Any organisation that wants to work well and achieve its goals needs to be well managed. There will be organisational chaos outside the building and little, if any, focus if no one is in power. Planning, leadership, and control are thought to be the four main administrative functions. Apart from these existing management principles, common sense indicates that a company will strive to achieve its goals if it can come up with goals from the outset!
The management principles were inscribed by Henri Fayol in 1961 in a book named General and Industrial Management. It aims to divide managers into 14 different goals. We will look at these basic management ideas and explain them in simple terms.
- Principles of Management
- 1. DIFFERENCES OF WORK
- 2. RESPONSIBILITY AND AUTHORITY
- 3. DISCIPLINE
- 4. COMMAND UNITY
- 5. UNITY OF DIRECTION
- 6. REGISTRATION OF INDIVIDUAL INTERESTS
- 7. REMUNERATION
- 8. THE DEGREE OF CENTRALISATION
- 9. SCALAR CHAIN
- 10. ORDER
- 11. EQUALITY
- 12. Stability of staff accommodation
- 13. INITIATIVE
- 14. ESPRIT DE CORPS
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Principles of Management
1. DIFFERENCES OF WORK
Employees are specialised in a variety of areas and have different working skills. However, certain levels of expertise are also observed within them (from practice to expert). Personal and professional development support this. Professionalism, according to Henri Fayol, improves employee efficiency and effectiveness. In addition, employee technology increases the accuracy and speed of the employee. The administrative policy, one of the 14 administrative principles, is applied to both technical and administrative functions.
2. RESPONSIBILITY AND AUTHORITY
Managers have the authority to give people instructions for performing tasks and handling various responsibilities within an organisation. Naturally, with great power comes greater responsibilities.
According to Henri Fayol,
“The corresponding power or authority gives managers the authority to issue orders to subordinates because performance can be traced back to accountability.”
It is essential to reach agreements to the above statement. Alternative, authoritative, and accountable are two sides of the same coin.
Discipline is a third principle of the renowned 14 management principles. It is all about obedience. In terms of decent behavior and strong communications are often the object of a mission statement and the basic principles of vision. The concept of critical management is also considered to be the design that keeps an organisation’s vehicle running smoothly.
4. COMMAND UNITY
The management principle of “unity of control” states that
“Each employee must obtain orders from one manager and report to that manager.”
If more than one supervisor assigns job responsibilities and related accountabilities, it can lead to misunderstandings and employee disputes. However, it is easy to find out who is at fault when using this method.
5. UNITY OF DIRECTION
Management philosophy, which is about focus and unity, is known to be the unity of direction. It is also one of the 14 basic principles of governance. Every job performs the same tasks tied to the similar goals. All actions must be completed by one team acting as a crew. An application must be made to define these functions.
The manager is ultimately in charge of the program and keeps track of the plan and progress of the planned action. Employee efforts and cooperation are two critical areas of focus.
6. REGISTRATION OF INDIVIDUAL INTERESTS
In any organisation, there are always different interests. Personal interests must be reduced to the interests of the organisation. According to Henri Fayol, “In order for the organisation to function correctly (ethical principles). Focus on organisational, not personal, goals.” And this is true at all levels of the organisation, including managers.
When it comes to company operations without a problem, motivation and productivity are closely related. Therefore, this management idea states that “Wages should be sufficient to keep people engaged and productive.”
Non-monetary earnings (compliments, additional liabilities, credits) and payments are two types of reward (compensation, bonus, or other financial compensation). Ultimately, it is about recognising and rewarding the efforts made.
8. THE DEGREE OF CENTRALISATION
The management of the organisation and the exercise of decision-making authority must be appropriately balanced. It depends on the organisation’s volume and size, as well as its sovereignty.
The selection of decision-making authority at a senior management level is called centralisation. On the other hand, land redistribution is described by Henri Fayol as the sharing of decision-making authority at lower levels (middle and lower managers).
Therefore, according to Henri Fayol,
“The organisation should strive to find a good balance in this area.”
9. SCALAR CHAIN
In any given organisation, there is a management category. Top managers (top board) through the lower levels of the firm are all affected. According to Henri Fayol’s “management” philosophy, there should be a clear line between authority and authority (from top to bottom and all managers at all levels).
This is an example of a management framework. In an emergency, any employee can contact the manager or manager without offending the management team, especially in relation to disaster notices to senior management and supervisors.
Employees in the company must have the necessary resources to function effectively, in accordance with this principle of 14 management principles. In addition, apart from public order (administrative responsibility), the workplace must be safe, clean and orderly.
The concept of equality management is often found in the basic principles of an organisation. Employees, according to Henri Fayol, should be treated fairly and equitably. To do things right, employees must be in the right place within the business. This process should be overseen and supervised by management, who should treat employees fairly and impartially.
12. Stability of staff accommodation
This management policy refers to the use and management of employees, which must be commensurate with the organisation’s work.
Employee turnover is minimised, and the appropriate people are in the right places, according to management. However, focus areas such as frequent position changes and enough development must be carefully managed.
Employees should be permitted to express fresh ideas, according to Henri Fayol, under this management approach. This increases interest and participation while also adding value to the organisation.
According to Henri Fayol, employee initiatives are a source of strength for the company. Employees are more engaged and intrigued as a result of this.
14. ESPRIT DE CORPS
The management principle of “esprit de corps,” one of the 14 management principles, speaks for employee involvement and unity. Managers are in charge of improving morale in the workplace, both individually and in terms of communication.
Esprit de corps aids in the development of culture and fosters a climate of mutual trust and understanding.
The above mentioned 14 management principles are valuable tools for forecasting, planning, process management, organization management, decision-making, coordination, and organisation control. Many of these issues, despite their obviousness, are nevertheless used in modern management techniques in firms founded on common sense. It is still a helpful list with focal areas based on Henri Fayol’s study, which is still relevant due to several logical principles.