14 Principles of Management (Fayol)

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This article explains the administrative theory of the 14 Principles of Management by
Henri Fayol in a practical way. After reading you will understand the basics of this
powerful management tool.

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Introduction 14 principles of Management
In the last century, organizations already had to deal with management in practice. 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 Fayol explored
this comprehensively and, as a result, he synthesized the 14 principles of management.
Henri Fayol s principles of management and research were published in the book
General and Industrial Management (1916).
14 Principles of Management
14 principles of Management are statements that are based on a fundamental truth. These
principles of management serve as a guideline for decision-making and management
actions. They are drawn up by means of observations and analyses of events that
managers encounter in practice. Henri Fayol was able to synthesize 14 principles of
management after years of study, namely:
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.
Although they are obvious, many of these matters are still used based on common sense
in current management practices in organizations. 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.
Its Your Turn
What do you think? What are the (14) principles of management of todays
management? Do these management principles work in every organization or are there
exceptions? And if so, what are the exceptions and what can we learn from them?
Share your experience and knowledge in the comments box below.
If you liked this article, then please subscribe to our Free Newsletter for the latest posts
on Management models and methods. You can also find us on Facebook and Google+.
More information
1. Fayol, H. (1917). General and Industrial Management. Dunod et E. Pinat.
2. Hodge, B. J. (2002). Organization theory: a strategic approach. Pearson
Education.
3. Wren, D. A. , Bedeian, A. G. , Breeze, J. D. (2002). The foundations of Henri
Fayols administrative theory. Management Decision, Vol. 40 Iss: 9, pp.906 918
state: It was not until the Storrs translation that Fayols (1949) Administration
Industrielle et Gnrale reached a wider audience, especially in the USA and
established Fayol as a major authority on management.
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Vincent van Vliet
Vincent van Vliet is co-founder and responsible for the content and release management.
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12 COMMENTS

1. Error: Reference source not found Shakiru Bashir November 26, 2016 at
10:21 am
Nice article, Thanks.
 Reply
2. Error: Reference source not foundanil subedi December 5, 2016 at 10:37 am
Thank you nice article its helps to understand about principles of managment
Reply
3. Error: Reference source not found Victoria December 7, 2016 at 8:09 am
Thanks very much for posting these 14 Principles of management
Reply

4. Error: Reference source not found Mohamed Sharuk December 7, 2016 at

10:15 am
14 principles of Fayol is great, but If you were to add your own 15th principle,
how would you define and describe it?
Reply

5. Error: Reference source not found David A. Garang January 18, 2017 at
5:06 pm
practical path which a leader should embrace and lead with.
Reply

6. Error: Reference source not found Ravi Kumar mv January 28, 2017 at
6:55 am
Even in Henri Fayols 13th principles of the management shows to allow new
ideas from the employees. ..so for the organisation can change the principles of
the organisation as per the company structure and availability
Reply

7. Error: Reference source not found Nuer William Akot January 31, 2017 at
1:46 pm
A manager who applies these principles succeed in his org. thanks for nice
elaboration
Reply

8. Error: Reference source not found atul chandra February 3, 2017 at 10:06
am
In a matrix organization an employee may have both administrative and technical
control.. employee has duel reporting which is not as per the principles can you
elaborate and give your views..
Reply

9. Error: Reference source not found Bhagyashree Lanjewar May 1, 2017 at

7:50 pm
Well decried by mr Henry fayol. Its become so old whn these principles of
management introduced, but it is still working and applicable to all leading
 organisations. Thanks for guidance to fayol sir
Reply

10. Error: Reference source not found nimisha August 5, 2017 at 9:01 am
is findings and achievements of henri fayol were same?? can anyone give reply
.
Reply

11. Error: Reference source not found Enesi Malik September 4, 2017 at 9:59
am
Thanks There working in my organization. It can be applicable and lead to
success in any organizationm if applied.
Reply

12. Error: Reference source not found Olatoye Bukunmi October 22, 2017 at
11:07 am
So interesting, in fact I learned a lot about this management skill,and applied it to
the system of my operation.
Reply
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