Principles of Management
Henry Fayol, a French industrialist, summarized the practice of management with fourteen principles.
1. Division of work: A high degree of specialization should result inefficiency. Both managerial and technical works are amenable to specialization.
2. Authority and responsibility: Henry Fayol finds authority and responsibility to be related, with the latter arising from the former. Authority is needed to carry out managerial responsibilities.
3. Discipline: People in the organization must respect the rules that govern the organization.
4. Unity of command: This means that, employees should receive orders from one superior and should report to one only.
5. Unity of directions: According to this principle, each group of activities with the some objective must have one head and one plan.
6. Subordination of individual to general interest: Interest of individuals should not be placed before the goals of the overall organization.
7. Remuneration: Remuneration and methods of payment should be f air and afford the maximum possible satisfaction to employees and employer.
8. Centralization: Power’ and authority should be concentrated at the upper levels of the organization as much as possible.
9. Scalar chain: A chain of authority should extend from the top to the bottom of the organization and should be followed at all times.
10. Order: Human and material resources should be coordinated so that they are in the required place at the required time.
11. Equity: Managers should be kind and fair when dealing with subordinates.
12. Stability of tenure: Finding unnecessary turnover to be both the cause and the effect of bad management. Fayol points out its dangers and cost.
13. Initiative: Subordinates should have the freedom to take initiative,
14. Unity is strength: Teamwork, team spirit and a sense of unity and togetherness should be fostered and maintained.
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