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ARE HENRI FAYOL’S FOURTEEN MANAGEMENT PRINCIPLES STILL RELEVANT IN TODAY’S CORPORATE WORLD?

THIS ARTICLE WAS UPDATED ON 17/MAY/2020 

The 14 Principles of Management were first introduced in the year 1916 by Henri Fayol. Henri Fayol was the managing director of a mining company responsible for over 1,000 employees, and his theories are based on practical observations. The ideas put forward by Henri Fayol were not presented to the English speaking world until the late 40th of the twentieth century when they were first translated from French into English.

Henri Fayol proposed 14 principles of management, which act as a manual for managers in their daily work, and which could increase the effectiveness and work morale of both workers and managers.

Generally, the 14 principles can be grouped into coordination and specialization principles. The coordination principles give guidance about how to structure the organization in a hierarchical and highly effective fashion. In contrast, the specialization principles advice about how to structure work most efficiently.

The Fourteen Principles

The 14 principles of management put forward by Henri Fayol are mentioned below:

1. Specialization of work: Henri Fayol proposed that field of work increases output by making employees more efficient.

2. Discipline: Employees must follow orders, and the organization should stress the importance of following rules and demands effectively.

3. Authority: Managers should have complete command over subordinates so that they could give orders effectively; therefore, the organization must provide managers with the exclusive authority to give orders to associates.

4. Unity of command: Every employee should only report to one boss. Because of the multiple power centers, there is a chance of infighting within the organization.

5. Unity of direction: Each activity performed by the organization should only have one command center or manager giving tips to employees.

6. Subordination of individual interest: The particular interest of an employee should never be prioritized over the part of the organization.

7. Remuneration policy: Remuneration includes financial and non-financial compensation. If an organization wants to keep its employees motivated and more productive, then they should pay fair remuneration to their employees. Employees should always be paid according to their services to the organization.

8. Centralization: Decisions should always be taken by the top management, and not by the subordinates of the company.

9. Scalar chain of command: Communication flows from the top of the organization to the employees, always following a scalar chain of command, meaning that communication should preferably flow top to down.

10. Order: All materials and employees should have a designated fixed place, where they should always be found or work. The order encompasses many things, including having a clean and safe environment for employees with everything in its place. It also means that the resources should be used in the right place at the right time. This includes employees, capital, and other resources too.

11. Equity: There should be a principle of fairness about how the organization treats its employees. This means managers should treat everyone fairly at all times. Treating employees legally increases employee retention.

12. Personnel tenure: Limited number of employees is generally a good thing, and good employees should be rewarded with lifetime employment opportunities. Employees need to have job security in life.

13. Initiative: Employees should be given a chance to show individual ability, which will result in excellent results for the company. It will increase their creativity and decision-making ability of employees.

14. Esprit de corps (team spirit): There should be harmony and unity between members of the organization, which would result in high work morale and motivation.

These 14 principles put forward by Henri Fayol historically had a significant impact on the structuring of organizations in the European countries, and many of today’s modern companies around the world still exhibit many of the managerial and organizational traits described by Henri Fayol.

These principles if followed by any organization or company may give them several benefits and the employees will work efficiently for the firm.


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