2

1. THE MANAGEMENT
PRINCIPLE AND
ORGANIZATION

2. WHO IS HENRI FAYOL?
Henri Fayol was a French industrialist, mining
engineer, executive, and director of mines.
Fayol together with fellow engineer Frederick
Winslow Taylor is considered a founder of
modern management. He developed the
general theory of business administration
which is often called “Fayolism.” He was a
theorist of business administration and gave a
set of fourteen principles of Management.

3. THE 14 MANAGEMENT PRINCIPLES OF
HENRI FAYOL
 1. Division of Work: this is the principle of
specialization which is very well expressed
by economists as being a necessary factor
for efficiency in the utilization of labor.
 2. Authority and Responsibility: in this
principle, Fayol conceives authority as a
combination of official authority deriving
from a manager’s official position and
personal authority, which is compounded of
intelligence, experience, moral worth, past
services etc.

4. THE 14 MANAGEMENT PRINCIPLES OF
HENRI FAYOL
 3. Discipline: Holding the notion that
discipline is respect for agreements which
are directed as achieving obedience,
application, energy and the outward marks
of respect, Fayol declares that discipline
requires good superiors at all levels clear
and fair agreements and judicious
application of penalties.
 4. Unity of Command: This is the principle,
which states that on employee should
receive orders from one superior only.

5. THE 14 MANAGEMENT PRINCIPLES OF
HENRI FAYOL
 5. Unity of Direction: According to Fayol, the
unity of direction principle implies that each
group of activities having the same objectives
must have one head and one plan. As
distinguished from the principle of unity of
command, Fayol perceives unity of direction as
related to the functioning of personnel.
 6. Subordination of Individual Interest to
General Interest: In any group, the interest of
the group should supersede that of the
individual. When the interests differ, it is the
function of the management to reconcile them.

6. THE 14 MANAGEMENT PRINCIPLES OF
HENRI FAYOL
 7. Remuneration of Personnel: Fayol perceives
that remuneration and methods of payment
should be fair and also should be able to afford
the maximum satisfaction to employee and
employer.
 8. Centralization: although Fayol does not use
the term, Centralization of Authority, his
principle definitely refers to the extent to which
authority is concentrated or dispersed in on
enterprise. Individual circumstances determine
the degree of centralization that gives the best
overall yields.

7. THE 14 MANAGEMENT PRINCIPLES OF
HENRI FAYOL
 9. Scalar Chain: Fayol thinks of the scalar chain
as a line of authority, a chain of superiors from
the highest to the lowest ranks. And, because it
is an error of a subordinate to depart needlessly
from the lines of authority, the chain should be
short-circuited.
 10. Order: Breaking this principle into material
order and social order, Fayol thinks of it as a
simple edge for everything. This Organization is
the principle, which refers to arrangement of
things and persons in an organization.

8. THE 14 MANAGEMENT PRINCIPLES OF
HENRI FAYOL
 11. Equity: Fayrol perceives this principle as
one of eliciting loyalty and devotion from
personnel with a combination of kindness and
justice in managers while dealing with
subordinates.
 12. Stability of Tenure of Personnel: Finding
that instability is both the cause and effect of
bad management, Fayol points out the dangers
and costs of unnecessary turnover.

9. THE 14 MANAGEMENT PRINCIPLES OF
HENRI FAYOL
 13. Initiative: Initiative is conceived as the
process of thinking out and executing a plan.
Since it is one of the keenest satisfactions for an
intelligent man to experience, Fayol exhorts
managers to sacrifice personal vanity in order
to permit subordinates to exercise it.
 14. Esprit de corps: This Principle implies that
union is strength and an extension of the
principle of unity of command. Fayol here
emphasizes on the need for teamwork and the
importance of communication in obtaining it.

10. WHAT IS ORGANIZATION?
Organization - is defined as a social
setting compose of several groups of
people who bond and work together to
achieve a common purpose and establish a
common interest.

11. DIFFERENT TYPES OF ORGANIZATION IN THE
PHILIPPINES.
1. Government Organizations – aim to
provide specific services to the
general public related to the
improvement of lives and protection of
liberties.
2. Private Business Organizations –
provides product or services to a
specific target markets.

12. DIFFERENT TYPES OF ORGANIZATION IN THE
PHILIPPINES.
3. Non-Government Organizations – aim
to provide specific services to target
beneficiaries, advocates a specific cause
or raise an issue to promote public
awareness and support.

13.  References
- https://www.bdo.com.ph/Sharelove
- https://www.signedmarco.com/investing-philippine-stock-market-made-easy-stoc
k-investment-guide-2017
/
- https://dictionary.cambridge.org/us/dictionary/english/organization
- https://www.mindtools.com/pages/article/henri-fayol.htm
- https://www.toolshero.com/toolsheroes/henri-fayol/

14. THANK YOU FOR LISTENING