Principles of management

Henri Fayol (1841-1925), a French industrialist, developed a general theory of management
in all aspects of business undertaking and laid down the following 14 „principles of
management‟.
1. Division of Work: Reduces the span of attention or effort for any one person
or group. Develops practice and familiarity.
2. Authority: The right to give orders. Should not be considered
without reference to responsibility.
3. Discipline: Outward marks of respect in accordance with formal or
informal agreements between firm and its employees.
4. Unity of Command: One man one superior!
5. Unity of direction: One head and one plan for a group of activities with the
same objective.
6. Subordination of
individual interests to
the general interest:
The interest of one individual or one group should not
prevail over the general good. This is a difficult area of
management.
7. Remuneration: Pay should be fair to both the employee and the firm.
8. Centralization: Is always present to a greater or lesser extent, depending
on the size of company and quality of its managers.
9. Scalar Chain: The line of authority from top to bottom of the
organisation
10. Order: A place for everything and everything in its place; the
right man in the right place.
11. Equity: A combination of kindliness and justice towards
employees
12. Stability of Tenure of
personnel:
Employees need to be given time to settle into their jobs,
even though this may be a lengthy period in the case of
managers
13. Initiative: Within the limits of authority and discipline, all levels of
staff should be encouraged to show initiative.
14. Esprit de corps: Harmony is a great strength to an organisation; teamwork
should be encouraged.