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Subordination Of Individual Interests: Fayol's Principle, Overview

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  • 0:04 An Intro to Fayol
  • 0:55 Application of Principle
  • 1:36 Example
  • 2:37 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley
The idea of subordination of individual interest is a principle developed by Henri Fayol. In this lesson, you will explore this principle. You will also be given an opportunity to reinforce your knowledge about Fayol's principle with a short quiz.

An Intro to Fayol

Subordination of Individual Interests to General Interest is one of Fayol's fourteen administrative principles where any individual's interest that conflicts with an organizational interest must be subordinated to the interests of the organization. The organization must find ways to reconcile the tension between individual and organizational interests.

Henri Fayol (1841-1925) was born in France and made significant contributions to administrative management theory. After graduating from the National School of Mines, he began to work for a mining company where he stayed for his entire career, eventually becoming its managing director. During his tenure at the company he developed fourteen principles that he attributed to his management success.

Application of Principle

Fayol's principle of subordination of individual interests to organizational interests can be difficult to implement in the United States where cultural ideals hold the importance of individual interests and freedom over those of group interests. A manager needs to find ways to reconcile discrepancies between organizational interests and individual interests as much as possible. Methods available include carefully selecting employees who share organizational goals and values, providing adequate compensation to induce subordination, and careful management and monitoring of employees to ensure they are acting for the organization's interests.

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