14 Principles of Management

Henri Fayol, (1841-1925) a French mining engineer, developed 14 principles of management based on his management experiences. These principles provide modern-day managers with general guidelines on how a supervisor should organize her department and manage her staff. Although later research has created controversy over many of the following principles, they are still widely used in management theories.
· Division of work: Division of work and specialization produces more and better work with the same effort.

· Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager has official authority because of her position, as well as personal authority based on individual personality, intelligence, and experience. Authority creates responsibility.

· Discipline: Obedience and respect within an organization are absolutely essential. Good discipline requires managers to apply sanctions whenever violations become apparent.

· Unity of command: An employee should receive orders from only one superior.

· Unity of direction: Organizational activities must have one central authority and one plan of action.

· Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization.

· Remuneration of personnel: Salaries - the price of services rendered by employees - should be fair and provide satisfaction both to the employee and employer.

· Centralization: The objective of centralization is the best utilization of personnel. The degree of centralization varies according to the dynamics of each organization.

· Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks.

· Order: Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity.

· Equity: In organizations, equity is a combination of kindliness and justice. Both equity and equality of treatment should be considered when dealing with employees.

· Stability of tenure of personnel: To attain the maximum productivity of personnel, a stable work force is needed.

· Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator. Zeal, energy, and initiative are desired at all levels of the organizational ladder.

· Esprit de corps: Teamwork is fundamentally important to an organization. Work teams and extensive face-to-face verbal communication encourages teamwork.