Understanding the 14 Principles of Management by Henri Fayol

Management is an indispensable part of any organization, which, if done correctly, allows businesses to achieve higher efficiency. The principles of management are an aspect that is used to help managers, increase the level of productivity and efficiency of the work. To state the prominence of this, one of the most well-known management theories known as Henri Fayol comes into the picture. He has successfully established the 14 principles of Henri Fayol that are the key to effective management in setting a precise roadmap, which would encompass the smallest details if done skillfully. These principles of management are the reason why the concepts are still implemented in a multitude of sectors globally.

In this blog, we are going to study the principles of management by Henry Fayol and understand why it is important to implement these principles in today’s workforce.

14 Principles of Henri Fayol

1. Division of Work

The first principle of management by Henri Fiyol states that tasks should be allocated equally among individuals and teams to increase efficiency. Each employee should be assigned tasks based on their areas of expertise which will further help them gain expertise in their areas of interest.

Let us say, in a production department of a factory, each laborer has an individual job as for instance in the field of assembly, quality control, and packing. This separation of labor facilitates efficiency and eliminates repetition.

2. Authority and Responsibility

This is the second principle of management wherein authority refers to the right to give orders, whereas responsibility is the obligation to complete tasks. Based on the principles of management, a balance between authority and responsibility guarantees smooth operations.

A manager should not just have the authority to make decisions but also, must be answerable for the outcome of the decisions. Without proper authority, a responsibility to enforce becomes difficult.

3. Discipline

Discipline is a prerequisite for proper organizational functioning. The principles of management focus on the importance of mutual respect between staff and superiors.

A disciplined environment of work translates into punctuality, as well as results in adhering to the company’s policy and adds to a positive work culture. Organizations with explicit regulations and non-discriminatory enforcement are believed to have a high productivity level.

4. Unity of Command

In this principle of management, it is stated that an employee should be accountable to only one senior. Two or multiple superiors giving opposite commands can lead to misunderstandings and inefficiency.

For instance, in a store, an employee is instructed differently by the store manager and the regional manager, due to which their job will be hindered as they have a lack of clarity. Unity of command in turn guarantees a smooth decision-making process and clear accountability.

5. Unity of Direction

According to the principles of management, the unity of direction here would mean that it is a situation where all teams with the same goals should be working under one plan.

For instance, in a marketing department, social media, advertising, and sales teams should have a common strategy and a unified direction to achieve the company’s goals efficiently.

6. Subordination of Individual Interests to the General Interest

Fayol’s principles of management emphasize that the welfare of the organization should be more important than the welfare of individuals. The company should be the priority of the staff over individual benefits.

For instance, a sales associate whose goals are only to earn commissions without ensuring customer satisfaction may result in the breakage of the company’s reputation in the long term.

7. Remuneration

In the management principle, a worker’s fair salary is the priority. Employees’ efficient work is increased and driven by the joy and satisfaction of getting paid. Their pay through wages, salaries, incentives, and benefits must be designed to satisfy, keeping the company’s financial capacity in mind.

8. Centralized and Decentralized

The degree of centralization or decentralization of an organization depends largely on its size and the kinds of domains it is involved in. This principle of management by Henry Fayol states that the decision-making should have a balance.

An example of this is in the case of a startup company where the decision-making process may be centralized, where the founder is the only one with the final word. On the other hand, a multinational corporation can have a decentralized decision-making process to allow for flexibility in different regions.

9. Scalar Chain

The scalar chain follows a certain hierarchy in a company. The principle of management requires the need for established lines of command which assure a smooth flow of information from the top management to employees.

For instance, the CEO communicates with his team leaders, who, in turn, give directions to their teams to complete an operation. It is the way to manage confusion and maintain order.

10. Order

As per the principle of management, everything should be in its designated place. In a company, the order involves the distribution of the proper resources to the proper position at the right time.

This concept is common for both material resources (for example, office supplies) and human resources (for instance, employees are given positions that suit their skills and expertise).

11. Equity

The principles of management focus on equality. Managers should provide equal treatment and honesty within their teams. They need to be wise, mindful of everyone they come across to, and be sure that there is no discrimination based on the gender, race, or background of individuals.

A positive work culture in which employees feel respected and valued makes for higher working spirit and job gratification as well.

12. Stability of Tenure

Employee turnover leads to declining productivity. The stability of tenure would be achieved by focusing on factors such as fostering a stable working environment, a chance for professional development, and a positive atmosphere for the employees.

For instance, companies with relatively little staff turnover are those with well-structured courses in place to train employees and additional possibilities for career development. As a result, the employees will feel more secure in their occupations

13. Initiative

Taking the initiative to encourage employees fosters innovation. The principles of management pointed out by Henri Fayol stresses the need for employees to be allowed to suggest improvements as well as take ownership of the actions they do.

For example,  in a tech company, those developers, who are given a free hand to explore new technologies, often find very successful and innovative solutions that serve the company well.

14. Esprit de Corps

Team spirit and togetherness are the exact definitions of Esprit de Corps. The principles of management state that a pleasant work environment is achievable in the right conditions, and as a result, we can raise the employees’ productivity and satisfaction.

Teams that have the right kind of social interaction, like effective communication and mutual respect, are the source of a positive working atmosphere which, in turn, helps organization achieve long-term success.

Conclusion

The 14 Principles of Management by Henri Fayol lays a strong and solid foundation for the effective leadership of the company. Thus, such principles streamline manager’s jobs, making their decision-making process smoother, while ensuring employee satisfaction.

In the modern-day competitive business environment, the principles of management are applicable today and serve as a good compass for companies striving for efficiency and efficacy. These principles, when applied in management, become beneficial for the overall growth of the company. Managers who know and implement these principles of management will be able to create a properly structured, productive workforce, and therefore will become a source of great excellence to the business company.