Henri Fayol's 14 Principles of Management

Major credit of developing the body of principles of management goes to none other than Mr. Henry Fayol. He is put forward a set of fourteen principles of management which has gained a wide area of application in the field of business. A set of fourteen principles of management, developed by Henry Fayol can be depicted as follows:

• Division of Work: It is an important principle of management. According to this principle, each and every activity of organization should be clearly allocated among the employees according to their abilities, qualifications and aptitudes, so that every employee can easily understand their tasks and give their hundred percent contributions for the achievement of organizational goals.

• Authority and Responsibility: Authority and responsibility both have inter-dependence relationship with each-other. In the absence of authority nobody can take responsibility on his shoulders in organization for the achievement of various activities. Hence, it is too important that authority should be delegated to employees so that they can take more responsibility whenever need arises.

• Method of Discipline: It is also an essential principle of management. According to this principle all, those are working in organization as employee and employer should obey the orders, instructions and rules of leader strictly. In case any subordinate does not follow the orders and instructions of leader then he will have to pay plenty for this. Thus it is clear that discipline should be maintained in organization.

• Unity of Command: According to this principle, every individual in organization must get orders and instructions only from their own departmental head not from others, because if any individual will get orders and instructions from other superiors then conflicts may arise among the departments as a result of this works cannot be carried out properly by them. Hence, this principle takes an important place in organization.

• Unity of Direction: According to this principle, every group of activities in organization should have the same objective. It means all activities must be directed by one superior and with one plan, so that organization cannot face any difficulties in course of achieving its per-determined goals.

• Remuneration: According to this principle, every personnel (employee) in organization should receive handsome and equitable remuneration. The differences in payments of personnel must be on the basis of job differentials, abilities of personnel, responsibility of personnel and difficulties of job. Cost of living, price level and financial situation of enterprise should also be considered for the determination of remuneration of personnel.
  

• Centralization and De-centralization: Centralization and De-centralization both are inter-related terms. Centralization refers to a system in which only authorized person can take vital decisions for the development of organization. No common individual has right to take decisions. On the other hand De-centralization refers to a system in which authority can be transferred from higher level to bottom level among the personnel to taking vital decisions for the development of organization. Thus it is clear that both principles are necessary for organization.

• Order: According to this principle, each and every activity should be done by personnel on the basis of proper pattern. It can only be possible when the tasks are clearly defined among the personnel according to their abilities, qualifications and understandings. According to Henry Fayol ‘order’ means right person on the right job and everything in the place. 

• Scalar Chain: It is a unique principle of management. According to this principle, all those are working in organization are linked with each-other in superior-subordinate relationship. its is best management Concepts.

• Initiative: According to this principle, in every organization managers has to create such an environment, where a group of people can willing to take initiative and responsibility for doing various activities in the most efficient way, for all around development of organization. It can only be possible on the basis of developing co-operative relationship among the groups of people. Thus we can say that, it is a vital principle of management.
  

• Subordination of individual interest to group interest: According to this principle, the interest of group is above in comparison to the interest of an individual. It means organization has to give priority group’s need rather than individual, because no one organization can achieve its goals properly without the group’s efforts. Hence, it is clear that, the interest of group is above in comparison to the interest of an individual.
  

• Stability of tenure of personnel: According to this principle, job security must be provided by organization to each personnel. In fact, if the personnel are secured about their jobs than they will give their hundred percent contributions for the achievement of pre-determined goals of organization. On the other hand, in the absence of job security the personnel will not give their hundred percent contributions for the achievement of pre-determined goals of organization. Thus tenure of personnel should be stable.

• Equity: It is one of the most important principles of management. According to this principle, all those are working in organization as superior and subordinate, both have equal rights as human-beings. In fact, all groups of people, either they may be authorized or non-authorized personnel are equal in the eye of organization. There is no difference among them on the basis of cast and creed, positions and other things.

• Espirit-de-corps: According to this principle, everyone in organization should do their tasks under the guidance of team spirit. In fact, any organization cannot attain its predetermined goals efficiently, in the absence of team efforts. Thus it is clear that team spirits is too important in organization among the groups to achieve organizational goals in efficient way.

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