This document explains Henri Fayol's 14 principles of management which were developed in the early 1900s to help manage large organizations. The 14 principles address topics such as the division of labor, unity of command, authority and responsibility, remuneration, and esprit de corps. While developed over a century ago, many of these principles remain relevant to modern management practices.

1. Thisarticle explainsthe theoryof the 14 Principlesof managementby Henri Fayol ina practical way.
Afterreadingyouwill understandthe basicsof thispowerful managementtool.
Contents
Introduction14 principlesof management
14 Principlesof management
1. Divisionof Work
2. AuthorityandResponsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordinationof IndividualInterest
7. Remuneration
8. The Degree of Centralization
9. Scalar Chain
10. Order
11. Equity

2. 12. Stabilityof Tenure of Personnel
13. Initiative
14. Espritde Corps
In conclusiononthe 14 Principlesof management
It’sYour Turn
Introduction14 principlesof management
In the lastcentury,organizationsalreadyhadtodeal withmanagementinpractice.Inthe early1900s,
large organizations,suchasproductionfactories,hadtobe managedtoo.At the time there were only
few(external) tools,modelsandmethodsavailable. Thankstoscientistslike Henri Fayol(1841-1925) the
firstfoundationswere laidformodernmanagement.
These firstconcepts,alsocalledprinciplesare the underlyingfactorsforsuccessful management. Henri
Fayol exploredthiscomprehensivelyand,asa result,he synthesizedthe 14 principlesof management.
Henri Fayol ‘s principlesandresearchwere publishedinthe book‘General andIndustrialManagement’
(1916).
14 Principlesof management
14 principlesof management are statementsthatare basedona fundamental truth.These principles
serve asa guideline fordecision-makingandmanagementactions.Theyare drawnupby meansof
observationsandanalysesof eventsthatmanagersencounterinpractice. Henri Fayol wasable to
synthesize 14principlesof managementafteryearsof study,namely:
1. Divisionof Work
In practice,employeesare specializedindifferentareasand theyhave differentskills.Differentlevelsof
expertisecanbe distinguishedwithinthe knowledgeareas(fromgeneralisttospecialist).Personal and
professionaldevelopmentssupportthis.Accordingto Henri Fayol specializationpromotesefficiencyof
the workforce andincreasesproductivity.Inaddition,the specializationof the workforce increasestheir
accuracy and speed.Thismanagementprincipleof the 14 principles of managementisapplicable to
bothtechnical andmanagerial activities.
2. AuthorityandResponsibility
In orderto getthingsdone inan organization,managementhasthe authoritytogive orderstothe
employees.Of course withthisauthoritycomesresponsibility.Accordingto Henri Fayol,the
accompanyingpowerorauthoritygivesthe managementthe righttogive orderstothe subordinates.
The responsibilitycanbe tracedback fromperformance anditis therefore necessarytomake
agreementsaboutthis.Inotherwords,authorityandresponsibilitygotogetherandtheyare two sides
of the same coin.

3. 3. Discipline
Thisthirdprinciple of the 14 principlesof managementisaboutobedience.Itisoftenapart of the core
valuesof a missionandvision inthe formof goodconduct and respectful interactions.Thismanagement
principle isessentialandisseenasthe oil to make the engine of an organizationrunsmoothly.
4. Unity of Command
The managementprinciple‘Unityof command’meansthatanindividual employeeshouldreceive
ordersfromone manager andthat the employee isanswerabletothatmanager.If tasksand related
responsibilitiesare giventothe employeebymore thanone manager,thismay leadtoconfusionwhich
may leadtopossible conflictsforemployees.Byusingthisprinciple,the responsibilityformistakescan
be establishedmore easily.
5. Unity of Direction3
Thismanagementprinciple of the 14 principlesof managementisall aboutfocusand unity.All
employeesdeliverthe same activitiesthatcanbe linkedtothe same objectives.All activitiesmustbe
carriedout by one groupthat formsa team.These activitiesmustbe describedinaplanof action.The
manageris ultimatelyresponsiblefor thisplanandhe monitorsthe progressof the definedandplanned
activities.Focusareasare the effortsmade bythe employeesandcoordination.
6. Subordinationof IndividualInterest5
There are alwaysall kindsof interestsinanorganization.Inorder tohave an organizationfunctionwell,
Henri Fayol indicatedthatpersonal interestsare subordinate tothe interestsof the organization
(ethics).The primaryfocusisonthe organizational objectivesandnotonthose of the individual.This
appliestoall levelsof the entireorganization,includingthe managers.
7. Remuneration
Motivationandproductivityare close toone anotheras far as the smoothrunningof an organizationis
concerned.Thismanagementprincipleof the 14 principlesof managementarguesthatthe
remunerationshouldbe sufficienttokeepemployeesmotivatedandproductive.There are twotypesof
remunerationnamelynon-monetary(acompliment,more responsibilities,credits) andmonetary
(compensation,bonusorotherfinancial compensation).Ultimately,itisaboutrewardingthe efforts
that have beenmade.
8. The Degree of Centralization
Managementandauthorityfordecision-makingprocessmustbe properlybalancedinan organization.
Thisdependsonthe volume andsize of anorganizationincludingitshierarchy.Centralizationimplies
the concentrationof decisionmakingauthorityatthe top management(executive board).Sharingof
authoritiesforthe decision-makingprocesswithlowerlevels(middleandlowermanagement),is

4. referredtoas decentralizationbyFayol. Henri Fayol indicatedthatanorganizationshouldstrive fora
goodbalance inthis.
9. Scalar Chain
Hierarchypresentsitself inanygivenorganization.Thisvariesfromseniormanagement(executive
board) to the lowestlevelsinthe organization. Henri Fayol ’s“hierarchy”managementprinciplestates
that there shouldbe a clearline inthe areaof authority(fromtopto bottomand all managersat all
levels).Thiscanbe seenas a type of managementstructure.Eachemployee cancontacta manager or a
superiorinan emergencysituationwithoutchallengingthe hierarchy.Especially,whenitconcerns
reportsaboutcalamitiestothe immediate managers/superiors.
10. Order
Accordingto thisprinciple of the 14 principlesof management,employeesinan organizationmusthave
the right resourcesattheirdisposal sothattheycan functionproperlyinanorganization.Inadditionto
social order(responsibilityof the managers) the workenvironmentmustbe safe,cleanandtidy.
11. Equity
The managementprincipleof equityoftenoccursinthe core valuesof anorganization.Accordingto
Henri Fayol,employeesmustbe treatedkindlyandequally.Employeesmustbe inthe right place inthe
organizationtodothingsright.Managers shouldsupervise andmonitorthisprocessandtheyshould
treat employeesfairlyandimpartially.
12. Stabilityof Tenure of Personnel3
Thismanagementprinciple of the 14 principlesof managementrepresentsdeploymentandmanagingof
personnel andthisshouldbe inbalance withthe service thatisprovidedfromthe organization.
Managementstrivestominimizeemployee turnoverandtohave the rightstaff in the rightplace.Focus
areas suchas frequentchange of positionandsufficientdevelopmentmustbe managedwell.
13. Initiative
Henri Fayol arguedthat withthismanagementprincipleemployeesshouldbe allowedtoexpressnew
ideas.Thisencouragesinterestandinvolvementandcreatesaddedvalue forthe company.Employee
initiativesare asource of strengthforthe organizationaccordingto Henri Fayol.Thisencouragesthe
employeestobe involvedandinterested.
14. Espritde Corps
The managementprinciple‘espritde corps’of the 14 principlesof managementstandsforstrivingfor
the involvementandunityof the employees.Managersare responsible forthe developmento6f morale
inthe workplace;individuallyandinthe areaof communication.Espritde corpscontributestothe
developmentof the culture andcreatesan atmosphere of mutual trustandunderstanding.

5. In conclusiononthe 14 Principlesof management
The 14 principlesof managementcanbe usedtomanage organizationsandare useful toolsfor
forecasting,planning,processmanagement,organizationmanagement,decision-making,coordination
and control.
Althoughtheyare obvious,manyof these mattersare still usedbasedoncommonsense incurrent
managementpracticesinorganizations.Itremainsapractical listwithfocusareasthat are basedon
Henri Fayol ’s researchwhichstill appliestodaydue toanumberof logical principles.
It’sYour Turn
What do youthink?What are the (14) managementprinciplesof today’smanagement?Dothese
principlesworkineveryorganizationorare there exceptions?Andif so,whatare the exceptionsand
whatcan we learnfromthem?
Share your experience andknowledge inthe commentsbox below.
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More information
Wren,D. A. , Bedeian,A.G. ,Breeze,J.D. (2002). The foundationsof Henri Fayol’sadministrative
theory.ManagementDecision,Vol.40Iss:9, pp.906 – 918 state:It wasnot until the Storr’stranslation
that Fayol’s(1949) AdministrationIndustrielle etGénéralereachedawideraudience,especiallyinthe
USA and establishedFayol asamajor authorityonmanagement.
Narayanan,V.K.,Nath, R.(1993). Organizationtheory:astrategicapproach. Irwin,p.29, ISBN
9780256087789.
Fayol,H. (1917). Administrationindustrielle etgénérale;prévoyance,organisation,commandement,
coordination,controle (inFrench).Paris,H.DunodetE. Pinat,OCLC40224931.
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