Management principle: 14 things that must be known in managing business
In the last century, the organization had already dealt with management in practice. In the early 1900s, large organizations, such as production plants, must be managed too. At that time there were only a few tools, models and management methods (external) available, until the actual principle was introduced.
Scientists like Henri Fayol (1841-1925) were the first people made the first foundation for modern scientific management. This first concept, also called the management principle, is a factor that underlies successful management.
Henri Fayol explored this comprehensively and, as a result, he synthesized 14 management principles. Principles of Management and Research Henri Fayol published in the ‘General and Industrial Management’ book (1916).
This article describes the theory of administrative and management theory of 14 management principles by Henri Fayol practically. After reading, you will understand the basics of this great management tool.
14 Management Principles of Henri Fayol
14 The principle of management is a statement based on fundamental truth. These management principles function as guidelines for decision making and management measures.
They are compiled through observation and analysis of events encountered by managers in practice. Henri Fayol was able to synthesize 14 management principles after years of learning.
Here are 14 management principles that you need to know which are useful in managing organizational management or your business:
1. Work Division
In practice, employees have specialized in different fields and they have different skills. Different levels of expertise can be distinguished in the field of knowledge (from generalists to specialists).
Personal and professional developments support this. According to Henri Fayol, specialization promotes labor efficiency and increases productivity. In addition, labor specialization increases its accuracy and speed. This principle applies to technical and managerial activities.
2. Authority and responsibility
To complete something in the organization, management has the authority to give orders to employees. Of course with this authority there is a responsibility.
According to Henri Fayol, the power or authority that accompanies it provides management rights to give orders to subordinates. These responsibilities can be traced back from performance and therefore need to be made an agreement about this. In other words, authorities and responsibilities are running together and they are two sides of the same currency.
The third principle of 14 management principles is about compliance or discipline. This is often part of the core value of the mission statement and vision in the form of good behavior and mutual interaction. The principle of this management is important and seen as a lubricant to make a machine an organization run smoothly.
4. Command Unity
The principle of ‘unity command’ means that an individual employee must receive orders from a manager and that the employee is responsible to the manager.
If assignments and related responsibilities are given to employees by more than one manager, this can cause confusion that can cause the possibility of conflict for employees. By using this principle, responsibility for errors can be built more easily.
5. Unitary direction
This principle is about focus and unity. All employees convey the same activity that can be attributed to the same purpose.
All activities must be made by one group that forms a team. This activity must be explained in the action plan. The manager was finally responsible for this plan and he monitored the progress of the specified and planned activity. The focus area is an effort made by employees and coordination.
6. Subordination of individual interests
There are always various kinds of interests in an organization. In order for organizations to function properly, Henri Fayol shows that personal interests are under the interests of the organization (ethics). The main focus is on organizational goals and not in individuals. This applies to all levels throughout the organization, including managers.
Motivation and productivity close to each other as far as regarding the smooth running of the organization. This management principle believes that remuneration must be enough to make employees remain motivated and productive.
There are two types of remuneration, namely non-monetary (praise, more responsibility, credit) and monetary (compensation, bonus or other financial compensation). In the end, it’s about appreciating the efforts that have been done.
8. Degree of centralization
Management and authorities for the decision-making process must be balanced in an organization. This depends on the volume and size of the organization including the hierarch.
Centralization implies the concentration of decision-making authorities in the top management (executive board). Sharing the authority for the lower-level decision-making process (middle and lower management), referred to as decentralization by Henri Fayol.
Henri Fayol indicates that an organization must fight for a good balance in this matter.
Hierarchies appear by themselves in certain organizations. It varies from senior management (executive council) to the lowest level in the organization. The principle of “hierarchy” Henri Fayol states that there must be a clear line in the area of authority (from top to bottom and all managers at all levels).
This can be seen as a type of management structure. Every employee can contact the manager or supervisor in an emergency situation without challenging the hierarchy. Especially if it involves a report on the disaster to the direct manager / superior.
According to this principle, employees in an organization must have the right resources they have so that they can function properly in an organization. In addition to the social order (managing responsibility) of the work environment must be safe, clean and neat.
The principle of equity management often occurs in the core values of an organization. According to Henri Fayol, employees must be treated well and equivalent.
Employees must be in the right place in the organization to do the right thing. Managers must supervise and monitor this process and they must treat employees fairly and impartially.
12. Stability of the term of office of personnel
This management principle represents the deployment and management of personnel and this must be balanced with the services provided from the organization.
Management seeks to minimize employee turnover and have the right staff in the right place. The focus area such as frequent position changes and adequate development must be managed properly.
Henri Fayol believes that with this principle of management, employees must be allowed to express new ideas.
This encourages interest and involvement and creates added value for the company. Employee initiatives are a source of strength for the organization according to Henri Fayol. This encourages employees to be involved and interested.
14. Esprit de Corps
The management principle of ‘Esprit De Corps’ of 14 Terachit Management Principles which means fighting for the involvement and unity of the employee.
Managers are responsible for moral development at work; Individually and in the field of communication. Esprit de Corps contributes to cultural development and creates an atmosphere of mutual trust and understanding.
14 Management principles can be used to manage organizations and are useful tools for forecasting, planning, process management, organizational management, decision-making, coordination and control.
Although it is clear, many of the above are still used based on common sense in current management practices in the organization. All principles remain a practical list with a focus area based on Henri Fayol’s research that is still valid until now due to a number of logical principles.
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