Principles of Management

Fourteen
Principles of Henry Fayol

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Presenter: Imran khan MT120202019
Contents:

 Background
 Henry Fayol
 14 Principles By Henry Fayol
 Explanation Of Principles
 Conclusion

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 Background:
 These Fourteen Principles were Developed In The
Classical School Of Thoughts
 It’s a Part Of Administrative Theory Of Management
 Administrative Management
Theory:Administrative management is the process of
managing information through people. This usually
involves performing the storage and distribution of
information to those within an organisation.
 This Theory Was Given by Henry Fayol.

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 Henry Fayol
 Henri Fayol
 Henry Fayol A french industrialist is now

Recognised a the Father of Modern

Management.
 In The Year 1916 Fayol Wrote a Book intitled
INDUSTRIAL AND GENERAL
ADMINISTRATION in this Book he Gave the
Concept of And
 published principles of management

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 14 Principles Of Management
1. Division of work. 7. Remuneration.
2. Authority. 8. Centralization.
3. Discipline. 9. Scalar chain.
4. Unity of command. 10. Order.
5. Unity of direction. 11. Equity.
6. Subordination of 12. Stability of tenure
individual interest of personnel.
to the interests of
13. Initiative.
the organization.
14. Esprit de corps. 5
 Division Of Work

• According to Henry Farol divison of

Work Means Assign each employee a
task that they can become proficient
at.
• Productivity increases as employees
become more skilled, assured and
efficient
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 Authority.

• According To Henry Fayol Managers

must possess the authority to give orders,
and recognize that with authority comes
responsibility. As well as rank,
• Fayol argues that a manager's
intelligence, experience and values should
command respect
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 Discipline
DicIpline:
Is the practice of training people to obey
rules or a code of behaviour, using
punishment to correct disobedienc
• According To Henry Fayol Everyone
should follow the rules . To help, you can
make agreements between the organization
and employees clear for all to see
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 Unity of Command

• Fayol wrote that "an employee should receive

orders from one supervisor only." Otherwise,
authority, discipline, order, and stability are
threatened.
• 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.

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 Unity of Direction
• According To Henry Fayol
Teams with the same objective
should be working under the
direction of one manager, using
one plan.
• Fayol wrote, “unity of
Direction is the condition
essential to unity of action,
coordination of strength and
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 Subordination of individual
interest to the interests of the
organization.
• Collective Interest Over Individual Interest –
• Individuals should pursue team interests over personal
ones – including managers
• There are always all kinds of interests in an
organization. In order to have an organization
function well, Henri Fayol indicated that personal
interests are subordinate to the interests of the
organization
• 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. 11
 Remuneration

• Renuneration Means To Pay What He

deserves
• Employee satisfaction depends on fair
remuneration for everyone – financial
and non-financial.
• Fayol said pay should be fair and
reward "well-directed effort."
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 Centralization
• Management and authority for decision-making process
must be properly balanced in an organization
• This depends on the volume and size of an organization
including its hierarchy.
• Centralization implies the concentration of decision making
authority at the top management (executive board). Sharing
of authorities for the decision-making process with lower
levels (middle and lower management), is referred to as
decentralization by Henri Fayol. Henri Fayol indicated that an
organization should strive for a good balance in this

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 Scalar Chain 
• According To Henry Fayol Employees should know where they
stand in the organization’s hierarchy and who to speak to within a
chain of command.
• Fayol suggested the now-familiar organization chart as a way for
employees to see this structure clearly.
• Hierarchy presents itself in any given organization. This
varies from senior management (executive board) to the
lowest levels in the organization. 
• Henri Fayol ’s “hierarchy” management principle states
that there should be a clear line in the area of authority
(from top to bottom and all managers at all levels).
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 Order

• Fayol wrote that, "The right man in the right

place" forms an effective social order.
• He applied the same maxim to materials:
right one, right place.
• Academics note that this principle pre-empted
the Just in Time for efficient production.

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 Equity

• Managers should be fair to all employees through a "combination

of kindliness and justice." Only then will the team "carry out its
duties with... devotion and loyalty.“
• The management principle of equity often occurs in the
core values of an organization.
• According to Henri Fayol, 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
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 Stability of Tenure of
Personnel

• This management principle of the 14 principles

of management 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.
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 Initiative

• Employees should be encouraged to develop and carry out

plans for improvement.
• As Fayol wrote, "At all levels of the organizational ladder,
zeal and energy on the part of employees are augmented by
initiative

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 Esprit de Corps

• The management principle ‘esprit de corps’

of the 14 principles of management 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.
• Organizations should strive to promote team spirit,
unity, and morale.
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 Conclusion
In conclusion on the 14 Principles of
Management

• The 14 principles of management can be used to manage organizations

and are useful tools for forecasting, planning, process management, 
organization management, decision-making, coordination and control.
• Although they are obvious, many of these matters are still used based on
common sense in current management practices in organizations. It
remains a practical list with focus areas that are based on Henri Fayol ’s
research which still applies today due to a number of logical principles.

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