The Principles of management
In the last century, organizations already had to deal with
management in practice. In the early 1900s, large organizations, such as
production factories, had to be managed too. At the time there were only few
(external) tools, models and methods available. Thanks to scientists like Henri Fayol (1841-1925)
the first foundations were laid for modern management.
These first concepts, also called principles are the
underlying factors for successful management. Henri Fayol explored
this comprehensively and, as a result, he synthesized the 14 principles of
management. Henri Fayol ‘s
principles of management and research were published in the book ‘General and Industrial Management’
(1916).
14 Principles of management
14
principles of management are statements that are based on a fundamental
truth. These principles serve as a guideline for decision-making and management
actions. They are drawn up by means of observations and analyses of events that
managers encounter in practice. Henri Fayol was able to synthesize 14
principles of management after years of study, namely:
1. Division of Work
In
practice, employees are specialized in different areas and they have different
skills. Different levels of expertise can be distinguished within the knowledge
areas (from generalist to specialist). Personal and professional developments
support this. According to Henri Fayol specialization promotes
efficiency of the workforce and increases productivity. In addition, the
specialization of the workforce increases their accuracy and speed. This
management principle of the 14 principles of management is applicable to
both technical and managerial activities.
2. Authority and
Responsibility
In
order to get things done in an organization, management has the authority to
give orders to the employees. Of course with this authority comes
responsibility. According to Henri Fayol, the accompanying power or
authority gives the management the right to give orders to the subordinates.
The responsibility can be traced back from performance and it is therefore
necessary to make agreements about this. In other words, authority and
responsibility go together and they are two sides of the same coin.
3. Discipline
This
third principle of the 14 principles of management is about obedience. It
is often a part of the core values of a mission and
vision in
the form of good conduct and respectful interactions. This management principle
is essential and is seen as the oil to make the engine of an organization run
smoothly.
4. Unity of Command
The
management principle ‘Unity of command’ means that an individual employee
should receive orders from one manager and that the employee is answerable to
that manager. If tasks and related responsibilities are given to the employee
by more than one manager, this may lead to confusion which may lead to possible
conflicts for employees. By using this principle, the responsibility for
mistakes can be established more easily.
5. Unity of Direction
This
management principle of the 14 principles of management is all about focus
and unity. All employees deliver the same activities that can be linked to the
same objectives. All activities must be carried out by one group that forms a
team. These activities must be described in a plan of action. The manager is
ultimately responsible for this plan and he monitors the progress of the
defined and planned activities. Focus areas are the efforts made by the employees
and coordination.
6. Subordination of
Individual Interest
There
are always all kinds of interests in an organization. In order to have an
organization function well, Henri Fayol indicated that personal
interests are subordinate to the interests of the organization (ethics). The
primary focus is on the organizational objectives and not on those of the
individual. This applies to all levels of the entire organization, including
the managers.
7. Remuneration
Motivation
and productivity are close to one another as far as the smooth running of an
organization is concerned. This management principle of the 14 principles
of management argues that the remuneration should be sufficient to keep
employees motivated and productive. There are two types of remuneration namely
non-monetary (a compliment, more responsibilities, credits) and monetary
(compensation, bonus or other financial compensation). Ultimately, it is about
rewarding the efforts that have been made.
8. The Degree of
Centralization
Management
and authority for decision-making process must be properly balanced in an
organization. This depends on the volume and size of an organization including
its hierarchy. Centralization implies the concentration of decision making
authority at the top management (executive board). Sharing of authorities for
the decision-making process with lower levels (middle and lower management), is
referred to as decentralization by Fayol. Henri Fayol indicated that an organization should strive for a good
balance in this.
9. Scalar Chain
Hierarchy
presents itself in any given organization. This varies from senior management
(executive board) to the lowest levels in the organization. Henri Fayol ’s “hierarchy” management
principle states that there should be a clear line in the area of authority
(from top to bottom and all managers at all levels). This can be seen as a type
of management structure. Each employee can contact a manager or a superior in
an emergency situation without challenging the hierarchy. Especially, when it
concerns reports about calamities to the immediate managers/superiors.
10. Order
According
to this principle of the 14 principles of management, employees in an
organization must have the right resources at their disposal so that they can
function properly in an organization. In addition to social order
(responsibility of the managers) the work environment must be safe, clean and
tidy.
11. Equity
The
management principle of equity often occurs in the core values of an
organization. According to Henri Fayol, employees must be treated
kindly and equally. Employees must be in the right place in the organization to
do things right. Managers should supervise and monitor this process and they
should treat employees fairly and impartially.
12. Stability of Tenure
of Personnel
This
management principle of the 14 principles of management represents deployment
and managing of personnel and this should be in balance with the service that
is provided from the organization. Management strives to minimize employee
turnover and to have the right staff in the right place. Focus areas such as
frequent change of position and sufficient development must be managed well.
13. Initiative
Henri Fayol argued that with this
management principle employees should be allowed to express new ideas. This
encourages interest and involvement and creates added value for the company.
Employee initiatives are a source of strength for the organization according to
Henri Fayol.
This encourages the employees to be involved and interested.
14. Esprit de Corps
The
management principle ‘esprit de corps’ of the 14 principles of management
stands for striving for the involvement and unity of the employees. Managers
are responsible for the development of morale in the workplace; individually
and in the area of communication. Esprit de corps contributes to the
development of the culture and creates an atmosphere of mutual trust and
understanding.
