Goseeko blog

What are the Principles of Management?

by Team Goseeko

In 1916, Henri Fayol provided a list of 14 principles in his book Industrial and General Administration. The 14 principles are as follows:

(1) Division of work: Work within the organization must be divided into individuals and departments.

(2) Authority and Responsibility: Fayol emphasized that authority should be equivalent to responsibility.

(3) Discipline: Discipline includes not only obedience to organizational rules and regulations, but more importantly, employee application and dedication.

(4) Unification of command: This means that his subordinates need to receive orders from only one boss. There should not be more than one boss.

(5) Unification of direction: Activities with the same purpose need to be directed by only one manager using one plan.

(6) Subordination of individual interests to general interests: The interests of employee or group of employees shouldn’t take precedence over the interests of the whole organization

(7) Compensation: Wages and salaries should be fair depending on circumstances such as living expenses, company solvency, and general wage rates in the industry.

(8) Centralization: Fayol stated that certain issues would be centralized and others would be decentralized.

(9) Scalar chain (Gangplank): A command line that runs from the top level to the bottom level of an organization.

(10) Order: Fayol stated that the organization should be orderly. He emphasized that there should be a place for everything and that everything should be in that place.

(11) Fairness: All members of an organization should be treated equally, depending on performance and circumstances.

(12) Stability of tenure: Fayol pointed out that not only managers but also non-managers need time to learn and understand their work.

(13) Initiative: The boss must sacrifice himself and encourage those under him to show the initiative.

(14) Esprit de Corp: The boss must encourage the Esprit de Corp (team spirit) among his subordinates. 

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