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The 14 Management Principles from Henri Fayol (1841-1925) are

1! Division of Work ! "peciali#ation allo$s the in%i&i%'al to 'il% 'p eperience* an% tocontin'o'sly impro&e his s+ills! Therey he can e more pro%'cti&e!

2! Authority! The right to iss'e comman%s* along $ith $hich m'st go the alance%

responsiility for its f'nction!

,! Discipline! mployees m'st oey* 't this is t$o-si%e% employees $ill only oey or%ers

if management play their part y pro&i%ing goo% lea%ership!

4! Unity of Command! ach $or+er sho'l% ha&e only one oss $ith no other conflicting

lines of comman%!

5! Unity of Direction! People engage% in the same +in% of acti&ities m'st ha&e the same

o.ecti&es in a single plan! This is essential to ens're 'nity an% coor%ination in theenterprise! /nity of comman% %oes not eist $itho't 'nity of %irection 't %oes not

necessarily flo$s from it!

0! Subordination of individual interest (to the general interest)! Management m'st see

that the goals of the firms are al$ays paramo'nt!

! Remuneration! Payment is an important moti&ator altho'gh y analy#ing a n'mer of possiilities* Fayol points o't that there is no s'ch thing as a perfect system!

8! Centralization (or ecentrali#ation)! This is a matter of %egree %epen%ing on the

con%ition of the 'siness an% the 3'ality of its personnel!

9! Scalar chain (ine of 'thority)! hierarchy is necessary for 'nity of %irection! 6'tlateral comm'nication is also f'n%amental* as long as s'periors +no$ that s'ch

comm'nication is ta+ing place! "calar chain refers to the n'mer of le&els in the

hierarchy from the 'ltimate a'thority to the lo$est le&el in the organi#ation! 7t sho'l% not e o&er-stretche% an% consist of too-many le&els!

1! Order! 6oth material or%er an% social or%er are necessary! The former minimi#es lost

time an% 'seless han%ling of materials! The latter is achie&e% thro'gh organi#ation an%

selection!

11! Euity! 7n r'nning a 'siness a comination of +in%liness an% .'stice: is nee%e%!Treating employees $ell is important to achie&e e3'ity!

12! Stability of !enure of "ersonnel! mployees $or+ etter if .o sec'rity an% career

 progress are ass're% to them! n insec're ten're an% a high rate of employee t'rno&er$ill affect the organi#ation a%&ersely!

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1,! #nitiative! llo$ing all personnel to sho$ their initiati&e in some $ay is a so'rce of

strength for the organi#ation! &en tho'gh it may $ell in&ol&e a sacrifice of personal

&anity: on the part of many managers!

14! Esprit de Corps! Management m'st foster the morale of its employees! He f'rther

s'ggests that ;real talent is nee%e% to coor%inate effort* enco'rage +eenness* 'se each person:s ailities* an% re$ar% each one:s merit $itho't aro'sing possile .ealo'sies an%

%ist'ring harmonio's relations!<

What is $ana%ement& 'ive elements

Fayol=s %efinition of management roles an% actions %isting'ishes et$een 'ive Elements

1! "revoyance! (Forecast > Plan)! amining the f't're an% %ra$ing 'p a plan of action!

The elements of strategy!

2! !o or%anize! 6'il% 'p the str'ct're* oth material an% h'man* of the 'n%erta+ing!

,! !o command! Maintain the acti&ity among the personnel!

4! !o coordinate! 6in%ing together* 'nifying an% harmoni#ing all acti&ity an% effort!

5! !o control! "eeing that e&erything occ'rs in conformity $ith estalishe% r'le an%

epresse% comman%