This article throws light upon the fourteen main principles of management by H. Fayol. The principles are: 1. Division of Work 2. Authority and Responsibility 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Emphasis on Subordination of Personal Interest to General 7. Remuneration 8. Centralisation 9. Scalar Chain 10. Order 11. Equity 12. Stability of Tenure 13. Spirit of Co-operation 14. Initiative.
Principle # 1. Division of Work:
Division of work or specialisation alone can give maximum productivity and efficiency. Factory system of production and our machinery of distribution are based on division of work. In fact, expansion of the market is limited by division of labour. Both technical and managerial activities can be performed in the best manner only through division of labour and specialisation.
Principle # 2. Authority and Responsibility:
The right to give order, the right to command, is called authority. The obligation to accomplish objectives or expected results or performance is called responsibility. Please note that authority and responsibility are the two sides of the management coin.
They exit together as they are complementary and mutually interdependent. Acceptance of authority implies acceptance of responsibility for the performance of assigned work.
Principle # 3. Discipline:
The objectives, rules and regulations, the policies and procedures must be honoured by each member of an organisation. Discipline demands good superiors at all levels of management. There must be clear and fair agreement on the rules and objectives, on the policies and procedures.
There must be penalties and fines (punishment) for non-obedience or indiscipline. No organisation can work smoothly without discipline—preferably voluntary or self-discipline.
Principle # 4. Unity of Command:
In order to avoid any possible confusion and conflict, each member of an organisation must receive orders and instructions only from one superior or boss and he/she must be accountable to one boss. We should not have multiple bosses, as it will lead to divided responsibility.
Principle # 5. Unity of Direction:
All members of an organisation must work together to accomplish common or same objectives. Their efforts shall be directed towards one common super goal.
Principle # 6. Emphasis on Subordination of Personal Interest to General:
This is also called principle of cooperation. Each shall work for all and all for each. General or common interest must be supreme in any joint enterprise. The organisation will collapse when personal interest becomes supreme and general interest is sacrificed.
Principle # 7. Remuneration:
Fair pay with non-financial rewards can act as the best incentive or motivator for good performance. Exploitation, of employees in any manner must be eliminated. Sound scheme of remuneration includes adequate financial and non- financial incentives.
Principle # 8. Centralisation:
There must be a good balance between centralisation and decentralisation of authority and power. Extreme centralisation and decentralisation must be avoided.
Principle # 9. Scalar Chain:
The unity of command brings about a chain or hierarchy of command linking all members of the organisation from the top to the bottom. Scalar denotes steps.
Principle # 10. Order:
Fayol suggested that there is a place for everything and everyone which ought to be so occupied. Order or system alone can create a sound organisation and efficient management. Disorder leads to chaos and confusion.
Principle # 11. Equity:
An organisation consists of human beings, a group of people involved in joint effort. Hence, equity, i.e., justice and kindliness, must be there based on predetermined custom or convention. Without equity, we cannot have sustained and adequate joint collaboration.
Principle # 12. Stability of Tenure:
A person needs time to adjust himself with the new work and demonstrate efficiency in due course. Hence, employees and managers must have job security. Security of income and employment is a prerequisite of sound organisation and management.
Principle # 13. Spirit of Co-operation:
Esprit de corps is the foundation of a sound organisation. Union is strength. But unity demands co-operation, pride, loyalty and sense of belonging are responsible for good performance.
Principle # 14. Initiative:
Creative thinking and capacity to take initiative can give us sound managerial planning and execution of predetermined plans. Creativity springs from curiosity and imagination. If you are imaginative, you are bound to be curious. Curiosity and imagination go together like bacon and eggs.