These 14 principles of management were put forward by Henry Fayol in the 19th century. This engineer firmly believed that management is an inseparable activity from any profession, and from that belief, he developed the 14 classic principles of management that are still taught today in almost all universities and management training institutions. Fayol's principles are as follows:
This principle asserts that the gradual allocation of work and specialization within a cycle will lead to specialization in skills and professional knowledge, promoting focus and efficiency for both employees and businesses.
2. Leadership comes with corresponding responsibilities.
When responsibility is assigned to the appropriate individuals, these leaders need to be granted reasonable authority to fulfill that responsibility, including the power to involve relevant parties. Ultimately, they are accountable to the Board of Directors and the Management Board.
3. Discipline
In general, discipline is considered a key element for a business to function smoothly. Without discipline – including standards, consistency in action, adherence to rules and values – no business can thrive. “The consensus between the company and its employees is essentially demonstrated through compliance, application, and respectful behavior.”
4. Unified command
For a long time, management principles have dictated that employees should only take orders from a single leader. Today, with a multitude of complex management methods and models interwoven within an organization, employees often report to two or more leaders or clients for the same task. The problem is that leaders may issue conflicting requests, leaving the employee in a dilemma.
5. Unification of policies
Teams with shared goals should work under the leadership of a single manager and follow a single plan. This will ensure smooth and consistent coordination across all activities.
6. The common good must be prioritized.
Fayol argued that the interests of an employee or group should not be placed above the common good of the organization. This idea sparked debate about who would determine what constitutes the common good of the organization. This raises business and ethical risks, as well as opportunities for opportunists to exploit the situation. It's also important to understand that Fayol's management principles are based on the assumption that all organizational interests and decisions are neutral and rational.
7. Remuneration
Compensation levels must be fair and satisfactory for both employees and company owners (after taking into account the cost structure and the necessary profit/surplus).
8. Centralization
This is an essential principle of every organization and a natural consequence of the restructuring process. This is true even in organizations with a flat structure and decentralized power.decentralizationIn such organizations, power generally remains concentrated in the hands of a few individuals. The extent of individual freedom and the consequences of such a large dispersion of power are never left the debated table.
9. "Leadership Chains"
The relationship between leaders and employees, as well as top-down orders, must be based on clear, reasonable principles that are understood by both parties.
10. Order
Simply put, every organization should allow each employee to have their own place, responsibilities that align with the organization, and to always feel confident and secure in the company environment. All principles, rules, guidelines, and actions need to be clearly expressed. An orderly organization will develop steadily, not chaotic, difficult to control, and cause anxiety for employees.
11. Fairness
Fairness and justice should permeate the organization's mindset – both in principles and actions.
12. Task stability
Employees need time to adapt and perform their jobs most effectively. Job stability fosters loyalty to the organization's purpose and values.
13. Initiative
At every level of the organizational structure, enthusiasm, passion, and energy come from those who have the opportunity to showcase their individual initiatives.
14. Spirit of solidarity
Fayol emphasized that building and maintaining harmonious relationships in the workplace is extremely important.
