Present management practices and theories have evolved from classical management theory created by organisation pioneers, and one such influential pioneer was Henri Fayol. Henri began his career as an engineer in a large French mine and eventually succeeded to become the director, here he realised the lack of resources available to managers for developing management practices. Fayol’s did not believe in the old ideas of an individual born to rule, he believed that an employee needs to be motivated and among many other things, money is an important variable in motivation. He also said that managers should keep the morale of his employees high and keep them motivated so they can perform at their best. Fayol believed that by focusing on management practises he would minimise misunderstanding and increase efficiency in organisations and started synthesising his 14 principles of management, which are considered as the foundation and essential references for present management practices and theories. Fayol’s principles of management are still widely used in organisations by management to perform day to day tasks and other functions. His 14 principals acknowledged the importance of management hierarchy and key management process in any organisation. These principles are as follows (Study mode, 2013): 1)
Specialisation of labour. Specialising encourages continuous improvement in skills and the development of improvements in methods. 2)
Authority. The right to give orders and the power to exact obedience. 3)
Discipline. No slacking, bending of rules.
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...
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