THE 14 PRINCIPLES OF MANAGEMENT ACCORDING TO FAYOL - DUDAS - 2025

The principles of management according to Fayol are statements that are based on a fundamental truth. They serve as a guide for decision making and management actions. They are developed through the analysis of events and observations that managers find in daily practice.

The 14 principles of management were synthesized by Henri Fayol after years of study. With these principles the first foundations for modern scientific management were laid. These first concepts, also called management principles, are factors that influence successful management.

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The management and research principles of the French industrialist Henri Fayol were published in the book General and Industrial Management in 1916. Fayol is recognized as the father of modern management.

At the beginning of the 20th century, big companies like manufacturing factories had to be managed as well. At that time, only a few management tools, models and methods were available.

The 14 principles of management can be used to manage organizations. They are useful tools for forecasting, planning, process management, organizational management, decision making, coordination and control.

Fayol's 14 management principles

Division of labour

This is the beginning of specialization. In industry, workers specialize in different areas and have different skills. Different levels of experience can be identified within the areas of knowledge, from the generalist to the specialist.

According to Henri Fayol, specialization helps increase the efficiency of the workforce, generating improvements in productivity and profitability of the company.

Additionally, the specialization of workers increases their speed and precision. This principle is applicable to both technical and managerial activities.

Balance between authority and responsibility

According to Henri Fayol, in order to get things done in an organization, authority gives management the right to give orders to employees. Of course, with this authority comes responsibility.

Responsibility is about performance and therefore it is necessary to reach the same level between the two.

There must be a balance between authority (power) and responsibility (duties). If authority is greater than responsibility, chances are that a manager can misuse it. If responsibility is greater than authority, then the manager may be frustrated.

In other words, authority and responsibility go together and are two sides of the same coin.

Unity of command

This principle establishes that an employee should receive mandates only from a superior. That employee is responsible only to that superior.

If more than one boss stipulates related tasks and responsibilities to the employee, this can create confusion that can lead to potential conflicts for employees.

By using this principle, responsibility for errors can be more easily determined.

Steering unit

Any activity that shares the same objective must be directed by the same manager, and he must use a plan.

For example, all marketing activities such as advertising, sales promotion, pricing policy, etc., should be led by a single manager.

These marketing activities must be described in an action plan. The manager is ultimately responsible for this plan, supervising the progress of the defined and planned activities.

Therefore, unity of direction means that activities aimed at meeting the same objective must be organized so that there is a plan and a person in charge.

All activities must be carried out by a group of people, forming a work team.

Discipline

It is the respect for the agreements that focus on achieving obedience and application. It means respecting the rules and regulations of the organization.

Fayol explains that discipline requires good superiors at all levels, clear and fair agreements, and a sensible application of sanctions.

It is part of the core values ​​of a business mission, in the form of good conduct and respectful interactions.

This guiding principle is fundamental and is regarded as the necessary oil to keep a company's engine running smoothly.

Remuneration

When it comes to the good operation of a company, motivation and productivity are close to each other. This management principle supports that there must be sufficient remuneration for employees to remain productive and motivated.

The payment must be fair to both the employee and the company. If an organization wants efficient employees and better performance, then it should have a good compensation policy.

This policy should give maximum satisfaction to both the employer and the employees. It must include financial and non-financial incentives.

Compensation should be based on a systematic attempt to reward good performance.

Subordination of individual interests

The individual interest should be given the least importance, while the general interest should be given the highest importance. Otherwise, the organization will collapse. This applies to all levels of the organization, including managers.

The interest of the organizational goal should not be sabotaged by the interest of an individual or group. Henri Fayol indicated that personal interests must be subordinate to the general interest of the company. When interests differ, it is the function of the management to reconcile them.

Degree of centralization

This principle refers to the extent to which authority is concentrated or disseminated within a company.

Centralization involves concentrating decision-making authority in the top management or executive board. If this authority is shifted to lower levels, such as middle and lower management, Fayol calls it decentralization.

Decision-making authority must have a proper balance in a company. This depends on the size of the organization, including its hierarchy. No company can be totally decentralized or centralized.

If there is total centralization, then the employees will not have the authority to carry out their responsibility. Similarly, if there is full decentralization, then the superior will have no authority to control the organization.

Chain of command

Hierarchy occurs in any given organization. This ranges from the top management or executive board to the lower levels of the organization.

This "hierarchy" management principle states that there should be a clear line in the area of ​​authority: from top to bottom and from all managers at all levels.

Fayol thinks that the chain of command is like a line of authority, a chain that runs from the highest ranks to the lowest. This can be seen as a type of address structure.

This chain implements the principle of unity of command and enables the orderly flow of information.

Each employee can contact a manager or superior in an emergency scenario without facing hierarchy. Essentially, when it comes to reporting ineptitudes from superiors or immediate managers.

Order

According to this principle, the employees of a company must have at their disposal the adequate resources to be able to operate correctly in the company.

There must be an order of materials / things and of people in the organization. The order for things is called the material order and the order for the personnel is called the social order.

The material order means "a place for everything and everything in its place." On the other hand, social order corresponds to the selection of the "right person in the right place."

In addition to social order, which is the responsibility of managers, the work environment must be safe, clean and orderly.

Initiative

It is conceived as the process of thinking and executing a plan. Since it is one of the sharpest satisfactions an intelligent man can experience, Fayol incites superiors to sacrifice their personal self-sufficiency to allow subordinates to exercise it.

Fayol argued that with this principle of leadership, workers should be able to formulate new ideas.

This encourages interest and participation, and creates added value for the company. According to Fayol, employee initiatives are a source of strength for the organization. This encourages employees to be involved and interested.

Equity

This principle of direction is often among the main values ​​of an organization. According to Fayol, workers should be treated with equality and kindness.

Staff loyalty and devotion are earned when managers combine courtesy and fairness in dealing with subordinates.

Employees must be in the right position in the organization in order to do things right. Managers must oversee this process and treat employees in a fair and impartial manner.

Staff tenure stability

Finding out that staff instability is both the cause and the effect of poor management, Fayol points out the dangers and costs of unnecessary staff turnover.

A worker requires time to be able to learn his work and be effective. Employees must have job security because instability leads to inefficiency. Successful companies usually have a stable group of employees.

Management strives to minimize employee turnover and have the right people in the right place. Areas of interest must be well managed, with frequent changes of position and sufficient development.

Team spirit

This principle implies that union is strength. It is an extension of the principle of unity of command. Fayol here emphasizes the need for teamwork and the importance of communication to achieve it.

It means fighting for employee participation and unity. Managers are responsible for the development of motivation in the workplace, individually and in the field of communication.

This principle contributes to the development of the organizational culture and creates an atmosphere of mutual trust and understanding.

References

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