Henry Fayols 14 Principles

HENRY FAYOL’S
ADMINISTRATIVE THEORY
OF
MANAGEMENT
 Henry Fayol (1841-1925) was a French mining
engineer who turned a leading industrialist and a
successful manager.
 He Started his career as a mining engineer in a
French mining company and rose to the position of
the Chief Managing Director.
• Fayol proposed 14 principles of management
which are explained in his famous book 'General
and Industrial Administration’.
• Due to his cotribution in development of
managerial thoughts he is called as 'Father of
Modern Management’.
A
D
D
I
N
S
O
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R
C
E
1.PRINCIPLE OF DIVISION OF WORK:
 According to this principle, the work is divided into different

kinds such as technical, financial, commercial, security
operations, accounting and managerial.
 It is assigned to employees as per their qualities and
capabilities. It helps in improving efficiency and expertise of
employees which ultimately turns into expected productivity
level.
2.PRINCIPLE OF AUTHORITY AND
RESPONSIBILITY:
 Authority is the right to take decisions. It is nessesary to get the
things done appropriately from subordinates.
 Authority always comes with the responsibility.
 If the manager is given the authority to complete a task within a
given time, he should be held responsible if he does not
complete the work in given time.
 There should be balance between authority and responsibility.
3.PRINCIPLE OF DISCIPLINE:
 According to Fayol, discipline is the most essential thing in the
organisation.
 Employees must obey and respect the rules that govern the
organisation.
 Discipline helps to achieve the goals in the organisation. Good
discipline is the result of effective leadership. There must be a
clear understanding between the management and workers
regarding the organisation's rules.
 Basic discipline should be observed at all levels of management.
4.PRINCIPLE OF UNITY OF
COMMAND:
 Each member of organization should receive orders from
only one superior.
 This principle helps in managing conflicts and solving
disputes among people in organization. It also helps in
avoiding confusion.
 If an employee receives commands from more than one
authority, he will get confused and will not be able to take
decision about whose orders should be followed.
 This is wrong approach. For this organizational hierarchy
should be well defined.
 Each employee should know his immediate superior and
should receive orders from him only.
5.PRINCIPLE OF UNITY OF
DIRECTION:
 Thisprinciple states that 'there should be one
head and one plan' in every organization.
 Each group in the organization should have
the same objective and the group should be
directed by one manager using single plan.
6.PRINCIPLE OF SUBORDINATION OF INDIVIDUAL
INTEREST TO ORGANISATIONAL INTEREST:
 According to this principle the interest of an individual must be given

less importance than the interest of the organisation.
 While taking decision in the organisation the manager should always
consider the interest of the whole group rather than the interest of a
single employee.
 Similarly the employee should protect the interest of the organisation
first and his personal interest should be subordinated.
 For example, in every game, the players are always thinking about
winning the match as a team rather than their individual records.
7.PRINCIPLE OF CENTRALISATION
 Centralization refers to the concentration of powers and
authorities.
 In some organisations this power is vested in one hand or
few hands. This situation occurs in the small organisations.
 But, if the size of organisation is large then there is a
decentralization of the power or authority.
• According to this principle there must be a proper balance
between centralization and decentralization in the organisation.
This is to be done according to the size of the organisation,
nature of the activity etc.
8.PRINCIPLE OF REMENERATION:
 Appropriate remuneration to staff or employees is the principle
to keep them satisfied financially as well as retain them for long
span of time within the organization.
 The fair remuneration affects on the productivity and efficiency
level in total.
 The remuneration should be fixed by taking into consideration
the skill, expertise, knowledge, tenure, cost of living, market
trend, profitability of organization etc.
9.PRINCIPLE OF SCALAR CHAIN:
 Scalar chain means the hierarchy of authority
from the top level to the lower level for the
purpose of communication.
 Traditionally, organizations used to frame large
scalar chain which is time consuming.
 For example, a General Manager informs the
decision to respective Functional Manager, then
Functional Manager will pass it to supervisor, the
supervisor will inform it to Foreman and so on .
 according to level of authority. For avoiding this
longer chain and to take speedy decisions cross
communication or direct communication is
followed by various organizations which is known
as Gang Plank. For direct communication, proper
permission of the authorities is necessary.
10.PRINCIPLE OF ORDER:
 This principle is based on 'A place for everything and
everything in its place’.
 Human resources and materials should be in the right
place at the right time for maximum efficiency. Human
resources should be placed at right place and on right
job.
 The principle focuses on the proper utilization of
physical and human resources.
11. PRINCIPLE OF EQUITY:
 Management should be fair as well as friendly to the

subordinates. While dividing the work, delegating the
authorities, deciding the monetary terms etc..
 there should not be any discrimination between the
employees. It is also suggested that the remuneration
should not depend on the department but at the level on
which subordinates are working.
12.PRINCIPLE OF STABILITY OF
TENURE:
 At the time of recruitment of employees, the
management should assure them about stability of
tenure or job security. It plays very important role in
creating sense of belongingness among the
employees.
 Insecurity in job always affect the efficiency of
employees adversely whereas job security
minimizes employee turnover ratio.
13.PRINCIPLE OF INITIATIVE:
 Initiative refers to volunteering to do the work in an

innovative way. The freedom to think and work on
new ideas encourages employees to take initiative
while working on given task.
 This initiative should be welcomed by the manager
including thorough discussion on those new ideas.
 It also helps in creating healthy organizational
culture.
14.PRINCIPLE OF ESPRIT DE
CORPSE:
 Henry Fayol has given emphasis on team work. Esprit de
corps means union is strength.
 Running any organization is a group activity and human
resources are the valuable asset of the organization. If all
employees are working as a union and with mutual trust, the
difficulties
 can be solved quickly.
 Therefore, as a leader, manager should create a spirit of team
work and understanding among employees to achieve
organizational goal easily.
THE END

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HENRY FAYOL’S

 According to this principle, the work is divided into different

 According to this principle the interest of an individual must be given

 Management should be fair as well as friendly to the

 Initiative refers to volunteering to do the work in an

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