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H enri Fayol was a French mining engineer who developed 14 principles of management. He is considered to be one of
the most important contributors to the theory of management.
Principles of Management:
The 14 principles of management developed by Henri Fayol are listed and explained below:
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Sub-ordination of individual interests to general interest
7. Remuneration of personnel
8. Centralisation
9. Scalar Chain
10. Order
11. Equity
12. Stability of personnel
13. Initiative
14. Esprit de corps
1. Division of Work:
In an organisation, work should be divided correctly, according to the time available. The potential of employees increase
when they are allowed to do the same work again.
Responsibility:
Responsibility is the work expected from workers by their superiors. Wherever authority is present, responsibility occurs.
3. Discipline:
In an organisation, workers should obey the commands of their superiors.
Hence, discipline is very important for any organisation. It promotes leadership and fair dealing.
4. Unity of Command:
A worker should receive commands from only one person. Commands from multiple superiors lead to conflicts and chaos.
Hence, unity of command should be maintained.
5. Unity of Direction:
An organisation might contain several groups, each having a head and an individual objective. All the individual objectives
should be directed towards a common objective of developing the organisation.
7. Remuneration of Personnel:
Employees should be paid proper wages to maintain the stability of organization.
8. Centralisation:
An organization is said to be completely centralised if all power rests in the hands of a single person. An organisation is
said to be completely decentralised if power is completely distributed among the sub-ordinates. A firm should neither be
completely centralised nor be completely decentralised. Centralization and decentralization should be balanced.
9. Scalar Chain:
The line of authority should pass from top level management to bottom level management. Orders and policies should
always come from higher level management.
10. Order:
In an organisation men and materials should be distributed correctly at the right place in right time. This improves the
productivity of the organisation.
1. Material Order
2. Social Order
11. Equity:
All employees in a firm should be treated equally. Superiors should be fair towards their sub-ordinates.
13. Initiative:
If a worker comes up with a new idea or plan, he / she must be encouraged. Initiatives give rise to higher levels of effort.