THEORY 1


FAYOL’S 14 PRINCIPLES OF MANAGEMENT

Use to remind you that as a manager you must use your authority to ensure that the organisation’s structure and systems for managing staff and resources are working effectively.

Henri Fayol’s 14 principles of management first appeared in Administration industrielle et generale (1916). The relationships between employers, managers and staff have changed since then, as has the terminology used. However, Fayol’s insights remain relevant.

FAYOL BELIEVED THAT MANAGERS SHOULD:

Exercise authority.

Ensure that unity of command exists.

Ensure that there is a clear chain of command within the organisation.

Provide unity of direction for all staff.

Manage the supply of human and other resources.

Exercise staff discipline.

Coordinate key activities through centralisation.

Seek efficiency through the division of work.

Subordinate their needs and those of their team to the needs of the organisation.

Ensure that staff are fairly remunerated.

Ensure equity of treatment for all staff.

Provide job security as far as possible.

Encourage staff initiative.

Establish a sense of esprit de corps (team spirit).

HOW TO USE IT

  • You have the right to exercise authority and to expect compliance. If someone fails to comply with your request, don’t ignore it. Repeat your request and if they continue to ignore you look at what sanctions you can apply (see Theory 15).
  • In any organisation there can only be one head, one plan and one vision. Ensure that staff understand the chain of command (authority), are familiar with the organisation’s structure and where they fit into it and that they are committed to the organisation’s aims.
  • Organise your team on the basis that everyone reports to a single line manager. If someone has two managers, disputes over work priorities will arise.
  • Your relationship with staff should be built on mutual respect, trust and frankness. However, this does not mean that discipline should be sacrificed. You must apply consistently the organisation’s rules of behaviour to all staff, including yourself.
  • Staff look to you to provide the resources they need to do their job and will judge you on how successful you are at obtaining these resources. Plan ahead and don’t disappoint them.
  • Always place the needs of the organisation above your own or those of your team. If the organisation fails, then you and all your staff are out of a job.
  • The division of work into a series of repetitive tasks is no longer acceptable. Fortunately, more effective and efficient ways of working can nearly always be found. Review regularly the allocation of work and working practices within your team.
  • Your pay and that of your staff should be comparable with others in the organisation doing a similar job. Wide differentials cause resentment and undermine teamwork. Monitor pay rates and take action when required.
  • Staff want consistency and fairness from their manager. Avoid favouritism and treat all staff equitably.
  • New staff need time to settle in. Suspend judgement on their performance until they have had sufficient time to show their true worth.
  • Encourage all staff to exercise their initiative within clearly defined limits.
  • There are many ways to forge team spirit. You don’t have to indulge in a trek across the Brecon Beacons in February. A night bowling may work just as well.

QUESTIONS TO ASK

  • Do I have any favourites among the staff?
  • Are my team’s aims and objectives aligned with those of the organisation?
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