Management Lessons from A French Engineer.

1. 14 Principles of Management by a French
Engineer
‘HENRY FAYOL (1841 – 1925)’
A Group Discussion with Faculty Members of SDS Badamia College of
Professional Studies, Varkana, Distt. Pali (Affiliated to JNV University,
Jodhpur, Rajasthan, India)
Recreated & Presented by:
Sr. Lecturer (Marketing & General Mngt.) & Head Coordinator, College
(Dr. Sandeep Solanki)
05th Sept. 2017

2. HENRY FAYOL (1841 – 1925)
Henri Fayol (29 July 1841 – Paris, 19 November 1925) was a French
mining engineer, mining executive, author and director of mines who
developed general theory of business administration that is often
called Fayolism. Like his contemporary, Frederick W. Taylor, he is
widely acknowledged as a founder of modern management methods.
Fayol was born in 1841 in a suburb of Istanbul. His father (an
engineer) was in the military at the time and was appointed
superintendent of works to build Galata Bridge, which bridged
the Golden Horn. The family returned to France in 1847, where Fayol
graduated from the mining academy "École Nationale Supérieure des
Mines" in Saint-Étienne in 1860. Fayol's work became more generally
known with the 1949 publication of General and industrial
administration, the English translation of the 1916 article
"Administration industrielle et générale".

3. 14 PRINCIPLES OF MANAGEMENT BY A FRENCH ENGINEER ‘HENRY
FAYOL (1841-1925)’
1. DIVISION OF WORK (Specialization of Work):
Each worker is given only a small element of work in which he
becomes a specialist and the more people specialize, the more
efficiently they can perform their work. Division of labor
improves productivity by simplifying the tasks required of each
worker.
Ex: Merchandising, Fabric Store, Trims & Accessories Store,
Spreading & Cutting, Sewing, Washing, Quality Assurance,
Finishing & Packaging, Maintenance dept. etc.
2. AUTHORITY & RESPONSIBILITY:
Authority is the right to command or give orders and the power to
exact obedience in order to get the work done. Responsibility is
the accountability of authority so that the official authority is not
misused. Line Authority have right to make decisions. Staff
Authority have right to advise or assist.
Ex: Legal Dept. is a Staff Authority whereas Production Dept. is a
Line Authority.

4. 14 PRINCIPLES OF MANAGEMENT BY A FRENCH ENGINEER ‘HENRY
FAYOL’
3. DISCIPLINE (Everyone Do It Right Every Time):
Fayol considered discipline as “outward marks of respect”
observed in accordance with the employment agreements and
organizational rules. These rules & agreements should be
clearly specified and understood by all. Also, should be enforced
fairly and judiciously.
Ex: Following Safety Rules, Timely Sign In, Control on Wastage &
Pilferage, Warning, Termination etc.
4. UNITY OF COMMAND (One Subordinate – One Boss):
Each employee should receive orders from only one superior,
otherwise conflict and confusion in authority and instructions
would result.
Ex: Supervisor →Dept. Head →Plant Manager →Manager
Production →Chairman

5. 14 PRINCIPLES OF MANAGEMENT BY A FRENCH ENGINEER ‘HENRY
FAYOL’
5. UNITY OF DIRECTION (One Leader One Plan with One Goal):
This principle states that “there should be one head and one
plan” for a group of activities having the same objective.
Ex: Board of Directors in a Company
6. SUBORDINATION OF INDIVIDUAL INTEREST TO
ORGANIZATIONAL INTEREST:
While the individual interest should be integrated with the
organizational interests as much as possible, the interests
of organization must take priority over the interest of an
individual or a particular group, whenever there is a conflict
between the two.
Ex: Company Policy regarding Commission to a Salesman

6. 14 PRINCIPLES OF MANAGEMENT BY A FRENCH ENGINEER ‘HENRY
FAYOL’
7. REMUNERATION OF STAFF:
All employees should be fairly paid with appropriate
additional incentives for additional efforts, in accordance to
their contribution.
Ex: salary, wage, allowances, bonus, cash incentives etc.
8. CENTRALIZATION:
Fayol believed that while some authority should be given to
the subordinates to make operational decisions but all
major policy decisions should be made at the top
management level.
Ex: Headquarters Decision be final in case of any customer
complaint regarding a car engine.

7. 14 PRINCIPLES OF MANAGEMENT BY A FRENCH ENGINEER ‘HENRY
FAYOL’
9. SCALAR CHAIN (Gang Plank):
There should be clear chain of command from the top to the
bottom of the organization and the line of authority should run in
the order of rank from the top management downwards. This
helps to ensure the orderly flow of information and
communication. An employee should feel free to contact his
supervisor through scalar chain.
Ex: A tailor in a garment manufacturing company may ask for
advise to his foreman.
10. ORDER:
A place for everything and everything in its place. Both material
things and people should be in the right place at the right time for
maximum efficiency.
Ex: Proper classification and placement of metal and non-metal
items in a factory.

8. 14 PRINCIPLES OF MANAGEMENT BY A FRENCH ENGINEER ‘HENRY
FAYOL’
11. EQUITY:
Fairness that results from the combination of kindliness
and justice will lead to devoted and loyal service.
Managers should be both fair and friendly to the
subordinates.
Ex: Manager should avoid favoritism & special credits to a
particular employee
12. STABILITY OF STAFF:
Employee turnover should be minimized. Tenure and long
term commitment should be encourages. It results in a
sense of belonging to the organization.
Ex: Training, Development and Promotion Policies

9. 14 PRINCIPLES OF MANAGEMENT BY A FRENCH ENGINEER ‘HENRY
FAYOL’
13. INITIATIVE:
Employees should be given the freedom to be innovative.
They should be encouraged to initiate new ideas and
carry out their plans, even when some acceptable
mistakes result.
Ex: A Graphic Designer in an Animation House
14. ESPRIT DE CORPS:
Employees should work as a team because there is
strength in unity and the management should promote
this team spirit.
Ex: In Japan, when one member of a team has to work late
— it's common for the entire team to stay (even when
half the team isn't directly involved in the task at hand).
This is an unwritten rule in Japan.

10. 14 PRINCIPLES OF MANAGEMENT BY A FRENCH ENGINEER ‘HENRY
FAYOL’
THANK YOU VERY MUCH
FOR YOUR TIME &
PATIENCE!
BEST WISHES TO ALL!
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