Henry Fayol

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CHAPTER 1 INTRODUCTION TO MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Fayol’s principles are based on his observations as a businessman. He based his writings on his Experience from a long managerial career. He made no attempt to develop a logical theory or to Develop a philosophy of management. However, his observations fit closely with current developments in management theory.

Fayol observed that the qualities required by a manager were to be fit, both physically and Mentally, have a moral code, be interested in the acquisition of knowledge and have technical Expertise and experience. It is on this basis that Fayol recognized the need for principles of Management and for management to be taught. He then set about developing his theory. Fayol’s 14 principles of management (1949)

1 Division of Work – specialization is to create efficiency, not just for technical work but also for managerial work.
2 Authority and Responsibility – if you have responsibility you must have authority. This would be not only from position but also from personality.
3 Discipline – this is required at all levels and ensures the outward marks of respect. 4 Unity of Command – employees should receive orders from only one boss. 5 Unity of Direction – for each group of activities there should be one boss and one plan. 6 Subordination of Individual Interest to the General Interest – if there are differences managers must reconcile them.

7 Remuneration – should be fair and equitable for both the employee and the employer. 8 Centralization – the extent to which authority is concentrated in one place or dispersed. Who holds the power?

9 Scalar Chain – there should be a line of authority from highest to lowest. 10 Order – a place for everyone and everything and everyone and everything in its place. 11 Equity – through kindliness and justice which will create loyalty and devotion. 12 Stability of Tenure – unnecessary labour turnover can be both the cause and the effect of bad management.

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