Henri Fayol's 14 Principles Of Management With Examples
In today’s world, management is the foundation of any organisation, enabling it to run smoothly and efficiently and achieve work targets. In the history of influential management figures, a French engineer named Henri Fayol, whose principles continue to shape modern management, established 14 principles of management in the early 20th century.
These principles were developed in the early 20th century and provide a complete framework for managers and organisations to enhance work productivity and streamline operations to create a friendly workplace.
In this article, we will profoundly understand these management principles to transform an organisation’s function and make it a compelling workplace.
Introduction to Principles of Management
While the principles of management are often considered universal, they are rooted in practical business experiences and industry changes. This enables managers to efficiently plan, lead, organise, and control organisational resources.
They use crucial concepts such as division of work, authority, discipline, etc. Understanding these principles helps the organisation achieve its goals and improve its performance. They also provide the foundation for practical approaches across diverse industries and sectors.
Who was Henri Foyal?
Henri Fayol, a French industrialist, is known for his significant contributions to the principles of management. Starting as an engineer in a French mining company in 1860, he rose to become the managing director in 1888.
His broad administrative experience and the success of his company when he retired in 1918 underscore his profound impact on modern management.
When the time came for his retirement in 1918, the company was already in excellent condition. After that, he recognised the need for management principles, and he found 14 principles of management.
What are the 14 Principles of Management?
Below are Henri Fayol’s 14 principles of management, which are described with examples for easy comprehension and knowledge.
1. Division of Work
This principle highlights that work among other workers enhances the productivity level within the organisation. Additionally, this particular principle emphasises that work division improves the efficiency and accuracy of work. This principle is utilised for both the managerial and technical workforce.
Example: A bank has several operations, like collection, cash payment, and cheque book issuing. These activities are again allocated and divided among different people within the bank. This work technique improves efficiency and effectiveness in mastering one’s domain.
2. Authority and Responsibility
Within the 14 principles of management, there are other key aspects, such as Authority and responsibility, which ensure that the management works effectively. Having responsibility makes them responsible for completing the work under leadership or guidance.
Example: In an organisation, an employee’s responsibility is to manage and decorate the department when planning an event, but if he has no authority to make decisions on designs or contracts with vendors, no work will get done, and no productivity will be accomplished.
3. Discipline
Discipline is an important principle of management. It says that without discipline, we cannot accomplish anything. It’s the core fundamental for any project or management. Sensible interrelations should be made for easy comprehension to attain good performance and interrelation within the management job. Good behaviour with the employee also helps in building the career smoothly.
Example: Employees should follow rules and regulations to maintain discipline within an organisation, ensuring a friendly environment and smooth workforce.
4. Unity of Command
One of the 14 principles of management, ‘Unity of Command ‘, emphasises the importance of employees having a single boss to follow. This principle is crucial in avoiding conflicts and ensuring clear direction.
Example: Within a company, if an employee is asked to do work and needs to finish it within 3 to 4 hours as ordered by the senior manager if the head of the department is asked to deliver the work within 1 hour, there is no unity of command, which can create pressure and confusion in the organisation.
5. Unity of Direction
This principle states that whoever engages in the same activity should maintain a unified goal. This means all employees working in a company should have one motive or goal: to achieve a set of goals quickly and make the work easier.
Example: In an organisation, different sets of activities within a department should be managed by different managers to avoid less efficiency or chaos within the workforce.
6. Collect Interest Over Individual Interest
Within the 14 principles of management, this principle states that the team’s interest should take precedence over the personal interest. The interest of the organisation should not sabotage the interest of the individual. In an organisation, if anyone goes crook, it will collapse.
Example: For a team outing, employees plan the travel and accommodation decisions, which should be arranged according to affordability and comfort rather than for the sake of their liking.
7. Remuneration
This principle plays an important role in motivating other workers within the organisation. Remuneration is monetary or non-monetary. Therefore, it should be within an individual’s efforts that they put forth.
Example: An organisation should be impartial and unbiased regarding remuneration policies and packages. It must ensure that all workers get what they need, irrespective of qualifications, gender, experience, and other vital factors.
8. Centralisation
In an organisation, management is responsible for the decision-making process, which should be neutral. However, the organisation depends on size. Henri Fayol made a clear point that there should be an equal balance between the division of power and the hierarchy.
Example: Centralisation is commonly used in a firm where the delegation of work is limited; in small and medium organisations, the owners make the decisions.
9. Scalar Chain
In the 14 principles of management, the scalar chain highlights the importance of hierarchy steps, which should be from top to bottom. This is important because every employee should be able to contact their immediate senior.
Example: An organisation has some chain of authority from the highest level of superiors, like the founder or CEO, to the lowest level of subordinates in the hierarchy for maximum productivity.
10.Order
A company should maintain a defined workplace to have a good work culture. The atmosphere in the workplace should be positive and will boost productivity levels.
Example: Employees should be encouraged to have a designated workspace and the right tools to complete their work effectively and efficiently.
11. Equity
According to management principles, employees should not be discriminated against based on caste, religion, nationality, or language.
Equity is defined as equality with superiors and subordinates. Encouraging equity leads to successful and smooth work cultures and improves employee satisfaction, which creates a balanced relationship between managers and employees.
Example: In an organisation, all employees, irrespective of religion, race, caste, gender, and sexuality, must feel seen, safe, and heard by the authority of equal opportunities to grow and flourish in their respective careers.
12. Stability of Tenure of Personnel
In a company, employees deliver the best work when they feel secure in their job roles. Management must offer employees job stability and security.
Example: New employees should be given enough time to grasp the new work culture and environment in a workplace.
13. Initiative
According to the 14 principles of management, organisations should support and encourage employees to take initiative. This will help them understand and increase their morale and motivation.
Example: An organisation should have a suggestion system so employees feel they belong.
14. Esprit de Corps
Management’s responsibility is to motivate employees and support them daily. Developing a sense of trust and understanding in them will lead to a positive outcome and work environment.
Example: When planning or discussing anything, preparing the task for the next month is vital to achieving the target. In a plan, using the word ‘we’ instead of ‘I’ positively impacts the group team’s teamwork and spirit.
Top Companies Using Henri Fayol’s Principles of Management
Given below are some of the popular companies that use 14 principles of management introduced by Henri Fayol.
- Toyota Motor Corporation: Toyota Motor’s production system is known for its quality and efficiency. It is built on the management principles of centralisation, esprit de corps, and scalar chain.
- Walmart: It is known as the biggest retailer in the world. It uses unity of direction and scaler chain, one of Fayol’s principles, in its hierarchical management structure.
- McDonald’s: The known fast-food brand uses Fayol’s principle of division of work, order, and scaler chain in its standard operating procedure in thousands of locations globally.
- General Electric (GE): This company manages its structure and practices according to Fayol’s principle of management, which is division of work, authority and responsibility, unity of command, and discipline.
Critiques and Contemporary Relevance of 14 Principles of Management
Below are the given critiques and the relevance of the principles of management.
1. Critiques
- Overly Rigid: Some people argued that Fayol’s principles were too rigid and failed to account for the dynamic nature of new organisations.
- Less Focus on Human Aspects: Critic says that the principles of Henri Fayol have an insufficient emphasis on an employee’s psychological well-being.
- Developed in a Different Era: The principles were identified during the 20th century and may have yet to address the complexities of the contemporary business landscape.
2. Contemporary Relevance
Aside from these criticisms, Fayol’s principles remain remarkably consistent in the modern context. They provide the foundation for effective management practices which can be addressed and adapted to a contemporary challenge.
- Balancing Structure with Flexibility: Organisations maintain a clear structure while following flexibility and adaptation to change the circumstances.
- Empowering Employees: Motivating employees and fostering an organisation’s creative and friendly environment is highly engaging and innovative.
- Delivering Diversity and Inclusion: Building diversity and inclusion within the work environment ensures that it aligns correctly with management’s equity principles and contributes to evolving a dynamic and structured organisation.
- Relevant Still Today: Henri Fayols’s 14 principles of management are universally accepted and still applicable. Managers use them as a guideline within the company to ensure a smooth work culture and discipline.
Conclusion
Henri Fayol’s 14 principles of management remain relevant today. They offer timeless guidance for managers to optimise their organisations.
Using these principles, managers can establish smooth operations within the workforce to meet new challenges and seize opportunities.
Although business has evolved recently, these principles continue to offer a solid foundation for effective organisational success.
14 Principles Of Management: FAQs
Q1. Who is the father of the management?
The father of management is Henri Fayol.
Q2. What management techniques are used by Henri Fayol?
The techniques of management include 14 principles of management that are:
- Division of work
- Authority and Responsibility
- Discipline
- Unity of Command
- Unity of Direction
- Collect Interest Over Individual Interest
- Remuneration
- Centralisation
- Scalar Chain
- Order
- Equity
- Stability of Tenure of Personnel
- Initiative
- Esprit de Corps
Q3. Is the principle of management universal?
Yes. It is universal because these management principles apply to all types of organisations at all levels at all times.
Q4. Define the discipline principle of management.
The discipline principle of management means equipping obedience, order, and compliance within a company. This involves introducing rules and regulations to maintain employee standards and a harmonious and productive work environment.
Q5. What does 'Unity of Command' mean in the principle of management?
‘Unity of Command’ means that all employees should receive orders from other superiors, which will guide them in avoiding chaos and ensure clear accountability and communication.
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