Principle of Management | Fayol’s 14 Principles on Administrative Management theories
Principle of Management
A principle is a fundamental truth and is generally stated in the form of cause and effect inter-relationship. Management principles are the statement of general truth providing a guide to thought or action. In the words of Herbert G. Hicks, “Principles of management are the guiding rules of laws for managerial action.”
In the words of Koontz and O’ Donnell, “Management principles are fundamental truth of general validity.” These truths are the guiding pillars in the managerial execution of functions and solutions to problems. Every social science has developed its own principles. Management is also social science and thus it has developed a number of management principles from time to time.
Henry Fayol, a French industrialist, offered fourteen principles of management for the first time in 1916. During the period of 1920-40s in the USA, many authors did hard work in developing and testing various principles of management. Today, there is a very lengthy list of management principles and it is not possible to give an exhaustive list of them.
Fayol’s 14 Principles on Administrative Management theories
Henery Fayol’s developed 14 Principles on the administrative theory it presented given below
1. Division of Work
The total work of an organization is divided into small manageable units and assigned to particular individuals. It helps to increase efficiency. The principle of division of work can be applied at all levels in the organization.
2. Authority and Responsibility
In an organization, Authority and responsibility should go together. The Manager gives his order directly to the subordinate after that he should take the responsibility for the work done by them. So the person receiving the authority should be ready to bear the responsibility for the same. It is important to delegate authority, at the same time retain the responsibility with him.
Discipline should be followed by all the employees. Obedience behavior, discipline, flexibility, and human consideration are together called discipline. The organization must have Disciplined, otherwise, it cannot run smoothly.
4. Unity of Command
Every subordinate should receive orders and be accountable to only one superior. Dual or multiple commands are a perpetual source of conflict. Unity of command avoids conflicting orders and ensures order and stability in the organization. It is also helpful in fixing responsibility.
5. Unity of Direction
According to this principle, each group of activities having the same objective must have one head and one plan. The principle of unity of direction seeks to ensure unity of action. Unity of direction should not be confused with the unity of command.
6. Subordination of Individual Interest to General interest
Every employee should forget their individual interest and they should work for a common purpose. When there is a conflict between the two, the interests of the organization should prevail over individual interests.
The amount of remuneration and the methods of payment should be just and fair and should provide maximum possible satisfaction to both employees and employers.
According to Fayol, The question of centralization and decentralization is a matter of finding the optimum degree for the particular concern. The degree of concentration of authority should be based upon optimum utilization of all faculties of the personnel. It should be determined on, the basis of individual circumstances in each case.
9. Scalar Chain
It refers to the chain of superiors ranging from the highest authority to the lowest level in the organization. There should be a clear line of authority ranging from top to bottom of the organization. All upward and downward communications should flow through each position of authority along the scalar chain.
This principle is concerned with the arrangement of things and the placement of people. In material order, there should be a place for everything and everything should be in its proper place. Similarly in the social order, there should be an appropriate place for everyone and everyone should be in his or her appointed place.
Equity implies that employees should be treated with justice and kindness. Managers should be fair and impartial in their dealings with subordinates. Equity helps to create cordial relations between management and workers which are essential for the successful functioning of every enterprise.
12. Stability of Tenure of Personnel
Employees cannot work efficiently unless job security is assured to them. An employee cannot render worthwhile service if he is removed from the job before he gets comfortable with it.
Employees at all levels should be given the opportunity to take initiative and exercise judgment in the formulation and execution of plans. The initiative refers to the freedom to think for oneself and use direction in doing work. It develops the interest of employees in their jobs and provides job satisfaction to them.
14. Espirit de Corps
This refers to harmony and mutual understanding among the members of an organization. Unity is strength and unity in the staff is the foundation of success in any organization. Management should not follow the policy of ‘Divide and rule. Unity among personnel can be developed through proper communication and coordination.