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The 14 Management Principles from Henri Fayol (1841-1925) are:

1. Division of Work. Specialization allows the individual to build up experience, and to

continuously improve his skills. Thereby he can be more productive.

2. Authority. The right to issue commands, along with which must go the balanced

responsibility for its function.

3. Discipline. Employees must obey, but this is two-sided: employees will only obey

orders if management play their part by providing good leadership.

4. Unity of Command. Each worker should have only one boss with no other

conflicting lines of command.

5. Unity of Direction. People engaged in the same kind of activities must have the same

objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.
6. Subordination of individual interest (to the general interest). Management must see

that the goals of the firms are always paramount.

7. Remuneration. Payment is an important motivator although by analyzing a number

of possibilities, Fayol points out that there is no such thing as a perfect system.
8. Centralization (or Decentralization). This is a matter of degree depending on the

condition of the business and the quality of its personnel.

9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But

lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels.
10. Order. Both material order and social order are necessary. The former minimizes lost

time and useless handling of materials. The latter is achieved through organization and selection.
11. Equity. In running a business a combination of kindliness and justice is needed.

Treating employees well is important to achieve equity.

12. Stability of Tenure of Personnel. Employees work better if job security and career

progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.

13. Initiative. Allowing all personnel to show their initiative in some way is a source of

strength for the organization. Even though it may well involve a sacrifice of personal vanity on the part of many managers.
14. Esprit de Corps. Management must foster the morale of its employees. He further

suggests that: real talent is needed to coordinate effort, encourage keenness, use each persons abilities, and reward each ones merit without arousing possible jealousies and disturbing harmonious relations.



Henri Fayol

Henri Fayol (Istanbul, 29 July 1841Paris, 19 November 1925) was a French mining engineer and director of mines who developed a general theory of business administration.

He and his colleagues developed this theory independently of scientific management but

roughly contemporaneously. He was one of the most influential contributors to modern concepts ofmanagement. Biography

Fayol was born in 1841 in a suburb of Istanbul, Turkey, where his father, an engineer, was appointed superintendent of works to build a bridge over the Golden Horn[1] (Galata Bridge). They returned to France in 1847, where Fayol studied at the mining school "cole Nationale Suprieure des Mines" in Saint-tienne. When 19 years old he started as an engineer at a mining company "Compagnie de Commentry-Fourchambeau-Decazeville" in Commentry. By 1900 the company was one of the largest producers of iron and steel in France and was regarded as a vital industry.[1] Fayol

became managing director in 1888, when the mine company employed over 1,000 people, and held that position over 30 years until 1918. In 1916 he published his experience in the book "Administration Industrielle et Gnrale", at about the same time as Frederick Winslow Taylor published his Principles of Scientific Management.

== Theory ===== Fayolism ===

Fayol's work was one of the first comprehensive statements of a general theory of management.[2] He proposed that there were six primary functions of management and 14 principles of management[3] Functions of management # forecasting# planning# organizing # commanding # coordinating # monitoring (French: contrler: in the sense that a manager must receive feedback about a process in order to make necessary adjustments). Principles of Management # Division of work. This principle is the same as Adam Smith's 'division of labour'. Specialisation increases output by making employees more efficient. # Authority. Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised. # Discipline. Employees must obey and respect the rules that govern the organisation. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organisation's rules, and the judicious use of penalties for infractions of the rules. # Unity of command. Every employee should receive orders from only one superior.

# Unity of direction. Each group of organisational activities that have the same objective should be directed by one manager using one plan. # Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organisation as a whole. # Remuneration. Workers must be paid a fair wage for their services. # Centralisation. Centralisation refers to the degree to which subordinates are involved in decision making. Whether decision making is centralised (to management) or decentralised (to subordinates) is a question of proper proportion. The task is to find the optimum degree of centralisation for each situation. # Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However, if following the chain creates delays, cross-communications can be allowed if agreed to by all parties and superiors are kept informed. # Order. People and materials should be in the right place at the right time. # Equity. Managers should be kind and fair to their subordinates. # Stability of tenure of personnel. High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.# Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort. # Esprit de corps. Promoting team spirit will build harmony and unity within the organisation.Fayol's work has stood the test of time and has been shown to be relevant and appropriate to contemporary management. Many of todays management texts including Daft[4] have reduced the six functions to four: (1) planning; (2) organizing; (3) leading; and (4) controlling. Daft's text is organized around Fayol's four functions.