achieving the maximum efficiency from labour through specialisation, not just technical activities, but across all aspects of organisation. Fayol claimed that division of labour has its limits.
establishment of authority
having the right to give orders. Authority arises from two sources: official and personal. Experience, intelligence, integrity and leadership ability are indispensable complements of a manager’s official authority. Authority goes hand in hand with responsibility.
enforcement of discipline
upholding discipline is a core activity when running an organisation, although the form will vary across organisations. When necessary, management needs to sanction employees using instruments such as warnings, penalties, demotions or even dismissals.
unity of command
an employee should receive orders from one supervisor only. According to Fayol dual command was bound to generate tension, confusion and conflict resulting in dilution of responsibility and blurring communication.
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unity of direction
having a common objective for a group of activities is an essential condition to obtain unity of action, coordination of strength and the focusing of effort.
subordination of individual interest to the interests of the organisation
reconciling general interest with that of the group or the individual is one of the greatest problems managers face. This issue applies not only to the relationship between staff and supervisor, but especially to management itself. Too often human flaws lead managers to pursue personal interest instead of common good.
fair remuneration for all
Fayol considered both financial and non-financial factors to determine the compensation for services provided. The composition of the mix he deems as not important as long as the employee is satisfied.
centralisation of control and authority
Fayol choose the living organism as metaphor for an organisation when considering the extent to which centralisation versus decentralisation was required. Just like division of labour, the level of centralisation is a matter of proportion.
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adoption of a scalar chain
a scalar chain is the chain of supervision which connects the managing director to the lowest ranks. Fayol combines the hierarchy in which each employee is aware of his place and duties, with lines of communication. Knowing the limitation of the f ormal organisation, he proposes a system of delegated authority which facilitates horizontal communication when swift action is required.
a sense of order and purpose
a place for everything and everything in place. Facilities need to be tidy, materials orderly stored and staff selected according to strict procedures and clear job descriptions. Fayol advocated the creation of detailed organisation charts to support this Principle.
equity and fairness in dealings between staff and managers
equity is the combination between justice and kindliness. Striking a just balance between equity and discipline is a continuous balancing act for managers.
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stability of jobs and positions
Fayol views personnel planning, management development and turnover as one activity. Suitable induction periods for both staff as well as management are required to familiarise themselves with new work habits and situations. The rationale to ensure a low turnover is to prevent bad running.
development of individual initiative
Initiative is the power to conceive a plan and ensure its success. Although Fayol regarded management as first responsible, he made clear that the Principle should be extended to all employees through delegated authority.
esprit de Corps
building and maintaining of staff and management morale and unity. Using divide and rule as a management style Fayol considered to be counter productive.