Principles of Management

2.1 Basic Principles of Management

In 1916, Henri Fayol published his 14 Principles of Management. Fayol's "14 Principles" was one of the earliest theories of management to be created, and remains one of the most comprehensive. He's considered to be among the most influential contributors to the modern concept of management.

Fayol's principles are listed below:

1. Division of Work – Specialization allows the individual to build up experience and to continuouslyimprove his skills.

2. Authority – the right to issue commands, along with which must go the balanced responsibility for its functions.

3. Discipline – Discipline must be upheld in organizations, but methods for doing so can vary.

4. Unity of Command – Employees should have only one direct supervisor.

5. Unity of Direction – people engaged in the same kind of activities must have the same kind of objectives in a single plan. This is essential to ensure unity and coordination in the enterprise.

6. Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group.

7. Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.

8. Centralization – This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.

9. Scalar Chain – Employees should be aware of where they stand in the organization's hierarchy, or chain of command.

10. Order – For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.                      

11. Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.

12. Stability of Tenure of Personnel – employees...