The 14 principles of management are statements that are based on a fundamental truth. These principles serve as guidelines for decision-making and management actions. They are drawn up by means of observations and analyses of events that managers encounter in practice.
Henri Fayol was able to synthesize 14 principles of management after years of study, namely:
1. Division of Work
In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas (from generalist to specialist). Personal and professional developments support this.
According to Henri Fayol, specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases accuracy and speed. This management principle is applicable to both technical and managerial activities.
2. Authority and Responsibility
In order to get things done in an organization, management has the authority to give orders to employees. With this authority comes responsibility.
According to Henri Fayol, authority gives management the right to give orders to subordinates, while responsibility can be traced back from performance. Therefore, authority and responsibility go together and are two sides of the same coin.
3. Discipline
This principle is about obedience. It is often part of the core values of an organization’s mission and vision in the form of good conduct and respectful interactions.
Discipline is essential and is seen as the oil that makes the engine of an organization run smoothly.
4. Unity of Command
Unity of command means that an employee should receive orders from only one manager and should be answerable to that manager.
Receiving instructions from more than one manager may lead to confusion and conflicts. This principle also helps in clearly establishing responsibility for mistakes.
5. Unity of Direction
This principle emphasizes focus and unity. All employees perform activities linked to the same objectives.
These activities must be carried out by one group working as a team and must be described in a plan of action. The manager is responsible for the plan and monitors the progress of the defined activities. Coordination and focused effort are essential.
6. Subordination of Individual Interest
In every organization, different types of interests exist. According to Henri Fayol, personal interests must be subordinate to organizational interests.
The primary focus should be on organizational objectives rather than individual objectives. This applies to all levels of the organization, including managers.
7. Remuneration
Motivation and productivity are closely related to the smooth running of an organization.
Remuneration should be sufficient to keep employees motivated and productive. There are two types of remuneration:
The aim is to reward the efforts made by employees.
8. Degree of Centralization
Authority and decision-making must be properly balanced in an organization. This depends on the size, volume, and hierarchy of the organization.
Centralization refers to concentration of authority at the top management level, while decentralization refers to sharing decision-making authority with middle and lower levels. Henri Fayol emphasized maintaining a proper balance between the two.
9. Scalar Chain
Hierarchy exists in every organization, ranging from top management to the lowest level.
According to this principle, there should be a clear line of authority from top to bottom. Employees can contact their superiors directly in emergency situations without disturbing the hierarchy, especially when reporting serious issues.
10. Order
Employees should have the right resources at the right place to perform their duties efficiently.
Apart from social order, the physical work environment should be safe, clean, and well-organized to ensure smooth functioning.
11. Equity
According to this principle, employees must be treated kindly and equally.
Managers should ensure fairness, justice, and impartial treatment while supervising employees. Employees should be placed in appropriate positions to perform effectively.
12. Stability of Tenure of Personnel
This principle emphasizes proper deployment and management of personnel.
Management should minimize employee turnover and ensure stability in jobs. Frequent changes in positions should be avoided, and employee development should be properly managed.
13. Initiative
Employees should be encouraged to express new ideas.
Allowing initiative increases interest, involvement, and commitment among employees. According to Henri Fayol, employee initiatives are a source of strength for the organization.
14. Esprit de Corps
Esprit de corps means promoting team spirit, unity, and harmony among employees.
Managers are responsible for developing morale through effective communication and leadership. This principle helps build organizational culture and creates an atmosphere of mutual trust and understanding.