“The right to give order and the power to exact obedience” – Henri Fayol The term ‘authority’ implies the right and power of a person to exercise discretion to make decisions, to issue orders, to use organizational resources and to hire and fire employees. Through the application of this principle the production can be increased with same amount of human effort Division of work leads to specialization which results in increased human efficiency. Fayol had applied this principle in the context of business enterprise. Essentially, these explained how managers should organize and interact with staff In 1916, two years before he stepped down as director, he published his "14 Principles of Management" in the book "Administration Industrielle et Generale" Fayol also created a list of the six primary functions of management, which go hand in hand with the Principles Fayol's "14 Principles" was one of the earliest theories of management to be created, and remains one of the most comprehensiveĦ Division of work Division of work is a famous principle of economics, invented by the traditional economist, Adam Smith. He eventually became the director, at a time when the mining company employed more than 1,000 people Fayol began to develop what he considered to be the 14 most important principles of management. UNIVERSAL FLEXIBLE HAVE CAUSE AND EFFECT RELATIONSHIP EQUAL IMPORTANCE AIMS AT INFLUENCING HUMAN BEHAVIORĥ History – Henri Fayol Henri Fayol was born in Istanbul in When he was 19, he began working as an engineer at a large mining company in France. These principles are derived: On the basis of observation and analysis i.e. Management principles are a set of fundamental truths based on logic which provides guidelines for managerial decision making and other actions. 1 Henri Fayol’s – 14 Principles of ManagementĢ Contents Introduction Centralization Division of work Scalar ChainĪuthority Order Discipline Equity Unity of Command Stability of Tenure Personnel Unity of Direction Initiative Subordination of individual interest to general interest Espirit De’ Corps Remuneration
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