Business

timeless management principles
In the ninety years since these principles were formulated, much has changed in the work place. Nevertheless, these managerial principles are based on such solid thinking that they are still valid. The following concepts are from Fayol’s General Principles of Management (1916). They could have been written yesterday, and are timeless wisdom.

1. Divisions of work: tasks should be divided up and employees should specialize in a limited set of tasks so that expertise is developed and productivity increased.

2. Authority and responsibility: authority is the right to give orders and entails the responsibility for enforcing them with rewards and penalties; authority should be matched with corresponding responsibility.

3. Unity of command: for any action whatsoever, an employee should receive orders from one superior only; otherwise authority, discipline, order and stability are threatened.

4. Unity of direction: a group of activities concerned with a single objective should be coordinated by a single plan under one head.

5. Remuneration of personnel: may be achieved by various methods and the choice is important; it should be fair, encourage effort, and not lead to overpayment.

6. Centralization: the extent to which orders should be issued only from the top of the organization is a problem which should take into account its characteristics, such as size and the capabilities of the personnel.

7. Scalar chain: communications should normally flow up and down the line of authority running from the top to the bottom of the organization, but sideways communication between those of equivalent rank in different departments can be desirable so long as superiors are kept informed.

8. Order: both materials and personnel must always be in their proper place; people must be suited to their posts so there must be careful organization of work and selection of personnel.

9. Equity: personnel must be treated with kindliness and justice.

10. Stability of tenure of personnel: rapid turnover of personnel should be avoided because of the time required for the development of expertise.

11. Initiative: all employees should be encouraged to exercise initiative within the limits imposed by the requirements of authority and discipline.

In the ninety years since these principles were formulated, much has changed in the work place. Nevertheless, these managerial principles are based on such solid thinking that they are still valid.