Fayol listed fourteen principles of organization that are as follows:
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1. Division of Work:
It promotes specialization and enables a person to acquire an ability and accuracy by which he can do more work with the same effort.
2. Authority and Responsibility:
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According to Fayol authority and the responsibility go hand in hand. Authority is not to be conceived apart from responsibility and wherever authority is exercised responsibility arises.
3. Discipline:
It involves obedience by employees. To Henri Fayol, discipline constituted one of the significant principles for an organization.
The disciplinary attitude of the workers in their work helps in reducing time for the completion of work i.e. it increases efficiency as well as the quality of the work. It depends upon good supervision, clear and free agreements, and judicious application of penalties.
4. Unity of Command:
Every subordinate should receive orders and be accountable to only one superior. Dual or multiple commands is a perpetual source of conflict. It undermines authority, puts discipline in jeopardy.
5. Unity of Direction:
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According to this, each group of activity having same objective must have one head and one plan. This principle, seeks to ensure unity of action. It refers to the functioning of the corporate department.
6. Subordination of Individual Interest:
Although it is true that individual interest can never be sacrificed, but for Fayol they should be minimized and should not prevail over the interest of the organization as it hampers the growth and success of the organisation in every possible way. Group interest should be subordinated to the common good.
7. Remuneration of Personnel:
The amount of remuneration and the methods of payment should be just and fair and should provide maximum possible satisfaction to both employees and employers.
8. Centralisation:
For Fayol, there should be centralisation in an organization. Its objective is to promote the optimum utilization of all faculties of the personnel.
9. Scalar Chain:
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Henri Fayol favored the idea of scalar chain in an organization. According to him, division of authority should follow hierarchical structure.
10. Order:
There should be order and peace in an organisation as it ensures an environment where workers can perform their task most efficiently and effectively in an organisation, there should be a place for everything and everyone.
This kind of order requires precise knowledge of human requirements and resources of the concern so that balance may be created between them.
11. Equity:
It implies that employees should be treated with justice and kindness. Administrators should be fair and impartial in their dealings with subordinates.
They should adopt sympathetic and unbiased attitude towards workers. It helps to create cordial relation between Administration and workers.
12. Stability of Tenure of Personnel:
The tenure of personnel should be stable if not fixed as it creates a feeling of responsibility in them.
Moreover, if the personnel are removed from their post more frequently, it destabilizes the whole organizational set up. An employee can never render worthwhile service if he is removed from the job before he gets accustomed.
13. E-spirit-de-corps:
This refers to the harmony and mutual understanding among the members of an organisation. Administration should maintain team spirit and co-operation among employees. Unity among the personnel can be developed through proper communication and coordination.
14. Initiative:
It refers to the freedom to think for one-self and use of discretion in doing work. It develops the interest of employees in their job and provides job satisfaction to them.
To facilitate his idea of principles to be adopted by various organizations, Fayol stressed the need for the management teaching and training in schools and universities.
Henri Fayol described certain qualities of good managers:
1. Physical Fitness (health, vigour, address)
2. Mental Alertness (Judgment, adaptability)
3. Moral part of character (loyalty, tact willingness to accept responsibility)
4. General education
5. Special Knowledge
6. Experience