Principles of Administration

Henri Fayol was a 20^th century economist who developed what is now called Fayolism. Under this theory, Fayol lays out the 14 principles of administration:

1. Division of Labor This is the idea of splitting a task into smaller subtasks. This speeds up the work process and allows members of the team to specialize, thereby making them more productive in the future.
2. Authority and Responsibility Authorities are the powers that supervisors have in an organization. Responsibilities are the limits to their powers.
3. Discipline Employees must obey their leaders as well as the organization’s policies.
4. Unity of Command One mission, one boss. Every employee must have only one direct report so that no communication lines are crossed.
5. Unity of Direction Everyone in the organization must work towards the same goals and objectives.
6. Subordination of Individual Interests to the General Interest Administrative personnel must ensure that the interests of the company are always ahead of the interests of the individual members.
7. Remuneration All workers must be paid fairly and proportionately.
8. Centralization Decision-making in the company must be sent towards higher authorities only.
9. Scalar Chain All members of the organization should be part of the hierarchy. The lines from the top management to the entry-level workers must be clearly drawn and followed. However, the structure cannot be too broad nor have too many levels.
10. Order Social order among employees must be established. The same thing applies to the material resources of the organization. This avoids waste and erroneous handling.
11. Equity Employees must be treated fairly and kindly.
12. Tenure This refers to job security. Employees work better in an environment where they can feel assured of continuous employment as well as career growth.
13. Initiative Allowing employees to use their creativity and inventiveness at work makes the company stronger.
14. Esprit de Corps Administrators must create a positive environment so that personnel constantly have high morale and the team spirit is always cheerful. It helps to try and build the unity of the team as well as harmony between team members.