14 MANAGEMENT PRINCIPLES

14 MANAGEMENT PRINCIPLES



Developed by Henry Fayol (1841-1925) a French industrialist and other management practitioners
Focused their attention on development of MGT functions and principles for universal application.
Had broader perspective of improving total organization rather than technical efficiency alone.

14 MANAGEMENT PRINCIPLES

Division of work: 
Limiting individual’s work to single leading function increases efficiency and effectiveness.

Authority and responsibility: 
The right to give orders, whenever there is authority, responsibility arises.

Discipline: 
Respect and obedience to organizational rules.

Unity of command: 
Every employee must receive orders and be accountable to only one boss.

Unity of direction: 
There should be one head and one plan for a group of activities having same objective.

Subordination of individual to general interest: 
Interest of any employee or group of employees should not precede organizational interest.
Remuneration: 
Amount and methods of remuneration should be just and fair.

Centralization: 
Degree of concentration of authority should be based upon optimum utilization of all faculties of personnel. The extent to which authority is centralized depending on size and quality of managers.

 Scalar chain: 
The line of authority from top to bottom of the organization.

 Equity: 
Treatment of all employees fairly and with justice.

Stability of tenure of personnel: 
Ensure job security for employees to work efficiently.

Order: 
Arrangement of things and placement of people. Everything should be on its place e.g. material arranged properly in right place, right man placed in the right place etc.

Initiative: 
Opportunity/freedom to think for oneself and use discretion in doing things. This increase interest of employees on their jobs and provide job satisfaction.

Esprit de corps:  
Promoting team spirit will build harmony and unity within an organization. Team spirit creates synergy i.e. (2+2=5); thus, the whole is greater than the sum of its parts.

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