He applied the same maxim to materials: right one, right place. Order – Fayol wrote that, "The right man in the right place" forms an effective social order.Fayol suggested the now-familiar organization chart as a way for employees to see this structure clearly. Scalar Chain – Employees should know where they stand in the organization's hierarchy and who to speak to within a chain of command.Or as Fayol wrote, "A place for everyone and everyone in his place." Centralization – Balancing centralized decision making (from the top) with letting employees make decisions.Fayol said pay should be fair and reward "well-directed effort." Remuneration – Employee satisfaction depends on fair remuneration for everyone – financial and non-financial.Collective Interest Over Individual Interest – Individuals should pursue team interests over personal ones – including managers.That, Fayol wrote, "is the condition essential to unity of action, coordination of strength and focusing of effort." Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan.Unity of Command – Fayol wrote that "an employee should receive orders from one supervisor only." Otherwise, authority, discipline, order, and stability are threatened.To help, you can make agreements between the organization and employees clear for all to see. Discipline – Everyone should follow the rules.As well as rank, Fayol argues that a manager's intelligence, experience and values should command respect. Authority – Managers must possess the authority to give orders, and recognize that with authority comes responsibility.Today, experts still warn against multi-tasking. Productivity increases as employees become more skilled, assured and efficient. Division of Work – Assign each employee a task that they can become proficient at.By focusing on administrative over technical skills, the Principles are some of the earliest examples of treating management as a profession. It was the reality of Fayol's day-to-day managing, seeing what worked and what didn't, that informed his 14 Principles of Management. What Are Fayol's 14 Principles of Management? This contrasts with the Scientific Management school led by Frederick Taylor, which experimented with how individuals work to boost productivity. It looks at the organization from the top down, and sets out steps for managers to get the best from employees and to run a business efficiently.Īdministrative Theory is characterized by people "on the ground" who share personal experiences, improve practices, and help others to run an organization. What Is Administrative Theory?įayol called managerial skills "administrative functions." In his 1916 book, "Administration Industrielle et Générale," he shared his experiences of managing a workforce.įayol’s book – and his 14 Principles of Management – helped to form what became known as Administrative Theory. Fayol also created a list of the five primary Functions of Management, which go hand in hand with the Principles. As well as inspiring much of today's management theory, they offer tips that you can still implement in your organization. I relied on my ability as an organizer skill in handling men." įayol's 14 Principles of Management identified the skills that were needed to manage well. He wrote, "When I assumed the responsibility for the restoration of Decazeville, I did not rely on my technical superiority. Under his watch, the struggling firm prospered. Who Was Henri Fayol?įayol was an engineer who worked his way up to become manager of the Compagnie de Commentry-Fourchambault-Decazeville mining company in France, at the tail end of the industrial revolution. But Henri Fayol recognized that the skills that made them good at their jobs didn't necessarily make them good managers. While that's often a given today, in the 19th century most companies promoted the best technicians. Organizations work best when everything is in balance.Īs your career progresses, you may find you do fewer technical tasks and spend more time guiding a team or planning strategy.
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