14 Principles of Henri Fayol’s Management

Henri Fayol was a French mining engineer, with a degree in management theory and is believed to be the earliest thinker to preach the true practice of management. According to him, good management can be taught, and thus, developed the 14 principles of management. 

Even though they were developed a century ago, they still continue to influence modern practices, making them much more effective. 

What are the 14 Principles of Henri Fayol’s Management? 

Management is hectic work as we know it, however, these 14 functions have come up with an easier way of dealing with the work by systematically organizing it. These principles are based on real-world experience and they offer practical guidance on how to organize work and make sure operations are smooth. Functions of management encompassing several measures of getting work done are guided by Henri Fayol’s principle of management. 

 

The 14 principles of management by Henri Fayol are mentioned below: 

 

1. Division of Work

This increases efficiency by assigning tasks among employees based on their skills and specializations allowing them to be efficient. The division of tasks ensures the completion of tasks in a well-regulated time. In business work can be performed more efficiently if it is divided into specialized tasks; each performed by a specialist-trained employee. This results in efficient and effective output. Thus, in a company, we have separate departments for finance, marketing, production human resource development, etc.

2. Authority and Responsibility

All the managers must have the authority to give orders and amend changes to ensure the tasks are getting accomplished. With authority comes responsibility so the authoritative person should be well-versed with rules himself. There should be a balance between authority and responsibility. An organization should build safeguards against the abuse of managerial power. At the same time, a manager should have the necessary authority to carry out his responsibility

3. Discipline

This points towards the rules and policies to make sure there are fewer conflicts among employees. A well-disciplined workplace ensures smooth operations. Here discipline when applied would mean that the workers and management both honor their commitments without any prejudice towards one another.

4. Unity of Command

An employee should receive instructions from only one superior to avoid confusion and conflicting orders. The principle of unity of command states that each participant in a formal organization should receive orders from and be responsible to only one superior. Fayol gave a lot of importance to this principle. He felt that if this principle is violated “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”. 

5. Unity of Direction

All organizational activities with the same objective should be directed by a single manager using one plan. This ensures coordination and clarity in operations. Each group of activities having the same objective must have one head and one plan. This ensures unity of action and coordination. For example, if a company is manufacturing motorcycles as well as cars then it should have two separate divisions for both of them.

6. Subordination of Individual Interests to General Interest

The interests of the organization should always come first over group interests to maintain harmony. This ensures equality among the workers. Every worker has some individual interest in working in a company. The company has its own objectives. 

7. Remuneration

All the employees should be fairly compensated for the work that has been done. This ensures that the employees are well-motivated and are satisfied with the workplace. This will ensure a congenial atmosphere and good relations between workers and management. Consequently, the working of the company would be smooth.

8. Centralization and Decentralization

The degree of centralization or decentralization depends on the nature of the organization. Centralization refers to decision-making by top management, while decentralization allows lower levels to make decisions. According to Fayol, “There is a need to balance subordinate involvement through decentralization with managers’ retention of final authority through centralization.” 

9. Scalar Chain

The scalar chain refers to a clear line of authority in an organization, from the top level to the lowest level. Communication should follow this chain but can be bypassed in emergencies (Gang Plank). According to Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.” 

10. Order

A place for everything and everything in its place. Both material and human resources should be well-organized to ensure efficiency. According to Fayol, “People and materials must be in suitable places at appropriate times for maximum efficiency.” 

11. Equity

Managers should be kind and fair to their subordinates. Equity fosters loyalty and commitment among employees. Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible,” according to Fayol.

12. Stability of Tenure of Personnel

High employee turnover is detrimental to organizational efficiency. The stability of tenure allows employees to gain experience and improve performance. “Employee turnover should be minimized to maintain organizational efficiency”, according to Fayol.

13. Initiative

Employees should be encouraged to take initiative and contribute ideas. This improves engagement, innovation, and overall performance. Workers should be encouraged to develop and carry out their plans for improvements according to Fayol. 

14. Esprit de Corps

Esprit de corps means fostering team spirit and unity within the organization. Managers should promote harmony and cooperation among employees. A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster team spirit. This will give rise to a spirit of mutual trust and belongingness among team members. It will also minimize the need for using penalties.

 

Read More: 

• Barriers to Effective Communications
• National Income 
• Ledger In Accounting
• Carriage Inward vs Carriage Outward
• Liberalization

 

Frequently Asked Questions (FAQs) 

Why are Henri Fayol’s principles of management important?

Henri Fayol’s principles provide a structured framework for managers to plan, organize, and lead effectively. They offer guidelines on maintaining discipline, ensuring coordination, and promoting fairness in the workplace, which are crucial for long-term success.

How are Fayol’s principles used in modern management?

Fayol’s principles are applied in various ways, such as defining clear chains of command, encouraging employee initiative, ensuring fair treatment, and balancing decision-making authority between top management and lower levels. These principles help organizations operate smoothly in a complex business environment.

What is the difference between unity of command and unity of direction in Fayol’s principles?

Unity of command means that each employee should receive instructions from only one superior, preventing confusion and conflict. Unity of direction means that all activities with the same objective should be directed by a single manager using one plan, ensuring proper coordination.