14 Principles of Management of Henri Fayol

Introduction
In the early 1900s, large organizations, such as production factories, had

to be managed too. At the time there were only few (external)
management tools, models and methods available.
Thanks to scientists like Henri Fayol (1841-1925) the first foundations
were laid for modern scientific management. These first concepts, also
called principles of management are the underlying factors for successful
management. Henri Fayolexplored this comprehensively and, as a result,
he synthesized the 14 principles of management.
14 PRINCIPLES OF MANAGEMENT OF
HENRI FAYOL
1. Division of Work
In practice, employees are specialized in different areas and they have

different skills. Different levels of expertise can be distinguished within
the knowledge areas (from generalist to specialist). Personal and
professional developments support this. According to Henri
Fayol specialization promotes efficiency of the workforce and increases
productivity. In addition, the specialization of the workforce increases
their accuracy and speed. This management principle of the 14 principles
of management is applicable to both technical and managerial activities.
2. Authority and Responsibility
In order to get things done in an organization, management has the

authority to give orders to the employees. Of course with this authority
comes responsibility. According to Henri Fayol, the accompanying power
or authority gives the management the right to give orders to the
subordinates. The responsibility can be traced back from performance and
it is therefore necessary to make agreements about this. In other words,
authority and responsibility go together and they are two sides of the
same coin.
3. Discipline
This third principle of the 14 principles of management is about

obedience. It is often a part of the core values of a mission and vision in
the form of good conduct and respectful interactions. This management
principle is essential and is seen as the oil to make the engine of an
organization run smoothly.
4. Unity of Command
The management principle ‘Unity of command’ means that an individual

employee should receive orders from one manager and that the employee
is answerable to that manager. If tasks and related responsibilities are
given to the employee by more than one manager, this may lead to
confusion which may lead to possible conflicts for employees. By using
this principle, the responsibility for mistakes can be established more
easily.
5. Unity of Direction
This management principle of the 14 principles of management is all

about focus and unity. All employees deliver the same activities that can
be linked to the same objectives. All activities must be carried out by one
group that forms a team. These activities must be described in a plan of
action. The manager is ultimately responsible for this plan and he
monitors the progress of the defined and planned activities. Focus areas
are the efforts made by the employees and coordination.
6. Subordination of Individual Interest
There are always all kinds of interests in an organization. In order to have

an organization function well, Henri Fayol indicated that personal interests
are subordinate to the interests of the organization (ethics). The primary
focus is on the organizational objectives and not on those of the
individual. This applies to all levels of the entire organization, including
the managers.
7. Remuneration
Motivation and productivity are close to one another as far as the smooth
running of an organization is concerned. This management principle of
the 14 principles of management argues that the remuneration should be
sufficient to keep employees motivated and productive. There are two
types of remuneration namely non-monetary (a compliment, more
responsibilities, credits) and monetary (compensation, bonus or other
financial compensation). Ultimately, it is about rewarding the efforts that
have been made.
8. The Degree of Centralization
Management and authority for decision-making process must be properly

balanced in an organization. This depends on the volume and size of an
organization including its hierarchy.
Centralization implies the concentration of decision making authority at

the top management (executive board). Sharing of authorities for the
decision-making process with lower levels (middle and lower
management), is referred to as decentralization by Henri Fayol. Henri
Fayol indicated that an organization should strive for a good balance in
this.
9. Scalar Chain
Hierarchy presents itself in any given organization. This varies from senior
management (executive board) to the lowest levels in the
organization. Henri Fayol ’s “hierarchy” management principle states that
there should be a clear line in the area of authority (from top to bottom
and all managers at all levels). This can be seen as a type of management
structure. Each employee can contact a manager or a superior in an
emergency situation without challenging the hierarchy. Especially, when it
concerns reports about calamities to the immediate managers/superiors.
10. Order
According to this principle of the 14 principles of management, employees

in an organization must have the right resources at their disposal so that
they can function properly in an organization. In addition to social order
(responsibility of the managers) the work environment must be safe,
clean and tidy.
11. Equity
The management principle of equity often occurs in the core values of an

organization. According to Henri Fayol, employees must be treated kindly
and equally. Employees must be in the right place in the organization to
do things right. Managers should supervise and monitor this process and
they should treat employees fairly and impartially.
12. Stability of Tenure of Personnel
This management principle of the 14 principles of management represents

deployment and managing of personnel and this should be in balance with
the service that is provided from the organization. Management strives to
minimize employee turnover and to have the right staff in the right place.
Focus areas such as frequent change of position and sufficient
development must be managed well.
13. Initiative
Henri Fayol argued that with this management principle employees should
be allowed to express new ideas. This encourages interest and
involvement and creates added value for the company. Employee
initiatives are a source of strength for the organization according to Henri
Fayol. This encourages the employees to be involved and interested.
14. Esprit de Corps
The management principle ‘esprit de corps’ of the 14 principles of

management stands for striving for the involvement and unity of the
employees. Managers are responsible for the development of morale in
the workplace; individually and in the area of communication. Esprit de
corps contributes to the development of the culture and creates an
atmosphere of mutual trust and understanding.
In Conclusion on the 14 Principles of management
The 14 principles of management can be used to manage organizations
and are useful tools for forecasting, planning, process management,
organization management, decision-making, coordination and control. It
remains a practical list with focus areas that are based on Henri Fayol ’s
research which still applies today due to a number of logical principles.
Incorporating Fayol’s principle of management, it is seen that many call

centre agents are authorized to perform one time fee reversals without
taking performance from the supervior, compaines are paying a
percentage of salary as performance bonus to employee on a yearly basis
and are absorbing in-house employees with an objective to retain
employees with specific skill set and thereby cutting on training and
recruitment cost and appointing human interface between compliance unit
and other business units for effective communication.

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Introduction

In the early 1900s, large organizations, such as production factories, had

In practice, employees are specialized in different areas and they have

In order to get things done in an organization, management has the

This third principle of the 14 principles of management is about

The management principle ‘Unity of command’ means that an individual

This management principle of the 14 principles of management is all

6. Subordination of Individual Interest

There are always all kinds of interests in an organization. In order to have

Management and authority for decision-making process must be properly

Centralization implies the concentration of decision making authority at

According to this principle of the 14 principles of management, employees

The management principle of equity often occurs in the core values of an

12. Stability of Tenure of Personnel

This management principle of the 14 principles of management represents

14. Esprit de Corps

The management principle ‘esprit de corps’ of the 14 principles of

Incorporating Fayol’s principle of management, it is seen that many call

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