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Henri Fayol's 14 principles of management

In the conditions of modern market relations, the management system in the organization plays a key role.

The management process is continuous and focused on improving the efficiency of the organization.
Management functions are interconnected; their task is to meet the needs of customers through the development of strategies and their adjustment in action.

It is important to clearly understand what is required of the organization at one time or another, how to build management within the firm and achieve high results.

Henri Fayol's 14 principles of management



The founder of the classical school of management is considered to be the French mining engineer Henri Fayol, who made a huge contribution to the science of management. It is no coincidence that Americans call A. Fayol, the father of management.

Henri Fayol is a management theorist and practitioner, founder of the administrative school of management, author of the work "General and Industrial Management." In his concept, he formulates 14 principles of management, knowledge of which will be useful for everyone, especially for leaders and those who seek to show their leadership inclinations.

Henri Fayol's 14 principles of management


Division of labor

The purpose of the division of labor is to concentrate the worker on fewer goals and objectives. By directing his attention and all his strength in one direction, he works more efficiently.

If we take two teams - with and without division of labor - then, other things being equal, the first will perform a larger volume of tasks and do it better.


Authority and responsibility

The one who is endowed with power should be responsible for the decisions made and the orders given. For all the consequences of the team's work, the one who had the authority to manage it is responsible.


Discipline

Employees must respect and abide by the rules of their company. There should also be leaders who will monitor the obedience of company members and punish them in violation of accepted agreements.


Unity of command

Each employee should have only one immediate supervisor who will give him instructions and control the work.


Unity of action

All groups operating under one goal should have a single action plan, and one leader.


Subordination of personal interests

The personal interests of an employee or group of employees should not be placed above the company's interests or any other organization. Work interests must prevail.


Staff remuneration

Employees should receive a worthy and well-deserved reward that will motivate them to continue working. Regular rewards also build employees' loyalty to their organization and the desire to do better.


Centralization

A governing center is as necessary as a labour division; the degree of centralization, its proportion with decentralization depends on specific conditions and is determined for each case individually.


Hierarchy

In any organization, there must be a hierarchy from the lowest level manager to the general manager. This is necessary for the normal functioning of the company. But the hierarchical ladder should be as small as possible and should not be harmful.


Order

Each employee must have his own place, his tasks, and he must be in this place and perform these tasks.


Justice

It is a combination of justice and benevolence. The management team must treat their charges fairly and with respect. Where there is a place of injustice, there is no place for productive work.


Workforce stability

Fluency is a consequence of poor management. It weakens the company, makes it less effective. Fayol believes that a mediocre leader who holds on tightly to his job is better than a talented but unreliable and fast-moving manager.


Initiative

All employees should have the opportunity to express their ideas and suggest ways to improve the company's efficiency. The initiative gives the organization strength and energy.


Corporate spirit

There must be harmony in the team. The more united workers are, the more productive they are. Strength lies in union and synergy.

I am sure that after getting acquainted with these principles, it will be much easier for you to organize the effective work of any team and lead it with dignity.


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Grouping of Fayol's principles

Structural principlesProcess principlesPrinciples of the end result
  • division of labor;
  • unity of purpose and leadership;
  • the ratio of centralization and decentralization;
  • power and responsibility;
  • target.
  • justice;
  • discipline;
  • staff remuneration;
  • unity of teams;
  • submission to the main interest.
  • order;
  • stability;
  • initiative;
  • corporate spirit.


  • Structural principles


Structural principles underlie the creation of a system of interrelated tasks, rights, and responsibilities.

According to Fayol, division and specialization of labor- the natural way to produce more products with better quality characteristics with the same effort. Specialization reduces the number of objects to which the attention and actions of the worker must be directed. As Fayolle noted, specialization is seen as the best means of utilizing individuals and groups of people. At the same time, the division of labor has its limits that cannot be exceeded. Work simplification techniques such as work standards and research in action and time have emphasized the technical aspects of work rather than behavioral. Later, in the early 1930s, an approach appeared that describes human relations and allows a more in-depth look at the division of labor in organizations, taking into account the human factor's influence.


The types of work that appear due to the division of labor must be coordinated and directed towards a common goal. The process of grouping tasks according to specific criteria is called departmentalization. Fayolle did not identify a basis for departmentalization. Still, he did develop a basic direction, according to which activities with a common goal should be carried out according to a single plan and managed by one leader. The unity of purpose and leadership principle explains the need to appoint a leader to coordinate interdependent activities.


The principle of the ratio of centralization and decentralization is associated with an increase or decrease in the leader's amount of power, which allows us to speak of one or another degree of centralization and decentralization. The principle states that for each situation, there is an optimal balance between centralization and decentralization. This balance cannot be determined without considering the abilities of the leader who coordinates the activities of departments (divisions).


The principle of power and responsibility asserts that there must be a connection between a leader's responsibility and the power that he is vested with. The desirable relationship is the equality of these two factors. It isn't easy to assess this connection, especially when studying the tasks of top-level managers. The crux of the matter is that since responsibility has been transferred to a leader, he must be given both the right to give orders and the power to demand obedience.


The natural result of applying the previous four principles is creating a subordinate chain of managers from the highest levels of management to the lowest levels. A chain is a path for vertical connections in an organization. Accordingly, all links from the lowest level must go through every leader in the chain of command. And connections coming from above must pass through each subordinate unit before they reach the proper level.


  • Process principles


The process's principles focus on the actions of leaders who direct the organization, especially when leaders communicate with subordinates.

Fairness in managers is seen as the main factor in motivating employees to perform their tasks conscientiously. Equity is reflected in fair remuneration as well. This principle states that wages and salaries must correspond to the volume and quality of the work performed.


The principle of discipline refers to concluding stable agreements between a production organization and its employees. This should provide for the application of sanctions in case of non-compliance with agreements. The application of sanctions should be carried out under the principle of justice and the subordination of personal interests to the general. This means that in conflict situations, common interests should prevail over the interests of the individual.


According to the principle of unity of teams, the leader should never demonstrate superiority when communicating with subordinates or break the chain of commands. It is believed that any performer should report to only one boss. This connection and interaction are taken into account in the formation of organizational structures.


  • Principles of the end result


The outcome principles define the desired characteristics of the organization. A well-planned and directed organization should be characterized by order and stability, and workers should be proactive in fulfilling their tasks. These attributes of an organization's performance, according to Fayol, can derive from tangible use of the principles of structure and process.

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