Henri Fayol’s 14 Principles of Management

  1. Division of work: Division of work is important for reducing work burden of an employee and improves his skills. This helps an individual to get specialization in his area of expertise. This helps to increase the productivity of an individual.
  2. Authority and Responsibility: Authority is the right to issue command and make decisions.Responsibility is obligation towards organization and decisions made. There must be balance in authority and responsibility. If there is no authority, he cannot fulfill his responsibility and if an individual has an authority he must have equal responsibility.
  3. Discipline: Discipline is important for the success of an organization. There must be good employee-employer relationship. Employees must obey orders and employer must provide good leadership.
  4. Unity of command: It is said that one head for one individual. Each worker should have only one boss and dual boss will leads to conflict among supervisors or may confuse an individual for whom to obey and which command needs to be executed first.
  5. Unity of Direction: One objective and one plan. There must be one plan for an organization at a time and should be directed by one manager using the same plan.
  6. Subordination of individual interests to the general interest: The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.
  7. Remuneration: Fair wage for the service is important. Every workers should be paid fair remuneration.
  8. Centralization: Centralization refers to the degree to which subordinates are involved in decision making. Whether decision making is centralized (to management) or decentralized (to subordinates) is a question of proper proportion. The task is to find the optimum degree of centralization for each situation.
  9. Scalar Chain: The line of authority from top management to the lowest ranks represents the scalar chain. There should be a chain for the flow of communication. Authority must flow from top management to lower and responsibility must flow vise-versa.
  10. Order: There must be an order for everything. Material and people must be placed in right place. Right person at right place and right material at right time and in right place.
  11. Equity: manager should treat all his subordinates equally. There should be no difference or should not show special attention or kind to any particular subordinate.
  12. Stability of tenure of personnel: There must be stability and job security. High employee turnover affects organization adversely.
  13. Initiative: There must be an opportunity to show their initiative and employees who are allowed to originate and carry out plans will exert high levels of effort.
  14. Esprit de Corps: Promoting team spirit will build harmony and unity within the organization.

Henry Fayol

Disclaimer: The article contains data collected from various sources and the use of same is at readers discretion.