Fayol’s principles of management

The essentials

Henri Fayol, a French mining engineer, is known as the father of general management. He gave 14 principles of management that apply to managers at all levels. These principles focus on the administration of the organisation as a whole, unlike Taylor, who focused on the shop floor.

Key points

• Division of work: dividing work into small tasks leads to specialisation and efficiency.
• Authority and responsibility: authority must be matched by equal responsibility.
• Discipline: obedience to rules and agreements by both workers and management.
• Unity of command: each employee should receive orders from one superior only.
• Unity of direction: one head and one plan for a group of activities with the same objective.
• Subordination of individual interest to general interest.
• Remuneration of employees: fair and just pay.
• Centralisation and decentralisation: a proper balance between the two.
• Scalar chain: the formal line of authority from highest to lowest; a gang plank allows direct communication between employees at the same level in emergencies.
• Order: a place for everything and everyone, and everything and everyone in its place.
• Equity: kindness and justice, no discrimination.
• Stability of tenure of personnel: avoiding frequent turnover.
• Initiative: encouraging employees to develop and carry out their own plans.
• Esprit de corps: team spirit and unity; managers should say 'we' rather than 'I'.

Exam tips

• Unity of command relates to one employee and one boss; unity of direction relates to one plan and one head for a unit of activities.
• If two bosses give conflicting orders to one worker, unity of command is violated.

Common mistakes

• Mixing up equity (fair treatment) with remuneration (fair pay).
• Thinking the gang plank breaks the scalar chain permanently. It is a short cut used only when quick communication is needed.