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 actual practice of management. According to him, good management can be taught, and thus, he developed the 14 management principles. 

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

 

Who is Henri Fayol?

Henri Fayol, born in 1841, was a French mining engineer and author who laid the groundwork for management theories and modern practices. He firmly believed in a systematic approach to conducting work at formal places, and his theories are an effort towards that. The 14 principles of management are the guidelines for effective organizational management.

 

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: systematically organizing it. These principles are based on real-world experience, and they offer practical guidance on how to manage work and ensure operations are smooth. Functions of management encompassing several measures of getting work done are guided by Henri Fayol’s management principle. 

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 functions ensures the completion of tasks in a well-regulated time. Work can be performed more efficiently in business if divided into specialized tasks, each performed by a specialist-trained employee. This results in efficient and effective output. Thus, a company has separate departments for finance, marketing, production, human resource development, etc.

2. Authority and Responsibility

All managers must have the authority to give orders and amend changes to ensure the tasks are accomplished. With authority comes responsibility, so the authoritative person should be well-versed in the rules. 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 ensure 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

Employees 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

A single manager should direct all organizational activities with the same objective 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 and cars, then it should have two separate divisions for both of them.

6. Subordination of Individual Interests to General Interest

The organization's interests 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 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 company's work 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. Fayol states, “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 an organization's clear line of authority, from the top to the lowest. Communication should follow this chain but can be bypassed in emergencies (Gang Plank). Fayol states, “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. Fayol says, “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. To foster team spirit, a manager should replace ‘I’ with ‘We’ in all his conversations with workers. This will create a spirit of mutual trust and belonging among team members. It will also minimize the need to use 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 transparent 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 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 a single manager should direct all activities with the same objective using one plan, ensuring proper coordination.