Henri Fayol's Principles of Management

• Henri Fayol was French and worked in a French mining company.
• In 1925 a work of Henri Fayol was created

Division of Work

• Work should be divided among individuals and groups.
• Effort and attention should be focused on special portions of tasks.
• Fayol presented work specialization as the best way to use human resources.
• Specialization allows individuals to build experience and improve skills, increasing productivity.

Authority

• Authority and responsibility are closely related.
• Authority is the right to give orders and the power to exact obedience.
• Responsibility accounts for accountability and is naturally associated with authority.
• Whoever assumes authority also assumes responsibility.

Discipline

• Adherence to rules and regulations is crucial.
• Successful organizations require the common effort of workers.
• Penalties should be judiciously applied to encourage common effort.
• Employees must obey orders if management provides good leadership.

Unity of Command

• Workers should receive orders from only one manager.
• Subordinates should have a single boss.
• Each worker should have only one boss to avoid conflicting lines of command.

Unity of Direction

• The entire organization should move toward a common objective in a common direction.
• People in similar activities must have the same objectives in a single plan is essential for unity and coordination.
• Unity of command requires unity of direction, but unity of direction does not necessarily flow from unity of command.

Subordination of Individual Interests to the General Interests

• The interests of one person should not take priority over the interests of the organization as a whole.

Remuneration

• Many variables, such as cost of living, supply of qualified personnel, general business conditions, and business success, should be considered when determining a worker's pay rate.
• Payment is an important motivator.
• No perfect system exists because analysis of a number of possibilities, such as pay, must be achieved.

Centralization

• Centralization lowers the importance of the subordinate role.
• Decentralization increases the importance of the subordinate role.
• The degree of centralization or decentralization depends on the specific organization in which the manager works.

Scalar Chain

• Managers in hierarchies are part of a chain like authority scale.
• Each manager, from first-line supervisor to president, possesses certain amount of authority.
• The President possesses the most authority, while the first-line supervisor possesses the least.
• Lower-level managers should keep upper-level managers informed of their work activities.
• The existence of and adherence to a scalar chain are necessary for organizational success.

Order

• For efficiency and coordination, all materials and people for specific work should be treated equally.
• Everyone and everything should be in its place.
• Both material and social order are necessary.
• Material order minimizes time wasting and useless handling of materials; social order is achieved through organization and selection.

Equity

• All employees should be treated as equally as possible.
• All should be accountable.
• A combination of kindliness and justice is needed in running a business.
• Treating employees well is important to achieve equity.
• There is a glass ceiling.

Stability of Personnel

• Retaining productive employees should be a high management priority.
• Recruitment and Selection Costs and increased product-reject rates are associated with hiring new workers.
• Employees Turnover.

Initiative

• Management should encourage worker initiative through self-direction of new or additional work activity.
• Allowing personnel to show their initiative is a source of organizational strength
• Allowing initiative may involve a sacrifice of 'personal vanity' on the part of managers.
• Job enlargement vs. Job enrichment.

Esprit De Corps

• Management should encourage harmony and good feelings among employees.
• Use "we" instead of "I".