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  • Principles of Management’ implies a list of current management practices
  • Though F.W.Taylor developed principles of management, credits to Henry Fayol, a French management theorist for advocating and publicizing certain principles (or laws) for the soundness and good working of the management.
  • Henry Fayol warned that the principles of management should be,
  • Flexible and not absolute- must be usable regardless of changing condition.
  • Used with intelligence and with a sense of proportion, etc.
  • Henri Fayol listed 14 Principles that grew out of his experience; they are briefed under.


1. Division of work (or Labour)

  • Division of work means dividing the work on the principle that different workers (and different places) are best fitted for different jobs (or things) depending upon influences arising from geography, natural conditions, personal aptitude and skills.
  • Division of work leads to specialization.
  • Concept of division of labour can be applied to all kinds of work, managerial as well as technical.

Advantage of Division of Labour, since the same worker does the same work repeatedly

(i) He gains proficiency and skill on the jobs,

(ii) rate of production increases,

(iii) product quality improves,

(iv) he is in a position to suggest changes in product, processing or methods of doing that work.


Disadvantage of Division of Labor 

i) Division of labor gives rise to loss of craftsmanship; workers become machine-rninders and no more.

ii) With the passage of time, the same job becomes dull and monotonous.

iii) Workers do not remain all round and one cannot work in place of another if he is absent.


2. Authority and Responsibility 

  • Authority and responsibility should go together, hand-in-hand and must be related.
  • An executive can do justice with his responsibility only when he has the proper authority.
  • Responsibility without authority or Vice Versa is meaningless. 

3. Discipline 

  • Discipline is absolutely necessary)’ for efficient functioning of all enterprises.
  • Discipline may be described as respect for agreements that are directed at achieving obedience, application and the outward marks of respect. 

4. Unity of Command

  • Unity of command means, employees and should receive order and instructions from one boss (or supervisor) only. In other words a worker should not be under the control of more than one supervisors.
  • Unity of command avoids confusion, mistakes and delays in getting the work done. 

5. Unity of Direction 

  • It is a broader concept than the unity of command.
  • Unlike unity of command which concerns itself with the personnel, unity of directions deals with the functioning of the body corporate.
  • Unity of direction implies that there should be one plan and one head for each group of activities having the same objective.
  • In other words, there should be one common plan for an enterprise as a whole.

6. Subordination of Individuals to General interest 

  • The interests of an individual person should be permitted to supersede or prevail upon the general interest of the enterprise.
  • This is necessary to maintain unity and to avoid friction among the employees. 

7. Remuneration

  • Remuneration is the price to the employees for the services rendered by them for the enterprise.
  • Remuneration should be fair, and
  • bring maximum satisfaction to both employees and the employers. 

8. Centralization of Authority 

  • Centralization of authority means that the authority is in the hands of centre, i.e., the authority is not dispersed among different sections.
  • In a business organization, authority should be centralized only to that degree or extent which is essential for the best overall performance.
  • The degree of centralization is decided by keeping in view the nature, size and complexity of the (business) enterprise. 

9. Scalar Chain

  • Managers may be regarded as a Chain of superiors. There should be an unbroken like of authority and command through all levels from the highest (i.e., general managers) to the lowest ranks (employee).
  • The chain of superiors should be short – circuited, when. following it strictly will be detrimental to performance.

10. Order

  • This promotes the idea that everything (e.g., materials) and everyone (human being) has his place in the organization.
  • Materials and human beings should be arranged such that right materials (things)/person is in the right place.

11. Equity of Treatment 

  • Manager should have equality of treatment for all his subordinates.
  • Manager should deal with his subordinates with kindness and justice.
  • This will make employees more loyal and devoted towards the management/ enterprise.

12. Stability

  • Stable and secure work force is an asset to the enterprise, because unnecessary labor turnover is costly.
  • An average employee who stays with the concern is much better than outstanding employees who merely come and go.
  • Instability is the result of bad management.

13. Initiative 

  • Initiative is one of the keenest satisfaction for an intelligent employee to experience.
  • Managers should sacrifice their personal vanity in order to permit their subordinates to exercise their own initiative.
  • A manager should encourage his subordinates to take initiative.

14. Esprit de crops 

This principles of management emphasizes the need for team work (harmony and proper understanding) among the employees and shows the importance of communication is obtaining such team work.