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Principles of Management

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A little food for thought. Enjoy!

Fayol's Principles of Management

Henri Fayol emphasized that the importance of managerial ability increases as one moves up the chain of command. Thus, managerial skill is the most important component of job performance at the top level of management. Fayol noted that the failure to effectively perform each management function has serious consequences for any organization and he viewed mission failure as more than the result of poor workers. It was an outcome for which managers should be held accountable. Fayol proposed that job performance could be enhanced, and managerial failure minimized, by following 14 principles of management.

1. Division of Work: The specialization of employee activities increases productivity by making employees more efficient through the development of skills, confidence, and accuracy.

2. Authority: Managers have the right to give orders and the power to exact obedience. Along with authority goes managerial responsibility and accountability. Authority and responsibility are two sides of the same coin. The manager is held responsible for the productivity of subordinates and any failure to achieve objectives.

3. Discipline: Employees must obey and respect the rules of the organization. Obedience and respect are created by effective leadership, common effort and agreement between manager and employee, and the judicious application of sanctions when rule violations occur.

4. Unity of Command: Orders received from two bosses will produce conflict and confusion. Therefore, an employee should be directly supervised by one person only.

5. Unity of Direction: A group of activities having the same objectives should be directed by one manager using one plan. To do otherwise creates confusion.

6. Subordination of Individual Interests to the General Interests: The interests of the organization as a whole take precedence over the interests of any individual employee or group of employees.

7. Remuneration: Employees must be paid a fair wage for their services, with fairness being determined by such factors as the cost of living, availability of employees, and general business conditions.

8. Centralization: This is an issue of proportion

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