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Principles of Management

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Henri Fayol, born on July 29, 1841, in Istanbul, Turkey, is regarded as one of the founding fathers of modern management theory. His significant contribution to the field of management came through his 14 principles of management, which have influenced management thought and practice for over a century.

Fayol completed his engineering degree from the mining school "Ecole Nationale Supérieure des Mines" in Saint-Etienne, France. After graduation, he began his career as an engineer at the mining company “Compagnie de Commentry-Fourchambault-Decazeville” in Commentry. Through his dedication and skill, he rose through the ranks and became the company's managing director in 1888.

During his tenure, he turned the struggling company around into a thriving organization, largely due to his effective management and organizational skills. His experiences at the company led him to develop theories about business organization and management, which he then shared with the wider business community.

In 1916, Fayol published his work, "Administration Industrielle et Générale," where he proposed his five functions of management: planning, organizing, commanding, coordinating, and controlling. He also outlined his 14 principles of management in this work.

His ideas contrasted with the scientific management theories of his contemporary, Frederick Winslow Taylor, who focused on work at the individual task level, while Fayol concentrated on management at an organizational level.

Fayol's work did not gain prominence in the English-speaking world until the 1949 publication of a translation of his 1916 work by Constance Storrs. Since then, his ideas have significantly influenced the study of management.

In addition to his work in management, Fayol advocated for better education in administrative roles. He also co-founded the "Centre de Perfectionnement aux Affaires," a business school that aimed to improve management education.

Fayol passed away in Paris, France, on November 19, 1925. His legacy lives on through his principles and theories, which continue to shape management thinking and education. His practical approach to management, based on his personal experience and observation, ensures the relevance of his ideas, even in the dynamic and complex business environments of today.

14 Principles of Mangement

Division of Work

The division of work is the first principle of management proposed by Fayol. It promotes specialization and efficiency. In hospitals, this principle is seen in the way various departments are created, such as the pediatric department, cardiology department, pharmacy, and others. Each unit has specialized staff with unique roles and responsibilities, promoting efficiency and optimal patient care.

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Authority and Responsibility

Fayol's second principle is about the balance between the power to command and the accountability that comes with it. In a hospital, a chief surgeon, for instance, has the authority to lead a surgical procedure and is responsible for the outcomes. Authority without responsibility could lead to misuse of power, while responsibility without authority could lead to inefficiency.

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Discipline

This principle refers to adherence to rules and regulations. In hospitals, discipline is crucial to ensure patient safety, privacy, and quality healthcare services. All medical personnel are required to follow protocols like hand hygiene, patient confidentiality, and ethical guidelines.

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Unity of Command

Fayol emphasized that an employee should receive orders from one superior only to avoid confusion and conflict. In a hospital, a nurse reports to the nursing supervisor, not to the doctors or pharmacists. This clarity in command enhances coordination and efficiency.

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Unity of Direction

This principle states that there should be one plan of action for a group of activities having the same objective. A hospital's trauma team, for instance, follows a unified plan to manage emergency cases, ensuring prompt and coordinated care.

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Subordination of Individual Interest to General Interest

The organization's interests should supersede personal interests. In hospitals, medical professionals may need to work extended shifts during a crisis, prioritizing the hospital’s need to provide patient care over their personal needs.

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Remuneration of Personnel

This principle emphasizes fair and adequate compensation for employees. Hospitals should provide competitive salaries, benefits, and opportunities for professional growth to attract and retain the best talent.

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Centralization and Decentralization

This principle calls for a balance between centralization and decentralization. In a hospital, strategic decisions, like budgeting or policy development, are centralized at the administrative level. However, day-to-day decisions, like patient care protocols, are often decentralized to individual departments or units.

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Scalar Chain

The scalar chain principle refers to the clear line of authority within an organization, from the top to bottom. In hospitals, the scalar chain might start with the hospital CEO, followed by department heads, then doctors, nurses, and other auxiliary staff.

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Order

Fayol emphasized the need for everything to have its place. In hospitals, this could refer to systematic patient record management, organized medical supplies, or structured scheduling systems, ensuring smooth and efficient operations.

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Equity

This principle refers to fairness and justice in organizational interactions. In hospitals, equity means all patients receive fair treatment, and all staff are treated with respect and fairness.

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Stability of Tenure of Personnel

Fayol believed in the importance of job security for employee productivity. Hospitals that offer stable employment can benefit from reduced staff turnover, improved morale, and a more experienced workforce.

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Initiative

Fayol encouraged employees to show initiative. In a hospital, a nurse might propose a new method for patient record management to improve efficiency. Such initiative should be encouraged and rewarded.

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Esprit de Corps

This principle refers to promoting team spirit and unity. In a hospital, esprit de corps can be fostered through team-building activities, open communication, and recognition of team achievements. This not only improves job satisfaction but also promotes a collaborative environment conducive to high-quality patient care.

For example, during the COVID-19 pandemic, hospitals globally demonstrated esprit de corps by working together to manage the crisis. Despite the challenges and risks, medical professionals stood together to provide care, demonstrating unity and resilience.

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In conclusion, Fayol's 14 principles of management are as applicable today in modern hospital settings as when they were first introduced. These principles guide the structuring of hospitals, influencing their administration, management, and the coordination of various activities. Furthermore, they promote efficiency, accountability, fairness, and team spirit, all of which are essential for effective patient care and service delivery. By understanding and implementing these principles, hospitals can enhance their management practices and improve their overall performance.

Mnemonic to Remember all Principle

All these principles are the gist of management, and we should understand them rather than just memorizing them. Still sometimes you need to write them all (say for exam) so here is the mnemonic for it. 

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DAD U C USSR ? O I SEE

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D : division of work

A : authority and responsibility

D: discipline

U : unity of command

C : centralization

U : unity of direction

S : scalar chain

S : stabiltiy of tenure

R : remuneration

O : order

I : initiative

S : subordination of interest

E : equity

E : espirit de corps

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