THE FOURTEEN PRINCIPLES OF MANAGEMENT BY HENRI FAYOL


1.           
DISCIPLINE: A successful organization requires the common
effort of workers regarding obedience and respect.
2.           
DIVISION OF WORK: Work should be divided among individuals and
groups to ensure that effort and attention are focused on special portions of
the task. Fayol presented work specialization as the best way to use the human
resources of the organization.
3.           
UNITY OF COMMAND: Workers should receive orders and instruction from
only one manager.

4.           
UNITY OF DIRECTION: The entire organization should be moving towards a
common objective in a common direction.
5.           
SUBORDINATION OF INDIVIDUAL INTERESTS TO THE
GENERAL INTERESTS:
The interests of one person should not take priority over the interests
of the organization as a whole.
6.           
REMUNERATION: Remuneration is the price for services received.
Many variables, such as cost of living, supply of qualified personnel, general
business conditions, and success of the business, should be considered in
determining a worker’s rate of pay.
7.           
ESPIRIT DE CORPS:
Management should encourage harmony and general good feelings among employees.
8.           
INITIATIVE: Management should take steps to encourage worker
initiative, which is defined as new or additional work activity undertaken
through self direction.
9.           
STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a
high priority of management. Recruitment and Selection Costs, as well as
increased product-reject rates are usually associated with hiring new workers.
10.       AUTHORITY: The concepts of Authority and responsibility are closely related.
Authority was defined by Fayol as the right to give orders and the power to
exact obedience. Responsibility involves being accountable, and is therefore
naturally associated with authority. Whoever assumes authority also assumes
responsibility.
11.       CENTRALIZATION: Fayol defined centralization as lowering the importance of the
subordinate role. Decentralization is increasing the importance. The degree to
which centralization or decentralization should be adopted depends on the
specific organization in which the manager is working.
12.       SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each
manager, from the first line supervisor to the president, possess certain
amounts of authority. The President possesses the most authority; the first
line supervisor the least. Lower level managers should always keep upper level
managers informed of their work activities.
13.       ORDER:
For the sake of efficiency and coordination, all materials and people related
to a specific kind of work should be treated as equally as possible.
14.       EQUITY:
All employees should be treated as equally as possible.
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