Regardless of the industry, every workplace requires managers who are going to bring their team together, deliver high quality service and keep the company both competitive and profitable. This requires a balance in knowledge, experience, organizing and leading, in other words between technical skills and people skills. Effective management also means relying on tried-and-true principles that have been around for decades.
Does Anyone Remember Henri Fayol?
A figure from the late 1800’s, Henri Fayol, a French mining engineer, has been called the “Father of Modern Management” and stressed that while technical knowledge and skills are of great importance for managers, more attention must be given to what we call “People Skills”. He went from being an engineer to eventually the organization’s director for 20 years due to his 14 management principles including:
- Division of work
- Authority
- Discipline
- Unity of command
- Unity of direction
- Collective interest over individual interest
- Renumeration
- Centralization
- Scalar chain
- Order
- Equity
- Stability of tenure of personnel
- Initiative
- Esprit de Corps (Team spirit)
Note to Reader
Wherever you work, whether you have the title of manager, supervisor or some other form of leadership title, these principles apply and can either help you grow as a great manager or act as reminders of what effective management principles are and how to apply them. As you read each of them, reflect on how well you embrace and exhibit each principle.
1. Division of Work
This is a simple principle, meaning that instead of expecting employees to be masters at all tasks, break down specific tasks so they can become better skilled, productive and efficient. While some workplaces cross-train employees, their core functions should be well within their area of expertise.
2. Authority
Although employees work as teams, someone at the end of the day must be in charge and be held accountable. Authority doesn’t mean just being in control of a group, but involves a balance between being the leader and responsible at the same time. If a manager has more authority than responsibility, employees will become upset. On the other hand, if a manager has too much responsibility and not enough authority, he or she will be frustrated.
3. Discipline
Think of discipline as a positive principle that reflects a culture of mutual respect. This is necessary for any workplace to function well and thrive. Discipline can be built as a part of the workplace culture, philosophies and structure and everyone should be aware of what they are and why they’re important.
4. Unity of Command
It’s difficult if not impossible to serve two masters. Unity of command reflects a clear and unquestionable chain of command. Employees must know who to follow and from whom to receive orders. Generally, there should be one manager who is in command, because if there are 2, 3 or 4 managers, discipline, stability and authority are all washed away in ambiguity.
5. Unity of Direction
The manager as well as the mission should steer employees in one direction. Work must be performed with one plan, purpose, and goal under the direction of one manager. Keeping it simple adds to the probability of success.
6. Collective Interest Over Individual Interest
Employees should be made to feel that they are part of something far larger than themselves alone. If anyone on the team goes rogue and takes things into their own hands, it can destroy the mission. Managers must always paint the larger picture for their team.
7. Renumeration
Even in the late 1800’s Fayol believed strongly that talented employees should be compensated for their work and what they add to the organization. Pay is crucial, but so is recognition, rewards and motivation. Sometimes a simple thank you will energize an already productive employee.
8. Centralization
Think of the classic triangle model of an organization or the “top-down” approach, meaning there is a clear concentration of power and control in the hands of authority. Today, we often talk about decentralization, or the upside-down triangle model, where the lower-level employees play a more important role in management and decision-making. While this can be effective to some degree, no company can be completely one or the other. Therefore, centralization and decentralization is best served well-balanced.
9. Scalar Chain
This literally means the chain of communication between employees and their managers. Employees must be aware of who is the next-level staff member they should go to with questions or concerns. This can be visually drawn out with an organizational chart.
10. Order
Think of resources that are regularly used in any business including employees, equipment, materials, benefits and money. There must be order to how each of these is utilized in any workplace – at the right time and in the right place. Otherwise, there may be misuse of resources and disorder within the company. Resources must be used in a highly structured way to ensure success.
11. Equity
Managers must exercise both kindness and justice in order to create and maintain equity among their employees. All staff should be treated this way to ensure loyalty and dedication to the manager and organization as a whole. Employees who are treated this way generally offer similar treatment to their management.
12. Stability of Tenure of Personnel
This is so incredibly important today, and it was obviously of major importance back in the late 1800s. it refers to the ability to better control or manage staff turnover while maximizing efficiency. This is a balancing act for sure, and managers should make staff aware that being short-staffed may lead to poor quality, so it’s paramount to remain as fully-staffed as possible and fill in gaps with well-trained team members as quickly as possible.
13. Initiative
When employees are given a voice, they usually show more initiative. Managers should encourage employees to show initiative and offer thoughts and opinions about their work, because when they do, they feel more motivated and respected. Employees benefit simply when they feel that they are being heard.
14. Esprit de Corps
The final principle is translated into English as “Team Spirit” and is something managers should work towards at all times. This involves creating a culture of unity, cooperation and morale. This can be a powerful aspect of the workplace culture and greatly influence employees to be their best.
Final Thoughts on Effective Management Principles
Today, managers look for ways to improve both their skills as well as those of the staff. This is nothing new and has been sought for decades. Henri Fayal, a French mining engineer was definitely concerned about this and proposed 14 different principles to help managers and companies alike. They applied then and certainly do today.