Sometimes groundbreaking ideas come from unexpected places. The management must encourage its employees to take initiatives in the organization. It will make them feel valued and develop their interest.

14] Esprit de Corps

This is one of the core principles. The management must ensure that the team remains constantly motivated and are cooperative with each other. It is very important to develop mutual trust among employees as it leads to a positive work environment.

Have a look at Taylor’s Scientific Management here.

Question for You

Ques: What constitutes Non-Monetary remuneration?

Answer: Remunerations are a way of ensuring that the employees are motivated to keep performing their best. While monetary remuneration may include a bonus or increase in salary, Non-Monetary remuneration may include perks like a promotion to a better post. Accolades in front of fellow colleagues, a free trip to some beautiful destination or anything similar that makes the employee feel valued.

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