The principles of management were developed by Henry Fayol and provide universal rules for managers to effectively run organizations. There are 14 key principles including division of work, where each employee is assigned specialized tasks; authority and responsibility, where authority must come with accountability; and unity of command, where each employee should report to one supervisor.

2. Principles of management are the universal rules which enable managers to
decide what should be done to accomplish given tasks and to run organization
efficiently.

3. The principles of management were given by Henry Fayol. His management theory is a
simple model of how management interacts with human resources.
Sir Henry Fayol
French Mining Engineer and Economist

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5. 14 Principles of Management

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7. Division of Work

8. Division of Work
Assign each employee a task in which they
could excel. Employees' productivity improves
as they become more skilled, and confident.

9. Division of Work
If you want to develop software solution, then assigning the whole product
task to one developer will be totally unfavorable.
Software Developer

10. Division of Work
Hence, organizations should delegate the entire project to the whole developer
team rather than a single expert.
Software Developer Team

11. Authority and
Responsibility
2

12. Authority and
Responsibility
Managers must have the authority to issue
commands and understand that with authority
thereby comes responsibility.

13. Authority and
Responsibility
Responsibility and authority go hand in hand. Authority denotes the right to
issue commands, whereas responsibility denotes accountability for the
obligations delegated to the person.
Authority
Responsibility

14. Discipline
3

15. Discipline
Every employee is required to respect the
organizational norms and the terms of the
employment agreement. Managers must also
verify that everyone follows the rules.

16. Unity of Command
4

17. Unity of Command
According to Fayol, "an employee should only
receive commands from one supervisor."
Authority, discipline, order, and stability are
jeopardized otherwise.

18. Unity of Direction
5

19. Teams with the same goal should work under the
guidance of a single manager and with a single
strategy.
Unity of Direction

20. Unity of Direction
The concept of unity of direction implies that there should be only one
management in charge of all activities with the same goal.
Manufacturing
Company
Bike Production Car Production

21. Subordination of Individual
Interest to General Interest
6

22. Subordination of Individual
Interest to General Interest
The interests of the organization should take
precedence over the interests of individual
employees and every employee must pursue the
team’s interest over his own.

23. Remuneration
7

24. Remuneration
Fayol believes that employees should be fairly
compensated so that both employees and owners are
satisfied. And it is the manager's responsibility to
guarantee that employees are compensated appropriately
for their efforts.

25. Remuneration
Assume that the sales are rising steadily and that the company is making a
profit. In such case, the employees' pay should be increased even without
their asking.

26. Remuneration
Assume that the sales are rising steadily and that the company is making a
profit. In such case, the employees' pay should be increased even without
their asking.

27. Centralization &
Decentralization
8

28. Centralization &
Decentralization
Centralization is when the leadership team
preserves authority. Decentralization occurs when
authority is delegated at all levels. i.e.,
Subordinates can take decisions.

29. Centralization &
Decentralization
It is advantageous to have more centralization in a small business unit and more
decentralization in a large scale business unit.
Operational
Policies
Executive level
decisions

30. Scalar Chain
9

31. Scalar Chain
Employees should be aware of their position in the
organization's hierarchy and who to contact within a
chain of command.

32. Scalar Chain
Popular companies like Samsung and others have the scalar
chain set to a dot.

33. Scalar Chain
Customer Service
Operative
Local Manager Regional Manager
Popular companies like Samsung and others have the scalar chain set to a
dot.

34. Order
10

35. Order
According to Fayol, every firm should have two
orders: one for physical resources and one for
human resources.

36. Equity
11

37. Equity
11
This principle suggests that managers should treat
their employees fairly and with kindness for them to
acquire a sense of dedication and attachment to their
work.

38. Stability of Personnel
12

39. Stability of Personnel
According to Henri Fayol, if an organization's personnel
are steady, it has a better chance of growing faster. If
the organization has a high attrition rate, a lot of time
will be wasted on training and development.

40. Initiative
13

41. Initiative
It is the manager's responsibility to encourage his
employees to take initiative in accomplishing work or
making decisions, but only within the bounds of
authority and discipline.

42. Initiative
Google, Apple, and Facebook are just a few of the organizations that have successfully
incorporated this approach as one of the 14 management principles.
Google Facebook
Apple

43. Esprit de Corps
14

44. Esprit de Corps
A feeling of pride and mutual allegiance shared by
members of a group is known as esprit de corps. That is
precisely what you must strive towards if you want to
achieve success.