Henri Fayol 14 Principles of Management with Examples

Henri Fayol, often referred to as the ‘Father of Modern Management Theory‘, was a French mining engineer. He rose to prominence within the French mining company Commentry-Fourchambault and Decazeville, climbing up from an engineer to the organization’s director. Fayol’s unique management approach, which emphasized administrative skills over technical abilities, resulted in the formulation of his famous 14 principles of management.

Henri Fayol 14 Principles of Management

Below, we explore each of Fayol’s 14 principles of management, providing examples and detailing their relevance in the contemporary business environment.

  1. Division Of Work
    The first principle suggests that work should be divided among individuals according to their expertise. Division of work makes each task simpler & Repetitive performance helps in gaining speed specialisation, and increases efficiency. accuracy &. For this reason, big firms have separate departments for Finance, Marketing, and Human Resources. etc.
    For example, in a school, different departments handle academics, sports, and administration, each managed by specialists in their respective fields.
  2. Authority & Responsibility
    According to Fayol, managers must possess the necessary authority to ensure that their instructions are executed. However, with authority comes responsibility. A balance between these two is essential for an organization’s smooth functioning.
    For example, In a retail store, a store manager has the authority to make decisions about inventory and staffing and is accountable for the store’s performance.
    ► Benefit:
    1) Prevent misuse of authority.
    2) It helps in fixing responsibility.
    3) It increases the confidence of the employee.
    Ex- Responsibility Without authority. Foreman– 100 units.
  3. Discipline
    Discipline, as per Fayol, is a fundamental requirement for any organization. It is obedience to the rules and regulations of the organisation which is necessary for the systematic, working of the organisation. IGH. Discipline must be for all enterprise STs for all levels.
    Ex-Senior time- Junior?
    ► Benefit:
    ●Smooth & Systematic functioning of business.
    ●Better relations between management & employees. Better Reputation.
  4. Unity Of Command
    According to this principle, a single manager should provide directions to all employees. This strategy minimizes possible confusion and conflict and keeps authority and responsibility intact.
    For Example- In a project team, team members report to the project manager to maintain clarity in task assignments.
    ► Benefit:
    ●No confusion in the mind of a subordinate.
    ● Responsibility can be easily fixed.
    ● Better performance.
    ●No conflict
    ◆Example- Mkt Manager, sales executive- 10% discount, finance manager -5%.-customer.
  5. Unity Of Direction
    Fayol emphasizes that There should be a single leader and a unified plan for a group of activities with shared objectives. It keeps efforts from being duplicated needlessly and guarantees coordination and unity of action.
    For Example- In a marketing department, all advertising efforts are directed by the marketing manager to ensure a consistent message.
    ► Benefit:
    ●Emphasis importance of a common goal
    ●Facilitates coordination.
    ◆Example- Tata Hotel ?, FMCG ?, automobile gold jewelry, etc. there should be separate divisions for all. Every division ought to be in control of, and have its own plan and resource.
  6. Subordination Of Individual Interest to General Interest.
    Fayol asserts that the organization’s interests as a whole must take precedence over those of its individual members. If there are divergent interests, it is the responsibility of management to balance them. However, if reconciliation is not possible, then the general must interested. Interest supersedes individual. This principle ensures the organization’s goals are not compromised by individual interests.
    For Example- In a sales team, individual sales targets may need to be sacrificed for the team to achieve overall sales objectives.
    ► Benefit:
    1) helps in achieving the goal of organisation.
    2) Coordination between individual and organisational objectives.
  7. Remuneration Of Employees
    Employees must receive fair compensation for their work, including both financial and non-financial benefits. The remuneration Of Employees must be Fair to everybody. This principle underlines the importance of motivational factors in employee performance.
    For Example– In a tech star-tup, competitive salaries, bonuses, and stock options can motivate employees to perform at their best.
    ► Benefit:
    ●High level of motivation. action
    ●Cordial relations between management. employees and
    ●Improvement in the commitment of employees towards the organisation.
  8. Centralisation & Decentralisation
    Centralization refers to the consolidation of decision-making authority at higher echelons of management. However, Fayol proposes the necessity of maintaining a proper balance between centralization and decentralization within the organization.
    For Example- In a multinational corporation, strategic decisions may be made centrally, while operational decisions are decentralized to regional managers.
    Benefit: ( Decentralisation)
    ●Quick- Decision at middle & operational level.
    ●Decrease the workload of superiors.
    ●Increase in Encouragement & Motivation level of subordinates.

9.Scaler chain
There is a chain of command and communication that is followed from the top down by managers and employees. The Scalar Chain denotes the formal hierarchical structures organized from the highest to the lowest ranks. It is not appropriate to break the chain during official correspondence. Crucial-Unity of Command & Effective Communication. In an emergency, Fayol permitted a shortcut in the chain known as Gang 44 Plank”. Direct contact between two employees at the same level is made possible by “Gang Plank,” which eliminates the need for the scalar chain. The concept of gang plank is possible only for employees of equal rank or same level. Ex-gang Plank cannot be established between D & F.

▸ Pros:
1) Orderly & Smooth flow of information..
2) Clear line of authority & responsibility.
▸ 3)Better relationship between subordinate & superior.
4) Unity of Command due to no confusion of dual order

  1. Order.
    Everybody and everything should have a place. People & Materials must be in a suitable place for Maximum Efficiency. place at appropriate time No Obstruction in work, increased Productivity & Efficiency.
    ●Efficient use of resources, no time waste.
    ●Smooth and systematic working of organisation.

Types Of Order: Material Order & Social Order.

  1. Equity
    No employee shall be subjected to discrimination on the grounds of nationality, gender, caste, religion, language, or belief.
    If management is partial- Employees dissatisfied- not work properly. It Improves satisfaction & motivation levels among Cordial relations between employees & management
  2. Stability Of Personnel
    Appropriate measures must be taken to guarantee stability and continuity of employee tenure. Personnel have to be chosen and appointed after a thorough and legal process. Minimum interval after selection. Employees will experience instability and insecurity as a result of constant change, and they will likely leave the company. Additionally, it will increase the price of hiring, choosing, and training employees.

●Increase Efficiency of employees Better Reputation of the organisation, Less Expense on recruitment time & resources.

  1. Initiative
    Employees who take the initiative to create and carry out the plans should be commended and given the chance to do so. Self-initiative takes the first step with self-motivation and is a source of strength for the organisation.
    For Example- In a tech company, employees are empowered to suggest improvements to processes or products, fostering innovation.

●Increase in mental employees. s.al growth & feeling of belongingness in
●It increases the commitment increase com of employees towards the organisation through maximum participation.

  1. Espirit De Corp
    Management should promote a Team Spirit of Unity and Harmony among employees. Especially in large organisations because otherwise objectives would be difficult to realise and there will be a loss of coordination. A manager should replace ‘I’ with ‘We’ in his conversation to give rise to a spirit of team spirit.

●an atmosphere ▸ Develop an atmosphere of mutual trust.
●Help in the achievement of group goals.
●Cordial relationship between management and workers.

Relevance of Fayol’s Principles Today

Despite being more than a century old, Fayol’s 14 principles of management remain relevant. They provide a robust framework for efficient management, emphasizing planning, organization, leading, and control. These principles have been adopted by numerous organizations globally, underlining their enduring value.


Henri Fayol’s 14 principles of management continue to guide today’s leaders. By understanding and applying these principles, organizations can foster a productive, efficient, and harmonious work environment. Whether you’re an aspiring manager or an experienced leader, integrating these principles into your management style can significantly enhance your team’s performance and overall organizational success.