HENRY FAYOL 14 PRINCIPLES OF MANAGEMENT by manpreet singh (student of b.com)

1. HENRY FAYOL BIOGRAPHY
Henry Fayol , also known as the ‘ father of modern
management theory ’ gave a new perception of the
concept of management . He introduced a general
theory that can be applied to all levels of management
and every department . The Fayol theory is practiced by
the managers to organize and regulate the internal
activities of an organization .He concentrated on
accomplishing managerial efficiency .

2. (1.) DIVISION OF WORK :
Henry believed that segregating work in the workforce
amongst the worker will enchance the quality of product
.Similarly , he also concluded that the division of work
imp0roves the productivity ,efficiency ,accuracy and speed of
the workers .This principle is appropriate for both the
managerial as well as a technical work level.
For e.g. ; someone working the counter collected your food and
placed it in bag to hand to you out the window . Another
person handed the bag out the window . Those are the
different steps that were taken to fully complete one task .This
is called Division of work .

3. (2.) AUTHORITY AND RESPONSIBILITY :
These are two key aspects of management . Authority
facilities the management to work efficiently , and
responsibility makes them responsible for the work done
under their guidance or leadership . In an ideal scenario ,
authority and responsibility along with power and
accountability are equal to each other in every position of the
organization.
For e.g. ; if a employee is given authority but does not have
power, he can’t do his job effectively

4. (3.) DISCIPLINE :
Without discipline nothing can be accomplished . It is the
core value for any project or any management . Good
performance and sensible interrelation make the management
job easy and comprehensive . Employees good behavior also
helps them smoothly build and progress in their professional
careers .
For e.g. ; if the employees break their promise of working up to
their full capacity, it will amount to the violation of obedience .
Similarly a sales manager has the authority to do business on
credit .

5. (4.) UNITY OF COMMAND :
This means an employees should have only one boss
and follow his command .if an employee has to follow more
than one boss , there begins a conflict of interest and can
create confusion .
For e.g. ; imagine you are the CEO of a technology firm in
silicon valley. While the board of directors of your company
governs the policy making and strategic planning ,under the
concept of unity command , you do not answer to all members
of the board .but only the chairman of the board .

6. (5.) UNITY OF DIRECTION :
Whoever is engaged in the same activity should have
a unified goal . This means all the person working in a
company should one goal and motive which will make the
work the easier and achieve the set goal easily .
For e.g. ; all marketing activities such as advertising ,
sales promotion , pricing policy , etc ., must be directed by
only one manager .

7. (6.) SUBORDINATION OF INDIVIDUAL
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 .
Fr e.g.; suppose an employee would like to obtain a big raise
of his salary , beyond what is usual for his job .doing so
would not be in the general interest of the firm , as it would
lose it’s competitiveness if it continues to pay too much to
its employees .

8. (7.) REMUNERATION;
This plays an important role in motivating the
workers of workers of a company . Remuneration can be
monetary or non-monetary .however , it should be
according to an individual ‘s efforts they have made .
For e.g.; One common example of this is a retirement
plan . Remuneration also refers to the benefits an
employee receives from his or her company . These can
come in the form of health insurance ,gym memberships,
the use of a company mobile device or company car or
others , depending on the company .

9. (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 . Henry Fayol stressed on the point that
there should be a balance between the hierarchy and
division of power.
For e.g.; The military has a centralized organization
structure. This is because the higher ups order those
below them and everybody must follow those orders .

10. (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.
For e.g.; If A is the CEO of an organization and he has two
paths of authorities under him , namely the finance of
department and the sales department …..…. E is the
finance junior .

11. (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 . Fayol feels that in order to
motivate the employees , apart from general
remuneration , they should be given some monetary and
non-monetary incentives .
For e.g.; Suppose that the things are getting dearer and
dearer and the company is getting good profits

12. (11.) EQUITY :
All employees should be treated equally
and respectfully . It’s the Responsibility of a
manager that no employees face discrimination .
This principle emphasizes kindliness and justice in the
behaviour of managers towards workers .It will bring
loyalty and devotion in the behaviour of employees and
they will put their best to achieve the targets
For e.g. ; Individuals performing similar jobs in kapura
Ltd are paid at the same wage rate .

13. (12.) STABILITY OF PERSONAL :
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 .
For e.g. ; A labourer completes 10 units of goods in a
day . Another labourer who happens to be a relatives of
the supervisor completes 8 units but both get equal
remuneration. This violates the principles of equality .
The second labourer should get less remuneration
than first one .

14. (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 .
For e.g.; A salesman suggests to his sales
managers to implement a new advertisement
technique . The sales managers sends him away by
telling him that it is not possible and ignores the
suggestion altogether .

15. (14.) ESPRIT DE CORPS :
It is the responsibility of the management to
motivate their employees and be supportive of each
other regularly . Developing trust and mutual
understanding will leads to a positive outcome and
work environment .
For e.g. ; A group marching to bring awareness to a
current issue . A common spirit of comradeship ,
enthusiasm ,and devotion to a cause among the
members of a group .