Henri Fayol’s 14 Principles of Management (1916); Henri Fayol, known as the Father of Modern Management, proposed 14 fundamental principles to guide managerial behavior and improve organizational efficiency.
|
S.No. |
Principle |
Explanation |
|
1 |
Division of Labour |
Specialization increases efficiency; divide work among individuals/departments |
|
2 |
Authority and Responsibility |
Authority (right to command) must be balanced with Responsibility (duty to perform) |
|
3 |
Discipline |
Respect for rules, agreements, and policies |
|
4 |
Unity of Command |
One employee should receive orders from one superior only |
|
5 |
Scalar Chain (Line of Command) |
Clear chain of authority from top to bottom |
|
6 |
Unity of Direction |
One head and one plan for group activities with the same objective |
|
7 |
Subordination of Individual to General Interest |
Organizational interest over personal interest |
|
8 |
Remuneration |
Fair compensation for both employer and employee |
|
9 |
Centralization |
Decision-making power concentrated at top levels |
|
10 |
Initiative |
Employees encouraged to take initiative within set limits |
|
11 |
Order |
People and materials in right place at right time |
|
12 |
Stability of Tenure |
Long-term employment promotes efficiency and loyalty |
|
13 |
Equity |
Fair and respectful treatment by managers |
|
14 |
Esprit de Corps |
Team spirit and harmony among personnel |
📌 Unity of Command complements the Scalar Chain
📌 In Delegation, only authority is transferred, not responsibility
📌 Zone of Indifference: Concept related to how much authority subordinates will accept
Authority Types
|
Type |
Meaning |
|
Line Authority |
Direct responsibility to achieve organizational goals; authority flows vertically |
|
Staff Authority |
Advisory role; provides guidance/support to line managers |
|
Functional Authority |
Delegated authority to control specific processes/activities across departments |
Other Important Terms in Management
|
Term |
Meaning |
|
Functional Departmentation |
Most widely used method of organizing based on similar functions (e.g., marketing, finance) |
|
Line and Staff |
Concept explained by G. Hicks |
|
Committee |
Small group assigned a task for in-depth analysis or decision-making |
|
Audit |
Official examination and verification of records |
|
Synergy |
“Whole is greater than the sum of its parts” |
|
Role |
Set of tasks associated with a given position in the organization |
|
Power |
Ability to influence or direct actions and beliefs of individuals or groups |
Modern Developments in Management
- Total Quality Management (TQM): Continuous improvement in products/services with customer focus
- Six Sigma: Process improvement technique aimed at reducing defects
- Lean Management: Eliminating waste without sacrificing productivity
- SWOT Analysis: Strategic tool for Strengths, Weaknesses, Opportunities, and Threats
- Benchmarking: Comparing one’s performance with best practices
- ERP (Enterprise Resource Planning): Integrated software for streamlining business processes
Additional Contributions of Management Thinkers
|
Thinker |
Contribution |
|
Henri Fayol |
Administrative Theory, 14 Principles of Management |
|
F.W. Taylor |
Father of Scientific Management |
|
Max Weber |
Bureaucratic Management Theory |
|
Peter Drucker |
Management by Objectives (MBO) |
|
Elton Mayo |
Hawthorne Studies, Human Relations Approach |
|
Chester Barnard |
Zone of Indifference, Informal Organizations |
📌 Important
- POSDCORB was proposed by Luther Gulick.
- 14 principles of management were proposed by Henri Fayol.
- “Management is the art of getting things done through others” – Mary Parker Follett
- Administration is mainly concerned with policy formulation.
- Management is mainly concerned with execution of policies.
