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Fayol’s 14 principles

Henri Fayol: Application of Fayol’s 14 Principles of Management in Modern Organizations

Nahda Siraj
Bachelor in Management Studies
AE Kalsekar Degree College, Mumbra, Thane
ABSTRACT
This research paper explores the 14 principals of management given by Henri Fayol and how
they are applicable in modern organisations. It focuses on how these 14 principals were
advocated in the 20th century and still remain relevant and important in the 21st century. Fayol’s
principles are important because they help managers to organise and lead effectively and
efficiently. The application of these principles in the modern world, it’s importance in increasing
the productivity and efficiency of both the employees and the management are discussed in the
paper. The main objective of this paper is to explain how these principles are still applicable and
useful today, helping businesses to run better. By applying these principles, companies can
improve their work and decision-making. Overall , this paper shows that Fayol’s management
principles are still helpful in guiding managers today.
Keywords : Fayol’s 14 Principles Management, Modern Organizations, Productivity,
Efficiency, Business Improvement, Leadership
Introduction
An organisation that needs to be successful requires a good management. The four basic
functions of management are planning, organising, leading and controlling, known also as the
POLC framework. These are required and important to have focus and structure in an
organisation. Henri Fayol has written the principal of management in his book ‘ Industrial and
general management’, in the 1916.These principles provide us with the foundations of what we
call as good management.
Henri Fayol, a French mining engineer, was known as the ‘ Father of modern management’. He
worked at the French mining company, where he started as an engineer but then became the
general manager and then the organization’s director from 1888 to 1918. When he took up the
managerial position he didn’t just rely on his technical skills but practiced his ability to manage
people and the organisation. He wrote his book which was influential in the 20th century. Henri
Fayol introduced theories that could be applied to all levels of management and for any
department. To ensure success in their organisations and management managers still use these
principles of his. Henri Fayol developed the 14 principles of management towards the end of the
industrial revolution. It was the perfect timing as well, as this was the time when massive
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Fayol’s 14 principles
changes were happening and new and more innovative ideas were being introduced. Therefore,
Fayol’s Principles of Management influence the present management theory quite significantly.

Research Questions
 How are Fayol’s 14 principles applied in modern organizations?
 How these 14 principals are useful in today’s world?
 Why these 14 principles are necessary in today’s workplace?

Objectives
 To explore and explain Henri Fayol’s 14 principles of management.
 To analyse their application in today’s businesses.
 To identify how organizations adapt these principles in modern contexts.

Scope: This paper explores the impact of Fayol’s 14 principles of management in modern
organizations across various industries. The study focuses on how these principles are applied
and whether they still hold value in today’s dynamic business environment.
Limitations: The research is limited to secondary sources such as scholarly articles and case
studies. It does not include direct data from modern businesses, which may limit the analysis of
the practical implementation of Fayol’s principles in specific industries.

Literature Review
1. Edwards (2018) : Henri Fayol’s 14 principles of management focus on improving
organizational efficiency by emphasizing managerial skills over technical skills. Fayol’s
ideas, developed in the early 20th century, are still important in modern management,
particularly in areas like division of work, authority, responsibility, and discipline. His
principles also cover aspects such as unity of command, where each employee reports to one
manager, and fair remuneration, which ensures proper compensation for employees. Fayol’s
administrative theory suggests that proper organization of work leads to better performance.
His ideas are applied in many modern organizations and industries, where they guide
management processes, although they may require adjustments to fit contemporary business
challenges.
2. Achinivu Godwin (2017) : The document discusses the principles of management,
emphasizing their importance in decision-making within organizations. It highlights the role
of management principles in promoting staff and ensuring objectivity in treatment. The
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Fayol’s 14 principles
document includes references to various authors and studies related to management
principles, particularly focusing on Henri Fayol's 14 Principles of Management and their
applications in different contexts.
3. Rana (2024) : This article examines the continued relevance of Henri Fayol's 14 Principles
of Management in the context of Industry 4.0. The research highlights that many of Fayol’s
principles, such as division of labour, authority, discipline, order, and equity, remain essential
for management today. However, the paper argues that some principles, like unity of
command and unity of direction, need to be adapted to suit modern, decentralized, and
collaborative workplaces. Additionally, the study points out emerging management practices,
such as agile methodologies and data-driven decision-making, which better align with the
fast-paced, digital world of Industry 4.0. Businesses are encouraged to combine Fayol's
traditional principles with these new approaches to enhance productivity and employee
satisfaction in today’s environment.
Research Methodology
Data Collection: The data was collected for this research paper using secondary sources such as
online articles and research papers.
Data Analysis: How Fayol’s principles are used in modern organisations today were analysed
and looked upon.

Findings/Results
Henry Fayol’s 14 Principles of Management
1. Division of Work
The first principle of management is based on the theory that if only a specific task is given to a
person, then they specialise in that task. This is opposed to a multi-tasking culture where an
employee is given so many tasks to do at once. In order to implement this principle effectively
we’ll have to give people tasks in which they’re good at. This will help them to become more
productive, skilled, and efficient in the long run.
Example: At a school there are different departments such as sports, administration, beverages,
canteen, etc. And the responsibilities of these departments are given to people who are good at
doing those tasks, which thereby increases the productivity and efficiency and also helps them
specialise in it.
2. Authority is equal to responsibility
This principle of Henri Fayol states that a manager should be given authority and responsibility
equally. There should be balance between authority and responsibility. Because if he has been
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Fayol’s 14 principles
given authority more than responsibility so he might misuse it. Similarly if he has been given
responsibility more than authority so he might feel frustrated.
Example: If an employee has been responsible for managing the décor department while
planning an event but has no authority to make design decisions or contact the vendors to get the
work done, no efficiency or productivity will be achieved.
3. Discipline
This principle states that there should be discipline in an organisation which flows from top to
bottom. And this discipline shouldn’t just be to follow the rules and regulations but it should also
involve dedication and application on the part of employees. This discipline has to be maintained
to achieve success and increase the productivity.
Example: Every employee must follow certain rules and regulations and keep a disciplined
attitude in the workplace for smooth working and efficient results.
4. Unity of Command
This principle states that there should be only one manager or superior to whom the employees
would have to report and not more than one. This is because if many superiors are there in an
organisation so the employees would have to report to all of them which could create confusions
and chaos in the organisation.
Example: If in a company, an employee has been given a task to finish within 3 to 4 hours as
ordered by their immediate superior. But the head of the department asks them to deliver the task
within 1 hour. In this case, no unity of command can create confusion and pressure in the
workplace.
5. Unity of Direction
This Henri Fayol principle states that if there are employees who are working on the same
activity then all of them should be directed using the same plan. If this is not followed so it
would lead to confusions and the work would not be completed.
Example: Different sets of activities within a department should be managed by different
managers to avoid confusion and lesser efficiency within the workflow.
6. Collective Interest Over Individual Interest
This principle states that the interest of the organisation is primary and your personal interests are
secondary. This means that the interests of the organisations comes first and you should think of
it first before thinking about your personal interests which are secondary.
Example: While planning a team outing, the employee making the travel and stay decisions must
make arrangements according to comfort and affordability, not just as per their liking.
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Fayol’s 14 principles
7. Remuneration
This principle states that the wages should be given to the employees fairly and justly. More
importantly it should be given on time. This also depends on several factors such as the budget of
the company, the value of the employee, the prevailing wage rates, etc. Employees should not
only be provided with financial benefits but also non financial benefits such as recreation
facilities, canteen facilities, good working conditions, etc.
Example: Any organization must be fair regarding their remuneration policies where all the
employees must receive a salary worth their efforts irrespective of their gender, tenure, and other
factors.
8. Centralization
This principle states that there are certain matters in an organisation that needs to be centralised
and decentralised. In large organisations extreme centralisation and decentralisation should be
avoided.
Example: Centralization is mostly common in small and medium-sized firms where the
delegation of work is minimal, and the owners make most of the decisions.
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 who 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.
Example: Every organization has a specific chain of authority from the highest level of superiors,
like the founder or CEO, to the lowest level of subordinates following a hierarchy for maximum
productivity.
10. Order
This principle states that in an organisation there should be a place for everything and everything
should be in its place. Similarly there should be a place for everyone and everyone should be in
their place. This ensures that there is order in the organisation and it helps avoid disorder and
chaos.
Example: Employees should be given a designated space and the right tools or equipment to
complete their work efficiently.
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.
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Fayol’s 14 principles
Example: All employees, irrespective of gender, religion, race, and sexuality, must feel safe,
seen, and heard and be given equal opportunities to grow and flourish in their careers within the
organization.
12. Stability of Tenure of Personnel
This principle states that employee shouldn’t be kept temporary for a long time, they should be
made permanent, so that they don’t leave the organisation. Employees who are efficient and
productive should be made permanent and those that are incompetent should be removed.
Organisations should also give employees time to understand their jobs so that their learning
time doesn’t goes wasted.
Example: Every new employee must be given a proper induction of both the technical aspect of
the company as well as the work culture and office environment for them to mingle well. Old
employees should be given alum awards for completing certain tenures to boost morale.
13. Initiative
This principle states that all employees should be encouraged to show initiative. When
employees have a say as to how best they can do their job, they feel motivated and respected.
Organizations should listen to the concerns of their employees and encourage them to develop
and carry out plans for improvement.
Example: Taking suggestions from employees regarding their specific department can make
them feel seen in an authoritative position and can give them a sense of achieving something for
the team.
14. Esprit de Corps
Esprit de Corps means “Team Spirit”. This henry fayol principle of management states that the
management should strive to create unity, morale, and co-operation 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.
Example: While discussing the new plan of action for achieving the next month’s targets, using
the word ‘We’ instead of ‘I’ brings a teamwork spirit to the group.

Conclusion
Any organisation becomes successful only when the potential of the employees are used to the
fullest. All these 14 principals of management are and have been influential in making the best
decisions and also in enhancing the performance of both the employees and the management.
Fayol’s principles of management are widely credited for making the employees highly efficient
and productive, in turn generating the best possible results and effortless functioning of the
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Fayol’s 14 principles
organization. Henry Fayol’s 14 principles of management are universally accepted and
continually used as a guideline for managers across the world. Although these principles are 100
years old, but without them we would go back to 100 years where technical skills were more
supreme and people lacked and didn’t gave much importance to managerial responsibility.
References
1. Agrawal, V. (2024, September 30). Principles of management by Henri Fayol. Simplilearn.
Retrieved from https://www.simplilearn.com/principles-of-management-by-henri-fayol-
article

2. Edwards, R. (2018). An elaboration of the administrative theory of the 14 principles of

management by Henri Fayol. International Journal for Empirical Education and Research,
1(1), 41-51.

3. Godwin, A., Handsome, O. E., Ayomide, W. A., Enobong, A. E., & Johnson, F. O. (2017).
Application of the Henri Fayol principles of management in start up organizations. IOSR
Journal of Business and Management, 19(10), 78-85.

4. Rana, M. M. (2024). Industry 4.0 and Fayol’s 14 principles of functional management:

Relevances, emerging practices, and consequences. Asian Journal of Economics, Business
and Accounting, 24(7), 82-96.