7/27/2019 Fayol's Fourteen Principles of Management.pdf

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7/27/2019 Fayol's Fourteen Principles of Management.pdf

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1 division of labour achieving the maximum efficiency from labour through specialisation, not justtechnical activities, but across all aspects of organisation. Fayol claimed that

division of labour has its limits.

2 establishment ofauthority

having the right to give orders. Authority arises from two sources: official and

personal. Experience, intelligence, integrity and leadership ability are

indispensable complements of a managers official authority. Authority goes

hand in hand with responsibility.

3 enforcement ofdiscipline

upholding discipline is a core activity when running an organisation, although

the form will vary across organisations. When necessary, management

needs to sanction employees using instruments such as warnings, penalties,

demotions or even dismissals.

4 unity of command an employee should receive orders from one supervisor only. According toFayol dual command was bound to generate tension, confusion and conflict

resulting in dilution of responsibility and blurring communication.

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5 unity of direction having a common objective for a group of activities is an essential conditionto obtain unity of action, coordination of strength and the focusing of effort.

6 subordination ofindividual interest to

the interests of the

organisation

reconciling general interest with that of the group or the individual is one of

the greatest problems managers face. This issue applies not only to the

relationship between staff and supervisor, but especially to management

itself. Too often human flaws lead managers to pursue personal interestinstead of common good.

7 fair remuneration forall

Fayol considered both financial and non-financial factors to determine the

compensation for services provided. The composition of the mix he deems

as not important as long as the employee is satisfied.

8 centralisation ofcontrol and authority

Fayol choose the living organism as metaphor for an organisation when

considering the extent to which centralisation versus decentralisation was

required. Just like division of labour, the level of centralisation is a matter of

proportion.

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9 adoption of a scalarchain

a scalar chain is the chain of supervision which connects the managing

director to the lowest ranks. Fayol combines the hierarchy in which each

employee is aware of his place and duties, with lines of communication.

Knowing the limitation of the formal organisation, he proposes a system of

delegated authority which facilitates horizontal communication when swift

action is required.

10 a sense of order andpurpose a place for everything and everything in place. Facilities need to be tidy,materials orderly stored and staff selected according to strict procedures andclear job descriptions. Fayol advocated the creation of detailed organisation

charts to support this Principle.

11 equity and fairness indealings between

staff and managers

equity is the combination between justice and kindliness. Striking a just

balance between equity and discipline is a continuous balancing act for

managers.

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12 stability of jobs andpositions

Fayol views personnel planning, management development and turnover as

one activity. Suitable induction periods for both staff as well as management

are required to familiarise themselves with new work habits and situations.

The rationale to ensure a low turnover is to prevent bad running.

13 development ofindividual initiative

Initiative is the power to conceive a plan and ensure its success. Although

Fayol regarded management as first responsible, he made clear that the

Principle should be extended to all employees through delegated authority.

14 esprit de Corps building and maintaining of staff and management morale and unity. Usingdivide and rule as a management style Fayol considered to be counter

productive.