Principles of Management

The Principles of Management are the essential, underlying factors that form the foundations of successful management. According to Henri Fayol (1841-1925) in his book General and Industrial Management, there are fourteen 'principles of management'.

The Principles

1. Division of Work -

The specialization of the workforce, creating specific personal and professional development within the labour force and therefore increasing productivity.

2. Authority-

The issue of commands followed by responsibility for their consequences.

3. Discipline-

Employees must obey orders in return for good leadership.

4. Unity of Command -

There should be individual lines of command with each person having only one boss.

5. Unity of Direction -

All those working in the same line of activity must understand and pursue the same objectives.

6. Subordination of Individual Interest

The management must put aside personal considerations and put company objectives first.

7. Remuneration -

Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity.

8. The Degree of Centralisation -

The amount of power wealded with the central management depends on company size.

9. Scalar Chain -

This refers to the number of chains in a hierarchy. There should not be too many as this may hinder communication between levels.

10. Order -

Social order ensures the fluid operation of a company through authoritative procedure, and material order ensures safety and efficiency in the workplace.

11. Equity -

Employees must be treated kindly, and justice must be enacted to ensure a just workplace.

12. Stability of Tenure of Personnel -

This relates to Maslow's Hierarchy of Needs; employees work better if they are assured job security and career progression.

13. Initiative -

Using the initiative of employees can add strength and new ideas to an organisation.

14. Esprit de Corps -

This refers to the need of managers to ensure and develop morale in the workplace, individually and communally.

These can be used to initiate and aid the processes of change, organisation, decision making, skill management and the overall view of the management function.

Fayol also divided the management fucntion into five key roles:

- To organise

- To plan and forecast (Prevoyance)

- To command

- To control

- To coordinate

Further Reading -

- Administration Industrielle et Général, Henri Fayol, 1917

Sources -

1. http://www.12manage.com/methods_fayol_14_principles_of_management.html

2. Administration Industrielle et Général, Henri Fayol, 1917

About the Contributor

Grant Robinson is a student from Kent, England, and was the Managing Director of Apex Event Management, an award-winning Young Enterprise company. His username is RobbiG.