Henri Fayol was a French management theorist whose theories in management and organization of labor were widely influential in the beginning of the 20th century.
The 14 management principles from Henri Fayol are:
- Division of Labour: The most people specialize the more effectively they can perform their work. This principle is epitomized by the modern assembly line.
- Authority: Managers must give orders so that they can get the things done. While their formal authority gives them the right to command, managers will not compel obedience unless they have personal authority, relevant expertise as well.
- Discipline: Members of an organization need to respect to the rules and agreements that govern the organization reward superior performance and penalties for infractions.
- Unity of Command: Those operations within the organization that have the same objective should be directed by only one manager using one plan. Ex: the personal debt of a company should not have two directors, each with a different hiring policy.
- Unity of Direction: Those operations within the organization that have the same objective should be directed by only one manager using one plan. Ex: the personal debt of a company should not have two directors, each with a different hiring policy.
- Subordination of Individual Interest to the Common Good: In any undertaking, the internet of the employees should not take precedence over the interest of the organization as a whole.
- Remuneration: Compensation for work done should be fair to both employees and employers.
- Centralisation: Decreasing the role of a subordinate in decision making is centralization; increasing their role in decentralization. Managers should retain final responsibility, but at the same time given their subordinates enough authority to do their jobs properly.
- The Hierarchy (Scalar chain): The line of authority in an organization often represented today by next boxes and lines of organization chart runs in order of rank from top management to the lowest level of the enterprise.
- Order: Materials and people should be there in the right place at the right time. People, in particular, should be in the jobs or positions they are most suited to.
- Equity: Managers should be most friendly and fair to their subordinates.
- Stability of Staff: A high employee turn over rate undermines the efficient functioning of the organization.
- Initiative: Subordinates should be given the freedom to conceive and carry out their plans, even though some mistakes may results.
- Espirit de Corps: Promoting team spirit will give the organization a sense of unity. Even small factors should help to develop the spirit. Ex: use of verbal communication instead of formal, written communication whenever possible.