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Society, Management and Accounting

Fayol's 14 Principles of Management

General Management: Concept, Skills, Levels, Functions, MBO, Decision Making

Paper I · Unit 3 Section 8 of 11 0 PYQs 22 min

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Fayol's 14 Principles of Management

Henri Fayol (1841–1925), French industrialist, published Administration Industrielle et Générale (1916). His 14 principles remain foundational:

# Principle Brief Explanation
1 Division of Work Specialization increases efficiency
2 Authority and Responsibility Authority (right to command) must be matched by responsibility (accountability)
3 Discipline Obedience to established rules; requires good supervision and fair penalties
4 Unity of Command Each employee should receive orders from only one superior
5 Unity of Direction One head and one plan for a group of activities with the same objective
6 Subordination of Individual Interest Organisational interest takes precedence over individual interest
7 Remuneration Fair and satisfactory compensation to employees and employers
8 Centralisation Degree of concentration of authority — balance based on situational factors
9 Scalar Chain Chain of superiors from top to bottom; formal line of communication and authority
10 Order Right place for right person and right material
11 Equity Kindness and justice in dealing with employees
12 Stability of Tenure Long service allows efficiency; high turnover is harmful
13 Initiative Encourage employees to originate and execute plans
14 Esprit de Corps Harmony and unity among organisational members