Henri Fayol identified the fourteen principles of management. He believes that these principles need to be applied in organization if maximum efficiency is to be achieved. According to him, these principles are capable of adaptation to every need. It is a matter of knowing how to make use of them. In 1978 Henri Fayol developed the principles of management. Those principles are:
Division of Works: the first principles of management is division of works, this means that works or tasks necessary for accomplishment of organizational goals are divided into highly specialized jobs with each employee performing a particular job. Division of labour results in specialization, separation of powers and greater productivity, efficiency and effectiveness.
Authority and responsibility: authority is the right to give orders and the power to exact obedience. The right to give orders should be balanced by the responsibility for performing necessary duties.
Discipline: discipline is essential for the success of any organization. Discipline in essence, is obedience and respect for the organizational agreements between the firm and its employees. It is an outward mark of respect. The state of discipline in any organization depends largely on the strength of its leaders. The best means of establishing and maintaining discipline are good superior at all levels, clear and fair agreement and application of sanctions judiciously and impartially.
Unity of Command: this implies that an employee should receive orders from one superior only. Dual command creates disorder, uneasiness and role conflict within an organization.
Subordination of individual interest to general interest: this principle states that the interest of an organization should supersede that of one employee or group of employees. Selfishness, corruption, inordinate ambition and some human passion tend to cause the general interest to be overlooked in favour of personal interest. To ensure that general interest supersedes individual interest, there must be fairness and good example on the part of the superior at all level of the organization hierarchy.
Centralization: this principle advocates that control should be retained centrally for maximum efficiency. Any organization which allows for greater role by subordinates in activities is decentralized while any other which does not is centralized.
Remuneration of personnel: this principle advocates that the salaries of the workers should not only be fair but also should meet the satisfaction of the employees. Remuneration should be fair to encourage keenness to work by rewarding well deserved effort and shall as well not lead to over payment.
Chain of command: this principle implies that there should be clear line of authority from the top to the bottom of the organization. The line of authority is the channel of communication, which starts from the ultimate authority.
Stability of tenure of personnel: this principle requires that employees should experience stability of position and long term appointments. In this case, organization should provide career structure that enables workers to stay and grow.
Initiatives: initiatives mean the power of thinking out, freedom to propose and to execute plans. It is the responsibility of management and heads of various units within an organization to inspire a sense of initiative among employees within the limit imposed by respect for authority and discipline. The opportunity to exercise initiative is a powerful motivator.
Order: there are two aspect of this principle. One is the material order which entails that there must be a place for everything and everything must be in its place. The second is the social order which entails that there must be a place for everyone and everyone must be in his place. In essence, the principle states that equipment and people must be well chosen, well placed and well organized for the smooth running of the organization.
Unity of direction: this principle implies one head and one plan for a group of activities having the same objectives. It is an essential condition for unity of action, co-ordination of strength and focusing of efforts.
Esprit de Corp: this principle requires that a spirit of harmony and cooperation should exist within the organization. The principle in essence stresses the need for interpersonal relationship, team work and communication in achieving organizational goals and that there is a strength in unity.
Equity: This principle requires that employees must be treated fairly and equitably in every organization. For personnel to be motivated in doing his duties with devotion and loyalty, he must be treated with kindness and equity. Kindness on the part of the management produces loyalty on the part of the workers.
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