Henri Fayol’s 14 Principles of Management Explained

What are the 14 Principles of Management By Henri Fayol

Principle is the guideline for a belief or a system. It serves as the foundation for boosting the efficiency and productivity of a business. An organization cannot achieve its goals until it works on set principles of management that every manager needs to follow.

These core traits are applicable to four responsibilities of the management termed as the POLC framework. An effective manager makes decisions by planning, organising, leading, and controlling the organizational resources to achieve strategic objectives.

The first rule of management is to create a work culture in which the people are empowered to deliver their best work. Thus the principles of management are a framework that encourages employees within the organization to align their goals with the aims of the organization and perform effectively in their roles.

There is an old and classical theory laid down by Henri Fayol. He was a French mining engineer who gave a new perception of the theory of management.

He is the pioneer of modern management principles that are now followed in the 21st century by managers for coordinating and controlling the international operations of an organization.  In this blog, you will learn and gain insights on Henri Fayol 14 principles of management.  But let’s see who Henri Fayol was.

Defining Principles of Management: Meaning, Relevance, and Lexical Roots

Management influences, decisions and team dynamics of any business. Management Principles has two root words, “Management” and “Principles”. The term management is related to the Latin word manus, which means hand.

It also resembles the Italian word maneggiare “to handle.” While the word principle also comes from the latin word principium, which meaning the foundation of something. If we connect the principles with organization, it refers to ethical standards and operational rules which are important for any manager to follow.

At its core, management principles refer to the foundational guidelines that govern planning, organizing, leading, and controlling an organization.  The principles of management places the employees at the core of a business organization and lay down the guidelines for “organizational management”

Henri Fayol: The Pioneer Who Introduced the 14 Principles of Management

Henri Fayol, was a French mining engineer who developed one of the earliest and most influential frameworks in administrative management. Fayol began his career with a French company in mining known as Commentry-Fourchambault and Decazeville.

He began his career as an engineer and was later appointed the director from 1888 to 1918. He played an important role in uplifting the company during the French Revolution. What made Henri a remarkable figure was the simplicity of his ideas.

He believed that management was teachable. Which means learning management was to be done instinctively and non-structurally so that the organization can be run on a structured way to achieve its long-term goals. Long before MBAs and business models, Fayol emphasized structure, fairness, and initiative. These ideas still guide successful leaders today. That’s why Henri Fayol is known to be the father of modern management principles.

A Modern Breakdown of the 14 Principles of Management by Henri Fayol

The principles of management proposed by Henri Fayol, are the building blocks of successful organizations. Whether you refer to them as management principles, principles of mgt, or Fayol’s doctrines, they are followed by all contemporary businesses while designing their leadership strategies.

Fayol’s 14 principles of management are a top-down approach for teaching good management from top executives to mid-level managers, and front-line teams. Let’s explore each one of them:

1. Division of Work: 

In the context of modern businesses, this principle of management focuses on task allocation based on skill and expertise. If we look at o Henri Fayol’s thoughts, it is important to delegate tasks in the labor force strategically. This will help the companies to increase their output in much shorter time span. For example, In any software company, backend and frontend developers are assigned tasks based on the type of coding language they know.

2. Authority and Responsibility:

Fayol underlined that accountability must accompany power. Responsibility form the second important component of management principles. If you want to increase the staff turnover rate, then remember that instead of showing authority, show responsibility towards increasing the productivity of your employees. 

For example, In a manufacturing plant, a departmental head is appointed to look after the budget and production targets. He is accountable for the loss in budgets, and he is also responsible for meeting the targets without any employee turnover. 

3. Discipline: 

Discipline fosters a culture of accountability in any business organization. In the context of great management, it is consistency in company policies and values. Among the 14 principles of management, this one adds sustainability to business operations. For example, in a retail store manager implements strict attendance policies but eventually rewards most productive employees by the end of the month. 

4. Unity of Command:

Only one supervisor should provide commands to each employee. This avoids chances of confusion and conflict. In cross-functional teams, Henri Fayol 14 principles of management eliminate contradictory instructions, especially in cross-functional teams. For example, in a marketing team, the content writer reports solely to the SEO team manager, not to the design team lead.

5. Unity of Direction:

Fayol’s management vision prioritized unified effort toward shared goals. This principle ensures that all team efforts are guided by one objective. This principle of management is crucial for team alignment in large-scale projects. Whether launching a new product, unity of direction reduces internal friction in teams.

For example, A company has a goal of launching a new app in the upcoming day. The launch date is near. All the teams from development to design are focused on the new app launch and are working for the success of the project. 

6. Subordination of Individual Interest: 

According to Fayol, personal ambitions of any team member should not outweigh the company’s objectives. This principle strengthens teamwork and suppresses internal conflicts, making it a vital management principle for team collaboration. For example, if a sales executive prioritizes customer satisfaction over achieving individual commissions, they are aligning their personal goals with the company’s long-term client retention objectives.

7. Remuneration: 

Fayol emphasized fair compensation of the employees with not just salary but also benefits and recognition. Today, this ties directly to employee retention. For example, a logistics firm introduces performance bonuses to its dispatchers based on timely deliveries and customer feedback.

8. Centralization: 

Fayol’s principle of mgmt allows leaders to determine where decision power lies. In departmental autonomy or at the central headquarters. For example, A tech startup centralizes financial decisions but decentralizes design approval to the departments.

9. Scalar Chain: 

Businesses use this principle to streamline and de-escalate issues.  Accountability and clarity are supported with in a well-defined hierarchy. Modern org charts and team structures still rely on this Henri Fayol principle of management for improving the communication flow.

10. Order: 

Fayol’s notion of order means placing the right people in the right roles. Businesses now put this into practice by allocating the appropriate resources to the appropriate location at the appropriate moment. For example, a warehouse for keeping household electronics of different categories uses barcode systems to track inventory and prevent misplacement of goods.

11. Equity: 

Equity encourages kindness and fairness in leadership.  In today’s businesses, this is closely linked to DEI (Diversity, Equity, and Inclusion) initiatives.

12. Stability of Tenure:

According to Fayol, one reason for large-scale operational disruption is employee turnover. Henry Fayol focused on stable and long-term employment retention in any company. For example, an IT company offers long-term contracts to reduce staff turnover.

13. Initiative:

Fayol encouraged initiative long before it was introduced in the business world. He focused on compensating the employees fairly.The staff members feel safe and inspired in this way. He also encouraged giving employees the freedom to express ideas and take ownership of the positivity they brought in. For example, a SaaS firm hosts monthly hackathons where developers pitch their new prototype on AI robots they have developed.

14. Esprit de Corps: 

Strong morale and teamwork generate a healthy work environment in every firm.  In today’s businesses, combining this with other  management principles  would improve team communication in remote and hybrid teams.  To improve staff morale, a company can schedule quarterly team meetings and appreciation activities.

Critique and Adaptation of Fayol’s Principles

While Henri Fayol’s 14 principles of management are foundational stones for shaping business needs, Fayolism has received critique from various audiences.  Although Fayol’s principles of management provide a structured approach for businesses to streamline their operations, critics suggest that the theory is not suitable for modern workplaces

1. Too Rigid for Modern Workplaces

Fayol’s management principles offer s prescriptive approach that should suit workplaces of all kinds. The fourteen principles of management by Henri Fayol cannot be applied as in solution that fits all.

For example, if we take the example of hybrid and remote work models, we demand that employees should be given flexibility in decision-making rather than following a chain of command.  In today’s business world, we see companies following a decentralized structure of hierarchy, which contrasts sharply with Fayol’s classical theory.

2. Hierarchical Control

Fayol’s 14 principles of management follow a strict hierarchy in business organizations. The concept of scalar command or unity of command follows a very rigid top-down flow. In large business setups, vertical structures often reduce the productivity of teams and collaboration. For example, nowadays tech startups often work on collaborative leadership among different components of the organizations, which is something Fayol did not anticipate in his management principles.

3. Limited Focus on Employee Motivation

Though Fayol acknowledged morale through Esprit de Corps, critics argue that Henri Fayol’s principles do not explain that it is important for organizations to consider employees’ emotional intelligence before making and implementing policies. We can see that modern leadership also emphasizes psychological safety and well-being and their employees.

4. Unfit for Globalized Organizations

The fourteen principles of management by Henri Fayol were created in the early 20th century. This was long before the internet era and globalization.  Fayol’s ideas do not address cross-cultural collaboration or virtual teams of recent times.  Cross-functional teams today require leadership styles that are more adaptive and diffused.

5. Misinterpretation

Several of Fayol’s principles of management are just theoretical; they cannot be applied directly to real-world scenarios. For instance, “stability of tenure” can cause a hindrance in restructuring a team when needed. In the modern world, it is seen that Organizations clinging to outdated tenure policies may suffer from growth stagnation from employee retention.

6. Lack of Scientific Validations

Henri Fayol’s 14 principles of management are based on his own experience only. The theory he developed is not supported by scientific studies on other types of business organizations. But in today’s era, it is important to develop and apply those management theories that are backed by evidence from real-world scenarios. It is important to consider employee psychology and its impact on the growth of the company, all of which is not discussed by Fayol. 

FAQ’s

How do we define Fayol’s theory of management?

The theory of Henri Fayol is often called Fayolism. It is a classical theory based on 14 core principles of management. It says management can be learned by individuals working at any level of the organization. 

What are the principles of management?

The principles of management are 14 guiding rules introduced by Henri Fayol. These management principles seek to streamline workflow to  increase an organization’s overall efficiency.

Who is Henri Fayol the father of management?

Henri Fayol received the distinction during the French Revolution, when most enterprises struggled to survive. He is credited with being the first theorist to describe the concept of management. His fourteen principles of management by Henri Fayol provide a structured approach to leadership even before modern businesses started to emerge.

What is the first rule of management?

According to Henri Fayol’s 14 principles of management, the first rule of management is the Division of Work. It means splitting tasks among team members based on their skills. Employee productivity increases on their own as a result of everyone concentrating on their areas of expertise.

What are the advantages of putting Fayol’s principles of management into practice?

Here’s how the principles of mgt can help:

• Workers accomplish their objectives more easily and consistently.
• Each worker is aware of their responsibilities and to whom they should report.
•  Workers believe they receive fair treatment and compensation.
• When a team has a same goal, they collaborate more effectively.
• The organization becomes more scalable and easier to manage as it grows

These benefits show that the fourteen principles of management by Henri Fayol are still useful today. 

What are the types of planning?

Planning is a component of management, and it has four types:

1. Strategic planning
2. Tactical planning
3. Operational planning
4. Contingency planning

How do I implement Fayol’s principles in a management role?

To put Fayol’s 14 principles of management into action in your job, you can:

1. Look at your team to see if they are assigned the right role.
2. Apply the principle of the scalar chain to develop clear reporting and communication lines.
3. Set fair rules and give regular feedback to your employees.
4. Train managers so they can use their authority and power with responsibility.
5. Not every principle fits every situation, so adapt everything based on what works for your team.

What are the challenges in applying Fayol’s principles of mgt ?

Key challenges include:

Organizational rigidity:

Traditional, top-down organizations are the ideal settings for Fayol’s approach to function.

Overreliance on structure:

Fayol was a supporter of a structure in any organization. This approach often hinders growth in dynamic workplaces.

Limited psychological focus:

Fayol’s management principles put more emphasis on organizational processes than on people. We know how important mental health and emotional intelligence are for building strong teams. Fayol’s management principles don’t talk much about that.

Cultural misfit:

Fayol supported a centralized way of making decisions where instructions came from the top. That doesn’t always work in multicultural companies. Nowadays, companies are applying a decentralized way of management by giving teams more freedom can lead to better results.

Are these management principles still applicable today?

Yes, Fayol’s 14 principles of management are adaptable to multicultural workplaces as they can be melded with the modern concept of employee-centric business models.

What is the impact of the 14 principles of mgt?

The 14 principles of management provide:

• It is a universal framework for the working of an organization.
• It fIt focuses on assigning team members duties according to their areas of expertise.
• It focuses on transparency in employee accountability.
• It is the starting point from which more leadership theories can be formulated to fit modern organizations.

What are the 5 functions of management?

Fayol outlined 5 core functions of management in his management principles:

1. Planning the goals and strategies of an organization.
2. Coordinating workers according to their duties and responsibilities.
3. Leading people with accountability for team performance.
4. Organizing events with team members.
5. Monitor performance and adopt new plans.

Key Takeaway

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