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14 Principles of Management

Fayol established 14 principles of management based on his experience managing organizations. The principles include division of work, authority, discipline, unity of command, unity of direction, subordination of individual interests to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure, initiative, and esprit de corps. Fayol is considered the founding father of the administrative school of management for being the first to look at the organization from a top-down perspective and break management down into logical subdivisions and principles.
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0% found this document useful (0 votes)
66 views2 pages

14 Principles of Management

Fayol established 14 principles of management based on his experience managing organizations. The principles include division of work, authority, discipline, unity of command, unity of direction, subordination of individual interests to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure, initiative, and esprit de corps. Fayol is considered the founding father of the administrative school of management for being the first to look at the organization from a top-down perspective and break management down into logical subdivisions and principles.
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14 Principles of Management

Fayol's Principles of Management Fayol's five-point approach advises managers on their tasks,
duties and activities. From his own experience he established a number of general Principles of
Management which lend definition, description and technique to this approach.

Division of work: specialisation allows the individual to build up expertise and therefore be
more productive.
Authority: the right to issue commands, along with the appropriate responsibility.

Discipline: Two-sided - employees obey orders only if management play their part by
providing good leadership.

Unity of command: one man-one boss, with no other conflicting lines of command.
Unity of direction: Staff involved in the same activities should have the same objectives.
Subordination of individual interest to general interest: The interests of the
organisation must come first over any group, just as the interests of any agreed team objectives
should come first over the individual.

Remuneration: hould be fair and equitable, encourage productivity by rewarding well-


directed effort, should not be subject to abuse.

Centralisation: there is no formula to advocate centralisation or decentralisation; much


depends on the optimum operating conditions of the business.

Scalar chain: Fayol recognised that although hierarchies are essential, they do not always
make for the swiftest communication, and that lateral communication is also fundamental.

Order: Avoidance of duplication and waste through good organisation.


Equity: "A combination of kindliness and justice" in dealing with employees.
Stability of tenure: The more successful the business, the more stable the management.
Initiative: Encouraging people to use their initiative is a source of strength for the
organisation.
Esprit de corps: Management must foster and develop the morale of its employees and encourage
each employee to use their abilities. Influence It is hard to over-estimate the influence Fayol has
brought to bear on management thinking - and management thinkers.
Labelled the founding father of the Administration school, he was the first author to look at
the organisation from the `top down', to identify management as a process, to break that process
14 Principles of Management
down into logical subdivisions and to lay out a series of principles to make best use of people -
thereby establishing a syllabus for management education. The fact that his influence has
endured is expressed no better than in the influential (although perhaps prescriptive) classical
management formula POSDCORB, a notion directly derived from Fayol's writings that
managers Plan, Organise, Staff, Direct, Coordinate, Report and Budget. But if we look back a
little more closely at the detail and description of Fayol's five management activities, we see that
the conflicts and concerns, the responsibilities and duties, the styles and the problems which he

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