Henri Fayol was a French mining engineer who created the principles of management. His principles are still relevant today and can be applied to modern day workplaces. He has developed 14 principles of management that a manager can use to coordinate all the activities performed within an organization. Today, let’s have a detailed explanation of these principles of Henri Fayol’s administrative management.
Administrative management theory is the study of organizations and their management. It is a broad concept that encompasses many different fields, such as organizational behavior, public administration, and business management.
14 Principles of Henri Fayol’s Administrative Management
- Division of Work
- Authority and Responsibility
- Unity of Command
- Unity of Direction
- Subordination of Individual Interest to Mutual Interest
- Scalar Chain
- Stability of Tenure of Personnel
- Esprit de Corps
These are the 14 Principles of Henri Fayol’s administrative management are explained in detail below. They are most commonly used and universally accepted principles of management. We can explain about these principles in detail as follows :
1. Division of Work : – According to this principle the whole work is divided into small tasks and all tasks are divided among workers. One person is given for only one task according to his/her skill, experience and intelligence.
This principle focuses on making employees more specialized in their work. It says that if an employee is given specialized task to do the he/she become more efficient and expert in that task rather than if he/she had broader range of task to do.
2. Authority and Responsibility :- Authority means the power to take the decision with freedom. Responsibility means obligation to do a job. According to this principle, there should be balance between authority and responsibility given to a person.
A manager must provide equal authority and responsibility to subordinate to complete a job. If some has authority to do a job, he must be responsible too for that job and if someone is responsible toward a job, he must have necessary authority too for completing that job.
3. Discipline :- This principle says that everyone should follow the rules. Everyone must show proper behavior during work. Organization’s terms and conditions should not be broken down.
4. Unity of command :- According to this principle, one employee should receive order from only one supervisor at a time. Receiving multiple orders from multiple persons at a time may create burden and can result in ignorance of responsibility.
5. Unity of Direction :- According to this principle, units or team which are working for a common objective must follow the direction of a single manager. They should have a single plan and a single head to guide. This principle helps in the elimination of overlapping of work.
6. Subordination of Individual Interest to Mutual Interest :- Everyone in the organization should work for fulfilling common interests rather than personal interest. They should give more priority for achieving organizational goals rather than personal goals. Because if the whole organization’s goal is achieved, individual interest automatically get fulfilled.
7. Remuneration :- Remuneration is the money paid to worker for their job. Mostly everyone in this work is working for earning more and living a good life. According to this principle, fair remuneration or salary must be provided to the work so that they can be motivated in their work. Along with salary, fair bonuses, allowances etc. should also be provided time to time. Money is considered one of the great motivation factor.
8. Centralization :- According to this principle, the decision making authority should be centralized only to the top level management. Workers at lower level should only be given the working authority and power but final decision making authority should only be in the hand of superior level.
9. Scalar Chain :- According to this principle, all employees in the organization should know clearly about at which position they stand. There should be clarity about who is boss and who is worker so that it can be clear that who has authority holder and who is responsibility and accountability holder. The flow of authority should always be from top level to lower level and flow of responsibility should be from lower to top.
10. Order :- According to this principle, all the human and material resources should be organized in a systematic order in an organization. Right man should be placed at right place. Similarly, right material, machine or thing should be kept at right place and position. This makes organization look more simple and attractive.
11. Equity :- Henri Fayol has said that managers should be fair to all the employees in the organization. Managers should not treat someone as special and someone as not special. Everyone working in the organization should be equal in manger’s eyes.
12. Stability of Tenure of Personnel :- According to this principle, management should focus on creating such environment in the organization where employees can stay for long term. They must minimize employees turnover. For this, manager should motivate their employees by using various motivation factors. Long term stability of employees creates specialization in work and reduces HR cost.
13. Initiative :- According to this principle, employees in the organization should also be provided some freedom for their self motivation. Managers must provide chances to employees to use their skill for satisfying their personal expectations and goals.
14. Esprit de Corps :- This is the last principle of management given by Henri Fayol. According to this principle, managers must promote team spirit, unity and morale in the whole organization. This increase productivity and efficiency of work in the organization.
So, these are the universally accepted 14 principles of Henri Fayol’s administrative management. Along with these principles, administrative management has classified management functions into five categories. Let’s see what are they.
What are the Five Functions in Administrative Management Theory?
Administrative management theory is studied in many different disciplines and can be used to analyze any organization. The main goal of administrative management theory is to understand how organizations are structured and managed so that they can function efficiently.
5 Functions in Administrative Management Theory are:
Administrative management theory is a method for understanding and improving the efficiency of organizations. It’s goal is to improve productivity, increase profits, and streamline operations. The administrative theory has been around since the late 1800s when Frederick Taylor introduced his scientific management approach.
A plan is a set of instructions for how to reach an objective. Planning in management is the process of creating these instructions. The objective can be anything from a goal to an event, and the instructions can be anything from a simple list of steps to a detailed procedure with timelines and budgets.
The planning process involves defining the goal, developing strategies for achieving it, identifying potential obstacles, and devising ways around them. It also includes implementing the plan and evaluating its effectiveness.
Organizing is the act of arranging and coordinating people, time, and resources to accomplish a goal. It is a skill that requires the ability to plan, delegate tasks, and manage projects.
- In order to organize successfully, you must be able to prioritize tasks, delegate responsibilities appropriately for the situation at hand and maintain an organized workspace.
The term “organizing” can also refer to the act of arranging or ordering items such as books on a shelf or files in a filing cabinet.
Commanding is the ability to influence people and get them to do what you want. It can be done in a number of ways, but it’s usually done by using power, authority, or force.
- Commanding is also used when you need to control someone. This can be a person or an animal. Commanding is often used in the military and law enforcement as well.
In management, commanding is all about getting people to do what you want them to do. They might not always want to do it, but if they know that they will be reprimanded for not following your orders then they might just obey anyway out of fear or guilt.
Coordination is the process of managing and organizing activities and resources in order to achieve a goal. Coordination is an essential function of management, which entails the planning, implementing, and controlling of organizational processes to meet goals.
A coordinator is a person in an organization who coordinates the activities of other people or departments.
Controlling is a process of monitoring, measuring and reporting the performance of a business. It is done with the intention to make sure that the business is on track with its goals and objectives.
Controlling in management is necessary because it helps in making sure that the company’s goals are achieved. It also helps in gathering data to make decisions for future changes.
To sump up, these are the 14 principles of Henri Fayol’s administrative management. It is also know as ” Administrative Theory of Management “. These principles are highly appreciated by the world. However, his theory is also not free from criticisms.
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