14 Principles of Management by Henri Fayol: Explained with Examples
Starting a career in management often feels like learning a new language: there are many terms, frameworks and opinions. A helpful first step is to learn a clear, time-tested framework that makes the basics easier to understand. Henri Fayol’s 14 principles are among the clearest starting maps you will find for this. Written more than a century ago, they are short, practical ideas managers can use to organise work, clarify responsibilities and improve teamwork.
Fayol’s principles of management emphasise the importance of planning, organising, commanding, coordinating, and controlling within an organisation.
This article gives a fresh, straightforward introduction to each principle. It also provides a short, modern example to help you understand how to apply it at work.
Use these principles as a checklist. Pick the ones that best fit your team and implement them, rather than trying to follow every rule by the book.
14 Principles Of Management By Henri Fayol
Henri Fayol’s 14 Principles of Management are foundational guidelines for organisational efficiency and effective leadership. Fayol’s insights emphasise the importance of structured management practices and the strategic allocation of resources.
They will not fix every problem in the workplace, but will provide a useful helping hand. Based on their teachings, you can diagnose what is broken, pick the few principles that address it, and adapt them to how your team actually works.
Here are the 14 management principles by Henri Fayol, each explained with a practical example:
1) Division Of Work
When people are consistently assigned the same task, their productivity improves over time. The delegation of work breaks jobs into clear, repeatable tasks, helping employees build real skill and speed.
When someone does the same kind of task regularly, they discover shortcuts, spot errors faster, and deliver higher-quality results. This leads to better employee productivity.
Example:
On a factory line, having specific people focus on assembly, quality checks, or packaging rather than switching between all three helps each person become faster and more accurate.
2) Authority And Responsibility
Authority and responsibility are crucial in management. Authority gives a person the right to make decisions and direct others. On the other hand, responsibility means owning the consequences of those decisions, whether they succeed or fail.
Both need to go hand-in-hand. If someone can make decisions but is not held accountable, things fall apart. Also, if someone is accountable but lacks decision-making authority, they are set up to fail. A good manager gives clear decision rights and supports people when things do not go as planned.
Example:
A project manager who can approve resources and is also judged on project outcomes knows what they can decide and is motivated to make the right calls.
3) Discipline
Discipline is not just about strictness. It is also about shared rules and consistent follow-through so that work can happen predictably. Fair, well-explained expectations and consistent consequences build trust. People behave well when they understand the rules and feel they are applied evenly.
Example:
A clear code of conduct plus a transparent process for handling breaches helps everyone know where the lines are and reduces friction.
4) Unity Of Command
The principle of unity of command states that everyone should report to one boss to avoid confusion and conflicting instructions. That does not eliminate collaboration, but it does make accountability and priorities much clearer.
Example:
In retail, a sales associate who gets direction from a single store manager will not be torn between competing demands from multiple supervisors.
5) Unity Of Direction
Unity of Direction implies that all activities with the same objective should be directed by a single manager using a single plan. This principle ensures unity and coordination within the organisation, which goes a long way in ensuring employee productivity.
Example:
In a marketing campaign, the marketing manager should direct all efforts, such as advertising, public relations, and social media, to maintain a cohesive strategy.
6) Subordination Of Individual Interests To General Interest
The interests of the organisation should take precedence over those of individuals. Fayol believed that this principle fosters a collaborative work environment.
Example:
During a company-wide cost-reduction initiative, employees may need to forego certain personal benefits to contribute to the organisation’s overall financial health.
7) Remuneration
Compensation should be fair and satisfactory to both employees and the organisation. Fayol emphasised the importance of equitable remuneration in motivating employees.
Example:
A competitive salary structure, along with performance bonuses and benefits, helps attract and retain talented employees, enhancing job satisfaction and productivity.
8) Centralisation
Centralisation refers to the degree to which decision-making is concentrated at the top levels of the organisation. Fayol suggested that the degree of centralisation should depend on the specific circumstances of the organisation.
Example:
In a small startup, centralised decision-making by the founder can ensure quick and consistent strategic direction, while in larger organisations, decentralisation might be more effective.
9) Scalar Chain
The scalar chain is the line of authority from top management to the lowest ranks. Fayol advocated for clear communication paths within the hierarchy.
Example:
In a corporate structure, information flows from the CEO to managers, then to team leaders, and finally to employees, ensuring everyone is informed and aligned with company goals.
10) Order
Order is about making sure things and people are where they should be, so work does not stop looking for resources or information. It is not just tidiness, it is practical organisation that saves time and reduces stress. Simple systems, clear filing, and predictable roles help workflow to flow smoothly.
Example:
A tidy office where documents and equipment are logically stored means fewer interruptions and faster task completion.
11) Equity
Equity is fairness in treatment, giving people the same respect, opportunities and impartial judgment regardless of rank. It is both ethical and strategic. When employees feel treated fairly, they are more loyal and productive. Equity also means having transparent processes so people trust decisions about pay, promotion and feedback.
Example:
Unbiased performance reviews and equal access to training create a sense of fairness that improves morale and retention.
12) Stability Of Tenure Of Personnel
High employee turnover can be detrimental to organisational efficiency. Fayol recommended providing job security to employees to enhance their performance and loyalty.
Example:
Offering long-term employment contracts and career development opportunities helps retain skilled workers and reduces recruitment and training costs.
13) Initiative
Managers should encourage employees to take initiative and be creative in solving problems. Fayol believed that allowing employees to contribute ideas boosts their engagement and innovation.
Example:
Creating an open-door policy that encourages employees to suggest improvements or new projects fosters ownership and drives the organisation forward.
14) Esprit De Corps
Esprit de corps means team spirit – a workplace where people feel they belong and support one another. When teams build genuine camaraderie, collaboration becomes easier and resilience increases. Leaders strengthen this by celebrating wins, resolving conflicts respectfully, and creating shared rituals or traditions.
Example:
Regular team check-ins, shared celebrations after a successful project, or small team rituals help people connect and collaborate better.
Criticism Of Fayol’s Principles Of Management
Fayol’s ideas are powerful, but they are not perfect. Critics point out that his approach can feel rigid or mechanical. It can be too focused on structure and not enough on human behaviour, emotions, or modern workplace conditions such as remote work. That said, many managers find Fayol useful as a baseline: apply the parts that fit, and adapt the rest to today’s context.
Conclusion
Henri Fayol’s 14 principles of management continue to offer valuable guidance to anyone responsible for leading people or running organisations. While they were developed over a century ago, the ideas behind them – clear roles, fair treatment, coordination, accountability, and teamwork are just as relevant today.
These principles help managers bring structure to complexity and create environments where people know what is expected of them.
That said, modern workplaces are more people-centric than those of Fayol’s time. The real value of his principles lies in adapting them to suit today’s organisational cultures, technologies, and ways of working.
When combined with modern leadership skills, flexibility, and emotional intelligence, Fayol’s framework becomes a powerful tool for building efficient, motivated, and resilient teams.
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