FAYOL’S 14 PRINCIPLES OF MANAGEMENT

 DIVISION OF LABOR - Specialization to increase effectiveness and efficiency

 AUTHORITY AND RESPONSIBILITY - Formal (The right to command) Personal
(Expertise) Authority, and power to exhort subordinate obedience
 DISCIPLINE - Respect rules and agreements in achieving organizational goals; judicial
enforcement of penalties and rewards
 UNITY OF COMMAND - One boss
 UNITY OF DIRECTION - One manager, one plan
 SUBORDINATION OF INDIVIDUAL INTEREST TO THE COMMON GOOD - Interests
of the individual do not take precedence over the interests of the organization as a whole;
Employees must know how their performance affects overall efficiency and effectiveness
 REMUNERATION - Fair and equitable pay for work done
 CENTRALIZATION - A balance of centralized planning and decentralized execution with
appropriate authority and responsibility at all levels
 THE HIERARCHY (SCALAR CHAIN) - Line (Legitimate Power) authority from top to
bottom of the organization
 ORDER - The right people and things in the right place at the right time
 EQUITY - Fair and consistent application of the standards; Respect for the employee
 STABILITY OF STAFF - High turnover rate is inefficient and ineffective
 INITIATIVE - Employees allowed to make and carry out plans/programs even if mistakes
are made and to be innovative/creative
 ESPRIT DE CORPS - Morale, pride, enthusiasm, loyalty, comradeship and team spirit