Henri Fayol’s Principle of Management

1) Division of work
2) Authority and Responsibility
3) Discipline
4) Unity of Command
5) Unity of Direction
6) Subordination of Individual Interest
7) Remuneration
8) Centralization and Decentralization
9) Scalar Chain
10)Order
11)Equity
12)Stability of Tenure of Personnel
13)Initiative
14)Esprit De Crops
 Division of work
According to this principle the employees are
divided according to their specialization and
skills. Each employee is different from one
another, the level of expertise is different, So if
we divided the employee according to their
knowledge, skills and specialization it will
enhance their efficiency and increased
productivity.
 Authority and Responsibility

According to Henri Fayol in order to get things

done in an organization management have to
give authority to employee. Of course
authority comes responsibility, The
responsibility can be traced through the
performance of the employee. Therefore
authority and responsibility are two side of
one coin.
 Discipline
According to this principle management is
about obedience. Each employee in an
organization have to maintain respectful
environment, Maintain good code of conduct
with fellow colleagues.
 Unity of Command
According to this principle an individual
employee should receive order from one
manager and that the employee is answerable
to that manager. Receiving order more than
from one manager leads confusion and it may
create conflict in an organization.
 Unity of Direction
According to this principle management is all
about focus and unity. All employee deliver
the same activity that can be linked with same
objective. Employee should work as a team
and have to be a common goal.
 Subordination of Individual Interest

According to this principle in order to have an

organization function well, the personal
interest are subordinate to the interest of the
organization. The primary objective of an
organisation is to achieve the goal of an
organisation rather then to achieve individual
objective.
 Remuneration
According to this principle the remuneration
system in an organisation should be fair and
justify to all employee in an organisation, As
motivation and productivity are closely related
to each other, So if we didn't reward the effort
of an employee they might be demotivated
and due to this performance will hampered.
Centralization and Decentralization
Management and authority for decision- making
process must be properly balanced in an
organization. The degree of centralization and
decentralization is depend upon size and level of
an organization, Authority and responsibility
concentrated in top level of management know as
centralization and sharing decision making to
lower level know as decentralization.
 Scalar Chain
According to this principle there should be
clear line in the area of authority (from top to
bottom and all managers at all level). Each
employee can contact to his or her superior
without challenging the hierarchy.
 Order
According to this principle of management
employee of an organization must have right
resources or in a right order so that they
function properly in an organization, It also
help to make management environment
clean, safe and tidy.
 Equity
According to this principle employee must be
treated kindly and equally. As people in an
organisation comes from different
background, age, sex, religion, family status
etc. So each employee in an organisation
should treat fairly and impartially.
Stability of Tenure of Personnel
According to this principle the management is
about right staff in the right place, It helps to
minimise the employee turnover in an
organisation. If employee is not stable in an
organization there might be some problem in
the management or selection of an employee.
 Initiative
According to this principle employee should
be allowed to express new ideas. This
encourages interest and involvement and
create added value for the company.
 Esprit de Crops
According to this principle of management is
about involvement and unity of the
employee. Esprit de corps contributes to the
development of the culture and create an
atmosphere of mutual trust and
understanding.