Henri Fayol: The 14 Principles of Management You Need to Know
In the early 20th century, French engineer and manager Henri Fayol developed management principles that based modern management. To improve leadership productivity and effectiveness, companies, charities, and government agencies follow the Principles of Management. Henri Fayol’s 14 management principles are discussed in this blog.
In his 1916 work “Administration Industrielle et Générale,” Henri Fayol established the 14 general management principles that businesses and organisations still follow. Here are Henri Fayol’s 14 Management Principles with Examples.
Understanding the Principles of Management
Management principles generally guide human behaviour and decision-making. These principles guide managers to make company-friendly decisions. Management principles change with business situations, so they may not match scientific principles. Managers adapt these principles to current conditions with creativity. These management principles must adapt to changing technology and technology developers’ (humans) thought processes.
Management is about getting things done through others, as each managerial student and expert knows. Organisational human and non-human resources are covered by this art. To achieve organisational goals, management must perform administrative and operational tasks. After understanding management principles, managers perform these tasks well.
Any competent and goal-oriented business needs a smooth flow of operations from the top down to bottom. Any management, regardless of location, integrates planning, organizing, leading, and controlling. Managers must follow the POLC structure. Managers who don’t follow this framework won’t focus or make structural changes to achieve business goals.
Who is Henri Fayol?
Henri Fayol was a mining engineer from France. He is known as the “Father of Modern Management Theory.” From 1888 to 1918, Fayol worked as an engineer for the French mining firm Commentry-Fourchambault and Decazeville. He quickly progressed through his position and became the company’s general manager and then its director. Foyal preferred to do not depend on his technical skills when he became manager of the mining company. Instead, he leaned on his ability to organize things and deal with people.
Henri Foyal wrote “Administration Industrielle et Générale,” a book that had a big impact on people in the early 20th century. It was about management theories and how to organize work. Theories that Henri Foyal came up with could be used at any level of management and in any field. Foyal’s management principles are still used by businesses and managers to make sure they run smoothly and profitably.
To maximize efficiency and productivity, companies began to realize the need for structured management. His ideas helped early 20th-century managers organize work and employee relations. His general theories apply to all management levels and departments, making this list of principles still relevant and comprehensive. Despite many different ideas and theories, Fayol has become a pioneer of modern management.
Fayol promoted clear responsibility and power, labor division, and workplace discipline. His principles promote unity of leadership and guidance so workers understand their roles and responsibilities. This reduces confusion and conflict, improving workplace harmony.
Henri Fayol’s 14 Principles of Management with Examples
- Division of labor
- Authority and Responsibility
- Discipline
- Unity of Command
- Unity of Direction
- Subordination of Individual Interest
- Remuneration
- Degree of Centralization
- Scalar Chain
- Order
- Equity
- Stability of Tenure of Personnel
- Initiative
- Esprit de Corps
1. Division of Labor
The idea behind the first Henry Fayol management principle is that assigning an employee a specific task will improve their efficiency and skill. This differs from a multitasking culture where employees are given many tasks at once. To implement this principle, assess each employee’s skills and give them a task they can master. This will improve their productivity, skill, and efficiency over time.
Example 1:
Imagine a hospital. The doctors focus on diagnosing and treating patients, the nurses provide care and administer medicines, the administrative staff handles patient records and appointments, and the cleaning staff ensures hygiene. By dividing work among specialists, the hospital operates efficiently, ensuring better patient care and service quality.
Example 2:
Think about an e-commerce company like Amazon. The customer service team handles queries, the warehouse team packs and ships orders, the tech team maintains the website, and the marketing team promotes products. Each team specializes in its function, ensuring the company operates smoothly and meets customer expectations.
2. Authority and Responsibility
The 2nd Principle by Henry Fayol is describe that a manager must have authority to ensure that employees follow his orders. Without authority, managers cannot work. Henry states it too that Authority should also come with responsibility. He recommends balancing authority and responsibility. When authority exceeds responsibility, employees become frustrated. Managers get frustrated when they have more responsibility than power.
Example 1:
In a marketing agency, a team leader is tasked with managing a social media campaign. If they lack the authority to approve ad designs, allocate budgets, or coordinate with clients, they’ll feel powerless and frustrated. This will delay decisions and reduce the campaign’s effectiveness.
Example 2:
At a logistics company, a warehouse supervisor is responsible for timely deliveries. If they lack the authority to adjust staff shifts, reorder inventory supplies, or resolve operational issues, delays will occur, affecting customer satisfaction and productivity.
3. Discipline
Henri Fayol noted into some important management principles, and one of them is that discipline is important for a business to run well. The managers of the company should create an environment where everyone respects and admires each other. A set of rules, ideas, and guidelines for work must be put in place by the management at the company. This should get the attention of concerned employees. Breaking rules that are meant to protect people is very terrible for business. To make fair decisions, there needs to be enough supervision by higher-ups.
Example 1:
In a manufacturing company, employees are required to adhere to safety protocols, such as wearing helmets and protective gear on the shop floor. By following these rules, they ensure a safe and disciplined work environment, preventing accidents and maintaining productivity.
Example 2:
At a hospital, doctors, nurses, and support staff must follow specific schedules, hygiene protocols, and patient confidentiality rules. This disciplined approach guarantees patient safety and seamless hospital functioning.
4. Unity of Command
This principle requires an organization’s clear chain of command. Employees should know whose orders to follow. Fayol says an employee should only take orders from one manager. Multiple managers threaten authority, discipline, and stability. Management structure will break down and employees will burn out.
Example 1:
At a restaurant, the kitchen supervisor asks a chef to prepare a dish in 20 minutes, but the restaurant manager insists it must be ready in 10 minutes. This lack of unified command leads to mistakes in the dish and disrupts the kitchen’s workflow.
Example 2:
In a marketing agency, a graphic designer is asked by their project manager to create a logo in three days. Meanwhile, the creative director demands the logo be finalized within a single day. This contradiction leads to stress and compromises the quality of the final design.
5. Unity of Direction
This Henry Fayol management principle states that employees should work together toward the same goal using one plan under one manager. If you have marketing, estimating, promoting sales, etc., one manager ought to apply one strategy for all of them. Different sub-managers can handle different tasks, yet they must all collaborate toward a common goal under one boss.
Example 1:
In a financial organization, activities like budgeting, risk analysis, and financial forecasting are handled by separate managers specializing in these areas. This ensures each activity is managed efficiently while avoiding any overlap in responsibilities.
Example 2:
In a software development company, a project manager oversees tasks like coding, testing, and debugging to ensure all team members follow a unified development plan. This avoids miscommunication and ensures timely project completion.
6. Subordination of Individual Interest:
According to this concept, team interests should always come first than personal ones. The desire of an individual should not compromise the organizational interest. If anyone turn rogue, the company will fall down.
Example 1:
In a sales team, if a manager prioritizes a high-performing salesperson’s needs over the team’s collective goals, it can create a sense of favoritism. Instead, decisions should align with the company’s objectives to avoid conflicts and ensure fairness.
Example 2:
At a hospital, if a nurse with fewer responsibilities receives a higher bonus than a nurse who works long hours in critical care, the unfairness could lead to frustration. The management must ensure equity in rewards to retain talent and foster a positive environment.
7. Remuneration
The Henry Fayol management principle states that staff members should be paid fairly for their work. Underpaid companies struggle with motivating maintain quality workers. The payment should include rewards that are both financial and non-financial. Motivating employees requires a system that celebrates their excellence.
Example 1:
In a corporate office, two employees with similar roles and responsibilities should receive equal pay, regardless of their gender or years of experience. A fair remuneration policy ensures employee satisfaction and reduces workplace bias.
Example 2:
At a factory, workers performing similar tasks on the assembly line should be paid equally, irrespective of their age or background. This practice fosters trust and equality among employees.
8. Degree of Centralization
Fayol’s management principles include centralization. Centralization involves top-down management and the consolidation of power by the controlling authority. Decentralization transfers authority to management levels. Today, companies have mixed management perspectives. An organization needs more centralization and decentralization. In total centralization, lower-level staff have no control over their duties.
Similar to decentralization, business operations require top-level management. Effective business management requires a balance of both. Achievable balance depends on business entity.
Example 1:
In a family-owned restaurant, the parents manage everything, from the menu to staff scheduling. There is limited delegation, and the decision-making power rests solely with the family members who own the business.
Example 2: In a small consultancy firm, the founder handles client relationships, marketing strategies, and hiring decisions. With a small team and limited resources, most decisions are centralized in the hands of the owner.
9. Scalar Chain
Any clear way for employees to talk to their bosses is called a scalar chain. Everyone who works for the company should know their place in the chain of command and who to talk to about problems. Fayol says that this should be done at work by drawing out an organizational chart so that everyone can see how things are set up.
Example 1:
In a tech company, the founder or CEO sets the vision, which is communicated down through senior managers, project managers, and team leads to developers and other staff. This hierarchical flow ensures all employees understand their roles and responsibilities in achieving company goals.
Example 2:
At a hospital, the Chief Executive Officer is at the top, followed by department heads like the Chief Surgeon, Chief Nurse, and other medical staff. The chain of authority ensures that each department functions smoothly, and patient care is delivered efficiently.
10. Order
According to this principle, resources like individuals, financial funds, supplies, and so on should be put in the appropriate position at the right moment. It makes sure that resources are used correctly and in a planned way. Any of these assets that get lost will cause misuse and disruption in the organization.
Example 1:
In a graphic design agency, designers are provided with powerful computers, graphic design software, and quiet areas to work. This dedicated environment helps them focus on creating designs and meeting client deadlines.
Example 2:
In a construction company, the site manager ensures that workers have access to proper safety gear, tools like drills and hammers, and a clean, designated workspace on-site. This setup helps workers perform their tasks efficiently and safely.
11. Equity
Equity combines kindness and justice. Managers should treat everyone they manage with kindness and justice. This fosters employee loyalty to their employer.
Example 1:
In a government office, all employees, regardless of sexual orientation, gender, or ethnicity, are treated equally and fairly. The organization ensures that any issues are addressed immediately and provides equal opportunities for professional development based on performance.
Example 2:
In a large corporation, every employee, regardless of their background, feels valued and supported. The company has a clear grievance redressal system and ensures promotions and growth opportunities are based on merit and performance, creating a safe and inclusive work environment.
12. Stability of Tenure of Personnel
A higher rate of turnover raises questions about the company’s staff management. A profitable company should work hard to reduce turnover, boost efficiency, and retain talented staff members. No new hire can contribute instantly. Before joining operations, they need enough practical experience. Job insecurity can harm old and new employees’ convictions and performance. The HR team has to plan and execute job openings on time.
Example 1:
At a digital marketing agency, newcomers are given a comprehensive orientation that includes technical training on tools and software used by the company, as well as an introduction to the company’s collaborative work culture. Employees celebrating milestones like five or ten years with the company are presented with alumni awards, boosting their morale and fostering a sense of achievement.
Example 2:
In an educational institution, new teachers are provided with a thorough induction, including training on curriculum delivery, teaching tools, and the school’s culture. To motivate long-term staff, teachers who complete ten years of service are celebrated with an alumni award, recognizing their dedication to the institution.
13. Initiative
This principle supports creativity in all employees. Employees are motivated and respected when they have influence on their work. Listen to employee concerns and motivate them to create and implement strategies for improvement.
Example 1:
At a retail chain, the store manager regularly asks employees for feedback on customer service improvements and inventory management. By involving employees in decisions related to their department, they feel recognized and motivated to work toward enhancing the store’s performance.
Example 2:
In a marketing firm, team leaders regularly solicit input from their team members on campaign strategies and ideas. When employees know their suggestions are taken seriously, it boosts their confidence and fosters a sense of ownership over the success of the projects.
14. Esprit de Corps
Esprit de Corps translates to “Team Spirit.” According to this management principle by Henry Fayol, managers should try to bring employees together and encourage them to work together. Our organization is strong because of the spirit of teamwork. Employees who are happy and motivated work better.
Example 1:
During a team meeting at a project management firm, the team leader emphasizes the use of “We” while discussing the project goals for the next quarter. This approach helps foster a sense of unity and collaboration, encouraging everyone to work together toward achieving the targets.
Example 2:
In a marketing agency, when setting the goals for the upcoming campaign, the manager uses “We” instead of “I,” reinforcing the idea that the success of the project depends on everyone’s collective effort. This promotes a team-driven atmosphere and motivates the group to work cohesively.
Conclusion
The 14 principles of management by Fayol are a complete set of rules that can help managers make their businesses run better. These ideas are still useful, especially when it comes to establishing an organization, getting along with coworkers, and making sure operations work smoothly. For example, the manufacturing industry always uses the division of labor and scalar chain principles to get the most out of their production.
We hope that this article about Henri Fayol’s 14 management principles and its examples helped you understand how to better lead your staff members, organize, strategy, control, manage, and make decisions that will help your business reach its goals.
Frequent Asked Questions
The first principle of management is "Division of Labour" Where the author state the importance of giving specific task to specific staff.
The third principle of Management is "Discipline" Where Henri Fayol explained the importance of establishing rules and Discipline in Company
There are total 14 Principles of Management by Henri Fayol
Henri Fayol is known as father of modern management
