Wednesday, December 19, 2018

14 Key Principles of Management by Henry Fayol

What is Management?
Management is a generic term which is used in different contexts and with a different meaning. There is no universally accepted definition of management; it is generally defined as working with and through individuals, groups and other resources to accomplish organizational goals. Designated leaders may be responsible for all or only one segment of the overall goals. 
Management principles
Fig: Management principles
14 Principles of Management According to Henry Fayol:
All the principles or management or administration according to Henry Fayol’s (Father of management) have presented in the below:

1. Unity of command:
Confusion of authority and conflict in instruction result while an employee reports to more than one superior. Hence, each employee must receive instructions about the particular operation from only one person.

2. Discipline:
Result and agreements that govern the organization should be respected by the members of the organization. Good leadership results in the discipline at all the level of organization. There should be fair agreements.

3. Authority:
Manager’s formal authority gives them the right to command; hence they must give the order to get things done. If they do not have personal authority over others, they should not compel obedience.

4. Division of labor:
People can more efficiently perform their work if they specialize more. This principle is the best used by the modern assembly line.

5. Centralization:

In the process of decision making increasing the role of subordinates known as decentralization and decreasing their role is known as centralization. Managers should own final responsibility and need to authorize their subordinates sufficiently to do their job in good order. The point is to determine the best magnitude of centralization needed in each case.

6. Remuneration:

There should be fair compensation for work done to both employees and employers.

7. Unity of direction:

Operation having the same objective within an organization should be directed by only one manager and one plan. For example, the personnel department in a company should not have two directors, each with a different hiring policy.

8. Subordination of individual interest to the common good:
Employee’s interest should not be prioritized over the interests of an organization as a whole.

9. Stability of staff:
For the efficient functioning of an organization, a high employee turnover is not beneficial.

10. Hierarchy:
Neat boxes and linens of an organization chart symbolize the line of authority in an organization. The hierarchy runs in order of rank, from the top management to the lowest level of the enterprise.

11. Order:

Befitting people should be placed in the jobs or positions most suited to them. Moreover, materials and people should be in the right place at the right time.

12. Equity:
There should be friendly and fair approach by managers to their subordinate.

13. Esprit de corps:
Promotion of team spirit brings the organization a feel of unity. Small factors even help to develop this spirit. For this to happen verbal communication should sometimes take precedence over formal, written communication whenever possible.

14. Initiative:
Even though some mistakes might result, subordinates should be allowed to plan and implement their work by taking self-initiatives.

More questions related to this article:
  1. What is meant by management?
  2. Define management.
  3. What are the 14 principles of management?
  4. What are the basic principles of management?
  5. Who gave the 14 principles of management?
  6. What are the principles of management?
  7. What are the principles of effective management?
  8. Who is the father of principles of management?
  9. Explanation of 14 key principles of management by Henri fayol with examples.