Principles of management by Henri Fayol with examples

Principles of management by Henri Fayol: Theory, examples, projects.

Henry Fayol (1841-1925) was a key figure in Classical Management School and the father of Administrative Management Theory. Henry Fayol’s contributions to modern management concept has been significant and many researchers followed his pattern. Fayol contributed most widely to the theory and practice of organizational management. Henry Fayol claimed that, by focusing on managerial practices misunderstandings could be minimised and efficiency in organizations could be increased.

Henri Fayol was one of the most influential contributors to modern concepts of management, having proposed that there are five primary functions of management (planning, organizing, commanding, coordinating and controlling).

Fayol developed 14 principles of general management which provides guidelines for managerial decision-making and action.

Fayol’s 14 Principles of Management

1. Specialisation of labour. Specialising encourages continuous improvement in skills and the development of improvements in methods.

2. Authority. The right to give orders and the power to exact obedience.

3. Discipline. No slacking, bending of rules. The workers should be obedient and respectful of the organization.

4. Unity of command. Each employee has one and only one boss.

5. Unity of direction. A single mind generates a single plan and all play their part in that plan.

6. Subordination of Individual Interests. When at work, only work things should be pursued or thought about.

7. Remuneration. Employees receive fair payment for services, not what the company can get away with.

8. Centralisation. Consolidation of management functions. Decisions are made from the top.

9. Chain of Superiors (line of authority). Formal chain of command running from top to bottom of the organization, like military.

10. Order. All materials and personnel have a prescribed place, and they must remain there.

11. Equity. Equality of treatment (but not necessarily identical treatment).

12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers.

13. Initiative. Thinking out a plan and do what it takes to make it happen.

14. Esprit de corps. Harmony, cohesion among personnel. It’s a great source of strength in the organisation. Fayol stated that for promoting esprit de corps, the principle of unity of command should be observed and the dangers of divide and rule and the abuse of written communication should be avoided.

Projects on Principles of management

Class 12 (CBSE) project on principles of management (Business studies)

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