Fayol's 14 Principles of Management Explained

Fayol's 14 Principles of Management

• 1. Division of Labour

  The more people specialize, the more efficiently they perform their job. This principle is very clear in the modern assembly line.

• 2. Authority

  Managers need to give orders to get things done. While formal authority gives them the right to rule, managers do not always get obedience unless they have personal authority (leadership).

• 3. Discipline

  The members of an organization must follow the rules and conventions that govern the company. This will be the result of good leadership at all levels, equitable arrangements (such as arrangements to reward superior performance), and sanctions for violations, fairly applied.

• 4. Unity of Command (Management Unit)

  Operations that have the same objective should be addressed by a single manager to use a single plan.

• 5. Unity of Direction (Control Unit)

  Each employee should be instructed on a particular operation by only one person.

• 6. Subordination of Individual Interest to the Common Good

  In the interest of any company, employees' interests should not take precedence over the interests of the organization as a whole.

• 7. Remuneration (Compensation)

  Compensation for work must be equitable for employees and employers.

• 8. Centralization

  Fayol believed that managers should retain ultimate responsibility but also need to give authority to their subordinates so they can perform their job properly. The problem is to find the best degree of centralization in each case.

• 9. Scalar Chain (Hierarchy)

  The line of authority in an organization is generally represented by boxes and lines, showing rank order from top management to lower levels of the company.

• 10. Order

  Materials and people should be in the right place at the right time. In particular, each individual must take the appropriate office or position for them.

• 11. Equity

  Managers should be friendly and fair to their subordinates.

• 12. Stability of Tenure of Personnel (Staff Stability)

  A high turnover rate is not suitable for the efficient functioning of an organization.

• 13. Initiative

  Subordinates must be given freedom to plan and carry out their plans, even if they sometimes make mistakes.

• 14. Esprit de Corps (Spirit de Corps)

  Promoting team spirit will give the organization a sense of unity. Recommended actions include the use of verbal communication rather than formal written communication, whenever possible.