General Principle of Management

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Background
Fourteen Principles of Management were developed by Henri Fayol ( 1841-1925) and have been considered as one of the classical organization theory that is universally applicable to every type of organization.
Classical organization theory was the traditional theory and remains to be the foundation upon which other schools of organization theory have built. Therefore many subsequent analyses presume an understanding of it.
Influenced by the industrial revolution in the 1700s and related to the professions of mechanical and industrial engineering, the principles were developed under fundamental assumptions as follows:
1. Organization and individuals behave in conformity with rational economic principles.
2. One best way to organize production is through systematic and scientific investigations.
3. Organization is established to fulfill production-related and economic goals.


Main Theme
Fayol proposed that management was a common activity to all human beings who involve in organization. His principles consist of the elements as follows:
1. Division of work. Output can be increased by specialization, making employees more efficient.
2. Authority. The right or power to give orders to subordinates is authority. Wherever authority exists, responsibility arises.
3. Discipline. Employees must obey the organizational rules. Good discipline must result from an agreement between firm and employees with fairness and clear understanding of both sides. Penalties can be applied to violations of rule.
4. Unity of Command. Each subordinate should receive orders from one superior.
5. Unity of Direction. Organizational activities that have the same objective should be guided by one manager, using one plan.
6. Subordination of individual Interests to the General Interest. The interests of one employee (or group of employees) should not precede over the interests of the organization as a whole.
7. Remuneration. Employees must be paid a fair wage. Rewards should be used as a tool of encouragement.
8. Centralization. The degree to which subordinates are involved in decision-making. Whether the decision is centralized or decentralized is a question of proportion.
9. Scalar Chain. The line of authority from top to the lowest ranks of management.
Communication should go along this chain. To avoid delays, cross communications can be allowed if agreed by all involved parties.
10. Order. Materials and people should be in right place at right time.
11. Equity. Managers should be kind and fair to their subordinates


Conclusion
In contrast to The Principles of Scientific Management, introduced in 1911 by Frederick Winslow Taylor, one of the prominent classical theorists in the concurrent period, which emphasized on the technology employed by individual workers in order to improve production efficiency; Fayol underlined all of the elements necessary to organize and manage a major corporation as a whole.