Henri Fayol's 14 Principles of Management
Henri Fayol’s – 14 Principles
of Management
Contents
Principles of Management
•
On the basis of observation and analysis
i.e. practical experience of managers.
•
By conducting experimental studies
Features of Management Principles
History – Henri Fayol
Henri Fayol was born in Istanbul in
1841. When he was 19, he began
working as an engineer at a large
mining company in France. He
eventually became the director, at
a time when the mining company
employed more than 1,000 people
Fayol began to develop what he considered to be
the 14 most important principles of management.
Essentially, these explained how managers should
organize and interact with staff
In 1916, two years before he stepped down as
director, he published his "14 Principles of
Management" in the book "Administration
Industrielle et Generale"
Fayol also created a list of the six primary
functions of management, which go hand in
hand with the Principles
Fayol's "14 Principles" was one of the
earliest theories of management to be
created, and remains one of the most
comprehensive
Division of work
Authority – Definition and Meaning
Advantages of Unity of Command
Better relation-
ship among
superior and
subordinates
Clear and well-
organized Authority,
Responsibility and
Accountability
Reduces and/or
avoids duplication
of work
Prompt or
quick decision
making
Good, effective
and efficient
discipline
Better
coordination and
team work
Boosts morale
and positive
attitude of
workers
Leads to higher
productivity of
goods and
services
Elements of Direction
Decentralized approach vs. Centralized approach
Decentralized approach
Centralized approach
Bottom-to-top-approach
Top-to-bottom-approach
Scalar Chain and Gang Plank
F
E
D
C
B
A
P
O
N
M
L
In the figure, the scalar chain in
an organization is represented by
two ladders, A to F and A to P
Any communication from F to P
has to flow upwards to A through
E, D and C and B then downwards
through L, M, N and O. It will
obviously take a long time
So in order to minimize the delay
involved in communication, a
gang plank between F and P may
be created as shown by the
dotted line.
However, the Gang Plank should
not be a normal practice as it
undermines the established line
of authority
ManagementStudyGuide.com
Henri Fayol, a prominent figure in management theory, introduced 14 key principles of management that are still relevant today. These principles cover aspects such as centralization, division of work, authority, discipline, unity of command, and more. Fayol's theories have had a significant impact on the field of management, providing guidelines for organizational structure and managerial decision-making.
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Presentation Transcript
Henri Fayols 14 Principles of Management
Contents Introduction Centralization Division of work Scalar Chain Authority Order Discipline Equity Unity of Command Stability of Tenure Personnel Unity of Direction Initiative Subordination of individual interest to general interest Espirit De Corps Remuneration
Principles of Management Management principles are a set of fundamental truths based on logic which provides guidelines for managerial decision making and other actions. These principles are derived: On the basis of observation and analysis i.e. practical experience of managers. By conducting experimental studies
Features of Management Principles HAVE CAUSE AND EFFECT RELATIONSHIP FLEXIBLE UNIVERSAL AIMS AT INFLUENCING HUMAN BEHAVIOR EQUAL IMPORTANCE
History Henri Fayol Henri Fayol was born in Istanbul in 1841. When he was 19, he began working as an engineer at a large mining company in France. He eventually became the director, at a time when the mining company employed more than 1,000 people Fayol began to develop what he considered to be the 14 most important principles of management. Essentially, these explained how managers should organize and interact with staff In 1916, two years before he stepped down as director, he published his "14 Principles of Management" in the book "Administration Industrielle et Generale" Fayol also created a list of the six primary functions of management, which go hand in hand with the Principles Fayol's "14 Principles" was one of the earliest theories of management to be created, and remains one of the most comprehensive
Division of work Division of work is a famous principle of economics, invented by the traditional economist, Adam Smith. Fayol had applied this principle in the context of business enterprise. Division of work leads to specialization which results in increased human efficiency. Through the application of this principle the production can be increased with same amount of human effort
Authority Definition and Meaning The term authority implies the right and power of a person to exercise discretion to make decisions, to issue orders, to use organizational resources and to hire and fire employees. It is the sum of rights and powers entrusted to a person to enable him to perform the assigned tasks The right to give order and the power to exact obedience Henri Fayol
Advantages of Unity of Command Good, effective and efficient discipline Reduces and/or avoids duplication of work Clear and well- organized Authority, Responsibility and Accountability Better coordination and team work Leads to higher productivity of goods and services Prompt or quick decision making Better relation- ship among superior and subordinates Boosts morale and positive attitude of workers
Elements of Direction Communication A manager has to tell the workers what to do, how to do it and when to do it. He is also required to provide continuous guidance to the workers in the performance of their task Leadership Leadership is the ability to build up confidence and zeal among the people and to create an urge in them to be led Motivation While directing, the manager has to create in his subordinates the willingness to pursue the goals of the organization enthusiastically Supervision Supervision means overseeing the subordinates at work. Effective supervision ensures greater output of high quality Coordination It is the process of directing the activities of various persons in unison to attain objectives
Decentralized approach vs. Centralized approach Bottom-to-top-approach Top-to-bottom-approach Level 1 Level 2 Level 3 Level 4 Decentralized approach Centralized approach
Scalar Chain and Gang Plank In the figure, the scalar chain in an organization is represented by two ladders, A to F and A to P Scalar chain & Gang Plank A Any communication from F to P has to flow upwards to A through E, D and C and B then downwards through L, M, N and O. It will obviously take a long time B L C M D N So in order to minimize the delay involved in communication, a gang plank between F and P may be created as shown by the dotted line. E O F P However, the Gang Plank should not be a normal practice as it undermines the established line of authority
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