PRINCIPLES OF

ADMINISTRATIVE
MANAGEMENT (Henri Fayol)

Presented by:

JACQUELINE A. VISTE
EDAM Student
1. Division of Work
 The first Henry Fayol principle of management is based on
the theory that if an employee is given a specific task to do,
they will become more efficient and skilled in it. This is
opposed to a multi-tasking culture where an employee is
given so many tasks to do at once.

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 In order to implement this principle effectively, look at the
current skill sets of each employee and assign them a task that
they can become proficient at. This will help them to become
more productive, skilled, and efficient in the long run.
 According to Henri Fayol specialization promotes efficiency
of the workforce and increases productivity. In addition, the
specialization of the workforce increases their accuracy and
speed.

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2. Authority and Responsibility
 In order to get things done in an organization,
management has the authority to give orders to the
employees. Of course, with this authority comes
responsibility. According to Henri Fayol, the
accompanying power or authority gives the
management the right to give orders to the
subordinates.

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 A manager needs to have the necessary authority in order to
ensure that his instructions are carried out by the employees.
However, this authority should come along with
responsibility. According to Henri Fayol, there should be a
balance between authority and responsibility. If there is more
authority than responsibility, the employees will get
frustrated. If there is more responsibility than authority, the
manager will feel frustrated.

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3. Discipline
 This principle states that discipline is required for any
organization to run effectively.
 In order to have disciplined, employees, managers need to build a
culture of mutual respect. There should be a set of organizational
rules, philosophies, and structures in place that should be met by
everyone. Bending rules or slacking should not be allowed in any
organization. In order to achieve this, there is a need for good
supervision and impartial judgment.

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 Without discipline, nothing can be accomplished. It is
the core value for any project or any management. Good
performance and sensible interrelation make the
management job easy and comprehensive. Employees
good behavior also helps them smoothly build and
progress in their professional careers.

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4. Unity of Command
 This means an employee should have only one boss and
follow his command.
 If an employee has to follow more than one boss, this
may lead to confusion which may lead to possible
conflicts for employees.
 By using this principle, the responsibility for mistakes
can be established more easily.

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5. Unity of Direction
 This principle of management states that the work
to be done should be organized in such a way that
employees work in harmony towards the same
objective, using one plan, under the direction of one
manager.

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 Fayol advocates one head one plan which means that
there should be one plan for a group of activities having
similar objectives.

 According to this principle, the efforts of all the

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6. Subordination of Individual Interest
 Organizations always have a variety of interests. In
order to have an organization function well, Henri
Fayol indicated that personal interests are
subordinate to the interests of the organization.

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 This principle states that the overall interest of the team
should take precedence over personal ones. The interest
of the organization should not be sabotaged by the
interest of an individual.
 The primary focus is on the organizational objectives
and not on those of the individual. This applies to all
levels of the entire organization, including the managers.

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7. Remuneration
 Motivation and productivity are close to one
another as far as the smooth running of an
organization is concerned. This management
principle argues that remuneration should be
sufficient to keep employees motivated and
productive.

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 Employees should be paid fair wages for the work
that they carry out. Any organization that underpays
its workers will struggle to motivate and keep
quality workers. This remuneration should include
both financial and non-financial incentives.
Ultimately, it is about rewarding the efforts that
have been made.

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8. The Degree of Centralization
 Management and authority for the decision-making
process must be properly balanced in an
organization. This depends on the volume and size
of an organization including its hierarchy.

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 Centralization implies the concentration of decision-
making authority at the top management (executive board).
Sharing of authorities for the decision-making process with
lower levels (middle and lower management) is referred to
as decentralization by Henri Fayol. Henri Fayol indicated
that an organization should strive for a good balance in
this.

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9. Scalar Chain
 A scalar chain refers to a clear chain of communication
between employees and their superiors. Employees should
know where they stand in the hierarchy of the organization
and whom to go to in a chain of command. To implement this
in the workplace, Fayol suggests that there should be an
organizational chart drawn out for employees to see this
structure clearly.

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 This can be seen as a type of management structure.
Each employee can contact a manager or a superior in an
emergency situation without challenging the hierarchy.
Especially, when it concerns reports about calamities to
the immediate managers/superiors.

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10. Order
 This principle states that there should be an orderly placement of
resources (manpower, money, materials, etc.) in the right place at
the right time. This ensures the proper use of resources in a
structured fashion. Misplacement of any of these resources will
lead to misuse and disorder in the organization.
 A company should maintain a well-defined work order to have a
favorable work culture. A positive atmosphere in the workplace
will boost positive productivity.

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11. Equity
 Equity is a combination of kindness and justice. This principle
states that managers should use kindliness and justice towards
everyone they manage. This creates loyalty and devotion
among the employees towards the organization they work for.
 According to Henri Fayol, all employees should be treated
equally and respectfully. It’s the responsibility of a manager
that no employees face discrimination.

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12. Stability of Tenure of Personnel
 This principle states that an organization should work to
minimize staff turnover and maximize efficiency. Any new
employee cannot be expected to get used to the culture of an
organization right away. They need to be given enough time
to settle into their jobs to become efficient. Both old and new
employees should also be ensured job security because
instability can lead to inefficiency.

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 Retaining productive employees should always
be a high priority of management.
Recruitment and Selection Costs, as well as
increased product-reject rates are usually
associated with hiring new workers.

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 There should also be a clear and effective method to handle
vacancies when they arise because it takes time and expense
to train new ones.
 Management strives to minimize employee turnover and to
have the right staff in the right place. Focus areas such as
frequent change of position and sufficient development must
be managed well.

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13. Initiative
 Henri Fayol argued that with this management principle, employees
should be allowed to express new ideas. This encourages interest and
involvement and creates added value for the company.
 Employee initiatives are a source of strength for the organization
according to Henri Fayol. This encourages the employees to be involved
and interested.
 Organizations should listen to the concerns of their employees and
encourage them to develop and carry out plans for improvement.

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14. Esprit de Corps
 Esprit de Corps means “Team Spirit”. This principle states
that the management should strive to create unity, morale, and
cooperation among the employees. Team spirit is a great
source of strength in the organization.
 Happy and motivated employees are more likely to be
productive and efficient.

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 Esprit de corps contributes to the development of
the culture and creates an atmosphere of mutual
trust and understanding.

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CONCLUSION
 These 14 principles of management are used to
manage an organization and are beneficial for
prediction, planning, decision-making, organization
and process management, control and coordination.

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 Magyamanak unay
dikayo wa lesan kan
anusyo wa nagnaag!

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 Equality means each individual or group of people
is given the same resources or opportunities.

 Equity recognizes that each person has different

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