21-02-2017, 04:55 PM
Henri Fayol was born in Istanbul in 1841. At age 19 he began working as an engineer in a large mining company in France. He eventually became the director, at a time when the mining company employed more than 1,000 people. Over the years, Fayol began to develop what he considered the 14 most important principles of management. In 1916, two years before his resignation as director, he published his "14 Principles of Management" in the book "Administration Industrielle et Générale". Fayol also created a list of the six main functions of management, which go hand in hand with the Principles. Fayol "14 Principles" was one of the earliest theories of management to create, and remains one of the most comprehensive. It is considered to be among the most influential contributors to the modern management concept, even though people do not refer to "The 14 Principles" often today.
Management principles developed by Henri Fayol:
- DIVISION OF WORK: Work must be divided between individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented the specialisation of work as the best way to use the human resources of the organisation.
- AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power of exact obedience. Responsibility implies to be responsible and, therefore, naturally associated with authority. Whoever assumes authority also takes responsibility.
- DISCIPLINE: A successful organisation requires the common effort of the workers. Sanctions should be judiciously applied to foster this common effort.
- COMMAND UNIT: Workers must receive orders from a single manager.
- ADDRESS UNIT: The whole organisation must move towards a common goal in a common direction.
- SUBORDINATION OF INDIVIDUAL INTERESTS TO GENERAL INTERESTS: The interests of a person should not take priority over the interests of the organisation as a whole.
- REMUNERATION: To determine the rate of remuneration of a worker, many variables must be considered, such as cost of living, supply of qualified personnel, general business conditions and business success.
- CENTRALISATION: Fayol defined centralisation as a diminution of the importance of the subordinate role. Decentralisation is increasing in importance. The degree to which centralisation or decentralisation should be taken depends on the specific organisation in which the manager is working.
- SCALAR CHAIN: Managers in hierarchies are part of a chain as the scale of authority. Each manager, from the front line supervisor to the president, has certain amounts of authority. The President has the highest authority; The first line supervisor less. Lower level managers should always keep senior managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary for the organisation to succeed.
- ORDER: For reasons of efficiency and coordination, all materials and persons related to a specific type of work must be treated in the most equitable way possible.
- EQUITY: All employees should be treated in the most equitable manner possible.
- PERSONNEL STABILITY STABILITY: Maintaining productive employees should always be a high management priority. Recruitment and selection costs, as well as increased product rejection rates, are generally associated with hiring new workers.
- INITIATIVE: The administration must take measures to encourage workers' initiative, which is defined as new or additional work activity undertaken through self-direction.
- ESPIRIT DE CORPS: Management should foster harmony and good general feelings among employees.