HENRI FAYOL’S 14 PRINCIPLES OF MANAGEMENT

Henri Fayol’s 14 Principles of Management look at an Principles of Management are basic

organization from a top-down approach to help managers psychological constructs (attitudes &
behaviors) that help you plan,
get the best from employees and run the business with ease. organize and control operations
related to material, people, machines,
Let’s take a look at them and understand them in detail. methods, money and markets.
They provide leadership to human
efforts in order to achieve goals and
1. Division of Work objectives efficiently.
The first Henri Fayol principle of management is However, this authority should come along with
based on the theory that if an employee is given a responsibility. According to Henri Fayol, there
specific task to do, they will become more efficient should be a balance between authority and
and skilled in it. This is opposed to a multi-tasking responsibility. If there is more authority than
culture where an employee is given so many tasks responsibility, the employees will get frustrated. If
to do at once. In order to implement this principle there is more responsibility than authority, the
effectively, look at the current skill sets of each manager will feel frustrated.
employee and assign them a task that they can Example: If an employee has been responsible for
become proficient at. This will help them to managing the decor department while planning an
become more productive, skilled, and efficient in event but has no authority to make design decisions
the long run. or contact the vendors to get the work done, no
Example: At a school, every department has a efficiency or productivity will be achieved.
different responsibility, like academics, sports,
administration, sanitation, food, beverages, etc. 3. Discipline
These responsibilities are taken care of by
This principle states that discipline is required for
employees specializing in that particular department,
any organization to run effectively. In order to have
increasing efficiency and productivity and making
disciplined employees, managers need to build a
them specialists in their field.
culture of mutual respect. There should be a set of
organizational rules, philosophies, and structures in
2. Authority place that should be met by everyone. Bending
This Henri Fayol principle of management states rules or slacking should not be allowed in any
that a manager needs to have the necessary organization. In order to achieve this, there is a need
authority in order to ensure that his instructions are for good supervision and impartial judgment.
carried out by the employees. Example: Every employee must follow certain rules
If managers did not have any authority, then they and regulations and keep a disciplined attitude in the
would lack the ability to get any work done. workplace for smooth working and efficient results.

1
HENRI FAYOL’S 14 PRINCIPLES OF MANAGEMENT

4. Unity of Command Example: Different sets of activities within a

This principle states that that should be a clear department should be managed by different

chain of command in the organization. The managers to avoid confusion and lesser efficiency

employees should be clear on whose instructions within the workflow.

to follow. According to Fayol, an employee should

receive orders from only one manager. If an 6. Collective Interest Over Individual
employee works under two or more managers, then Interest
authority, discipline, and stability are threatened. This principle states that the overall interest of the
Moreover, this will cause a breakdown in team should take precedence over personal ones.
management structure and cause employees to The interest of the organization should not be
burn out. sabotaged by the interest of an individual. If anyone
Example: If in a company, an employee has been goes rogue, the organization will collapse.
given a task to finish within 3 to 4 hours as ordered Example: While planning a team outing, the
by their immediate superior. But the head of the employee making the travel and stay decisions
department asks them to deliver the task within 1 must make arrangements according to comfort
hour. In this case, no unity of command can create and affordability, not just as per their liking.
confusion and pressure in the workplace.

7. Remuneration
5. Unity of Direction
This Henri Fayol principle of management states
This Henri Fayol principle of management states that employees should be paid fair wages for the
that the work to be done should be organized in work that they carry out. Any organization that
such a way that employees work in harmony underpays its workers will struggle to motivate and
towards the same objective, using one plan, under keep quality workers. This remuneration should
the direction of one manager. For example, if you include both financial and non-financial incentives.
have a range of marketing activities such as Also, there should be a structure in place to reward
advertising, budgeting, sales promotion, etc., there good performance to motivate employees.
should be one manager using one plan for all the Example: Any organization must be fair regarding
marketing activities. The different activities can be their remuneration policies where all the employees
broken down for different sub-managers, but they must receive a salary worth their efforts irrespective
should all work towards a common goal under the of their gender, tenure, and other factors.
direction of one main person in charge of the whole
thing.

2
HENRI FAYOL’S 14 PRINCIPLES OF MANAGEMENT

8. Centralization founder or CEO, to the lowest level of subordinates

Centralization refers to the concentration of power following a hierarchy for maximum productivity.

in the hands of the authority and following a top-

bottom approach to management. In 10. Order
decentralization, this authority is distributed to all This principle states that there should be an orderly
levels of management. In a modern context, no placement of resources (manpower, money,
organization can be completely centralized or materials, etc.) in the right place at the right time.
decentralized. Complete centralization means that This ensures the proper use of resources in a
people at the bottom have no authority over their structured fashion. Misplacement of any of these
responsibilities. Similarly, complete resources will lead to misuse and disorder in the
decentralization means that there will be no organization.
superior authority to control the organization. To Example: Employees should be given a designated
use this effectively today, there should be a balance space and the right tools or equipment to complete
of centralization and decentralization. The degree their work efficiently.
to which this balance is achieved will differ from
organization to organization. 11. Equity
Example: Centralization is mostly common in small Equity is a combination of kindness and justice.
and medium-sized firms where the delegation of This principle states that managers should use
work is minimal, and the owners make most of the kindliness and justice towards everyone they
decisions. manage. This creates loyalty and devotion among
the employees towards the organization they work
9. Scalar Chain for.
A scalar chain refers to a clear chain of Example: All employees, irrespective of gender,
communication between employees and their religion, race, and sexuality, must feel safe, seen, and
superiors. Employees should know where they heard and be given equal opportunities to grow and
stand in the hierarchy of the organization and who flourish in their careers within the organization.
to go to in a chain of command. To implement this
in the workplace, Fayol suggests that there should 12. Stability of Tenure of Personnel
be an organizational chart drawn out for employees This principle states that an organization should
to see this structure clearly. work to minimize staff turnover and maximize
Example: Every organization has a specific chain of efficiency. Any new employee cannot be expected
authority from the highest level of superiors, like the to get used to the culture of an organization right

3
HENRI FAYOL’S 14 PRINCIPLES OF MANAGEMENT
away. They need to be given enough time to settle listen to the concerns of their employees and
into their jobs to become efficient. Both old and new encourage them to develop and carry out plans for
employees should also be ensured job security improvement.
because instability can lead to inefficiency. There Example: Taking suggestions from employees
should also be a clear and effective method to regarding their specific department can make them
handle vacancies when they arise because it takes feel seen in an authoritative position and can give
time and expense to train new ones. them a sense of achieving something for the team.
Example: Every new employee must be given a
proper induction of both the technical aspect of the 14. Esprit de Corps
company as well as the work culture and office Esprit de Corps means “Team Spirit”. This Henri
environment for them to mingle well. Old employees Fayol principle of management states that the
should be given alum awards for completing certain management should strive to create unity, morale,
tenures to boost morale. and co-operation among the employees. Team
spirit is a great source of strength in the

13. Initiative organization. Happy and motivated employees are

This principle states that all employees should be more likely to be productive and efficient.

encouraged to show initiative. When employees Example: While discussing the new plan of action for

have a say as to how best they can do their job, they achieving the next month's targets, using the word

feel motivated and respected. Organizations should 'We' instead of 'I' brings a teamwork spirit to the
group.

Henri Fayol (1841-1925)

Father of Modern
Management Theory

4
HENRI FAYOL’S 14 PRINCIPLES OF MANAGEMENT

History of the 14 Principles of Management

Henri Fayol is known as the father of modern management theory. He was an engineer at the
Compagnie de Commentry-Fourchambault-Decazeville mining company and worked his way up to
become a manager during the peak of the Industrial Revolution in France. Under his watch, the
struggling company prospered.

In 1916, he wrote the book, "Administration Industrielle et Générale", where he shared his
experiences of managing a workforce. This laid the foundation for administrative theory and the
14 Principles of Management. By focusing on administrative over technical skills, these principles
became one of the earliest examples of treating management as a true profession.

What Is the Importance of the 14 Principles of Management?

Every organization is truly successful once its employee strength has been optimized to its full
potential. These 14 principles of management by Henri Foyal are still widely influential in making
sound management decisions and bringing the best results for both the company as well as the
employees.

Foyal's principles of management are widely credited for making the employees highly efficient
and productive, in turn generating the best possible results and effortless functioning of the
organization. Below are some of the most important achievements organizations have achieved
by following the 14 principles of management by Henri Fayol.
1. Structure
Every company requires a structure and a flow to prosper truly. These principles of management
provide a structure to the management and encourage the authoritative personnel to take charge
and bring out efficiency among the employees.
2. Communication
Communication is key in every well-managed company. Effective communication is the key to
achieving maximum productivity while having clarity about the end goal. Clear and effective
communication is a crucial tool in managing many employees and teams and ensuring the best
results.
3. Efficiency
Fayol's principles of management give a firm perspective of how important it is to have good
management in place to achieve maximum efficiency while doing smart work. 5
HENRI FAYOL’S 14 PRINCIPLES OF MANAGEMENT
4. Loyalty
Any organization is nothing without its employees. It is very important to gain the employees' trust
and loyalty as they are an important cog in running the company smoothly and efficiently.
Ensuring these principles of management are observed and practiced can be a huge step in
gaining trust and building healthy relations with the employees.

Criticism of Fayol's Principles of Management

While Henri Fayol's 14 principles of management are still significantly used by companies and
organizations, there are certain criticisms around the theory.

Fayol's school of thought, or Fayolism, is considered too rigid and can only be applicable in a
formal structure. While this theory is practical in some aspects, it is argued that it is not
completely useful as the employees should also be given the freedom to make decisions.

Are These Principles of Management Still Relevant Today?

Henri Fayol’s 14 principles of management are universally accepted and continually used as a
guideline for managers across the world. Though these principles of management are more than
100 years old, without them, it would push us back hundreds of years back when technical skills
reigned supreme, and people lacked managerial responsibility.

FAQs

Q1. What is Fayol's theory of management? Q2. What are the principles of management?
Henri Fayol was known as the father of Principles of management are basic
modern management. He gave us the activities that can help you plan, organize
famous 14 principles of management. and control operations related to material,
According to him, the 5 main functions of people, machines, methods, money and
management are Planning, Organizing, markets. They provide leadership to human
Commanding, Coordinating and Controlling. efforts so that they achieve set objectives
efficiently.

6
HENRI FAYOL’S 14 PRINCIPLES OF MANAGEMENT
Q3. Why is Henry Fayol called the father of There are many benefits to applying Fayol's
management? principles of management, including:
Henry Fayol is popularly known as the father • Increased efficiency and productivity
of modern management as he suggested the • Improved decision-making
14 principles of management in the 20th • Reduced costs
century. His research and findings helped • Increased employee morale
several enterprises scale their production • Improved customer satisfaction
and work in an efficient manner. He • Enhanced organizational performance
concentrated on the essential parts of a Q8. How can I apply Fayol's principles of
manager’s work in ensuring the production management in my own organization?
cycle. Start by identifying the principles that are
Q4. What Is the First Rule of Management? most relevant to your organization
The first rule of management is proper Develop a plan for implementing the
segregation or division of work among principles
employees with respective strengths to fulfill Communicate the principles to employees
those responsibilities. and managers
Q5. What are the characteristics of Monitor the implementation of the principles
principles of management? and make adjustments as needed
The basic yet important characteristics of Q9. What are the types of planning?
the principles of management are planning, The 4 types of planning are strategic,
organizing, directing, staffing, and controlling. operational, tactical, and contingency
A manager or authority personnel must planning.
perform all these duties simultaneously. Q10. What are the techniques of management
Q6. What is the nature of the principles of by Henri Fayol?
management? Henri Fayol's techniques of management,
A principle is a universal concept for making known as the "14 Principles of Management,"
well-informed and effective decisions and include division of work, authority, discipline,
executing them efficiently. The principles of unity of command, unity of direction,
management are, by nature, a set of rules subordination of individual interest to the
that, if followed, will help the company with general interest, remuneration, centralization,
great management. scalar chain, order, equity, stability of tenure
Q7. What are the benefits of applying Fayol's of personnel, initiative, and esprit de corps.
principles of management?