14 Principles of Management

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Fayol was a key figure in the turn-of-the-century Classical School of management theory. He saw a manager's job as:

planning
organising
commanding
coordinating activities
controlling performance

Notice that most of these activities are very task-oriented, rather than people-oriented. This is very like Taylor and Scientific Management.

Fayol laid down the following principles of organisation (he called them principles of management):

1.Specialisation of labour. Specializing encourages continuous improvement in skills 2.Authority. The right to give orders and the power to exact obedience and the development of improvements in methods. 3.Discipline. No slacking, bending of rules.

4.Unity of command. Each employee has one and only one boss. 5.Unity of direction. A single mind generates a single plan and all play their part in that plan. 6.Subordination of Individual Interests. When at work, only work things should be pursued or thought about. 7.Remuneration. Employees receive fair payment for services, not what the company can get away with. 8.Centralization. Consolidation of management functions. Decisions are made from the top. 9.Scalar Chain (line of authority). Formal chain of command running from top to bottom of the organisation. 10.Order. All materials and personnel have a prescribed place, and they must remain there. 11.Equity. Equality of treatment (but not necessarily identical treatment) 12.Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers. 13.Initiative. Thinking out a plan and do what it takes to make it happen. 14.Esprit de corps. Harmony, cohesion among personnel.

Out of the 14, the most important elements are specialisation, unity of command, scalar chain, and, coordination by managers (an amalgam of authority and unity of direction).
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