What are the 14 Principles of Management?
The 14 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.
- Hierarchy (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 (L'union du personnel, 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.”
5 Functions of Management (Fayol)
As part of the "administrative" activity, the administrator - who today is called the manager, Fayol distinguishes five functions:
- Prevoyance. (Forecast & Plan). Examining the future and drawing
up a plan of action. The elements of strategy.
- 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'
and in 1916 the Bulletin de la Société de l’ Industrie Minérale, printed his
"Administration, Industrielle et Générale – Prévoyance, Organisation, Commandement,
Coordination, Contrôle". In 1949 the first English translation appeared:
‘General and Industrial Management’ by Constance Storrs.
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.
Book: Henri Fayol - General and Industrial Management
Forum discussions about the Principles of Management.
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What is Management? Art, Science, …?
Management... Indeed is a great learning and makes many things easy in their own way. Decision-making, organizing, co-ordinating and work not least are the components which come together in management...
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Management Requires Patience
I think managers must be more patient than anybody else in the world, because when making a decision they don't just make a choice such as how cookers do in the kitchen....
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The 10 Principles of Urwick
Similar to Fayol's 14 principles although less well-known are the 10 Principles of Organisation by Lyndall Urwick. According to Urwick (Notes on the Theory of Organization, 1952), an organisation is b...
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Managers versus Leaders
Not all managers are good leaders and not all leaders are good managers. We need to develop both managers and leaders to realize the vision and mission of the company....
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Evolution of Management
The way management is evolving keeps managers on their feet. Everyday brings a new management method. As a result the way we manage today you'll be surprised will change by the year 2010....
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Managers: Born or Made?
I think that managers are mostly born. The persons who have inborn, natural managerial qualities are much better in their role as manager than other managers who have acquired the managerial qualities...
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Fayol's 5 Management Roles (Functions)
Fayol mentioned 5 roles (also called functions, actions):
1. Prevoyance.
2. To organize.
3. To command.
4. To coordinate.
5. To control.
Apart from these 5 managerial functions or roles in my vi...
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What is Prevoyance? Explanation
Prevoyance is the function of management which says one must examine the future and draw a plan. How hard is it to forecast what needs to be done in the future? I need a bit of explanation on this, th...
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Is Management an Inexact Science?
Social sciences are considered inexact. And indeed, the knowledge and study of management is quite an inexact science for many reasons:
There is no laboratory for testing the principles of manage...
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(Why) Do we Need Managers?
Why do we need managers? They are a layer of cost and add no real value, so why do we have them? Most specialists left their field to be managers and usually hate it and perform at lower levels than i...
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#4. Unity of Command-principle (Fayol)
According to Fayol's 4th Principle, Unity of Command, I should receive instruction from one boss who is my immediate manager.
However I have been instructed by other managers from other department to...
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Management Mantras
What is the present management mantra practiced in your organisation? A paradigm shift in management may lead to innovations which may lead to new applications.
Or are the old management theories sti...
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Interpretation of the 14 Principles of Management: Comparison of Then and Now Principles of Management Paper by C.A. Rodrigues. This paper compares interpretation Fayol's fourteen Principles of Management today and in the p...
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