Fourteen Principles of Management By Henri Fayol

1. Division of WorkHenri believed that segregating work in the workforce amongst the worker will
enhance the quality of

the product. Similarly, he also concluded that the division of work improves the productivity, efficiency,

accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a

technical work level.

2. Authority and Responsibility-

These are the two key aspects of management. Authority facilitates the management to work efficiently,

and responsibility makes them responsible for the work done under their guidance or leadership.

3. DisciplineWithout discipline, nothing can be accomplished. It is the core value for any project or any
management.

Good performance and sensible interrelation make the management job easy and comprehensive.

Employees good behaviour also helps them smoothly build and progress in their professional careers.

4. Unity of CommandThis means an employee should have only one boss and follow his command. If an
employee has to

follow more than one boss, there begins a conflict of interest and can create confusion.

5. Unity of DirectionWhoever is engaged in the same activity should have a unified goal. This means all
the person working in

a company should have one goal and motive which will make the work easier and achieve the set goal

easily.

6. Subordination of Individual InterestThis indicates a company should work unitedly towards the
interest of a company rather than personal

interest. Be subordinate to the purposes of an organization. This refers to the whole chain of command

in a company.

7. RemunerationThis plays an important role in motivating the workers of a company. Remuneration can
be monetary or

non-monetary. However, it should be according to an individual’s efforts they have made.

8. CentralizationIn any company, the management or any authority responsible for the decision-making
process should

be neutral. However, this depends on the size of an organization. Henri Fayol stressed on the point that

there should be a balance between the hierarchy and division of power.

9. Scalar ChainFayol on this principle highlights that the hierarchy steps should be from the top to the
lowest. This is

necessary so that every employee knows their immediate senior also they should be able to contact any,

if needed.

10. OrderA company should maintain a well-defined work order to have a favourable work culture. The
positive

atmosphere in the workplace will boost more positive productivity.

11. EquityAll employees should be treated equally and respectfully. It’s the responsibility of a manager
that no

employees face discrimination.

12. StabilityAn employee delivers the best if they feel secure in their job. It is the duty of the
management to offer

job security to their employees.

13. InitiativeThe management should support and encourage the employees to take initiatives in an
organization. It

will help them to increase their interest and make then worth.

14. Esprit de Corps-

It is the responsibility of the management to motivate their employees and be supportive of each other

regularly. Developing trust and mutual understanding will lead to a positive outcome and work

environment.

T1MC1 Pronciples of management.pdf (kanchiuniv.ac.in)

14 Principles of Management by Henry Fayol

1. Division of Work

 In practice, employees are specialized in different areas and they have different skills. According

to Fayol specialization promotes efficiency of the workforce and increases productivity.

 In addition, the specialization of the workforce increases their accuracy and speed. This principle

is applicable to both technical and managerial activities.

2.Authority and Responsibility

 In order to get things done in an organization, management has the authority to give orders to

the employees. Of course with this authority comes responsibility.

 The accompanying power or authority gives the management the right to give orders to the

subordinates. The responsibility can be traced back from performance and it is therefore

necessary to make agreements about this. In other words, authority and responsibility go

together.

3. Discipline

 This third principle is about obedience.

 It is often a part of the core values of a mission and vision in the form of good conduct and

respectful interactions. This management principle is essential and is seen as the oil to make the

engine of an organization run smoothly.

4. Unity of Command

 The management principle ‘Unity of command’ means that an individual employee

should receive orders from one manager and that the employee is answerable to that

manager.

 By using this principle, the responsibility for mistakes can be established more easily.

5. Unity of Direction

 This principle of management is all about focus and unity. All employees deliver the

same activities that can be linked to the same objectives.

 All activities must be carried out by one group that forms a team. These activities must

be described in a plan of action. The manager is ultimately responsible for this plan and

he monitors the progress of the defined and planned activities.

 Focus areas are the efforts made by the employees and coordination.

6. Subordination of Individual Interest

 There are always all kinds of interests in an organization. Personal interests are

subordinate to the interests of the organization (ethics).T

 The primary focus is on the organizational objectives and not on those of the individual.

This applies to all levels of the entire organization, including the managers

7. Remuneration

 This principle of management argues that the remuneration should be sufficient to

keep employees motivated and productive.

 There are two types of remuneration namely non-monetary (a compliment, more

responsibilities, credits) and monetary (compensation, bonus or other financial

compensation).Ultimately, it is about rewarding the efforts that have been made.

8.The Degree of Centralization

9. Scalar Chain

10. Order

Employees in an organization must have the right resources at their disposal so that they

can function properly in an organization. In addition to social order (responsibility of the

managers) the work environment must be safe, clean and tidy

11. Equity

Employees must be treated kindly and equally. Employees must be in the right place in the

organization to do things right. Managers should supervise and monitor this process and

they should treat employees fairly and impartially.

12. Stability of Tenure of Personnel

This principle represents deployment and managing of personnel and this should be in

balance with the service that is provided from the organization. Management strives to

minimize employee turnover and to have the right staff in the right place. Focus areas such

as frequent change of position and sufficient development must be managed well.

13. Initiative

Employees should be allowed to express new ideas. This encourages interest and
involvement and creates added value for the company. Employee initiatives are a source of

strength for the organization.

14. Esprit de Corps

This stands for striving for the involvement and unity of the employees. Managers are

responsible for the development of morale in the workplace; individually and in the area of

communication. Esprit de corps contributes to the development of the culture and creates

an atmosphere of mutual trust and understanding.

PRINCIPLES OF MANAGEMENT (lsraheja.org)

Manage.pdf (northcoasttraining.org)

14 PRINCIPLES OF MANAGEMENT BY HENRI FAYOL (strathmore.edu)

Management Principles

I. Definition

Management Principles are the fundamental truths that exist within an organization to support its
growth and sustain its viability.

Organizations depend on their management principles to plan, organize and control operations,
providing direction and coordination, and giving leadership to human efforts, so as to achieve the
objectives of the entity.

II. Importance

The principles that guide leaders are just as vital to an organization as the people who employ them.
Without guiding principles, leaders can quickly become disconnected from the organization’s vision and
mission. Management principles are most effective when they drive opportunities for growth, innovation
and industry/market leadership.

Theorist Henri Fayol pioneered the research into fundamental principles of management and outlined 14
principles of management relevant to organizations of the early 20th century.

III. Fourteen Principles of Management

1. Division of Work – Specialization promotes efficiency of the workforce and increases

productivity, accuracy and speed. This principle is applicable to both technical and managerial
activities.
2. Authority and Responsibility - These are the two key aspects of management. Authority
facilitates the management to work efficiently, the accompanying power or authority gives the
 management the right to give orders to the subordinates. Responsibility makes them responsible
for the work done under their guidance or leadership.
3. Discipline – For the best interest of an organization there should be complete obedience,
diligence, effort and outward marks of respect which are equally applicable to everybody
regardless of rank. This management principle is essential and seen as the oil to make the engine
of an organization run smoothly. Without discipline, nothing can be accomplished.
4. Unity of Command – An employee should only receive commands from one superior. Violation
of this principle creates confusion in reporting lines. By using this principle, the responsibility for
mistakes can be established more easily.
5. Unity of Direction – An organization should be moving towards a common objective. This brings
about harmony of effort towards the mission and vision.
6. Subordination of individual interests to the General interests – This indicates a company should
work unitedly towards the interest of a company rather than personal interest. Be subordinate
to the purposes of an organization. An organization should come up with approaches that
ensure personal interests and organizational interests are aligned as closely as possible.
7. Renumeration – Payment should be fair proper and satisfactory to the employee. This in turn
creates a harmonious relationship and a pleasing atmosphere for work. There are two types of
remuneration namely non-monetary (a compliment, more responsibilities, credits) and
monetary (compensation, bonus or other financial compensation). It is about rewarding the
efforts that have been made.
8. Centralization – Decision making is made at top management level. In any company, the
management or any authority responsible for the decision-making process should be neutral.
However, this depends on the size of an organization. Henri Fayol stressed on the point that
there should be a balance between the hierarchy and division of power.
9. Scalar Chain – Every organization has a hierarchy and employees should be aware of where they
stand in the organization’s hierarchy or chain of command.
10. Order – Employees in an organization must have the right resources at their disposal so that they
can function properly in an organization. In addition to social order (responsibility of the
managers) the work environment must be safe, clean and tidy.
11. Equity – Management should treat all its employees in a fair and just manner at all levels.
12. Stability of tenure of personnel – An organization cannot run smoothly if it suffers from constant
employee attritions. A high attrition rate will cost an organization time, resources and perhaps
some crucial organizational memory.
13. Initiative – Management should provide opportunity or freedom to employees to suggest new
ideas, experience and more convenient methods of work to ensure effectiveness in the
organization. Employee initiatives are a source of strength for the organization.
14. Espirit De Corps – This stands for striving for the involvement and unity of the employees.
Managers are responsible for the development of morale in the workplace; individually and in
the area of communication. Esprit de corps contributes to the development of the culture and
creates an atmosphere of mutual trust and understanding. Organizations should harness
harmony, team spirit and unity among personnel.
Functions of Management

Management is the coordination and oversight of the work activities of others so that their activities are
completed efficiently and effectively. In order to carry out those responsibilities, management requires
the application of several important functions, skills and roles to carry out the necessary activities in the
organization effectively and efficiently. Effectively meaning doing things right so that the organizational
goals can be attained and efficiently meaning getting the most output from the least amount of inputs.

According to Newman and Summer, there are four commonly accepted functions of management

I. Planning – Understanding the goals and objectives, which is the start of strategic planning. Having a
strategic or tactical plan is how you get from point A to point B. Meanwhile, there’s operational planning,
this involves identifying and assigning resources, both in terms of personnel and materials.
Communication is the key element of planning.

II. Organizing - Along with planning, a manager's organizational skills can help to ensure a company or
departmental unit runs smoothly. From establishing internal processes and structures to knowing which
employees or teams are best suited for specific tasks, keeping everyone and everything organized
throughout daily operations are important functions of management.

III. Leading - Leading is about having the skills, communication aptitude and ability to motivate those you
manage. Leadership is a critical role for anyone in management, which is why it’s one of the four
functions of management. If you can’t lead, regardless of your leadership style, you won’t be a successful
manager. It’s about building trust with your team. Leadership includes conflict resolution. When
managing a diverse group, there will be conflicts that can delay tasks and cost the organization, money.
Better identification and resolution to conflicts will result to better management.

IV. Controlling - To ensure all of the above functions are working toward the success of a company,
managers should consistently monitor employee performance, quality of work, and the efficiency and
reliability of completed projects. Control (and quality control) in management is about making sure the
ultimate goals of the business are being adequately met, as well as making any necessary changes when
they aren't. The controlling function involves monitoring and tracking progress and performance to help
make decisions in a work environment. Beyond progress, performance and quality, the controlling
process also includes how efficiently they’re doing their jobs and how reliable they are when taking on
their tasks.

According to Henry Fayol, the father of principles of management, there are five functions of
management namely: Planning, Organizing, Commanding, Coordinating, and Controlling

Meanwhile, in 1937, Luther Gulick and Lyndal Urwick states seven functions under the catch word
“POSDCORB” which stands for planning, organizing, staffing, directing, coordinating, reporting, and
budgeting.

What Is POSDCORB? - Running Your Team in the Most Efficient Way (mindtools.com)