Lesson 1 of 0
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2.1.2 Fayol’s administrative theory
Henri Fayol’s administrative theory, also known as Fayolism, is a set of principles for managing organizations effectively. The 14 principles are:
- Division of work: Work should be divided among individuals and groups to increase efficiency and productivity.
- Authority and responsibility: There should be a clear connection between authority and responsibility, and that those who have the authority to make decisions should also be held accountable for their actions.
- Unity of command: Each person in an organization should have only one direct supervisor to avoid confusion and conflicting orders.
- Unity of direction: All the activities related to a particular goal should be directed by one manager and one plan.
- Subordination of individual interests: The interests of the individual should be secondary to the interests of the organization as a whole.
- Centralization: Decision-making should be centralized in the hands of top management.
- Scalar chain: There should be a clear line of authority and communication within the organization.
- Order: There should be a place for everything and everything should be in its place.
- Equity: Employees should be treated with fairness and justice.
- Stability of tenure of personnel: Employees should have job security and continuity of employment.
- Initiative: Employees should be encouraged to be creative and take initiative.
- Unity of command: All employees should report to one superior.
- Esprit de corps: There should be a sense of teamwork and mutual respect among employees.
- Remuneration: Employees should be fairly compensated for their work.
