Henri Fayol's Administrative Model and 14 Principles

Henri Fayol: Background and Administrative Model

Henri Fayol graduated as a Civil Mining Engineer in 1860 and subsequently served as an engineer in the mines for a major mining and metals group.

Fayol's administrative model is based on three fundamental aspects:

• The division of labor.
• The application of an administrative process.
• The formulation of technical criteria that should guide the administrative function.

For Fayol, the administrative function is designed only for the social body. While other functions affect raw materials and machines, the administrative function works exclusively on the staff of the company.

Fayol's 14 Principles of Management

These principles define the technical criteria that should guide the administrative function:

1. Subordination of Individual Interests to General Interests

   The interests of the company must always supersede the interests of individual employees.

2. Unity of Command

   An employee in any job should only take orders from one superior.

3. Unity of Direction

   There must be one head and one plan for all group activities sharing a single objective. This is the essential condition for achieving unity of action, coordination of effort, and focus. Unity of direction cannot exist without unity of command, but it does not necessarily follow from it.

4. Centralization

   The concentration of authority in the top ranks of the hierarchy.

5. Hierarchy (Scalar Chain)

   The chain of heads that goes from the highest authority to the lowest levels. This chain is the root of all communications that flow to the highest authority.

6. Division of Labor

   Tasks and staff should be specialized in their work to increase efficiency.

7. Authority and Responsibility

   The ability to give orders and expect obedience from others. This ability inherently creates more responsibilities.

8. Discipline

   This depends on factors such as the desire to work, obedience, dedication, and proper behavior.

9. Remuneration of Staff

   Employees should receive fair remuneration that guarantees their satisfaction.

10. Order

    People and materials should be in the right place at the right time.

11. Equity

    Kindness and justice are necessary to ensure the loyalty of staff.

12. Stability of Tenure of Personnel

    It is necessary to give stability to the staff and ensure their duration in charge.

13. Initiative

    Must relate to the ability to visualize a plan to follow and to ensure the success of that plan.

14. Esprit de Corps (Team Spirit)

    Getting everyone within the company to work with ease and as if they were a team. This collective effort is the strength of an organization.