Division of Labour
achieving the maximum efficiency from labour through specialisation across all aspects of organisation (commercial, financial, security, accounting, managerial) rather than just technical activities. Fayol did not provide the level of detail that Taylor's competing Scientific Management school prescribed. Scientific Management broke individual operational tasks into its basic elements.
Fayol claimed that division of labour is limited as an instrument to achieve optimum performance.
Fayol claimed that division of labour is limited as an instrument to achieve optimum performance.
Establishment of Authority
having the legitimate standing to give orders. Authority arises from two
sources: official and personal. Experience, intelligence, integrity and
leadership ability are indispensable complements of a manager's official
authority. Managers need to act knowing that authority and responsibility are
positively correlated.
sources: official and personal. Experience, intelligence, integrity and
leadership ability are indispensable complements of a manager's official
authority. Managers need to act knowing that authority and responsibility are
positively correlated.
Enforcement and Dicipline
upholding discipline is a core activity when running an organisation, although
its form varies across organisations. Management can sanction employees with
warnings, penalties, demotions or even dismissals.
its form varies across organisations. Management can sanction employees with
warnings, penalties, demotions or even dismissals.
Unity of Command
an employee should receive orders from one supervisor only. Dual
command generates tension, confusion and conflict, and results diluted
responsibility and blurred communication.
command generates tension, confusion and conflict, and results diluted
responsibility and blurred communication.
Unity of Direction
a common objective for a group of activities is an essential
condition to obtaining unity of action, coordination of strength and the
focusing of effort.
condition to obtaining unity of action, coordination of strength and the
focusing of effort.
Subordination of Individual interests of the Organization
reconciling general interest with that of the group or the
individual is one of the greatest problems managers face and applies to the
relationship between staff and supervisor as well. Too often, managers pursue
personal interest rather than the common good.
individual is one of the greatest problems managers face and applies to the
relationship between staff and supervisor as well. Too often, managers pursue
personal interest rather than the common good.
Fair remuneration
Fayol determined compensation for services by considering both
financial and non-financial factors and held that employee satisfaction is
dependent on the composition of this mix.
financial and non-financial factors and held that employee satisfaction is
dependent on the composition of this mix.
Centralization of control and authority
Fayol choose the 'living organism' as metaphor for an organisation
when considering centralisation versus decentralisation. The level of
centralisation is a matter of proportion as is the division of labour.
when considering centralisation versus decentralisation. The level of
centralisation is a matter of proportion as is the division of labour.
Adoption of "scolar chain"
the chain of supervision that connects the managing director to the lowest
ranks. Fayol combined hierarchy that makes employees aware of their place and
duties, with an organisation's lines of communication. When swift action is
required, Fayol's grasp of the limitations of the formal organisation made him
propose a system of delegated authority that facilitates horizontal
communication.
ranks. Fayol combined hierarchy that makes employees aware of their place and
duties, with an organisation's lines of communication. When swift action is
required, Fayol's grasp of the limitations of the formal organisation made him
propose a system of delegated authority that facilitates horizontal
communication.
A sense of order and position
a place for everything and everything in its place. Facilities must be tidy,
materials orderly stored and staff selected according to strict procedures and
clear job descriptions. Fayol advocated the creation of detailed organisational
charts to support this Principle.
materials orderly stored and staff selected according to strict procedures and
clear job descriptions. Fayol advocated the creation of detailed organisational
charts to support this Principle.
Equality and Fairness
in dealings between staff and managers equity is the combination of justice and
kindness. Managers must constantly apply the correct balance between equity and
discipline.
kindness. Managers must constantly apply the correct balance between equity and
discipline.
Stability of jobs and position
Fayol viewed personnel planning, management development and
turnover as one activity. Both staff and management require suitable induction
periods to familiarise themselves with new work habits and situations.
turnover as one activity. Both staff and management require suitable induction
periods to familiarise themselves with new work habits and situations.
Development of individual initiative
Initiative is the power to conceive a plan and ensure its success. Although
Fayol regarded management as the first responsible level, he made clear that
the Principle extended to all employees through delegated authority.
Fayol regarded management as the first responsible level, he made clear that
the Principle extended to all employees through delegated authority.
Esprit de Corps
building and maintaining staff and management morale and unity.
Fayol considered the management style of 'divide and rule' counter productive.
The Principles can still be used to identify structural flaws and sources of
conflict within an organisation.
Fayol considered the management style of 'divide and rule' counter productive.
The Principles can still be used to identify structural flaws and sources of
conflict within an organisation.