THE PRINCIPLES OF MANAGEMENT? DESCRIPTION
The Management Principles from Henri Fayol (1841-1925)
are:
Division of Work. Specialization allows the individual to
build up experience, and to continuously improve his skills. Thereby he can be
more productive.
Authority. The right to issue commands, along with which
must go the balanced responsibility for its function.
Discipline. Employees must obey, but this is two-sided:
employees will 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. This is essential to
ensure unity and coordination in the enterprise. Unity of command does not
exist without unity of direction but does not necessarily flows from it.
Subordination of individual interest (to the general
interest). Management must see that the goals of the firms are always
paramount.
Remuneration. Payment is an important motivator although by
analyzing a number of possibilities, Fayol points out that there is no such
thing as a perfect system.
Centralization (or Decentralization). 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. Scalar chain refers
to the number of levels in the hierarchy from the ultimate authority to the
lowest level in the organization. It should not be over-stretched and consist
of too-many levels.
Order Both material order and social order are necessary.
The former minimizes lost time and useless handling of materials. The latter is
achieved through organization and selection.
Equity. In running a business a ‘combination of kindliness
and justice’ is needed. Treating employees well is important to achieve equity.
Stability of Tenure of Personnel. Employees work better if
job security and career progress are assured to them. An insecure tenure and a
high rate of employee turnover will affect the organization adversely.
Initiative: Allowing all personnel to show their initiative
in some way is a source of strength for the organization. Even though it may
well involve a sacrifice of ‘personal vanity’ on the part of many managers.
Team Spirit
(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.”
WHAT IS MANAGEMENT? FIVE ELEMENTS
Fayol's definition of management roles and actions
distinguishes between Five Elements:
To organize. Build up the structure, both material and human,
of the undertaking.
To command. Maintain the activity among the personnel.
To coordinate. Binding together, unifying and harmonizing
all activity and effort.
To control. Seeing that everything occurs in conformity with
established rule and expressed command.
ORIGIN OF THE 14 PRINCIPLES OF MANAGEMENT. HISTORY
Henri Fayol (1841-1925) was a French management theorist
whose theories in management and organization of labor 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 he moved into general management and became Managing Director
from 1888 to 1918. During his tenure as Managing Director he wrote various
articles on 'administration'
USAGE OF THE 14 MANAGEMENT PRINCIPLES. APPLICATIONS
*Change and Organization.
*Decision-making.
*Skills. Can be used to improve the basic effectiveness of a
manager.
*Understand that management can be seen as a variety of
activities, which can be listed and grouped
Source: 12manage.com and general science magazine
