14 Principles of Management (Henri Fayol)

The 14 Management Principles from Henri Fayol (1841-1925) are

1! Division of Work! "peciali#ation allo$s the in%i&i%'al to ('il% 'p e)perience* an% to contin'o'sly
impro&e his s+ills! There(y he can (e more pro%'cti&e!
2! Authority! The right to iss'e comman%s* along $ith $hich m'st go the (alance% responsi(ility for its
f'nction!
,! Discipline! -mployees m'st o(ey* ('t this is t$o-si%e% employees $ill only o(ey or%ers if management
play their part (y pro&i%ing goo% lea%ership!
4! nity of !omman"! -ach $or+er sho'l% ha&e only one (oss $ith no other conflicting lines of comman%!
5! nity of Direction! People engage% in the same +in% of acti&ities m'st ha&e the same o(.ecti&es in a
single plan! This is essential to ens're 'nity an% coor%ination in the enterprise! /nity of comman% %oes not e)ist
$itho't 'nity of %irection ('t %oes not necessarily flo$s from it!
0! #u$or"ination of in"ivi"ual interest (to the general interest)! Management m'st see that the goals of
the firms are al$ays paramo'nt!
1! %emuneration! Payment is an important moti&ator altho'gh (y analy#ing a n'm(er of possi(ilities* Fayol
points o't that there is no s'ch thing as a perfect system!
8! !entrali&ation (or 2ecentrali#ation)! This is a matter of %egree %epen%ing on the con%ition of the
('siness an% the 3'ality of its personnel!
9! #calar chain (4ine of 5'thority)! 5 hierarchy is necessary for 'nity of %irection! 6't lateral comm'nication
is also f'n%amental* as long as s'periors +no$ that s'ch comm'nication is ta+ing place! "calar chain refers to the
n'm(er of le&els in the hierarchy from the 'ltimate a'thority to the lo$est le&el in the organi#ation! 7t sho'l% not
(e o&er-stretche% an% consist of too-many le&els!
18! 'r"er! 6oth material or%er an% social or%er are necessary! The former minimi#es lost time an% 'seless
han%ling of materials! The latter is achie&e% thro'gh organi#ation an% selection!
11! ()uity! 7n r'nning a ('siness a 9com(ination of +in%liness an% .'stice: is nee%e%! Treating employees $ell
is important to achie&e e3'ity!
12! #ta$ility of *enure of Personnel! -mployees $or+ (etter if .o( sec'rity an% career progress are ass're%
to them! 5n insec're ten're an% a high rate of employee t'rno&er $ill affect the organi#ation a%&ersely!
1,! +nitiative! 5llo$ing all personnel to sho$ their initiati&e in some $ay is a so'rce of strength for the
organi#ation! -&en tho'gh it may $ell in&ol&e a sacrifice of 9personal &anity: on the part of many managers!
14! (sprit "e !orps! Management m'st foster the morale of its employees! He f'rther s'ggests that ;real
talent is nee%e% to coor%inate effort* enco'rage +eenness* 'se each person:s a(ilities* an% re$ar% each one:s
merit $itho't aro'sing possi(le .ealo'sies an% %ist'r(ing harmonio's relations!<
What is Management, Five elements
Fayol=s %efinition of management roles an% actions %isting'ishes (et$een Five (lements
1! Prevoyance! (Forecast > Plan)! -)amining the f't're an% %ra$ing 'p a plan of action! The elements of
strategy!
2! *o organi&e! 6'il% 'p the str'ct're* (oth material an% h'man* of the 'n%erta+ing!
,! *o comman"! Maintain the acti&ity among the personnel!
4! *o coor"inate! 6in%ing together* 'nifying an% harmoni#ing all acti&ity an% effort!
5! *o control! "eeing that e&erything occ'rs in conformity $ith esta(lishe% r'le an% e)presse% comman%!
'rigin of the 14 Principles of Management- History
Henri Fayol (1841-1925) $as a French management theorist $hose theories in management an% organi#ation of la(or
$ere $i%ely infl'ential in the (eginning of 28th cent'ry! He $as a mining engineer $ho $or+e% for a French mining
company ?ommentry-Fo'rcham(o'lt-2eca#e&ille* first as an engineer! Then he mo&e% into general management an%
(ecame Managing 2irector from 1888 to 1918! 2'ring his ten're as Managing 2irector he $rote &ario's articles on
=a%ministration= an% in 1910 the 6'lletin %e la "oci@t@ %e l: 7n%'strie Min@rale* printe% his A5%ministration* 7n%'strielle et
B@n@rale C Pr@&oyance* Drganisation* ?omman%ement* ?oor%ination* ?ontrEleA! 7n 1949 the first -nglish translation
appeare% 9Beneral an% 7n%'strial Management: (y ?onstance "torrs!

sage of the 14 Management Principles- Applications
F ?hange an% Drgani#ation!
F 2ecision-ma+ing!
F "+ills! ?an (e 'se% to impro&e the (asic effecti&eness of a manager!
F /n%erstan% that management can (e seen as a &ariety of acti&ities* $hich can (e liste% an% gro'pe%!