Implementing Henri Fayol's 14 Principles of Management

Henri Fayol's 14 principles of management are renowned for their simplicity and effectiveness, and continue to hold relevance even today. As a manager or business owner, it can often be challenging to identify the root causes of issues within your organization. However, Fayol's principles provide a practical framework of 14 steps that can be applied to assess your business operations and highlight areas for improvement. While modern technology has introduced numerous time tracking and management tools, the enduring value of these principles remains unchanged and applicable in today's work environment.

Here are the 14 principles of management by Henri fayol and how you can implement these 14 principles of management in your organization.

1) Division of work

The division of work principle is applicable to firms of all sizes, whether they have a large or small number of employees. It suggests that work should be allocated among all capable individuals to avoid overburdening a select few. Conversely, assigning the same tasks to many people should also be avoided to maintain efficient labor utilization and productivity.

By implementing a targeted division of work, employees can specialize in their respective tasks, leading to a reduction in errors and increased efficiency. This is exemplified in factories where experienced workers are often the ones who solve problems related to machinery. Consider applying this management principle to your own organization.

Are people specializing in the work they are doing?

Do you need to restructure the division of labour in your organization?

Above are some questions which can guide you in improving your organization’s management and labour division.

2) Authority

Effective management requires a clear hierarchy of decision-making power, with a select few individuals holding the authority to give orders. This prevents conflicts and streamlines the implementation process. However, with great power comes great responsibility. For example, as the marketing head of a company, if you make a decision that ultimately leads to the failure of a product, you must take ownership of that failure. This accountability leads to more thoughtful decision-making and is a key component of Henri Fayol's 14 principles of management.

Are you giving the authority of decision making to too many people?

Are the people in authority not ready to take responsibility?

3) Discipline

Maintaining discipline in an organization is undoubtedly the responsibility of management. The effects of this discipline are felt throughout the employee chain, from top to bottom.

Ad agencies are a prime illustration of how informal meetings and conversations can foster stronger relationships with customers. Nevertheless, it is important to note that even these agencies prioritize discipline when it comes to the conduct of their ad executives and the execution of their work. Discipline is a key component of the organization's mission and values. If your employees lack discipline, what steps can you take to instill it in them?

Are you and your managers disciplined with regards to usage of time and space?

4) Unity of command

In the previous point, we discussed the importance of authority and how it should be limited to only certain individuals. It's important to note that authority should also flow down the chain in a hierarchical manner. If every member of a political party were to report directly to the prime minister, it would put an overwhelming amount of stress on him.

To avoid this, organizations typically have a standard hierarchy in place, with each person reporting to only one leader. This could include a national manager, regional manager, group manager, and team leader. This structure ensures that everyone knows who they are accountable to, as well as their specific responsibilities and performance expectations.

Is there unity of command in your company?

Are there too much conflicts at the managerial level with regards to who is reporting to whom?

5) Unity of direction

After establishing a clear chain of command and ensuring that all team members understand their reporting structure and are willing to follow their leader's directives, the next step is to establish unity of direction.

The success of a company hinges on the unity of its leadership, as the saying goes, "United we stand, divided we fall." To achieve growth, it is crucial that each executive, from the CEO down, is aligned in their efforts towards that goal. A well-trained and properly managed executive can make all the difference in driving growth for the company.

This is one of the 14 principles of management applicable to all firms, irrespective of their size.

Unity of direction is important to give one vision to all the employees of your company

United we stand, divided we fall

6) Subordinate interests

Understanding the interests of individuals is key to controlling them, and ultimately, ensuring that the company's interests supersede their own. It's not uncommon for employees to be let go if they're found to be moonlighting or pursuing side jobs. This is because the company wants to ensure that its employees are fully committed and dedicated to their work. The organization prioritizes individuals who give their all to the company, with the understanding that the company's interests should always take precedence over individual interests.

Do you have employees or managers who are placing personal interest above company’s interests?

How would you change or tackle these sub ordinate interests?

7) Remuneration 

In order to maintain discipline among employees, it's important to establish a clear direction and chain of command within the organization. Additionally, offering competitive compensation can help to reduce the likelihood of employees leaving for other opportunities and encourage them to focus on their current responsibilities.

Employees' motivation levels can be sustained by ensuring that they are fairly compensated, in accordance with Henri Fayol's 14 principles of management. This compensation can be in the form of monetary or non-monetary rewards. Monetary compensation may include bonuses, incentives, or other financial rewards, while non-monetary compensation may involve recognition or other types of rewards. It is crucial to ensure that employees are content with their monetary compensation and that it is in line with industry standards.

Are offering non monetary remuneration from time to time to keep employees motivated?

8) Centralization

In an organization, centralization refers to the degree of control held by a select group of individuals, often found in large corporations. Conversely, decentralization involves a higher percentage of individuals within the organization having control, a common feature in small businesses. To strike a balance, many companies have strategic business units that operate with a level of decentralization, allowing them decision-making powers. Similarly, small businesses may delegate authority in a decentralized manner to expedite work. However, the decision to use centralization or decentralization ultimately depends on the specific business and industry in question.

Is your organization centralized or decentralized?

Which of the centralization tactics will help you?

9) Scalar chain

The scalar chain can be a source of confusion for many individuals, but it can be simplified as follows. As previously mentioned regarding the unity of command, it is crucial for one person to report to a sole manager who is higher up the chain. For instance, an executive should report to a team manager, who in turn should report to the regional manager, and so on up the chain of command.

Having a clear line of authority in a company is crucial for effective communication and problem-solving. The scalar chain emphasizes the importance of knowing who to approach in times of emergencies or when issues need to be escalated. Companies like Samsung have implemented a strict scalar chain where customer complaints are addressed within a specific time frame by designated authorities. This chain of command forms the wireframe of a company, providing a clear hierarchy and structure for efficient functioning.

Does your company implement Scalar chain and does each employee know the chain of command?

10) Order

In order for an organization to function properly, it is crucial to maintain a sense of order and structure. This is commonly referred to as the concept of "Order vs chaos". This does not entail individuals in positions of power ordering those beneath them, but rather ensuring that employees have the necessary resources and procedures to maintain order and prevent chaos. For example, many larger companies have established protocols for tracking attendance and designated break times based on work stations. Additionally, maintenance officers are often stationed to quickly address any equipment issues. Overall, these measures contribute to the smooth and efficient operation of the organization. In fact, the maintenance of order is one of the key principles outlined in Henri Fayol's 14 principles of management.

What measures have you taken to ensure that your employees are working in an orderly manner?

Bringing order to chaos ensures clear thinking of mind and more productivity.

11) Equity

Fairness and impartiality should be upheld in all organizations, with no favoritism shown towards any employee. It is not uncommon for employees to express dissatisfaction when they perceive that someone else was given preferential treatment in terms of promotions or compensation.

12) Stability of tenure

Maintaining equity in an organization is crucial for ensuring fairness among all members. To achieve this, cultivating a culture that upholds ethical values is paramount. When a company prioritizes ethics, equity naturally follows suit.

Henri Fayol emphasized the importance of stability of tenure in his 14 principles of management. He believed that organizations could achieve faster growth if their employees remained stable. High attrition rates can result in wasted time and increased costs due to the need for frequent training and development. This can ultimately lead to a lack of stability in the organization.

Large companies typically take employee turnover seriously and have procedures in place to prevent it. They may implement strategies such as job rotation or incentives to combat boredom and motivate employees. By employing such tactics, organizations can ensure stability of tenure and promote growth.

Simply said, the more the stability of tenure, the more the profit

High attrition means a lot of cost towards training and development

If tenure is stable, means your employees are happy and the company will develop faster as you have trained employees handling the work.

13) Initiative

Innovation is often praised when a company introduces a new product to the market, but it's also common to wonder why this isn't happening regularly. The answer lies in companies that prioritize innovation by encouraging both young and experienced talent to share their ideas and supporting them in doing so. This is a principle that Google, Apple, and Facebook have incorporated into their 14 principles of management, allowing developers and engineers the time and resources to explore innovative ways to enhance their respective companies. It's this kind of initiative that has driven the high levels of innovation at these companies.

Are you listening to feedback from your employees with regards to product / company’s improvement?

Are you taking initiative to change things as they are and to make them even better?

14) Esprit de corps

To achieve success while implementing the 14 principles of management, it's important to foster a sense of pride and mutual loyalty among group members. This is known as esprit de corps, and it can have a significant impact on a team's performance and overall success.

A strong sense of esprit de corps within an organization fosters pride and loyalty among both employees and customers. Though few companies have been able to achieve this level of unity, those that have, such as Intel, Apple, and Amazon, have gained a competitive advantage through the enthusiasm and motivation of their staff. These enduring principles of management, including esprit de corps, remain relevant and beneficial to organizations of all sizes, regardless of technological advancements.

The aim is to achieve an efficiently managed organization that is highly productive and delivers optimal results aligned with the organization's objectives. Additionally, there are simpler methods to monitor certain aspects outlined in the 14 principles of management.