The 14 principles of management given by Fayol are:
(a) Division of Work- It is possible to divide any work into small jobs. So division of work leads to specialization. It is the efficient way to use human effort.. If every job is assigned to the right person, the quantity and quality of production will improve.
(b) Authority and Responsibility- authority is granted to a person he should also be made responsible. There should be a balance between these two. Excess authority may lead to misuse of power. Responsibility without authority may leads to slaverism and may not work effectively.
(c) Discipline- It means obedience to the organizational ruled and employment agreements. One should have good relationship with others, following rules and regulations, performing of assigned tasks honestly with interest, all come under discipline. For this purpose, it requires good superiors at all levels.
(d) Unity of Command- There should be only one boss for every individual employee. If an employee gets orders from two or more supervisors at a time, the principle of unity of command is violated. This principle helps to avoid confusion regarding tasks to be done.
(e) Unity of direction- Each group should be lead by one leader only. It ensures unity of action and co-ordination. It helps to conduct all the activities smoothly and resources can be utilized to the maximum extent effectively. If this principle is violated it leads to wastages and increase in cost.
(t) Subordination to individual interest to general interest- The interest of the organization should take priority over the interest of any one individual employee. Every worker should show interest towards the achievement of organizational goals. Individual interest of workers should not disturb the organisation’s interest.
(g) Remuneration of Employees- The remuneration should be just and equitable. This will ensure congenial atmosphere and good relations between workers and management. The remuneration should help the workers to lead a minimum standard of living and at the same time, it should be within the paying capacity of the organization.
(h) Centralisation and decentralization- The concentration of decision making power in the hands of one or few is called centralization of authority or power. Dispersal of decision making power among many persons is called decentralization. In general decentralization is found in large organizations and centralization is found is small organizations.
Fayol does not favor both but he suggests that there should be a proper adjustment between centralization and decentralization to achieve objectives of business.
(i) Scalar principle- The formal lines of authority from highest to the lowest ranks are known as scalar chain. According to Fayol, “ organizations should have a chain of authority and communication from top to bottom and should be followed by managers and subordinates”.
If there is an emergency this can be violated and ‘gang plank’ can be used. Meaning of Gang plank- It is a shorter route in scalar chain which allows employee at the same level to communicate with each other directly.
(j) Order- According to Fayol, “People and Materials must be in suitable places at appropriate time for maximum efficiency”. This principle states that “There is a place for everything and everything must be in its place”. If there is a fixed place for everything and it is present there, there is no hindrance in the activities. This will lead to increased productivity and efficiency.
(k) Equity- Fayol emphasizes kindliness and justice in the behavior of managers towards workers. This will ensure loyalty and devotion. All should be treated equally without any discrimination against any one on account of sex, religion, region, language, caste etc.
(l) Stability of personal- “Employee turnover should be minimized to maintain orgainzational efficiency”. so employees should be selected and appointed through various procedures. He should be kept at their post for a minimum fixed period. They should be given reasonable time to show their results. Organisation should recognize and reward efficiency and give job security.
(m) Initiative- According to Fayol, workers should be encouraged to develop and carry out their plans for improvement. Initiative refers to the steps taken by the employees towards their self-motivation. Employees at all levels should be given freedom to some extent, so that they can come forward and use their skills to achieve expected goals.
(n) Espirit de corps (spirit of co-operation)- Management should take necessary steps to promote team spirit among the employees. There should be a mutual confidence and understanding. It helps to reduce the wastage of resources and leads to increase in production.
