Henri Fayol's 14 Principles of Management

Henry Fayol, also known as the Father of Modern Management Theory, gave a new perception on the concept of management. He introduced a general theory that can be applied to all levels of management and every department. He envisioned maximising managerial efficiency. Today, Fayol’s theory is practised by the management to organise and regulate the internal activities of an organisation.

Henri Fayol

The fourteen principles of management created by Henri Fayol are explained below.

1. Division of Work

Henri believed that segregating work in the workforce amongst the workers will enhance the quality of the product. Similarly, he also concluded that the division of work improves the productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for both the managerial as well as a technical work level.

2. Authority and Responsibility

These are the two key aspects of management. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership.

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 behaviour also helps them smoothly build and progress in their professional careers.

4. Unity of Command

This means an employee 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.

5. Unity of Direction

Whoever is engaged in the same activity should have a unified goal. This means all the people working in a company should have one goal and motive which will make the work easier and achieve the set goal easily.

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 organisation. This refers to the whole chain of command in a company.

7. Remuneration

This plays an important role in motivating the workers of a company. Remuneration can be monetary or non-monetary. Ideally, it should be according to an individual’s efforts they have put forth.

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 organisation. Henri Fayol stressed on the point that there should be a balance between the hierarchy and division of power.

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.

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.

11. Equity

All employees should be treated equally and respectfully. It’s the responsibility of a manager that no employees face discrimination.

12. Stability

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.

13. Initiative

The management should support and encourage the employees to take initiatives in an organisation. It will help them to increase their motivation and morale.

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 lead to a positive outcome and work environment.

In conclusion, the 14 Principles of Management the pillars of any organisation. They are integral for prediction, planning, decision-making, process management, control and coordination.

Also ReadDifference Between Fayol and Taylor’s Theories of Management

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Important Topics in Accountancy:

Frequently Asked Questions on Principles of Management


What Is the First Rule of Management?

The first rule of management is delegation. It is also known as division of work or responsibilities.

Name Any 5 Principles of Management?

Five principles of management are as follows:
1.Division of work
2.Unity of Command
3.Subordination of individual interest
4.Unity of Direction

What Is the importance of the 14 Principles of Management?

The principles of management allows managers to understand how to run an organisation. It also helps them to accomplish tasks and manage situations as and when they arise in the organisation.


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