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Journal of Critical Reviews

ISSN- 2394-5125 Vol 7, Issue 11, 2020

HENRI FAYOL’S PRINCIPLES OF MANAGEMENT AND ITS EFFECT TO


ORGANIZATIONAL LEADERSHIP AND GOVERNANCE
Shiela Antonette D. Bacud
School of Arts and Sciences, Isabela State University Cauayan Campus, Cauayan, Isabela, Philippines

Received: 11.03.2020 Revised: 18.04.2020 Accepted: 10.05.2020

Abstract
The study revealed Henri Fayol 's adoption of the 14 management principles in the respective organizational settings of the respondents
which resulted in effective leadership and governance. The researcher used the descriptive qualitative research design where responses
were elicited from the different municipal heads/department heads of the nine municipalities in the Province of Isabela, Philippines, with
their subordinates chosen through purposive sampling. Permission to conduct the face-to face-interview was obtained and data gathered
from the respondents were recorded, collected, coded and analysed. Results revealed the best management principles the leaders still
found to be useful today, i.e. the principles of discipline, division of work, unity, authority and responsibility, equity and unity of
command, the biggest challenges encountered by them and their coping mechanisms to address the same. It determined which among
the 14 principles of management were mostly adopted its advantages and disadvantages and how such adoption affected the
organizational performance. Amidst the challenges, leaders learned to cope with them and claimed that good governance is anchored on
the efficient adoption of these principles with an able leader to lead the group. It concluded that management principles enunciated by
Henri Fayol are still widely adopted and applicable today and claimed to have been significant in attaining successful governance. Results
would give leaders a better understanding of how they should treat their subordinates and guide them how to make appropriate
management decisions which would serve as an effective tool to becoming a more responsive and effective organizational leader in the
future.
Keywords: effective leadership, good governance, organizational success, principles of management

© 2020 by Advance Scientific Research. This is an open-access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
DOI: http://dx.doi.org/10.31838/jcr.07.11.25

INTRODUCTION
Principles of management play a big role in every organization. management may need adaptation in specific situations they
The styles of management and the principles adopted by remain the basis of management theory and practice still
managers seem to largely depend on the kinds of leaders or applicable today. (Poperwi, 2018)
managers we have. The management process of planning,
organizing directing and controlling, which leads an organization This study is anchored on presenting which of these
to realizing its vision and mission are dependent on the management principles are still being adopted by leaders of
management principles of managers. Managers are also leaders. today and which among these are claimed to be more useful in
According to Hamid, Shah, Rahman and Badlishah (2020), governance. The research also focuses in determining the
leadership has been claimed as an important factor which has a challenges encountered by the leaders in the application of these
significant influence on the performance of organizations, principles, their coping mechanisms to address the challenges.
managers, and employees around the world. The success of the Further, it allows us to give a clearer view about which among
organization is anchored on the efficiency of the leader to uplift these management principles are most widely adopted in the
and improve individual performance. workplace together with a glimpse of the advantages and
disadvantages of adopting the same.
Various management principles are still being followed today,
mainly based on the management concepts enunciated by Henri Henri Fayol (1841-1925), according to the classical management
Fayol. He developed theories of what constituted good theory (Fayol and Urwick) is often described as the ‘father’ of
management practice, and proposed a universal set of modern management. The basic components of management
management functions, which were fundamental management which are planning, organizing, commanding , coordinating, and
principles. Poperwi (2018) states that Henri Fayol enunciated controlling enunciated by Henri Fayol together with his 14
the fourteen principles of management for the efficient running principles of management was referred to as “mechanistic” in
of businesses but it is said that these principles are flexible and is Burns and Stalker terms according to Mc Namara (2009). The
capable of adaptation depending on the specific need of the latter also mentioned that Fayol’s theory on administration was
organization. established to have been founded on experience and observation
of what is greatly applicable in the organization with which he is
Analysis of general management by Henri Fayol includes an familiar as confirmed by Wren. With this, he is considered to be a
unending elements or cycle of planning, organizing. leading and significant influence to the formationof a classical and
controlling. Hence, it is said that Fayol has introduced to the administrative management principles even today.(see bola.biz)
worlda blueprint of a widely accepted management concept. At
present, this management process has been widelyrecognized. Various authors highlighted the importance of the principles of
The principles of management have features or characteristics management in various significant ways. G.R. Terry specifically
which are so distinct which a manager should take note of when claims in his own word that “Principles of management are to a
applying them in a variety of situations. These principles of manager as a table of strength‟ of materials is to a civil engineer.”
management are relevant today and in future organisations Accordingly, “Management principles are important to train and
according to recent studies. Although the principles of educate future managers.” This means that without these, to

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HENRI FAYOL’S PRINCIPLES OF MANAGEMENT AND ITS EFFECT TO ORGANIZATIONAL LEADERSHIP AND
GOVERNANCE

train people for managerial positions would not be made RESEARCH METHODS
possible. Likewise, according to Poperwi (2018), principles of Respondents
management provide guidelines to enable managers as to how The respondents of the study were government leaders, heads of
they should respond to and deal with different situations to offices and their subordinates from the different municipalities in
increase managerial efficiency. the Province of Isabela to include Cauayan City, Ilagan, Luna,
Roxas, San Mateo, Anagadanan, Tumauini, Cabagan, Ramon
The 14 Management Principles (Principles of Management 2008) occupying department heads position/level represented by the
laid down by Henri Fayol are most commonly used and adopted Municipal Planning Officers, City Human Resource Managers, City
in the organization. These are the following: division of labor, Councilors, Community Affairs Officers, Municpal Budget Officers
remuneration, authority and obligation, discipline, unity of and the Municipal and City Mayors themselves and their
command, degree of centralisation, scalar chain, order, stability subordinates selected through purposive sampling.
and tenure of staff, loyalty, initiative, esprit de corps,
subordination of interests and unity of purpose. (The Fayol and Data Gathering Instrument
Urwick Classical Management Theory). These principles are The research used a semi structured 2 page self-made interview
believed to be largely based on the capacity to lead, leadership or guide which was intended for the face-to-face interview of all
managerial styles and willingness of managers to achieve its respondents.
organizational goals. They vary according to how they are Data Gathering Procedure
applied and accepted depending on the organizations’ structure, In pursuing the study, permission to conduct the interview was
objectives and the will power of the leaders to adopt them. obtained and a formal communication sent to the heads of the
agencies concerned, requested for a schedule interview
These Principles of Management are the considered to provide convenient to the respondents’ schedule. Respondents were
significantfundamental factors which form the basis of successful assured of their anonymity and confidentiality of the data
management. They vary according to how leaders apply them in gathered maintained. Data gathered from responses through
the organizational setting. These principles of management serve transcripts and recording were transcribed, collated, coded and
as a parameter for making decisions and other management analyzed.
actions.
RESULTS AND DISCUSSION
The significance of the study reveals that with the more Best Management Principle Adopted and Relevant Even
challenging roles of leaders and managers nowadays, it is Today
expected of them to have adopted management principles which Most respondent managers believed that imposing and
are likely to lead to successful organizational performance. By maintaining discipline among its employees is one of the best
understanding their roles as managers, and learning of their own management principles they practice. Discipline in an
strengths and weaknesses, as well as that of their subordinates, organization is claimed to encourage a minimum appropriate
they are given clearer pictures of how they should handle people behaviour by employees sanctioned by the organization. It is
well, arrive at a more acceptable decisions and building their defined in terms of adherence to the company/organization
own management principles which are effective in the rules, regulations, systems and processes. Nwinyokpugi and
workplace. Also, responses of the leaders from the interview Robbinson (2019) provides that discipline ensures smooth
paved way to understanding the challenges they face in functioning and helps in creating a healthy business
managing the people and organization as well as their coping environment. Managers would see to it that all the tasks assigned
mechanisms. Results of this research may be utilized as basis for and responsibilities expected of the subordinates are performed
current and future leaders in governance. Adoption of the well and on time. The ability of the managers to respond to the
principles of management which necessarily resulted to effective different needs of its employees is also most important. Some
leadership may be made as a helpful guide in improving managers claimed to have given much attention to adherence to
management skills of leaders and managers in the future. division of work as well as unity. They abide by the saying
Learning from present day leaders the challenges they meet “United we stand, divided we fall” as the best management
every day and the coping mechanisms they adopt can somehow principle being practiced and which they find most useful even
provide them a better insight at governance. From this, other today. Also, one of the growing challenges among leaders today,
future leaders may well learn from their experiences to improve as claimed by respondents is being a leader by example worthy
their own leadership and management skills as a result. This may of emulation. One of the best management principles still
also be helpful to subordinates as well to be made aware of the considered useful by most managers is the exercise of authority
motivations and characteristics of the leaders themselves. and responsibility. The power of authority according to
Likewise, analysis of the study may also help other scholars or Phatakcited by Achinivu, Handsome, Ayomide, Enobong, &
researchers in forming other principles of management which Johnson (2017) suggests that there is a necessity for managers to
may work well with the already existing ones to formulate one possess authority in order to direct subordinates so they can do
which will be of significant help to the leaders and the their jobs while taking responsibility for their actions. Alongside
organization. this, managers see this as the power to give orders and get
obeyed and the ability to make important decisions. Further,
Objectives of the Study knowing and understanding the interests of each and every
The study sought: employee is of great importance as one manager claimed that
1. To determine the best management principle that leaders “understanding each their situation or where they are coming
adopt and find most useful today. from, is a key to managing them appropriately.” The best
2. To know the biggest challenges the managers encountered management principle most useful and still being adopted this
in managing the workplace. present time includes the practice of fair play and equal
3. To determine how leaders coped with these challenges. treatment of employees. Giving equal treatment to employees is
4. To identify which among the 14 principles of management demanded of leaders/managers to be able to exact obedience
enunciated by Henri Fayol is mostly adopted in the and respect from employees. “Once you play favorites,
workplace and the advantages and disadvantages of subordinates tend to question your integrity as a good leader”, as
adopting the same. claimed by respondent D.
5. To analyze the effect of adopting these principles of
management to organizational leadership and governance.

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HENRI FAYOL’S PRINCIPLES OF MANAGEMENT AND ITS EFFECT TO ORGANIZATIONAL LEADERSHIP AND
GOVERNANCE

Also, leaders practice the principle of “unity of command” which targets with necessary timelines. This is further supported by
demands that subordinates should be not be reporting to more citing the time-honored principle “Time is gold” as expressed by
than one manager, to avoid confusion and chaos. Respondent F one of the respondents when asked this question. Respondent E
believes in the idea that this principle helps the employees also claimed that “a good leader must be able to manage his time
concentrate on their specific tasks and will not get distracted by wisely, making most of his available time well spent.” Abiding
too many assignments from different supervisors. “Reporting to with time management techniques will create enough room for
more than one supervisor and given different tasks all at the more efficient and productive output as well as social
same time leads to confusion and lack of focus”, respondent G interactions. Likewise, time management can improve prediction
claimed. Fayol considered this principle to be very significant about work productivity and also enable ability to plan for the
and claims that inability to obey the same leads to a situation future. Nongmeikapam, & Singh(2018) provides thatleaders must
where authority is compromised, discipline is in danger, take into consideration of adopting time management models
directive is in peril and stability disturbed. (Achinivu et. el, 2017) and theories which are aimed to improve management skills
and reduce psychological stress from inability to complete
Biggest Challenges Managers Encountered in the Workplace work and other responsibilities. Information dissemination to
Respondents claimed that one of the biggest challenges subordinates and proper work coordination have also been
managers have to face is how to encourage employees to work considered by managers/leaders as one of their biggest
and get the remuneration commensurate to their jobs. Some challenges. Communicating to every employee how things should
believed that others are not fully compensated for their efforts. be done are not an easy task according to respondents. “
Managers more often than not find it harder for subordinates to Explaining to each and every employee what and how to do
work efficiently because they are either not getting the requires a lot of patience and hardwork considering that they
compensation due to them or are not paid satisfactorily. come from different backgrounds and they have different
(remuneration vs. motivation). With this, challenge is given to capabilities,” expressed by one manager.
managers to find out ways how to motivate employees to
perform well even with the meager compensation they receive. Dealing with different kinds of people, coming from different
Giving additional incentives in the form of awards monetary or situations and addressing each of their unique needs is also
otherwise seem to be considered as a way of solving this considered to be a big challenge for every manager in a
problem. It is provided that Fayol insists that there is nothing like workplace. This is further supported by the statement of
an unblemished system where employees will always find a respondent having said that “As a manager, we need to learn to
motivation to work. He also highlighted leadership as a key issue make adjustments to different situations so we may know the
in the field of organizational behavior. Therefore, leadership interests of each and every employee. This is also made possible
significantly affects an individual and organizational interaction. through efficient and timely communication with them.”
Significantly, a great leader must not only encourage potential
subordinate to improve efficiency, but also sees to it that their The exercise of effective leadership is also a challenge for leaders
needs are met in the process of achieving organizational goals even until today. Effective leadership presupposes following a
(Hamid, Shah, Rahman and Badlishah, 2020). Thus, wage is one proper chain of command from top to bottom. This statement is
important motivator for instance. Fayol suggests that, the further expressed by the claim of respondent when he said
significant process of remuneration paid to employees should be “Failure of my subordinates is also my failure.” This failure may
not only be fair and reasonable but also acceptable to both be a result of improper delegation of authority which is one of
employer and employees and commensurate to their the most important management principles managers have to
performances. (Mtengezo,2015); (Achinivu, 2017). consider. According to Marume, Endudzo, &Chikaska (2016),
Millet defines delegation of authority means more than simply
One local chief executive believed that the biggest challenge he giving or assigning tasks or duties to others in details its essence
has to face in managing the people is giving enough assistance or being that managers would be able to bestow on others the
help to people, help which really creates an impact to them. ability to use judgment and discretion when faced with problems.
Foremost of their demand include the availability of affordable
and efficient delivery healthcare benefits, promising Foremost among the biggest challenges leader face are imposing
compensation and promotion privileges. As stated by Abuhassna, discipline and punctuality in the workplace. This goes without
Zakaria, Yahya, Waleed, & Al-Rahmi, (2020), employees claimed saying that to be able to do this, respondents claim that leaders
to have developed concerns with the current public health issues must also be role models of discipline and punctuality.
which increased their expectations for a more efficient delivery Otherwise, no subordinates will believe in you because it is said
of healthcare services among others. Employees expect much that “leaders should first be good followers themselves”. As
from managers and would depend too much on their capabilities regards these challenges, leaders are expected to be more
to implement what the policy or law provides. To be able to do innovative in many ways. As to issues on punctuality, it is
this, there should be sufficient and adequate facilities that are concluded by Hutagaol, Abdilah, Jaya, & Wang (2020) that on top
expected to support the implementation of a law, otherwise, of giving employees continued motivation, some leaders believe
there will be hindrances in its implementation. (Kusriyah, 2020) that integrating modern technology, for example, in attendance
checking using technology has greatly helped the organization
To these kinds of leaders, everyday offers a new challenge. One monitor employees presence or absence in the workplace
leader respondent gives high regards to a collaborative affecting his over-all performance as it allows the company to get
governance, that is making all other sectors work together for a a lot of benefits, because it will simplify and speed up employees
common goal. Government, community, and civil society work as in the attendance process.
one to achieve performance in organization. Nwinyokpug and
Robbinson (2019) found that a virtuous collaborative cycle Coping With the Challenges
continues to evolve as collaborative forums concentrate on 'small Leaders would often differ in behavior, disposition and style of
wins' that enhance trust, engagement and mutual understanding. management. These would have to depend on the demands of
Proper time management has since time immemorial been work and the response expected of him in every situation. This
accepted as one of the biggest challenges by many leaders. goes without saying that leaders act according to the
Leader respondents are always conscious of beating deadlines circumstances he is faced with, encourage team work, build
and performing tasks assigned on time. When faced with these unity, friendship and camaraderie.
challenges, they try exercise proper time management by setting

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HENRI FAYOL’S PRINCIPLES OF MANAGEMENT AND ITS EFFECT TO ORGANIZATIONAL LEADERSHIP AND
GOVERNANCE

With the challenges encountered, leaders are expected to be able productivity and efficiency. Management of the working force
to develop qualities that enable them to cope with existing becomes manageable because it becomes a controlled
challenges in the workplace. Generally, it is said that being kind environment with each and every employee having assigned
and considerate, good listener, leader by example and one who specific task to work on. This supports the principle which
takes accountability for the actions of his subordinates are provided that every work should be divided into the smallest
expected of one who leads the organization. Leaders are possible part and each is to be performed by an individual
expected to display behavior and attitudes which build their person. Instead of giving the whole part to a single person, it is
characters as good leaders. These characteristics usually prepare better to delegate each piece of task to another. On the other
the leaders to be more steadfast and prepared to face every hand, the downside is that it invites competition and disunity
challenge they will be made to encounter in the workplace. among employees because every employee focuses on his
assigned tasks alone and does not welcome the possibility of
Respondent X expressed that responding to the subordinates’ multi-tasking. Also, respondent d believed it to be building a
need and extending some genuine help to them seem to be given climate of divisiveness instead of unity as each worker will
much importance. This is further supported when respondent concentrate more on his task rather than collaborating with
claimed “The biggest challenge is really how to give a person others.
enough help that would really create a big impact to him.”
Atmosudirjo (1981) cited by Ismail and Hapsoro (2020) claims
People are believed to be more motivated to work when they are that authority is the power of a certain group of people or power
compensated sufficiently. This explains why respondent Y over a certain spherical sector of government (or field of affairs).
expressed that “I want to my employee to be compensated The principles of authority and responsibility are best described
commensurate with job he is assigned.” in a collaborative government, which is believed to be very
helpful in governance. An advantage, according to the
Dealing with people of different cultures, behaviors and attitudes respondents is that it gives employees the opportunity to take
has been one of the most challenging role of a manager these part in decision making process. Respondent B expressed that
days. To this, employer responds to this role by understanding “everyone gets the opportunity to contribute to every decision-
and adopting to the different personalities. Respondent Z says making.” Its disadvantage includes one will be made responsible
that “Being kind and considerate with the people you work with for the wrong decisions made. This further supports claim of
is the best way to handle this challenge.” respondent when he said, “The fault of one, is the fault of the
whole organization.” Other respondents were of the view that it
Maintaining a good and stable relationship with subordinates has no negative sides as the advantages far outweigh the
founded on trust proved to be very helpful to respondent Z disadvantages. One respondent expressed that authority and
primarily because a relationship based on this one is considered responsibility go together and one cannot exist without the
one of the key factors of working with people harmoniously. This other. He relayed that having an authority on one hand requires
importance is further supported by Caldwell, Hayes, & Long, taking responsibility for your own actions. Blackburn, R. &
(2010); Schraeder, Self, Jordan, & Portis, (2014) with the Rosen, B. (1993) stressed that an organization succeeds when
observation that gaining the trust of employees in the workplace participatory management occurs and its workers are mobilized
is significant to the success of contemporary organizations. against the concept of authority and accountability Moreover, it
“When you have a good working relationship with people, you was observed that managers are regarded with this style not as
will be able to establish camaraderie, good working relations and rulers but as more coordinators or representatives.
people tend to be more honest to, and be comfortable with you”,
according to one respondent. Three (3) out of (9) respondents claimed that the principle of
discipline has been and still up to now been considered as the
With these growing challenges, leaders recognized their most widely adopted principle among the 14. They believe this
readiness to learn, especially when the experiences he had principle to set the core values of the organization and best
learned will develop his ability to cope with everyday situations define a successful governance. This, according to them, is mostly
or to carry out "development tasks", tasks which allow him to adopted in their organization because they believed this to be the
grow and develop, professionally or socially. As a result, Nassir & most effective way of making their subordinates focus on the
Borj (2020) claim that managers acknowledged their orientation organizational targets that they are set to meet. Without
to learning which make them focus more on their practical organizational values anchored on discipline, they said, the
contributions likely to help in the resolution of problems organization is doomed to fail.
encountered daily rather than in in the theoretical aspect of the
issues at hand. Respondent also claimed that unity of command and unity of
direction as mostly adopted in their workplace. Marume,
Principles of Management Most Widely Adopted in the Endudzo & Chikaska, (2016) managed to explain that unity of
Workplace and its Advantages and Disadvantages command means that orders should come from one superior
Among the 14 principles of management considered to be mostly only. In other words, it means that no employee should be
adopted are the principles of authority and responsibility and allowed to follow the order of more than one superior. Thus, it
division of work, as claimed by the respondents. It is stated that stands for single or mono-command for each person as it is
division of work is the first principle enunciated by Henry Fayol claimed that to obey multiple superiors are more likely to lead to
which provides that workers perform more efficiently at work confusion, ineffectiveness and irresponsibility. These principles,
when they are given jobs which perfectly matched their specific as they expressed, are considered to move its people towards the
specialization. A pointe out by Achinivuet. al(2017), same direction, invite team spirit, better collaboration with
specialization is important as staff perform defined tasks not others to achieve common goal towards the end and are made to
only at a single time but as a habit which becomes routinary. ensure systematic work environment in general. Accordingly,
this principle depicts unity of action as well coordination. It also
According to respondents, division of work is enforced to avoid enunciates that there should be only a single plan, one objective,
overlapping of duties. Its advantages include that each employee and one leader for each of the plans which should be anchored on
works according to his/her specialization. “Also it creates a sense established objectives. (Drucker, 1954); Achinivu, et. al. 2017)
of ownership and empowerment to people in the workplace”
says respondent A. It is also believed by respondent b to increase

Journal of critical reviews 165


HENRI FAYOL’S PRINCIPLES OF MANAGEMENT AND ITS EFFECT TO ORGANIZATIONAL LEADERSHIP AND
GOVERNANCE

There is one management principle which majority of the leaders work with others well, gave them a sense of fulfillment because
claim to be not out of place at the present times and is still widely these allowed them to express themselves freely, participated in
adopted, i.e. is the principle of centralization and decision-making and empowered them as individuals who
decentralization. Achinivuet. al. ( 2017) defines decentralization contributed much to the organization. On the other hand, leaders
as the amount of control distributed among people in an believed that these principles positively affected their leadership
organization, while centralization the concentration of decision as it enhanced their authority and accountability to its people,
making authority in an organization is usually lodged in a few or understood their people well, and through teamwork and
single authority. Centralisation connotes the concentration of initiative coupled with discipline, it allowed them to exercise
decision making authority at one level usually at the top better governance which resulted to the success of the
management. In contrast, decentralization is the distribution of organization as a whole.
authority to the lower levels in an organization. In support,
Poperwi [2018) provides that while centralization shows Thus, it may be concluded that good governance is anchored on
decreasing the role of subordinates in decision making, the efficient and effective adoption of these principles of
decentralization means otherwise, i.e. increasing their role in management by Henri Fayol coupled with an efficient and able
decision making. leader to lead the group on top with subordinates who are
willing to cooperate, work with motivation and empowered to
Adoption of the Management Principles and its Effect to obey the leaders and be able to contribute to achieving the goals
Organizational Performance of the organization leading to its success.
Adoption of one or more of the 14 principles of management of
Henri Fayol has been claimed by respondents to lead to a more Results of this research may be utilized as basis for future
effective leadership. Respondent X believed that the exercise of studies. Likewise responses and other data gathered in the study
the principle of division of work, for instance has promoted may be made the basis of other related studies in the future to
efficiency of the workforce as well as increased productivity. generate a more improved concept or principles of management
Discipline is also among the 14 principles claimed by majority of including other variables not included herein. The researcher
the heads of offices to be the most basic and widely adopted and seeks to conduct for future researches the same topic on the
reinforced in the organization. This has been viewed by many to principles of management, with the inclusion of private
be the cornerstone of good governance as it leads the whole organizational structures, but with the addition of determining
organization to focus on the goals set by leaders. Respondents the level of adoption of these principles, and determining the
agreed to a concept that discipline is a two way street. If the difference in the perceptions between the leaders and the
employer demands it from his employees, he should practice it subordinates as to its adoption and its effect to organizational
too.( Fayol, 1917) success, making a comparison between the adoption of these
principles between government and private settings.
Time management is believed by almost all of the respondent
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