Even today, 14 leadership principles are widely recognized and applied. All executives have to obey these 14 values, according to Henri Fayol.
Henri Fayol is now acknowledged as the Father of Modern Management, a French industrialist. Fayol published a book called "Industrial and General Administration" in the year 1916. He presented the 14 Management Principles in this book.
The 14 management principles of Henri Fayol are ;
- Division of Work.
- Balancing Authority and Responsibility.
- Discipline.
- Unity of Command.
- Unity of Direction.
- Subordination of Individual Interests to the General Interest.
- Remuneration.
- Centralization.
- Scalar Chain.
- Order.
- Equity.
- Stability of Tenure of Personnel.
- Initiative.
- Esprit De Corps.
1. Division of Work
The division of the organization's entire job between people and the creation of departments is called job division.
Work division contributes to expertise, and expertise helps increase effectiveness and effectiveness leading to changes in the organization's productivity and profitability.
2. Balancing Authority and Responsibility
Responsibility must be equivalent to the authority. A equilibrium should be struck between Authority (Power) and Responsibility (Duties), according to Henri Fayol. Without regard to accountability, the right to grant instructions should not be regarded.
If the power is more than responsible then a manager is likely to misuse it. He may feel annoyed if accountability is more than power.
3. Discipline
Outward stamp of regard pursuant to official or unofficial contracts between a company and its staff. Discipline implies respecting the organization's laws and regulations. Discipline can be self-discipline, or discipline can be enforced.
No slacking or manipulation of laws, in no organisation permitted. The plays must comply with the organization's guidelines. Good monitoring and impartial judgement are necessary to create discipline.
4. Unity of Command
A subordinate (worker) must have and obtain instructions from just one superior (supervisor or director) according to this concept.
To put it another way, only one superior must be reported by a subordinate. It enables to avoid dual subordination. This is a feature of executives that decreases the opportunities of "Dual subordination" that generates a issue.
5. Unity of Direction
One head and one schedule for an activity unit with the same goal. All activities that have the same goal must be managed by one manager, and one plan must be used.
This is called Direction Unity.
For instance, only one director must direct all marketing operations such as advertising, sales promotion, pricing strategy, etc.
For all marketing operations, he has to use only one scheme. Unity of strategy implies the organization of operations directed at the same goal so that one strategy and one individual are in control.
6. Subordination of Individual Interests to the General Interest
There should be no prevailing concern of one person or organization over the general good. Less significance should be provided to the person concern, whereas most significance should be offered to the public concern.
If not, it will crash the organisation. The organisational goal's interest should not be sabotaged by an individual's or group's concern.
7. Remuneration
Remuneration is the value obtained for goods. Pay for both the worker and the company should be reasonable. If an organisation wishes the greatest efficiency and effective staff, it should have a strong strategy of remuneration.
This policy should offer employers and staff maximum fulfillment. It should include rewards that are both financial and non-financial.
Compensation should be focused on an effort to reward excellent efficiency systematically.
8. Centralization
Depending on the size of the company and the quality of its managers, it is always present to a greater or lesser extent. The power is focused only in a few fingers in centralization.
However, the power is allocated to all management levels in decentralization. No organisation can be centralized or decentralized altogether.
If there is full centralization, then there will be no authority (power) for the subordinates to carry out their responsibilities. Similarly, the superior will have no power to regulate the organisation if there is full decentralization.
Therefore, centralization and decentralization should be balanced.
The degree to which centralization or decentralization should be implemented relies on the particular organisation, but executives should maintain ultimate accountability but should offer sufficient supervisory power to effectively perform the duties.
9. Scalar Chain
The chain of command is the formal line of authority, communication, and responsibility within an organization, sometimes called the scalar chain.
The chain of control is generally portrayed on an organizational chart that defines the organizational structure's superior and subordinate interactions.
Or it's the organization's line of power from top to bottom. This chain uses the concept of unity-of-command and enables data to flow in an organized way.
The guidelines flow down the chain of control and accountability moves upward under the continuity of control concept. Cutting the chain of control more clearly, making the decision-making method more efficient and making it more efficient.
10. Order
The correct person in the correct location is a location for everything and everything in its location. The organisation should have an order for material / things and individuals.
Material order is called order for things, and order is called social order for people. Material Order relates to "a location in its location for all and all."
Social Order refers to the selection of the “right man in the right place”. There must be the orderly placement of the resources such as Men and Women, Money, Materials, etc. Human and material resources must be in the right place at the right time. Misplacement will lead to misuse and disorder.
11. Equity
A director should make equal use of kindness and fairness towards staff while dealing with the staff. Equity is a mixture of compassion and fairness.
It generates allegiance and dedication to the organisation in the staff. The equity concept indicates that both the executives and the subordinates must be kind and fairly honest.
12. Stability of Tenure of Personnel
Although it may take a ton of moment, it is necessary to give employees reasonable enough time to settle in their employment. It takes time for an worker to know his work and become effective.
Employees should have job security because there is inefficiency caused by instability. Successful companies typically had a stable employee group.
13. Initiative
All levels of employees should be urged to demonstrate action without boundaries of power and discipline. Management should foster action.
That is, staff should be encouraged to create their own decisions and implement those plans. This is because an initiative provides workers fulfillment and brings the organisation achievement. It enables the subordinates to come up with a strategy and do what it goes to get it done.
14. Esprit De Corps
Body Spirit implies "Spirit Team." Therefore, among the staff, leadership should generate unity, collaboration, and team spirit.
They should prevent politics of division and rule. Harmony, staff cohesion. It's an organization's excellent source of power. In every good company, it is a value.
These principles are instructions for each feature of leadership. In order to achieve the objective and generate a surplus, the manager must behave according to the 14 leadership values.
Henri Fayol's 14 guiding concepts are widely recognized. They operate as managers ' guidelines to do their job according to their responsibilities.
