HENRY FAYOL’S 14 PRINCIPLES OF MANAGEMENT:

INTRODUCTION
Principles of management is regarded as one of the most important area, which must be
put into consideration in running a business or an organization. Before that, it is
important to know what an organization really is. Organization can be defined as a group
of people who collectively work together to implement certain actions such as planning,
organizing, staffing, monitoring, controlling, structuring, logistics, administration all this
is done to achieve pre-defined goals of an organization.
Recently the people have started relying strongly on group efforts, thus the small groups
have started transforming themselves to the larger ones and the task of everyone in the
group holds great importance.

HENRY FAYOL’S 14 PRINCIPLES OF MANAGEMENT:

Henry Fayol laid the foundation for modern scientific management these first concepts,
also called principles of management are the underlying factors for successful
management. Henri Fayol explored this comprehensively and, as a result, he synthesized
the 14 principles of management.
The project that I have taken is an IT software Cloud 9 Networks that is operating in
three different locations, Karachi, Islamabad and Dubai. A sister company Iota Solutions
Is also associated with Cloud 9 Networks. This is a startup and currently has three
directors in the hierarchy who are responsible of making all the decisions related to
organization’s structure goals and objectives. Due to decentralized authority and non-
uniform scalar chain sometimes it is difficult to maintain unity of direction in an
organization, which may be effecting the productivity at a certain level. So to address this
issue we can implement Henry Fayol’s 14 principles to develop a formal organizational
structure.

1. DIVISION OF WORK / LABOR:

This is the first principle postulated by Henry Fayol. It states that staff perform better
at work when they are assigned jobs according to their specialization. Hence, the
division of work into smaller elements then becomes paramount. It is applicable to
organizations that have many employees as well as those that have few.

2. BALANCING AUTHORITY AND RESPONSIBILITY:

This principle suggests the need for managers to have authority in order to command
subordinates to perform jobs while being accountable for their actions. This is both
formal and informal and is recommended for managers by Fayol

3. PRINCIPLE OF DISCIPLANE:
This principle advocates for clearly-defined rules and regulations aimed at achieving
good employee discipline and obedience. It is often a part of the core values of an
organization in form of good conduct, respectful interactions, proper dress code, etc.

4. UNITY OF COMMAND:
This principle states that employees should receive orders from and report directly to
one boss only. Looking at prevalent situations in my selected startup, work is done in
groups and teams.

5. UNITY OF DIRECTION:
Everyone in an organizations should have one direction, move toward the same
objectives through coordinated and focused efforts. In the selected organization
because of multiple directors, unity of direction is lacking resulting in confusion
throughout the organization

6. SUBORDINATION OF INVIDUALS INTEREST TO

ORGANIZATION’S INTERST:
The interests of the organization supersede every other interest of staff, individuals, or
groups. Imperatively, employees must sacrifice all their personal interests for the
good of the organization.

7. REMUNERATION:
Remuneration is determined on basis of job role of employee, financial state of
organization; cost of living, etc. as this reduces tension at work place, increase
productivity, reduce conflict and differences amongst staff and promote a synergized
working environment.

8. CENTRALIZATION:
This principle suggests that decision-making should be centralized. This means that
decision-making and dishing-out of orders should come from the top management
(central) to the middle management from one source.

9. SCALAR CHAIN:
This principle is a product of the formal system of organization. It is also known as
the hierarchy principle. It asserts that communication in the organization should be
vertical only, which states that there should be single uninterrupted chain of authority

10. ORDER:
It simply means, things in the organization should be done in an orderly manner, so
therefore, if work is not done in an orderly manner in an organization, there will be
chaos.
11. EQUITY:
The principle of equality should be followed and applied at every level of
management. Thus, there should not be any form of discrimination as regards status,
sex, religion, etc. Fairness should be in similar context with Equity.

12.STABILITY OF PERSONAL TENURE:

The basis of this principle is the belief that such staff with a secured tenure will put
back into the organization the knowledge and experience, which they may have
garnered in the course of working for the organization.

13.INITIATIVE:
A good manager must be one who can be creative to initiate new ideas and be able to
implement them. For this principle to be successful in a startup, it entails Managers
being creative to initiate new ideas and also implement them, give room for
employees to contribute to the innovation and productivity of the organization.

14.ESPRIT DE CORPS:
This principle emphasizes on teamwork and team spirit. For an organization to
achieve the best result there should be a unified and effective integration and
coordination of both individual and group effort. Thus, understanding, love for each
other, unity, peace, and common determination is paramount to their success.