• Management principles
• Direction importance
• Management principles
• The 14 principles of administration according to Fayol

We explain what the principles of management are and their importance. Also, the principles of classical management.

Business management is an area that should guide the work of the entire company.

Management principles

The principles of business management are the rules and the values that guide a organization (both to his structure as well as its employees), through different activities and tasks led by the management area.

The address is the main function of administrative process of a business, which allows you to perform efficiently and stay in time. It is a process of much responsibility and it is based on different general principles that apply to any type of organization.

Business management is an area that must guide the work of the entire company and achieve the maximum possible performance of the human Resources and materials, to meet your objectives. Tasks such as planning, organization, the management and the control of the work of the entire organization, are some of the functions of management.

Direction importance

Management is the essential part of business administration, to which the rest of the areas must respond. Correct management performance will allow compliance with the objectives and achieve success, you can even cope with crisis or unforeseen situations.

Management is an activity aimed at leadership, the conduction and control of the efforts of a group of individuals and everything that forms a company. Good leadership implies a spontaneous and voluntary adherence of the employees, instead of a sanction for those who do not respect the rules.

Management principles

The principles of business management have their origin in Henry Fayol's book (published in 1916) which, after the technological advances and business practice of the following decades, were improved. Currently, five basic principles are recognized that allow the performance of an organization to be carried out:

• Coordination of interests. It consists of maintaining harmony between the different members of the organization so that they can carry out their objectives (for example, maintain a balance between the interests of investors, the board of directors and employees).
• The impersonality of command. It consists of the performance of the authority based on requirements and objectives stipulated by the organization. The command authority must act based on the interests and demands of the company, not according to its criteria and individual interests.
• Direct supervision. It consists of making the chain of command work correctly, through various communication channels that allow issuing orders, requesting reports and receiving a response. In this way, the authority can provide support and follow-up to each person in charge of an area.
• The hierarchical path. It consists of the quality of the messages transmitted by the authority so that the receiver understands its truthfulness and importance. The messages must be clear and precise, without leaving room for double interpretations. In this way, misunderstandings, conflicts and rumors are avoided.
• Conflict resolution. It consists of avoiding possible conflict situations and resolving problems, although at first glance they seem of little importance (they could be worsened through the diffusion of word of mouth between the employees). Conflict is a problem that comes before the achievement of goals of the organization.

The 14 principles of administration according to Fayol

French industrialist Henry Fayol was a major contributor to the management approach. In his book titled Industrial and general administration released the fourteen principles that provide administrative guidance on how to implement the five management functions:

• The division of labor. Divide the organization of work according to specialization and efficiency of each employee and each area, to achieve a better effectiveness Y productivity.
• The authority and responsibility. Establish a balance between the power exercised by the authority and the functions it must perform, to avoid abuse of authority.
• The discipline. Respect and make others respect, comply with the rules and regulations of the organization. This principle can be promoted through self-discipline or through sanctions or fines for those who do not respect them.
• Unity of command. Establish that each employee reports to a single direct superior, from whom they will receive orders and support. Otherwise it could affect the performance and productivity of the organization.
• The unit of direction. Ensure that all activities that have the same objective (such as marketing, advertising, sales and promotion), are directed by the same director, through a plan and established procedures.
• The subordination of individual interest to the general interest. Recognize and promote, first, the general interest of the organization and, second, that of employees (such as promotion, training or learning new tasks).
• The remuneration. Maintain a remuneration policy (monetary value that the company gives to the employee, in exchange for the services received) that must include financial and non-financial incentives.
• The centralization Y decentralization. Define the degree of concentration of power of the authority, which varies according to the condition of the business and the type of staff.
• The stepped chain. Clearly establish a line of authority or command, which can be horizontal or vertical.
• The order. Maintain a place for each object (in order to optimize production times) and maintain social order (through the proper selection of each employee in the most suitable position).
• The equity. Give equal treatment to all employees, ensuring kindness and Justice (that type of link generates loyalty Y commitment).
• Personal stability. Encourage and monitor the performance of the employee who is permanently hired and who knows that they have opportunities to progress within the organization.
• The initiative. Encourage employees to give their opinions, provide constructive suggestions and put together work plans, so that they feel part of the organization.
• The esprit de corps. Create unity, cooperation and team spirit among employees, to avoid confrontations. It is important to reward each one according to their merits without generating jealousy or situations of disagreement.