Introduction
Management is one of the keystones that hold an organisation together. It facilitated communication between employees and senior management and kept the chain of command intact. Management also helps ideas become realities, regardless of their source. However, it is hard to become a management professional without the proper talent, experience, education, or all three. While many learn by trial and error, management is a profession that needs better training and guidance than ever before in today's world. The principles of management that were laid down by Henri Fayol back in the 20th century can help you become an effective manager. In this article, we will explore the 14 principles of management and their history.
It was Henri Fayol who suggested the 14 principles of management in his 1916 book, "Administration Industrielle et Générale." He was an engineer at the Compagnie de Commentry-Fourchambault-Decazeville mining company at that time. From there, he worked his way up the corporate ladder and became a reputed manager during the French industrial revolution. Because of his management expertise, struggling companies survived and prospered during the industrial revolution. As a result of his deep research and practical application, he is now known as the father of modern management (Source: Wikipedia).
What Is the Importance of the 14 Principles of Management?
Before Henri Fayol, management was not even as important as it is now. It was treated just as another profession anyone could take on. Only after Henri Fayol was management seen as a true profession in and of itself. After his book, management was seen as a profession that must be researched, taught, and developed. Due to this shift in mindset, management jobs were set apart from technical ones, as both require separate skill sets. Skill without guidance produces inefficient results, which must be overcome by creating a management system. Technical expertise will not help teams in planning, decision-making, resource distribution, forecasting, prioritisation, coordination, and control, which are exclusively management skills. The 14 principles of management provide a solid starting point for aspiring managers to develop their management skills.
Why are the Principles of Management important in modern organisations?
1. They provide a foundation for decision-making in management.
The principles of management provide a systematic and structured approach to managing teams, resources, complex tasks, and projects. This helps managers make informed decisions and take appropriate actions.
2. They facilitate effective communication.
Clear lines of authority, unity of direction, and frequent communication between team members and stakeholders ensure that everyone is working towards the same goal and that information is shared effectively.
3. The principles of management encourage efficiency and productivity.
By dividing work, establishing clear responsibilities, and encouraging teamwork, organisations can maximise the use of their resources and increase their overall productivity.
4. Foster a positive work environment.
Key principles of management such as equity and stability of personnel can help create a work environment that is fair and supportive, leading to increased employee satisfaction and motivation.
5. It supports innovation and adaptability.
Some management principles, like encouraging initiative, help employees be creative and find new ways of working. This, in turn, can lead to improved processes and more effective solutions.
Are These Principles of Management Still Relevant Today?
The 14 principles of management are universally accepted and used by organisations of all sizes (Source: Wikiversity). These principles have been foundational in modern corporate and governmental management structures. Without these, the guidance and accountability that employees need from management disappear, which can result in the collapse of the entire system.
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The Fourteen Principles of Management by Henri Fayol
1. Division of Work
Dividing the workload among the workforce will improve the quality of the product. When an employee is given a specific task to complete, he will gain mastery and efficiency in the hub, which will only increase the productivity, accuracy, and speed of the overall workforce. A workforce divided into such specific jobs will boost the company's competence. This division is appropriate not only for technical work but also for managerial roles as well.
2. Authority and Responsibility
Authority and responsibility are the two key aspects of management that balance the equation of the managerial role. A manager needs authority to guide the team in the right direction. However, excessive authority will lead to the misuse of power, which is why it must be balanced with the right amount of responsibility. Why unbalance in these two key areas will lead to disappointment If there is more authority than responsibility, it can disappoint the employees. If there is more responsibility than authority, it can disappoint management.
3. Discipline
For any organisation to run effectively, discipline is one of the most important aspects that must be followed by teams and managers alike. This is why there must be a set of organisational rules, philosophies, and structures that have to be met by every employee manager, and business owner. Such rules will keep employees' behaviour in check and help avoid unnecessary office conflicts. Bending these rules must not be allowed in the organisation to keep the organisational structure intact. To achieve this, there must be good management or supervision with the right authority over the employees as well as the managers.
4. Unity of Command
According to this management principle, there must be a clear chain of command in an organisation to function effectively. Every employee must be clear on his authority and who we should follow. An employee should receive orders from only one boss or manager. Having multiple managers can result in a conflict of interest and thus become a source of confusion for the workforce. Such a management blender will cause the employees to become confused and burn out, destroying the organisation from within.
5. Unity of Direction
Every employee in an organisation must have a unique direction and organised structure in their work. For example, a company with several departments has several managers managing the teams working on different goals. All these managers answer to one senior manager who will control the direction of the different teams, and they are the outputs. Without such a centralised and unified approach, different teams will seek different roles, which will lead to the collapse of that organisation. Having such unity of direction makes things easier for every employee and manager.
6. Subordination of individual interest
According to this principle, a company's interests should have a higher priority than any personal interests of its employees. The purpose of the organisation should lead employees to work as a team rather than engage in unhealthy competition, greed, unhealthy ambition, or conflict. If one employee missed this principle, everything could go wrong and the company might collapse.
7. Remuneration
Remuneration plays one of the most important roles in motivating the workforce. A company must provide both financial and non-financial benefits to its employees to boost engagement and motivation. For example, giving maternity benefits to women will lead to increased participation from a company's female employees. It is also important to have a structure that rewards individual employees for their efforts and performance.
8. Centralisation
The centralisation of power can be good or bad for several reasons. Henri Fayol stressed at this point that there should be a balance between hierarchy and division of power. In modern organisations, the complete centralisation or decentralisation of power is nearly impossible. This is why they strive to achieve a balance between the two. While complete centralisation of decision-making means general employees will have no authority over their responsibilities and complete decentralisation means there will be no single authority to control the organisation, Both are undesirable in a modern context.
9. Scalar Chain
The scalar chain of the chain of command in an organisation Every employee must know which management authority they should contact in case of a communication need. Companies should not leave any room for doubt in these scenarios. This is why Henri Fayol suggests that companies draw an organisational chart and put it in a place where every employee can see it. This awareness of higher authorities reduced the risk of miscommunication in critical scenarios. This can also help employees understand the organisation's working structure and know where they stand in the chain of command.
10. Order
A well-defined work order fosters favourable working conditions. Having a positive atmosphere will boost employee productivity. While this is the case with a company's human resources, the company must also have order and control over its other resources. It must know the orderly placement of each resource, like manpower, money, computing power, etc. Misplacement of any of these resources will only lead to misuse and disorder.
11. Equity
Equity ensures that every employee in an organisation is treated equally and fairly. Managers must make sure that no employee has practised discrimination in their organisation and that any that do are treated with kindness and justice. Managers should leave no room for favouritism, racism, or bias. Actively striving to create such an environment will lead to greater employee loyalty to the workforce.
12. Stability
Job security is one of the most important benefits an organisation can give to an employee. Every new hire must be onboarded with standard HR practices and given time to understand the company culture, job role, and expectations. Indeed, new and old employees must have job security, as instability can negatively affect an employee's performance. Companies and management must ensure that any vacancies are filled with stable recruits and given time to settle into their roles. They must also strive to minimise staff turnover, for which job security is a great start.
13. Initiative
The initiative is an underrated trait in professionals. Those who take personal initiative in their work can turn into the greatest assets of the company with their expertise, knowledge, and daring problem-solving skills. Companies must provide support and encouragement to employees who take initiative in their jobs to make them better and more productive. Fostering such an environment will increase interest and forge personal leadership capabilities in every employee. Moreover, it seems to send a signal to the employees that the company values their opinions, contributions, and initiatives.
14. Esprit de Corps
The phrase translates to "team spirit," which is the greatest asset of an organisation. This Henri Fayol principle states that companies must take responsibility to create unity, morale, cooperation, and mutual trust among their employees. Taking initiative at the company level to foster these team values in employees will boost productivity. It gives them a sense of belonging as they create and maintain relationships at the workplace.
These 14 principles of management can boost your organisation's operational structure, employee productivity, loyalty, and effectiveness. These principles are beneficial for management in making key decisions, planning, and organising their workforce.
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How can SNATIKA help you?
SNATIKA is an online UK Master's degree destination offering prestigious programs exclusively designed for busy senior professionals working in managerial roles. If you have managerial experience and are over 30 years old, you can apply for our programs and earn prestigious UK Master's and Bachelor's degrees, a doctorate, and professional programs in the shortest possible time. Moreover, the program is completely online and serves the demands of busy professionals. You can enrol in one of our programs according to your domain and academic need. Our programs offer international academic recognition, dual academic qualifications, and ISO 9001:2015 certified admissions and academic delivery processes. You can easily learn all the management-related concepts in depth through our special pedagogy and syllabus designed by Subject Matter Experts.
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Conclusion
The fourteen principles of management, as defined by Henri Fayol, are guidelines for effective management. They include division of work, authority, and responsibility; discipline; unity of command and direction; and subordination of individual interests to organisational interests. Other principles focus on remuneration, centralisation, scalar chain, order, equity, stability of personnel, initiative, and promoting teamwork. These principles aim to provide a framework for improving efficiency and effectiveness in the workplace. All these principles encourage specialisation, clear lines of authority, fairness, stability, innovation, and teamwork. You can become a highly successful manager and build a well-functioning administrative structure in your organisation by following these management principles.
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