2. • A French
• An engineer in mining firm in 1860 at an age
of 19
• Develop a universal theory of management
(applicable in all types of organization).
• To make an organization efficient and
effective irrespective of nature of the
organization whether manufacturing or non
manufacturing, big or small, commercial or
charitable, govt or non govt.
HENRY FAYOL
4. Fayol's 14 Principles of Management
1. Division of Work
2. Authority
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Collective Interest
Over Individual Interest
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of
Tenure of Personnel
13. Initiative
14. Esprit de Corps
5. Fayol's 14 Principles of Management
• Assign each employee
a task that they can
become proficient at.
Productivity increases
as employees become
more skilled, assured
and efficient. Today,
experts still warn
against multi-tasking.
• Managers must possess
the authority to give
orders, and recognize that
with authority comes
responsibility. As well as
rank, Fayol argues that a
manager's intelligence,
experience and values
should command respect.
• Everyone should follow
the rules. To help, you
can make agreements
between the
organization and
employees clear for all
to see.
1. Division of Work 2. Authority 3. Discipline
6. Fayol's 14 Principles of Management
• Fayol wrote that "an
employee should
receive orders from one
supervisor only."
Otherwise, authority,
discipline, order, and
stability are threatened.
• Teams with the same
objective should be
working under the
direction of one manager,
using one plan. That,
Fayol wrote, "is the
condition essential to
unity of action,
coordination of strength
and focusing of effort."
• Individuals should
pursue team interests
over personal ones –
including managers.
4. Unity of Command 5. Unity of Direction
6. Collective Interest
Over Individual Interest
7. Fayol's 14 Principles of Management
• Employee satisfaction
depends on fair
remuneration for
everyone – financial
and non-financial. Fayol
said pay should be fair
and reward "well-
directed effort."
• Balancing centralized
decision making (from the
top) with letting
employees make
decisions. Or as Fayol
wrote, "A place for
everyone and everyone in
his place."
• Employees should
know where they stand
in the organization's
hierarchy and who to
speak to within a chain
of command. Fayol
suggested the now-
familiar organization
chart as a way for
employees to see this
structure clearly.
7. Remuneration 8. Centralization 9. Scalar Chain
8. Fayol's 14 Principles of Management
• Fayol wrote that, "The
right man in the right
place" forms an effective
social order. He applied
the same maxim to
materials: right one, right
place. Academics note
that this principle pre-
empted the Just in
Time (JIT) strategy for
efficient production.
• Managers should be fair
to all employees through
a "combination of
kindliness and justice."
Only then will the team
"carry out its duties with...
devotion and loyalty."
• Organizations
should minimize staff
turnover and role
changes to maximize
efficiency. If people are
secure and good at their
jobs, they are happier
and more productive.
10. Order 11. Equity 12. Stability of
Tenure of
Personnel
9. Fayol's 14 Principles of Management
• Employees should be
encouraged to develop
and carry out plans for
improvement. As Fayol
wrote, "At all levels of the
organizational ladder,
zeal and energy on the
part of employees are
augmented by initiative."
• Organizations should
strive to promote team
spirit, unity, and morale.
13. Initiative 14. Esprit de Corps
