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14 Principles of Management by Henri Fayol

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23rd May, 2024
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    14 Principles of Management by Henri Fayol

    In order for an organization to achieve its aims and be efficient, good management is essential for the organization to succeed. Planning, organizing, leading, and controlling is one of the four basic functions in management or the POLC framework in management, often referred to as the management functions. Unless these factors are in place, an organization will have little to no structure and focus if they do not have these aspects in place.

    This article will aid you in knowing the meaning of principles of management and answer your questions as to what are the 14 principles of management. You can go for Project Management certification online courses to gain a deeper understanding of management principles, learn how to lead successful project teams, and boost your career. Check Henri Fayol 14 principles of management in this article below.

    History of Principles of Management

    As a parent of modern management theory, Henry Fayol is known to be the father of the field. His career in the mining industry began as an engineer within the mining company "Compagnie de Commentry-Fourchambault-Decazeville." Over the course of a few years, he managed the company as a manager at the height of the French Industrial Revolution. He was able to turn around a struggling company into one that flourished under his guidance.

    A book on industrial and general administration was written by him in 1916, in which he wrote about his experiences with managing a workforce as a manager. There was a definite development of administrative theory and the 14 Principles of Management due to these developments. This principle is one of the earliest examples of a profession based on the administration of skills over technical skills. It is one of the earliest examples of a profession based on management.

    What are the Principles of Management?

    Principles of management definition include organizational principles used as a guideline for determining the overall direction of the company's performance. An example of this would be a manager determining whether or not to promote an employee based on the principle of seniority, while another manager would be determining based on the principle of quality.

    Basic principles of management can be defined in terms of principles that are found in pure science. Unlike the postulates of pure science, the principles of management are not as firm as those of pure science. Due to the fact that they relate to human attributes, they should be used creatively in accordance with the position's requirements. You can pursue the online PMP certification course to learn how to use these management principles creatively and develop your project management skills.

    As humans behave in a continuous way, as well as technology, business is never inactive. Therefore, to keep up with these changes, all the principles should be updated accordingly. The following are some examples:

    1. With the advent of information and communication technology (ICT), managers have developed the ability to take control of large business domains scattered all over the globe with ease.
    2. From the management techniques, it should be possible to select the management principles. As the name implies, techniques are a set of steps that include a set of procedures that should be followed to reach the desired outcome.
    3. A manager could only manage a small number of employees within a specific geographical area when it came to absenteeism in the Information and Communication Technology (ICT) sector.
    4. It is important to comprehend both what is principles of management and what it is not when attempting to understand the application of a management principle.
    5. The purpose of principles is to guide as to how one should make judgments and take action when studying techniques. Further, it is important to understand that values are not necessarily the same as principles.

    Henry Fayol 14 Principles of Management

    It was Henry Fayol, also known as the "father of modern management theory," that had a profound effect on how we perceived the concept of management in the 20th century. He introduced a general theory at every level of management, and every department is able to apply it. There are many theories that managers practice organizing and regulate the internal activities of an organization. The Fayol theory is one of these theories. By focusing on achieving managerial efficiency, he was able to achieve success.

    Following is an explanation of Henri Fayol's 14 principles of management, which he developed over his lifetime.

    1. Division of Work

    In a division of work, the full workload of an organization is divided among individuals, and divisions are created. As a result of the division of work, specialization occurs, and specialization improves efficiency. Efficiency results in increased productivity, and the company's profitability increases.

    2. Authority

    To ensure that the employees follow a manager's instructions, they must have the necessary authority, per the Henry Fayol principle of management. Managers can't accomplish anything if they don't have authority. However, it is important to remember that with authority comes responsibility, and authority and responsibility should be balanced, according to Henri Fayol. A situation where there are more authorities than responsibilities will frustrate employees, and the manager will feel frustrated if he or she has more responsibilities than authority.

    3. Discipline

    It is impossible to accomplish anything without discipline. Every project or management should be based on this value. Good performance and sensible interrelationships make the management job easy and comprehensive. The good behavior of employees contributes to their smooth professional development and advancement.

    4. Unity of Command

    The principle states that a subordinate (employee) can only have one superior (boss or manager) and must only receive orders from that superior. Or in other words, a subordinate report only to one superior, and dual subordination is prevented. As a result, "Dual subordination" will be less likely to occur, thus reducing managers' problems.

    5. Unity of Direction

    All participants should share a unified goal. To achieve the set goal easily, all employees must have the same goal and motive in a company.

    6. Subordination of Individual Interest

    It is important for the general good to prevail over one individual or group's interests. It is more important to prioritize the general interest over the individual interest. Failure to do so will result in the organization collapsing. An individual's or a group's interests should not sabotage the organizational goal.

    7. Remuneration

    Among the Henry Fayol principles of management, paying fair wages to employees is a directive. The motivation and retention of quality workers will be difficult for any organization that underpays its workers. Both financial and non-financial incentives should be included in this remuneration. Additionally, good performance should be rewarded to motivate employees.

    8. Centralization

    Any company's decision-maker should be neutral, whether they are in charge of the decision-making process. However, this may not be the case, depending on the organization's size. The hierarchy and division of power should be balanced, according to Henri Fayol.

    9. Scalar Chain

    Communication between employees and their superiors is referred to as a scalar chain. There should be a clear understanding of where employees stand in the organization's hierarchy and to whom they should direct their inquiries. Fayol suggests constructing an organizational chart to aid employees in understanding this structure in the workplace.

    10. Order

    The purpose of this principle is to allocate resources (manpower, money, materials, etc.) in a timely and efficient manner. Using resources in this way ensures that they are used properly and in a structured manner. An organization will become disordered and misused if these resources are misplaced.

    11. Equity

    It is the manager's duty to treat all employees fairly and with kindness. Kindness and justice go hand in hand when it comes to equity. Employees become loyal and dedicated to the organization as a result. According to the equity principle, managers must treat their subordinates fairly and kindly.

    12. Stability

    Organizations should aim for a low staff turnover rate and maximum efficiency. Getting used to an organization's culture takes time for any new employee, and their efficiency depends on the time they have to settle into their new jobs. As well as ensuring job security for old and new employees, inefficiency can result from instability. Additionally, an effective method should be established for handling vacancies when they arise due to the time and expense involved in training new employees.

    13. Initiative

    Taking the initiative should be encouraged at all levels, regardless of authority or discipline. The initiative should be encouraged by management. Managers must encourage their employees to make their plans and follow through on them. As a result, initiatives provide satisfaction for employees and bring success to organizations. As a result, subordinates can come up with ideas and do what it takes to implement them.

    14. Esprit de Corps

    "Esprit de Corps" is a French term that means "Team Spirit." Thus, to achieve the desired results, the management should cultivate unity, cooperation, and a sense of team spirit among employees. A policy should not be based on dividing and ruling, and cohesion and harmony among the team members are required. Having such a strong team within the organization is a great asset. Every successful business has this quality, an essential component of its success.

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    Why are Principles of Management Important?

    Listed below are some of the importance of Henry Fayol's principles of management:

    1. Guidelines for the Training of Managers at all Levels of the Organization

    Management principles provide an understanding of what the managers need to do to accomplish what they want through the management process. Thus, these are useful in identifying the areas of management in which existing & future managers should receive training to improve their skills.

    2. Enhances the Ability to Understand

    A manager with a good understanding of principles can provide guidelines on how an organization should be managed. By using the principles as a guide, managers can determine what actions should be taken to accomplish given tasks and handle situations that might arise during their duties. Managers are more efficient when they follow these principles.

    3. Providing a Guide to Management Research

    To make management more practical and effective, the body of management principles indicates the direction in which research should be undertaken to improve it. These principles guide a manager's decision-making and action, and the researchers can examine the guidelines to see whether they are useful. There will be a significant improvement in management practice if anything can be done to make management research more precise and pointed.

    4. Role of Management in the Organization

    The role of managers is made more concrete by applying management principles. As a result, these principles will serve as a convenient reference tool for managers to distinguish whether their decisions are appropriate. In addition, these principles provide a practical understanding of managerial activities. As a manager, you are responsible for knowing what you are expected to do in certain situations.

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    Conclusion

    Thus, this article defines the principle of management and discusses the basic principles of management. The 14 principles of management of Henry Fayol have become universally accepted and are referred to by managers across the globe as a set of guidelines they should always follow. Management principles have been around for more than a century, and without them, we would be reverting to a time when technical skills ruled supreme, and people lacked managerial responsibilities for hundreds of years. 

    If you want to understand and learn how to implement these management principles, then check out the best PRINCE2 certification course to gain a deeper understanding of the topic.

    Frequently Asked Questions (FAQs) 

    1. Why is Henry Fayol called the father of management?

    The 14 principles of management that Henry Fayol contributed are credited as being the foundation of modern management, and this is why Henry Fayol is called the father of management. In making decisions and taking management actions, these principles serve as a guide. 

    2. What are the characteristics of principles of management?

    Some of the characteristics of principles of management are: 

    • Management is Goal-oriented Process. 
    • Management is Multidimensional 
    • Management is All-pervasive 
    • Management is a Continuous Process
    • Management is a Group Activity

    3. What are the needs for principles of management?

    • The principles are directed toward organizational objectives.
    • The principles are very flexible in nature.
    • The principles are based on cause-and-effect relationship. 
    • The principles result in the optimum utilization of the resources allocated in the business. 

    4. What do you learn from the principles of management?

    Using these principles, an individual learns how to plan, make decisions, develop cultures, lead and motivate teams, and communicate effectively as a manager.

    5. What is the nature of the principles of management?

    A cause-and-effect relationship is established by management principles so that the findings can be applied frequently to such situations. When a certain principle is applied, it will have the expected effect.

    Profile

    Kevin D.Davis

    Blog Author

    Kevin D. Davis is a seasoned and results-driven Program/Project Management Professional with a Master's Certificate in Advanced Project Management. With expertise in leading multi-million dollar projects, strategic planning, and sales operations, Kevin excels in maximizing solutions and building business cases. He possesses a deep understanding of methodologies such as PMBOK, Lean Six Sigma, and TQM to achieve business/technology alignment. With over 100 instructional training sessions and extensive experience as a PMP Exam Prep Instructor at KnowledgeHut, Kevin has a proven track record in project management training and consulting. His expertise has helped in driving successful project outcomes and fostering organizational growth.

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