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But what about those managers who were leading the way forward years ago? Managers in the early s had very few external resources to draw upon to guide and develop their management practice.
But thanks to early theorists like Henri Fayolmanagers began to get the tools they needed to lead and manage more effectively. Fayol, and others like him, are responsible for building the foundations of modern management theory.
Background Henri Fayol was born in Istanbul in When he was 19, he began working as an engineer at a large mining company in France. He eventually became the director, at a time when the mining company employed more than 1, people.
Through the years, Fayol began to develop what he considered to be the 14 most important principles of management. Essentially, these explained how managers should organize and interact with staff. Division of Work — When employees are specialized, output can increase because they become increasingly skilled and efficient.
Authority — Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.
Discipline — Discipline must be upheld in organizations, but methods for doing so can vary. Unity of Command — Employees should have only one direct supervisor.
Unity of Direction — Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated. Subordination of Individual Interests to the General Interest — The interests of one employee should not be allowed to become more important than those of the group.
Remuneration — Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation. Centralization — This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.
Order — The workplace facilities must be clean, tidy and safe for employees. Everything should have its place. Equity — Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate. Stability of Tenure of Personnel — Managers should strive to minimize employee turnover.
Personnel planning should be a priority. Initiative — Employees should be given the necessary level of freedom to create and carry out plans. Esprit de Corps — Organizations should strive to promote team spirit and unity.
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