HENRY FAYOL’S 14 PRINCIPLES OF

MANAGEMENT
Henri Fayol (1841-1925)
Henri Fayol (Istanbul, 29 July 1841 – Paris, 19 November
1925) was a French mining engineer and director of mines
who developed a general theory of business administration
that is often called Fayolism.
• Fayol formulated 14 principles which are as follows:
1. Division of Labour
2. Authority & Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Sub-ordination of Individual’s interests to the common goal
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity

12. Stability of tenure of personnel

13. Initiative

14. Espirit de Corps

• 1. Division of Labour:

A high degree of specialization should result in efficiency both managerial

and technical work are amenable to specialization. This leads to better work with the
same effort.

• 2. Authority & Responsibility:

Authority is needed to carry out managerial responsibilities. The manager

should have the right to order and the power to extract obedience from his
subordinates.

• 3. Discipline:

The essence of discipline is obedience, diligence, correct attitude and

outward mark of respects, within the limits fixed by the agreement between
management and its employees.
• 4. Unity of Command:

A subordinate should receive orders and instructions from

one superior only.

• 5. Unity of Direction:

Similar activities should be grouped together under one

manager only then all efforts could be directed towards the common
goal.

• 6. Sub-ordination of Individual’s interests to the common goal:

If one is asked to place individual interest and the general

interest in order of priority, definitely the general interest will be
placed at the first place.
• 7. Remuneration:
Fair and equitable remuneration should be provided to
employees to ensure better production and satisfaction.

• 8. Centralization:
There must be balance between concentration and dispersal of
authority in the organization.

• 9. Scalar Chain:
A chain of authority should extend from the top to the bottom of
the organization and should be followed at ball times, for the purpose of
effective communication.
• 10. Order:
It is the rational arrangement and placement of things and people. “A place
for everything and everything in its place”. Human and material resources should be
co-ordinated so as to be in the required place at the required time.

• 11. Equity:
A sense of fair play and justice combined with friendliness should
permeate the entire organization.

• 12. Stability of tenure of personnel:

Too much of turnover of staff and too much of job rotation, transfer etc,
interfere with the stability of the work unit and of the organization.
• 13. Initiative:
Sub ordinates should be provided with an opportunity to
show their initiative as a way of increasing their skills and sense of
participation.

• 14. Espirit de Corps:

In union there is strength and so team work. Team spirit
and a sense of unity and togetherness should be fostered and
administrated.