2.1 The 14 principles of Administration by Fayol

We consider it important to mention these 14 principles. Since, they are a base to consider in the development of any Administration.

1. Division of work. The more people specialize, the greater the efficiency in getting their work done. In current times, we can relate it to an assembly line.

2. Authority. Managers must give orders to get things done. Although their formal authority gives them the right to command, managers will not always achieve obedience, unless they also have personal Authority.

3. Discipline. The members of an Organization have to respect the rules and agreements that govern it. According to Fayol, discipline is the result of good leaders at all levels of the organization, fair agreements and sanctions imposed, with good judgment on infractions.

4. Command Unit. Each employee should receive instructions from only one person. Fayol believed that if an employee depended on more than one manager, there would be conflicts in instructions and confusion with Authority.

5. Direction Unit. The organization's operations with the same objective must be directed by a single manager and with a single plan.

6. Subordination of individual interest to the common good. In any company, the interests of the employees must not exceed the interests of the entire Organization.

7. Remuneration. The Retribution for work must be fair to employees and employers.

8. Centralization. By reducing the participation of subordinates in decision-making, it is centralized; by increasing its role in it it becomes decentralized. Fayol believed that managers should carry the ultimate responsibility, but at the same time they should give their subordinates sufficient Authority to do their job properly. The problem lies in finding the right degree of centralization for each case.

9. Hierarchy. An organization's line of Authority, currently represented by well-defined boxes and lines on the organization chart, follows an order of ranks, from top management to the lowest level of the company.

10. Order. Materials and people must be in the right place at the right time. People, above all, must do the jobs or occupy the most suitable positions for them.

11. Equity. Managers must be kind and fair to their subordinates.

12. Workers stability. High employee turnover rates decrease the good performance of the Organization.

13. Initiative. Subordinates must be free to conceive and carry out their plans, even when some errors may occur.

14. Group spirit. When the group spirit exists the organization will have a sense of union. According to Fayol, even small details could increase the spirit.

2021, November