14 Principles of Management
What are the 14 Principles of Management? Description
The 14 Management Principles from Henri Fayol (1841-1925) are:
Division of Work. Specialization allows the individual to build up
experience, and to continuously improve his skills. Thereby he can be
2. Authority. The right to issue commands, along with which must go the balanced responsibility for its function.
3. Discipline. Employees must obey, but this is two-sided: employees
will only obey orders if management play their part by providing good
4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command.
5. Unity of Direction. People engaged in the same kind of activities
must have the same objectives in a single plan. This is essential to
ensure unity and coordination in the enterprise. Unity of command does
not exist without unity of direction but does not necessarily flows
6. Subordination of individual interest (to the general interest).
Management must see that the goals of the firms are always paramount.
7. Remuneration. Payment is an important motivator although by
analyzing a number of possibilities, Fayol points out that there is no
such thing as a perfect system.
8. Centralization (or Decentralization). This is a matter of degree
depending on the condition of the business and the quality of its
9. Scalar chain (Line of Authority). A hierarchy is necessary for unity
of direction. But lateral communication is also fundamental, as long as
superiors know that such communication is taking place. Scalar chain
refers to the number of levels in the hierarchy from the ultimate
authority to the lowest level in the organization. It should not be
over-stretched and consist of too-many levels.
10. Order. Both material order and social order are necessary. The
former minimizes lost time and useless handling of materials. The
latter is achieved through organization and selection.
11. Equity. In running a business a ‘combination of kindliness and
justice’ is needed. Treating employees well is important to achieve
12. Stability of Tenure of Personnel. Employees work better if job
security and career progress are assured to them. An insecure tenure
and a high rate of employee turnover will affect the organization
13. Initiative. Allowing all personnel to show their initiative in some
way is a source of strength for the organization. Even though it may
well involve a sacrifice of ‘personal vanity’ on the part of many
14. Esprit de Corps. Management must foster the morale of its
employees. He further suggests that: “real talent is needed to
coordinate effort, encourage keenness, use each person’s abilities, and
reward each one’s merit without arousing possible jealousies and
disturbing harmonious relations.”
What is Management? Five elements
Fayol's definition of management roles and actions distinguishes between Five Elements:
1. Prevoyance. (Forecast & Plan). Examining the future and drawing up a plan of action. The elements of strategy.
2. To organize. Build up the structure, both material and human, of the undertaking.
3. To command. Maintain the activity among the personnel.
4. To coordinate. Binding together, unifying and harmonizing all activity and effort.
5. To control. Seeing that everything occurs in conformity with established rule and expressed command.
Origin of the 14 Principles of Management. History
Fayol (1841-1925) was a French management theorist whose theories in
management and organization of labor were widely influential in the
beginning of 20th century. He was a mining engineer who worked for a
French mining company Commentry-Fourchamboult-Decazeville, first as an
engineer. Then he moved into general management and became Managing
Director from 1888 to 1918. During his tenure as Managing Director he
wrote various articles on 'administration' and in 1916 the Bulletin de
la Société de l’ Industrie Minérale, printed his "Administration,
Industrielle et Générale – Prévoyance, Organisation, Commandement,
Coordination, Contrôle". In 1949 the first English translation
appeared: ‘General and Industrial Management’ by Constance Storrs.
Usage of the 14 Management Principles. Applications
* Change and Organization.
* Skills. Can be used to improve the basic effectiveness of a manager.
* Understand that management can be seen as a variety of activities, which can be listed and grouped.
Book: Henri Fayol - General and Industrial Management