Henry Fayol, a French mining engineer, developed 14 principles of management based on his management experiences. These principles provide modern-day managers with general guidelines on how a supervisor should organize her department and manage her staff. Although later research has created controversy over many of the following principles, they are still widely used in management theories.
• Division of work: Division of work and specialization produces more and better work with the same effort.
• Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager has official authority because of her position, as well as personal authority based on individual personality, intelligence, and experience. Authority creates responsibility.
• Discipline: Obedience and respect within an organization are absolutely essential. Good discipline requires managers to apply sanctions whenever violations become apparent.
• Unity of command: An employee should receive orders from only one superior.
• Unity of direction: Organizational activities must have one central authority and one plan of action.
• Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization.
• Remuneration of personnel: Salaries — the price of services rendered by employees — should be fair and provide satisfaction both to the employee and employer.
• Centralization: The objective of centralization is the best utilization of personnel. The degree of centralization varies according to the dynamics of each organization.
• Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks.
• Order: Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity.
• Equity: In organizations, equity is a combination of kindliness and justice. Both equity and equality of treatment should be considered when dealing with employees.
• Stability of tenure of personnel: To attain the maximum productivity of personnel, a stable work force is needed.
• Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator. Zeal, energy, and initiative are desired at all levels of the organizational ladder.
• Esprit de corps: Teamwork is fundamentally important to an organization. Work teams and extensive face-to-face verbal communication encourages teamwork.
• Division of work: Division of work and specialization produces more and better work with the same effort.
• Authority and responsibility: Authority is the right to give orders and the power to exact obedience. A manager has official authority because of her position, as well as personal authority based on individual personality, intelligence, and experience. Authority creates responsibility.
• Discipline: Obedience and respect within an organization are absolutely essential. Good discipline requires managers to apply sanctions whenever violations become apparent.
• Unity of command: An employee should receive orders from only one superior.
• Unity of direction: Organizational activities must have one central authority and one plan of action.
• Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization.
• Remuneration of personnel: Salaries — the price of services rendered by employees — should be fair and provide satisfaction both to the employee and employer.
• Centralization: The objective of centralization is the best utilization of personnel. The degree of centralization varies according to the dynamics of each organization.
• Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks.
• Order: Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity.
• Equity: In organizations, equity is a combination of kindliness and justice. Both equity and equality of treatment should be considered when dealing with employees.
• Stability of tenure of personnel: To attain the maximum productivity of personnel, a stable work force is needed.
• Initiative: Thinking out a plan and ensuring its success is an extremely strong motivator. Zeal, energy, and initiative are desired at all levels of the organizational ladder.
• Esprit de corps: Teamwork is fundamentally important to an organization. Work teams and extensive face-to-face verbal communication encourages teamwork.
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