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.

According to henri fayol,these principles are the lighthouse fixing the bearing but it can
only serve those who know the way to the port

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

introduction

In the last century, organizations already had to deal with management in practice. In
the early 1900s, large organizations, such as production factories, had to be managed
too. At the time there were only few (external) management tools, models and methods
available.

Thanks to scientists like Henri Fayol (1841-1925) the first foundations were laid for
modern scientific management. These first concepts, also called principles of
management are the underlying factors for successful management. Henri
Fayol explored this comprehensively and, as a result, he synthesized the 14 principles
of management. Henri Fayol ‘s principles of management and research were published
in the book ‘General and Industrial Management’ (1916).

14 principles of Management are statements that are based on a fundamental truth.

These principles of management serve as a guideline for decision-making and
management actions. They are drawn up by means of observations and analyses of
events that managers encounter in practice. Henri Fayol was able to synthesize 14
principles of management after years of study.

Division of work

The principle of ‘Division of Work’ means to divide a given activity or work into
small pieces or parts so that each part is handled with great ease and efficiency.

This principle states that every work should be divided into the smallest possible
part and each such part is to be performed by an individual person (laborer).
Instead of assigning the whole work to an individual, it’s better to assign one
 task to one person. Before assigning the task to anyone it must be assured that
he posses the required knowledge, skill, capability and will to perform the task
effectively and efficiently. If the same task is performed by a person again and
again he gains specialization in that task and can perform with greater ease and
minimizes wastage of resources and time.

Fayol has emphasized on this issue because specialization and minimization of

wastage is a key to success for each and every organization. He was of the view
that every work should be divided into the smallest possible part and then is to
be assigned to an individual to gain success and specialization. This principle
also guarantees specialization, efficiency and maximum production with
minimum time and least efforts.

Positive impacts of this principle:

 Specialization,
 Minimization of wastage,
 Improved efficiency.

Consequences of violation of this principle:

 Overburden on a single employee,
 Conflicting situations,
 Wastage of time and resources,
 Chaos and confusion.

In practice, employees are specialized in different

areas and they have different skills. Different levels
of expertise can be distinguished within the
knowledge areas (from generalist to specialist).
Personal and professional developments support
this. According to Henri Fayol specialization
promotes efficiency of the workforce and increases
productivity. In addition, the specialization of the
workforce increases their accuracy and speed. This
 principle of management of the 14 principles of
management is applicable to both technical and
managerial activities.

Authority and responsibility

Authority is the power to give orders and get it obeyed or in other words it is the
power to take decisions.

Responsibility means state of being accountable or answerable for any

obligation, trust, debt or something or in other words it means obligation to
complete a job assigned on time and in best way.

Authority and responsibility are closely related and this principle states that
these two must go hand in hand. It means that proper authority should be
delegated to meet the responsibilities.

A match should be there between these two because of two main reasons:--

 Firstly, if a person is given some responsibility without sufficient authority he

can’t perform better, and also could not accomplish the desired goal.

 Secondly, if there is excess authority being delegated to an individual without

matching responsibility then the delegated authority will be misused in one way
or the other.

This is an important and useful principle of management because if adequate

authority is not delegated to the employees they cannot discharge their duties
with efficiency and this in turn will hamper the achievement of the organizational
goal. Sometimes the relation between management and employees is also badly
effected by non delegation of proper authority.

Positive impacts of this principle:

 No misuse of authority.
 Helps to complete job effectively and efficiently.
 Individuals can be held accountable.
 Systematized and effective achievement of organizational objectives.

Consequences of violation of this principle:

 Misuse of authority.
 Responsibility can’t be discharged effectively.
 No one can be held accountable.
 Conflicts between management and employees.

. Authority and Responsibility

In order to get things done in an organization, management has the authority to give
orders to the employees. Of course with this authority comes responsibility. According
to Henri Fayol, the accompanying power or authority gives the management the right to
give orders to the subordinates. The responsibility can be traced back from performance
and it is therefore necessary to make agreements about this. In other words, authority
and responsibility go together and they are two sides of the same coin.

Discipline
This third principle of the 14 principles of management is about obedience. It is often a part of
the core values of a mission and vision in the form of good conduct and respectful interactions.
This management principle is essential and is seen as the oil to make the engine of an
organization run smoothly.

Discipline means obedience, respect for authority, and observance of

established rules.

Fayol has emphasized that a sense of discipline should be present in all

employees of the organization at all level so that the organization can perform
and achieve its objectives in the best possible way.

For maintaining discipline in the organization managers should consider:

 Clear explanation of the rules;

 Effective supervision;
 Reward system on better obedience;
 Possible provision for penalty on non obedience.

A sense of discipline is needed in all employees at all level in the organization for
the smooth functioning of the organization as well as the achievement of the
organizational objectives. Some employees inherently possess this quality but
some employees need to be induced with the sense of discipline, and the manager
must give proper attention to this type of individuals to maintain and improve
discipline in the organization.
 Top level managers and officers are greatly responsible for maintaining discipline
in the organization and for this first of all they have to strictly accept the rules
of the organization and follow them so that other employees get encouraged to
accept and follow the rules.

Positive impacts of this principle:

 Helpful in achieving organizational objectives.

 Improved efficiency.
 Cordial relation between management and employees.
 Better working environment in the organization.
 Minimization of wastage;

Consequences of violation of this principle:

 Height of disorders.
 Confusion and chaos.
 Wastage of time and resources.
 Conflicting situations

Unity of command
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. If tasks
and related responsibilities are given to the employee by more than one manager, this may lead
to confusion which may lead to possible conflicts for employees. By using this principle, the
responsibility for mistakes can be established more easily.

Unity of Command means getting orders/ command from only one supervisor.

Fayol has stated “As soon as two superiors impose their authority over the same
person or department, uneasiness makes itself felt. Dual command is a
perpetual source of conflict.”

This principle states that an individual should get orders from a single superior
so that he does not get confused and can discharge his duties effectively.
 This principle advocates that only one boss should give order to an individual
so that he can understand what to do and can perform systematically with
greater efficiency. If more than one boss will instruct an individual, he will
certainly get confused about his responsibility and will not be able to perform
even a single activity because he faces the dilemma of “whom should he
follow?”

In case of more than one boss, problem of ego clash between the bosses arises
because every superior wants his orders to be executed by his subordinate.
This problem of ego clash also causes conflicting situation in the organization,
which hampers the organization growth.

Positive impacts of this principle:

 Prevents dual subordination;

 Easy to fix responsibility to an individual;
 Harmonious and cordial relation among the management and the employees;
and
 Performance of the employees will increase.

Consequences of violation of this principle:

 Reduces efficiency of subordinates;

 Creates confused situation for the subordinates;
 Subordinates can easily escape from their responsibility and duties;
 Ego clash between managers;
 Overlapping of orders and instructions; and
 Hard to maintain discipline in the organization.

Unity of direction
This principle states ‘One Head One Plan’. It means that all the employees
having same objective must be directed towards the achievement of the
common goal and thus must have one head and one plan. This principle makes
it necessary that there should be unity of action.

There are different divisions in the organization for different activities and thus
the efforts of the employees of one division having the common objective must
be directed towards the achievement of these objectives, taking into account the
threats, opportunities for that division.

The application of this principle helps in establishing co-ordination and

uniformity in the activities as well as in the organization. It also reduces the
duplication of activities in the organization and thus helps in minimizing the
wastage of resources.

This principle is often confused with the principle of ‘Unity of Command’ as both
sound the same. But the difference between them is quite clear as ‘Unity of
command’ is concerned with taking command from one boss whereas the
principle of ‘Unity of Direction’ is concerned with the direction of the efforts of
the employees of one division towards the achievement of the objectives of that
division.

Positive impacts of this principle:

 Efficient achievement of organizational objective;

 Better coordination among the employees;
 Efforts of employees are directed in a better way; and
 Systematic working environment is developed in the organization.

Consequences of violation of this principle:

 Decrease in organizational efficiency;

 Lack of coordination;
 Wastage of resources;
 Difficulty in achievement of organizational objective; and
 Duplication of activities.
 This management principle of the 14 principles of management is all about focus and unity. All
employees deliver the same activities that can be linked to the same objectives. All activities
must be carried out by one group that forms a team. These activities must be described in a
plan of action. The manager is ultimately responsible for this plan and he monitors the progress
of the defined and planned activities. Focus areas are the efforts made by the employees and
coordination

Subordination of individual interest over general

interest
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 (ethics). 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.

This principle states that general interest is superior to the individual interest.
And the manager must try to integrate the individual goal with the organizational
goal in such a manner so that both the objectives are accomplished with
efficiency and effectiveness. The manager directs the employees in such a
manner that they work for their objective and ultimately the organizational
objective is achieved.

Each and every individual joins the organization with certain expectations and
objective. And everyone works to achieve his objective. If the objectives of the
individual employee is in the direction of the achievement of the overall
organizational objective then there is no problem, but where the employee has
an objective which drives him in the opposite direction from that of the
organizational objective, the manager must try to reconcile the goals of both, the
individual with the organization so as to achieve the objectives. The manager
must try to achieve the organizational objective in such a manner that the
individual objectives are also achieved.

All this leads to satisfaction among the employees which helps to maintain a
cordial relation among the employees and the management. This also facilitates
to increase the efficiency of the employees, and leads to harmony in the
organization.

Positive impacts of this principle:

 Achievement of organizational objective;

 Coordination between individual and organizational goal;
 Harmony in the organization;
 Increases employee’s respect for the organization.
 Consequences of violation of this principle:

 Difficulty in achievement of organizational goal;

 Conflicting situations in the organization;
 Wastage of efforts, time and resources; and
 Delay in work.

Remuneration
Motivation and productivity are close to one another as far as the smooth running of an
organization is concerned. This management principle of the 14 principles of management
argues that the remuneration should be sufficient to keep employees motivated and productive.
There are two types of remuneration namely non-monetary (a compliment, more
responsibilities, credits) and monetary (compensation, bonus or other financial compensation).
Ultimately, it is about rewarding the efforts that have been made.

Every individual joins the organization with the main aim of earning his bread
and butter. The wages or salary which he earns for his work helps him to fulfill
the basic and other needs of life. The wages or salary must be in equality with
the work done by him so that he gets satisfied and can perform better.

Fayol is of the view that each employee must get fair remuneration so that the
employee as well as the owner gets the same amount of satisfaction. The
remuneration system must be such which provides for the adequate
remuneration to the employees, motivates the employee to perform better, and
may ensure safety & security, raise standard of living of the employees.

A fair wage system is one that guarantees equality between the work done and
the payment received. Such a system satisfies the owner in terms of the work
completed by an individual employee and satisfies the employee in terms of
payment received by him. This creates a healthy organizational environment and
relation between the management and the employees.

Positive impacts of this principle:

 It creates good relation between workers and management;

 Employees get motivated;
 It declines the labor turnover rate;
  Employees feel satisfied with their wages and thus contribute their
best effort;
 It raises the standard of living of the employees; and
 It develops the society indirectly.

Consequences of violation of this principle:

 Employee’s efficiency decreases;

 Conflict between management and employees;
 Labor turnover rate will be more;
 The immediate result is incomplete work; and
 Hard to achieve organizational objective

Centralization and decentralization

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.

When the power to take decision rests with the top management it is called as
‘Centralisation’.

When the power to take decision is given to the person performing the job it is
called as ‘Decentralisation’.

Fayol is of the opinion that there should be a proper balance between

centralisation and decentralisation. An organization must not be completely
centralized or decentralized, there should be a match between the two depending
upon the size, nature and location of business.

The top management must keep the authority to take important decisions of the
organization but adequate authority must be delegated to the lower level
employees to take the department level decisions. This will facilitate the proper
and timely functioning in the organization. And the top management will be free
from extra burden of taking and handling each and every affair of the
organization. All the lower level problems will be handled at that level only, this
also gives a feeling of superiority to the lower level employees which motivates
them to perform better.

Positive impacts of this principle:

 Facilitates proper functioning of the organization;
 Timely completion of work;
 No extra burden on the top management;
 Motivates the lower level employees; and
 Decisions will be taken at the level of action.

Consequences of violation of this principle:

 Over burden on the top management;
 Difficulty in the achievement of organizational objective;
 Delay in action, because the decisions of top management are to be
waited.
 Sometimes it creates conflict between the management and the
employees; and
 Ego clashes in case of different decision by lower level and top level
management.

Scalar chain
Scalar Chain
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). This can be seen as a type of
management structure. Each employee can contact a manager or a superior in an
emergency situation without challenging the hierarchy. Especially, when it concerns
reports about calamities to the immediate managers/superiors.

Scalar chain is the formal line of authority which moves from highest to lowest
rank in a straight line. This chain specifies the route through which the
information is to be communicated to the desired location/person.
Fayol emphasized that every information in the organization must flow according
to this chain to facilitate clear communication of orders of the superiors and
feelings of the subordinates. This chain must be strictly followed in the
organization. Fayol also stated that there should be no overlapping of steps
during the communication process.

Fayol’s Ladder: This principle was explained by Fayol with the help of a ladder
diagram which showed the flow of information.

For example, in an organization there are employees A, B, C, D, E, F, G, H, I, at

various posts. If employee ‘C’ has to communicate with employee ‘G’ using the
scalar chain, the route should be like CBAFG. Thus there will be four
steps for the information to reach from employee ‘C’ to the employee ‘G’.

Due to more clear system of authority and communication, problems can be

solved easily, also the accountable person can be held quickly without any
confusion and delay. Though this principle is very effective and clear, but it
consumes a lot of time. In case of emergency, information will take a lot of time
to reach the desired position which may delay the action as well as decision.

Gang plank:

For overcoming this limitation of scalar chain, fayol introduced the concept of
‘Gang Plank’. According to this concept, two executives of the organization of
different department at the same level can communicate directly in case of
emergency, so that speedy decisions and actions could be taken. In case of the
above example, if employee ‘C’ has to contact employee ‘G’, he can easily and
directly communicate the information to ‘G’ using this Gang plank (‘C’‘G’). This
reduces a lot of time and helps in effective performance.

Positive impacts of this principle:

 Clear communication of information;
 Better relation among employees;
 Systematic communication in the organization; and
 Faster solution to organizational problems.

Consequences of violation of this principle:

 Bitterness in the relation of employees because of ignoring the close
supervisors.
 Improper communication of information;
 Difficulty in finding the responsible person.
 Order
Principle: ORDER

Here the word Order does not mean any command but is used in different
context. “Order” means right arrangement of things and activities. In other
words, order is a normal, correct, or fit condition.

This principle states that there should be a proper order for everything. Fayol is
of the view that in every organization there should be a fixed place for everything
to facilitate smooth working and avoid wastage of resources.

According to Fayol in every organization two different orders are necessary.

Material Order: This order specifies that there should be a proper place for all
physical resources. It states “A proper place for everything and everything at its
proper place”. This will eliminate any kind of confusion regarding the search of
material as the place of materials is already fixed and thus reduces wastage of
material, time and efforts.

Social order: This order specifies that there should be a proper place for all
human resources in accordance with their designations. It states “An
appointed place for every employee and each employee at his/her appointed
place”. This order is based on the basic assumption of “Right man for the right
job”

This principle is very important for any organization as an effective order

decides the overall working, efficiency and effectiveness of the organization. If
an order is maintained for each and every resource then there will be no
confusion and delay in working and thus this also helps in eliminating the
wastage of time, resource and efforts. Consequently it also helps in controlling
the use of financial resources.

Positive impacts of this principle:

 No wastage of time and energy.
 Better handling of resources.
 Smooth and systematic working in the organization.
 Increased productivity.
 Efficiency in work.
 Proper use of financial resources.
 Consequences of violation of this principle:
 Delayed operations.
 Scattered physical and human resources.
 Wastage of time and energy.
 Wastage of financial resources.
 No proper accountability.
 Reduction in efficiency of controlling process.
 Reduced operational efficiency.

According to this principle of the 14 principles of management, employees in an organization

must have the right resources at their disposal so that they can function properly in an
organization. In addition to social order (responsibility of the managers) the work environment
must be safe, clean and tidy.

Equity
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.

EQUALITY” is the condition or quality of being equal. It means the applicability

of same rules and regulations for all employees in the organization irrespective
of their religion, sex, caste, colour, creed, language, nationality, grade, position
etc. This principle is based on the basic thought that “all employees of the
organization are equal”. This principle states that each and every employee in
the organization should be treated with equality and in a just and fair manner.
There should not be any discrimination on any ground with any employee of the
organization. The Executive Officer must be fair and unbiased while dealing with
his subordinates.

This equal treatment will motivate the employees to give their whole hearted and
maximum contribution towards the achievement of the organizational objective.
When the officers are unbiased in their dealing with the employees, the
employees will get satisfied and will contribute to their fullest capacity. This will
also ensure loyalty and devotion of employees towards the organization, and will
enhance the employee-management relationship.

“The Principle of Equality” does not mean that all employees of the organization
are equal and must be treated and paid equal salary. It only means equal rules
and regulations for every employee without any discrimination.
 Positive impacts of this principle:
 Employees feel satisfied.
 Ensures just and fair treatment to all.
 Motivate employees.
 Ensures loyalty of employees towards organization.
 Ensures cordial relationship among employees and management.

Consequences of violation of this principle:

 Dissatisfaction among employees.
 Delay in the achievement of organizational objective.
 Lack of respect towards superiors and work.
 Lack of team spirit.
 Hinders employee-management relationship

Stability 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.

'STABILITY' means no frequent change, termination and transfer etc. It means

that, in an organisation whenever an employee is appointed for a job, he/she
shouldn't be removed from that position frequently. The management of the
organisation should ensure that there must be stability in the job and frequent
changes and shuffling of position should be avoided.

When one feels secure at his job, he/she contributes maximum of his
capability towards the organisational objectives. Stability also helps the
employee to know each and every aspect of the job with the passage of time
which consequently helps in performing the job with greater efficiency and
minimum wastage. It creates a sense of belonging-ness towards the job and the
organisation.

An organisation following the principle of stability achieves its objectives

effectively and efficiently with the maximum contribution from their employees.
The employees of such organisation always feel satisfied and thus are the
productive factor for the organisation. But if this principle is violated i.e. if the
employees are frequently transferred from one position to another or employee
turnover, they will feel dissatisfied and will not perform with their full potential
leading to non-achievement of the organisational objectives or under utilisation
of resources as well as wastage.

Positive impacts of this principle:

 Develops sense of belonging-ness towards the organisation.
 Improves the efficiency level of employees.
 Minimises the wastage of resources.
 Employees satisfaction.
 Better accountability.
 Saves time.

Consequences of violation of this principle:

 Non-achievement of the organisational objectives
 Lack of employees participation.
 Wastage of resources and time.
 Dissatisfaction
 Adds to cost.

Initiative
Henri Fayol argued that with this management principle employees should be allowed to
express new ideas. This encourages interest and involvement and creates added value for the
company. Employee initiatives are a source of strength for the organization according to Henri
Fayol. This encourages the employees to be involved and interested.

‘Initiative’ means to start, to begin or to instruct in a project. Here, in this

principle fayol suggested that each employee should be given an opportunity to
take some initiative in framing the functional plan as well as in determining the
steps to be taken at each level for proper execution of the plan.

Management must welcome the employees for taking initiatives in forwarding

valuable suggestions before the plans are set up for them. When the plans are
set up in consultation with the employees they will feel as if it is their own plan
and they have to complete it, which will stimulate them to work whole
heartedly. This will reduce wastage, absenteeism and maintain a cordial
relation between employees and management.

This principle helps the management to know more ways of executing the
predetermined plan as the employees give various suggestions. When the
employees are involved in such a way in the management they feel satisfied
and take each and every necessary step to accomplish the plan. This will make
the working environment more interesting, more cooperative and more
effective.

Positive impacts of this principle:

Ø Timely achievement of objectives when they are set in consultation with
employees.
Ø Develops sense of belongingness in employees.
Ø Ensure maximum participation of employees.

Consequences of violation of this principle:

Ø Employees will feel that the plans and goals are not for their benefit and thus
will not work with full potential.
Ø Lacks maximum participation from employees.
Ø Conflict between the management and employees.

Espirit 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. Esprit
de corps contributes to the development of the culture and creates an atmosphere of mutual
trust and understanding.

'ESPIRIT DE CORPS' here means team spirit and team work. This principle
emphasizes on team work. 'UNITY IS STRENGTH' is the essence of this
principle. Fayol suggested that there should be a team spirit in the
organisation and all the employees must consider themselves as member of the
organisation.

The organisation should be considered as a team and all the employees as its
member. When the employees are considered as member, it develops a feeling
of belongingness among them and thus each of them contributes to the
achievement of the organisational goal. This sense of togetherness helps the
employees to perform with greater efficiency and positive attitude towards the
work.

This principle is based on two theories - “Unity is strength” and “Unity of

staff is the foundation of success in any organisation”. Thus, this principle
states that both the workers and management should work together to
accomplish the objectives. The reason behind this principle is that, team
contribution is always better then individual contribution.

This principle is very helpful in the organisation as well as in our daily life
because this brings a sense of belongingness and association wherever human
beings are involved.

Positive impacts of this principle:

Ø Achievement of group goals.
Ø Development of team spirit.
Ø High morale of employees.
Ø Cooperation and coordination in the organisation.

Consequences of violation of this principle:

Ø Non-achievement of the organisational objectives.
Ø Conflicting environment in the organisation.
Ø Lacks maximum participation from employees.