Henri Fayol also known as the ‘father of modern management theory, was born on July 29, 1841 in Istanbul, Turkey was a French mining engineer, mining executive, author and director of mines who developed a general theory of business administration that is often called Fayolism. Henri Fayol provided one of the most influential modern management concepts of his time. He is founder of the 14 Principles of management and the five functions of management.
Fayol’s principles are listed below :
- Division of Work and Specialization– When employees are specialized, output can increase because they become increasingly skilled and efficient. This can be done only when division of work between all the employees as per the area of their interest is done.
- Authority and Responsibility – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility. Authority simply means power to make decisions and Responsibility means obligation to complete the assigned work on time. According to the principle their should be balance and paroty between both authority and responsibility. Excess of authority may bring negative result and excess of responsibility will not allow the worker to complete the work on time. Balance b/w both of them will result in no misuse of authority and it also helps in meeting responsibility on time without any delay.
- Discipline – Discipline is obedience to organization rules and employees agreement. It helps in maintaining relation between labor and management. Employee must follow all the rules implemented by the organization.
- Unity of Command – Each employee has a clearly designated supervisor to which he can report directly. Multiple number of supervisors and work assigned by them to all the employees will result in lots of confusion between them. For example- Ashish an employee of XYZ company got work from three heads from different departments now automatically it will create a bit confusion like whom work to do first and so on therefore duration to complete that particular task will also get extended because of this dilemma.
- Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated also one target should be their to complete that plan. Lots of plan at a particular point of time is not possible therefore it is rightly said that their should be “One Head and That one Head Should Have One Plan”.
- Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than that of the organization. That means only interests of the collective must be monitored in the workplace.
- Remuneration – Employee satisfaction depends on fair remuneration for everyone or employees must receive adequate remuneration. This includes financial and non-financial compensation.
- Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.
- Scalar Chain – Scalar Chain means line of authority or chain of supervisors from highest to lowest rank.Organisation should have a proper chain of authority and responsibility that runs from top to bottom or vice versa and should be followed by every manager.In Scalar Chain concept if D wants to communicate with A he have to tell it to C, C will tell it to B and so on. As per the figure D and G can directly communicate in case of urgency, as per the concept of Gang Plank, without following the formal lines of communication.
- Order – The workplace facilities must be clean, tidy and safe for employees. There should be one assigned place for every employee and that employee must always be their at his/her place to avoid any kind of further inconvenience related to work.
- Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.
- Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority.
- Initiative – Employees should be given the necessary level of freedom to create and carry out plans. Personnel involved in planning must develop high effort. This will increase coordination between employees and its supervisor and employees will get free to share any kind of creative idea which will prove to be helpful for their organization.
- Esprit de Corps – Organizations should strive to promote team spirit and unity. Instead of saying ‘I’ they should say ‘We'(We stands for the team and it’s plans) Team spirit will help an organization in many ways mainly to achieve the target at minimum period of time without facing any kind of obstacles or difficulties.
The principles of management are universally applicable. These are applicable regardless of changing conditions. These form basis of scientific management and can be used for proper functioning of work in all the organizations.