Henry Fayol's 14 Principles of Management

Classical Theory: Henry Fayol

1. Division of Labor: This is the specialization that economists consider necessary for the efficiency of the workforce. Fayol applies this principle to all types of jobs, both administrative and technical.
2. Authority and Responsibility: Fayol found that authority and responsibility are linked, the latter being the result of the former. It is conceived as a combination of authority, which is derived from the administrator's position and their personal characteristics, composed of intelligence, experience, moral values, etc.
3. Discipline: Contemplating discipline and respect for regulations and conventions aimed at achieving obedience, application, energy, and other distinctive marks of respect, Fayol states that good discipline requires superiors at all levels.
4. Unity of Command: This means that employees should receive orders from only one supervisor.
5. Unity of Direction: According to this principle, each set of activities with the same objective must have one director and one plan. Unlike the fourth principle, this concerns the organization of management rather than personnel.
6. Subordination of Individual Interest to the General Interest: This is evident when these two interests differ; the administrator must reconcile them.
7. Remuneration: The remuneration and compensation methods must be fair and allow the greatest possible satisfaction for workers and the employer.
8. Centralization: Without using the term "centralization of authority," Fayol referred to the degree to which authority is centralized or decentralized. Individual circumstances determine the degree of centralization for the best overall performance.
9. Hierarchy of Authority: Fayol sees this as a chain of authority, which goes from the highest to the lowest rank. Although levels should be structured without unnecessary detail, they should be made in relatively short stages.
10. Order: Dividing this into material and social order, Fayol adapted the simple adage: "A place for everything (and everyone), and everything (and everyone) in its place." This is essentially an organizing principle for the arrangement of things and individuals.
11. Equity: Loyalty and dedication from staff should be inculcated through a combination of benevolence and justice on the part of managers when dealing with subordinates.
12. Stability of Tenure: Finding unnecessary rotation to be both the cause and the effect of poor management, Fayol highlighted its risks and costs.
13. Initiative: Initiative is designed as the design and implementation of a plan. Precisely because it is one of the most subtle satisfactions that an intelligent person can experience, Fayol urges managers to sacrifice personal vanity to allow subordinates to exercise it.
14. Esprit de Corps (Team Spirit): This is the principle that "unity is strength." It is also an extension of the unity of command and emphasizes the necessity of teamwork and the importance of communication to achieve it.

Scientific Management Theory