Henri Fayol’s 14 Principles of Management

French author, mining engineer, director of mines, and mining executive Henry Foyal is widely regarded as the founder of modern management method, and deservedly so. He has introduced ground-breaking layouts for how to achieve effectiveness in management. While working as an engineer for a mining company, he opened unprecedented paths by saving his company from getting bankrupt and brought it a remarkable success. 

His management skills are seen as the foundation by countless business moguls, entrepreneurs, and leaders across the globe. It only makes sense that we introduce you to his iconic principles of management now. But before we do that, let us see what did management meant to him.

What is Management According to Henri Fayol?

As we stated above, Henry Fayol is regarded as a pioneer figure in management theories. His concept of management was based on how management interacts with personnel. Since his theory covers a broad range, they can apply to almost any sort of business. In fact, nearly all the top-notch businesses use Fayol’s management theories as a guide to how to productively manage their staff. 

Fayol had an interesting blueprint for the management theory. It includes 14 principles that are essentials for not only ensuring management actions but also for efficient decision-making. This brings us to our next sub-topic in our conversation.

14 Principles of Management by Henri Fayol

After years and years of study and research, Fayol drew up 14 principles of management through analysis of events and means of observations that managers experience on a daily basis at their workplace. So, without any further ado, let us take a look into them.

1. Division of Work

Fayol was a believer in promoting specialization at the workplace since it helps in enhancing productivity and efficiency. He recommended identifying the skillset of different employees and delegating tasks accordingly. This principle also increases the speed and accuracy of the employees. It can also result in both personal and professional development.

2. Balancing Authority and Responsibility

Authority is necessary because it initiates responsibility. As per Fayol, when managers are given authority, they get the right to give orders to their subordinates.  The responsibility that is generated from authority stems back from the performance of those who hold the power. Both authority and responsibility are essentially two sides of the same coin. 

3. Discipline

Obedience is crucial for making sure your management skills are on par. It has been widely accepted as a core value of mission and vision statements of companies all across the globe, irrespective of their sizes and fields. Imbibing this principle would help run the engine of your organization smoothly.

4. Unity of Command

The next principle introduced by Fayol in his management theory is the principle of unity of command. Under this category, all individual employees are required to receive orders from one manager and one manager only and he or she is answerable to that manager. This is mainly done to avoid a situation where more than one manager gives the order to an employee since it will only lead to confusion as well as conflicts between the employees and management. 

5. Unity of Direction

The principles of Fayol’s management also emphasizes on improving focus. Under this, it is required that the employees who are tasked to deliver similar activities should be linked to the same objectives. In order words, employees performing similar activities should perform as a group. The manager can make sure of this taking place by monitoring the progress of planned and defined activities.  As we said at the start, focus at work can only be achieved when the efforts of the employees are coordinated.

6. Subordination of Individual Interests to the General Interest

To run an organization like a well-oiled machine, Fayol believed that personal interests should be kept subordinate to ethical or organizational interests.  This is primarily because everyone’s personal interests in an organization can be different and it is not feasible to address all of them, and it is also not fair if you look at it from an objective standpoint.  

7. Remuneration

Employees are motivated to perform better when they know that they are getting sufficiently remunerated for the job that they are performing. After all, the primary reason for almost every employee is earning a livelihood. These remunerations can be either monetary (salary, bonus, compensation) or non-monetary (credits, compliments, more responsibilities).

8. Centralization

An ideal business should put its work together into ensuring that the concentration of decision-making authority lies with the top-level management, which is usually the executive board.  When information regarding the decision-making process is shared with middle or lower-level management, it is known as decentralization. Fayol has indicated that there has to be a balance between these two factors. 

9. Scalar Chain

The ninth principle stated by Fayol emphasizes the value of having hierarchy in a managerial scenario. Having a clear line of authority that is defined from top to bottom (with managers at all levels) helps in building the management structure. In case of a query or emergency, employees just need to contact their manager or superior without bothering the hierarchy.

10. Order

Managerial tasks can’t be taken care of if the employees in an organization don’t have the right resources with them to carry out the job. This not only refers to social orders of having the responsibility of the managers but also the provision of a clean and healthy working environment that is clean, safe, and tidy. 

11. Equity

Without the presence of equity in an organization, chaos will arise. All employees must be treated equally and kindly. There should not be any bias, prejudice, or partiality on the part of the management while treating any employee.

12. Stability of Tenure of Personnel

Management should always aim at minimizing employee turnover and in making sure that the right employee stays in the right place. Managers should pay extra attention to frequent changes in positions of the employees.  It basically talks about and addresses the issue of deployment. 

13. Initiative

Fayol encouraged managers to allow the employees to share in their idea to improve the organization. When employees are encouraged to express new ideas, they feel part of the group and treat the organizational projects as their own projects, thereby putting more effort into them. 

14. Esprit De Corps

The fourteenth and final principle of management talks about understanding the importance of unity among employees. Managers must always make sure that the team morale stays up and that communication is fluid. It basically emphasizes on the building of mutual trust and the development of culture in a work environment. 

As you see, Fayol was so ahead of his time and recognized the importance of coordination, forecasting, control, planning, and decision making in an organization. If you want to direct your career into the world of business, these are the principles that you must follow to become successful.