Fayol'S 14 Principles of Management 1. Division of Work: By: Bai Puti L. Usop

FAYOL’S 14 PRINCIPLES OF MANAGEMENT
1. Division of Work
Dividing the full work of the organization among individuals and creating
departments is called the division of work.
Division of work leads to specialization, and specialization helps to increases

efficiency and efficiency which results in improvements in the productivity and
profitability of the organization.
2. Balancing Authority and Responsibility
Authority must be equal to Responsibility.
According to Henri Fayol, there should be a balance between Authority (Power)

and Responsibility (Duties). The right to give orders should not be considered
without reference to responsibility. If the authority is more than responsibility
then chances are that a manager may misuse it. If responsibility is more than
authority then he may feel frustrated.
3. Discipline
Outward mark of respect in accordance with formal or informal agreements

between a firm and its employees.
Discipline means respect for the rules and regulations of the organization.
Discipline may be Self-discipline, or it may be Enforced discipline. No slacking
or bending of rules, not allowed in any organization. The works must respect
the rules that run the organization. To establish discipline, good supervision
and impartial judgment are needed.
4. Unity of Command
According to this principle, a subordinate (employee) must have and receive

orders from only one superior (boss or manager). To put it another way, a
subordinate must report to only one superior. It helps in preventing dual
subordination. This decreases the possibilities of “Dual subordination” which
creates a problem is a function of managers.
5. Unity of Direction
One head and one plan for a group of activities with the same objective. All
activities which have the same objective must be directed by one manager, and
he must use one plan. This is called the Unity of Direction. Whoever is engaged
By: Bai Puti L. Usop

in the same activity should have a unified goal. This means all the person
working in a company should have one goal and motive which will make the
work easier and achieve the set goal easily.
For example, all marketing activities such as advertising, sales promotion,

pricing policy, etc., must be directed by only one manager. He must use only
one plan for all the marketing activities. Unity of direction means activities
aimed at the same objective should be organized so that there are one plan and
one person in charge.
6. Subordination of Individual Interests to the General Interest
This indicates a company should work unitedly towards the interest of a

company rather than personal interest. Be subordinate to the purposes of an
organization. This refers to the whole chain of command in a company.
The interest of one individual or one group should not prevail over the general
good. The individual interest should be given less importance, while the general
interest should be given the most importance. If not, the organization will
collapse. The interest of the organizational goal should not be sabotaged by the
interest of an individual or on the group.
7. Remuneration
This plays an important role in motivating the workers of a company.

Remuneration can be monetary or non-monetary. However, it should be
according to an individual’s efforts they have made.
Remuneration is the price for services received. Pay should be fair to both the
employee and the firm. If an organization wants efficient employees and best
performance, then it should have a good remuneration policy. This policy
should give maximum satisfaction to both employers and employees. It should
include both financial and non-financial incentives.
Compensation should be based on a systematic attempt to reward good

performance.
8. Centralization
In any company, the management or any authority responsible for the

decision-making process should be neutral. However, this depends on the size
of an organization. Henri Fayol stressed on the point that there should be a
balance between the hierarchy and division of power. It is always present to a

greater or lesser extent, depending on the size of the company and the quality
of its managers. In centralization, the authority is concentrated only in a few
hands.
However, in decentralization, the authority is distributed to all the levels of

management. No organization can be completely centralized or decentralized. If
there is complete centralization, then the subordinates will have no authority
(power) to carry out their responsibility (duties). Similarly, if there is complete
decentralization, then the superior will have no authority to control the
organization.
Therefore, there should be a balance between centralization and

decentralization. The degree to which centralization or decentralization should
be adopted depends on the specific organization, but managers should retain
final responsibility but should give subordinates enough authority to do the
tasks successfully.
9. Scalar Chain
Fayol on this principle highlights that the hierarchy steps should be from the
top to the lowest. This is necessary so that every employee knows their
immediate senior also they should be able to contact any, if needed.
The chain of command, sometimes called the scalar chain, is the formal line of
authority, communication, and responsibility within an organization. The chain
of command is usually depicted on an organizational chart, which identifies the
superior and subordinate relationships in the organizational structure. Or it is
the line of authority from top to bottom of the organization. This chain
implements the unity-of-command principle and allows the orderly flow of
information. Under the unity of command principle, the instructions flow
downward along the chain of command and accountability flows upward. More
clear-cut the chain of command, the more effective the decision-making
process and the greater the efficiency.
10. Order
A company should maintain a well-defined work order to have a favourable

work culture. The positive atmosphere in the workplace will boost more positive
productivity.
A place for everything and everything in its place’ the right man in the right
place. There should be an Order for material/things and people in the
organization. Order for things is called Material Order and order for people is

called ‘Social Order’. Material Order refers to “a place for everything and
everything in its place.” Social Order refers to the selection of the “right man in
the right place”.
There must be an orderly placement of the resources such as Men and Women,
Money, Materials, etc. Human and material resources must be in the right
place at the right time. Misplacement will lead to misuse and disorder.
11. Equity
While dealing with the employees a manager should use kindliness and justice
towards employees equally. Equity is a combination of kindness and justice. It
creates loyalty and devotion in the employees toward the organization. The
equity principle suggests that the managers must be kind as well as equally
fair to the subordinates.
All employees should be treated equally and respectfully. It’s the responsibility
of a manager that no employees face discrimination.
12. Stability of Tenure of Personnel
An employee delivers the best if they feel secure in their job. It is the duty of
the management to offer job security to their employees. Although it could take
a lot of time, Employees need to be given fair enough time to settle into their
jobs. An employee needs time to learn his job and to become efficient.
The employees should have job security because instability leads to

inefficiency. Successful firms usually had a stable group of employees.
13. Initiative
The management should support and encourage the employees to take

initiatives in an organization. It will help them to increase their interest and
make then worth.
Without limits of authority and discipline, all levels of staff should be

encouraged to show initiative. Management should encourage initiative. That
is, they should encourage the employees to make their own plans and to
execute these plans. This is because an initiative gives satisfaction to the
employees and brings success to the organization. It allows the subordinates to
think out a plan and do what it takes to make it happen.
14. Esprit De Corps

Esprit de Corps means “Team Spirit”. Therefore, the management should
create unity, co-operation, and team-spirit among the employees. They should
avoid dividing and rule policy. Harmony, cohesion among personnel. It’s a great
source of strength in the organization. It is a quality in every successful
business. It is the responsibility of the management to motivate their
employees and be supportive of each other regularly. Developing trust and
mutual understanding will lead to a positive outcome and work environment.
These principles are guidelines for every management function. The manager
must act according to the 14 principles of management; in order to reach the
goal and create a surplus.
These 14 management principles of Henri Fayol are universally accepted. they

work as a guideline for managers to do their job according to their
responsibility.

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FAYOL’S 14 PRINCIPLES OF MANAGEMENT

Division of work leads to specialization, and specialization helps to increases

2. Balancing Authority and Responsibility

Authority must be equal to Responsibility.

According to Henri Fayol, there should be a balance between Authority (Power)

Outward mark of respect in accordance with formal or informal agreements

According to this principle, a subordinate (employee) must have and receive

By: Bai Puti L. Usop

For example, all marketing activities such as advertising, sales promotion,

6. Subordination of Individual Interests to the General Interest

This indicates a company should work unitedly towards the interest of a

This plays an important role in motivating the workers of a company.

Compensation should be based on a systematic attempt to reward good

In any company, the management or any authority responsible for the

By: Bai Puti L. Usop

However, in decentralization, the authority is distributed to all the levels of

Therefore, there should be a balance between centralization and

A company should maintain a well-defined work order to have a favourable

By: Bai Puti L. Usop

12. Stability of Tenure of Personnel

The employees should have job security because instability leads to

The management should support and encourage the employees to take

Without limits of authority and discipline, all levels of staff should be

14. Esprit De Corps

By: Bai Puti L. Usop

These 14 management principles of Henri Fayol are universally accepted. they

By: Bai Puti L. Usop

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