14 PRINCIPLES OF MANAGEMENT by HENRI FAYOL
may lead to possible conflicts for employees. By using
1. Division of Work
In practice, employees are specialized in different
areas and they have different skills. Different levels of
expertise can be distinguished within the knowledge
areas (from generalist to specialist). Personal and
professional developments support this. According to
Henri Fayol specialization promotes efficiency of the
workforce and increases productivity. In addition, the
specialization of the workforce increases their
accuracy and speed. This management principle of the
14 principles of management is applicable to both
technical and managerial activities.
2. Authority and Responsibility
In order to get things done in an organization,
management has the authority to give orders to the
employees. Of course with this authority comes
responsibility. According to Henri Fayol, the
accompanying power or authority gives the
management the right to give orders to the
subordinates. The responsibility can be traced back
from performance and it is therefore necessary to
make agreements about this. In other words,
authority and responsibility go together and they are
two sides of the same coin.
3. Discipline
This third principle of the 14 principles of
management is about obedience. It is often a part of
the core values of a mission and vision in the form of
good conduct and respectful interactions. This
management principle is essential and is seen as the
oil to make the engine of an organization run
smoothly.
4. Unity of Command
The management principle ‘Unity of command’ means
that an individual employee should receive orders
from one manager and that the employee is
answerable to that manager. If tasks and related
responsibilities are given to the employee by more
than one manager, this may lead to confusion which
this principle, the responsibility for mistakes can be
established more easily.
5. Unity of Direction
This management principle of the 14 principles of
management is all about focus and unity. All
employees deliver the same activities that can be
linked to the same objectives. All activities must be
carried out by one group that forms a team. These
activities must be described in a plan of action. The
manager is ultimately responsible for this plan and he
monitors the progress of the defined and planned
activities. Focus areas are the efforts made by the
employees and coordination.
6. Subordination of Individual Interest
There are always all kinds of interests in an
organization. In order to have an organization function
well, Henri Fayol indicated that personal interests are
subordinate to the interests of the organization
(ethics). The primary focus is on the organizational
objectives and not on those of the individual. This
applies to all levels of the entire organization,
including the managers.
7. Remuneration
Motivation and productivity are close to one another
as far as the smooth running of an organization is
concerned. This management principle of the 14
principles of management argues that the
remuneration should be sufficient to keep employees
motivated and productive. There are two types of
remuneration namely non-monetary (a compliment,
more responsibilities, credits) and monetary
(compensation, bonus or other financial
compensation). Ultimately, it is about rewarding the
efforts that have been made.
8. The Degree of Centralization
Management and authority for decision-making
process must be properly balanced in an organization.
This depends on the volume and size of an
organization including its hierarchy.
Centralization implies the concentration of decision
making authority at the top management (executive
board). Sharing of authorities for the decision-making
process with lower levels (middle and lower
management), is referred to as decentralization by
Henri Fayol. Henri Fayol indicated that an organization
should strive for a good balance in this.
9. Scalar Chain
Hierarchy presents itself in any given organization.
This varies from senior management (executive board)
to the lowest levels in the organization. Henri Fayol ’s
“hierarchy” management principle states that there
should be a clear line in the area of authority (from
top to bottom and all managers at all levels). This can
be seen as a type of management structure. Each
employee can contact a manager or a superior in an
emergency situation without challenging the
hierarchy. Especially, when it concerns reports about
calamities to the immediate managers/superiors.
10. Order
According to this principle of the 14 principles of
management, employees in an organization must
have the right resources at their disposal so that they
can function properly in an organization. In addition to
social order (responsibility of the managers) the work
environment must be safe, clean and tidy.
11. Equity
The management principle of equity often occurs in
the core values of an organization. According to Henri
Fayol, employees must be treated kindly and equally.
Employees must be in the right place in the
organization to do things right. Managers should
supervise and monitor this process and they should
treat employees fairly and impartially.
12. Stability of Tenure of Personnel
This management principle of the 14 principles of
management represents deployment and managing of
personnel and this should be in balance with the
service that is provided from the organization.
Management strives to minimize employee turnover
and to have the right staff in the right place. Focus
areas such as frequent change of position and
sufficient development must be managed well.
13. Initiative
Henri Fayol argued that with this management
principle employee should be allowed to express new
ideas. This encourages interest and involvement and
creates added value for the company. Employee
initiatives are a source of strength for the organization
according to Henri Fayol. This encourages the
employees to be involved and interested.
14. Esprit de Corps
The management principle ‘esprit de corps’ of the 14
principles of management stands for striving for the
involvement and unity of the employees. Managers
are responsible for the development of morale in the
workplace; individually and in the area of
communication. Esprit de corps contributes to the
development of the culture and creates an
atmosphere of mutual trust and understanding.
In conclusion on the 14 Principles of management
The 14 principles of management can be used to
manage organizations and are useful tools for
forecasting, planning, process management,
organization management, decision-making,
coordination and control.
Although they are obvious, many of these matters are
still used based on common sense in current
management practices in organizations. It remains a
practical list with focus areas that are based on Henri
Fayol ’s research which still applies today due to a
number of logical principles.
BUREAUCRATIC THEORY
At the end of the 19th century, it was German
sociologist and author of The Protestant Ethic and the
Spirit of Capitalism (1905), Max Weber who was the
first to use and describe the term bureaucracy. This is
also known as the bureaucratic theory of
management, bureaucratic management theory or
the Max Weber theory. He believed bureaucracy was
the most efficient way to set up an organization,
administration and organizations. Max Weber
believed that Bureaucracy was a better than
traditional structures. In a bureaucratic organization,
everyone is treated equal and the division of labor is
clearly described for each employee.
Bureaucracy definition: what is bureaucracy?
Bureaucracy definition: “Bureaucracy is an
organizational structure that is characterized by many
rules, standardized processes, procedures and
requirements, number of desks, meticulous division of
labor and responsibility, clear hierarchies and
professional, almost impersonal interactions between
employees”.
According to the bureaucratic theory of Max Weber,
such a structure was indispensable in large
organizations in structurally performing all tasks by a
great number of employees. In addition, in a
bureaucratic organization, selection and promotion
only occur on the basis of technical qualifications.
Legal responsibility
According to the bureaucratic theory of Max Weber,
three types of power can be found in organizations;
traditional power, charismatic power and legal power.
He refers in his bureaucratic theory to the latter as a
bureaucracy. All aspects of a democracy are organized
on the basis of rules and laws, making the principle of
established jurisdiction prevail.
The following three elements support bureaucratic
management:
 All regular activities within a bureaucracy can
be regarded as official duties;
 Management has the authority to impose
rules;
 Rules can easily be respected on the basis of
established methods.
What is a bureaucratic organization?
According to the bureaucratic theory of Max Weber,
bureaucracy is the basis for the systematic formation
of any organization and is designed to ensure
efficiency and economic effectiveness. It is an ideal
model for management and its administration to bring
an organization’s power structure into focus. With
these observations, he lays down the basic principles
of bureaucracy and emphasizes the division of labor,
hierarchy, rules and impersonal relationship.
6 bureaucratic management principles
1. Task specialization
Tasks are divided into simple, routine categories on
the basis of competencies and functional
specializations. Every employee is responsible for
what he/she does best and knows exactly what is
expected of him/her. By dividing work on the basis of
specialization, the organization directly benefits. Each
department has specific powers. As a result, there is a
delineation of tasks and managers can approach their
employees more easily when they do not stick to their
tasks. Every employee knows exactly what is expected
of him/ her and what his/ her powers are within the
organization. Every employee has a specific place
within the organization and is expected to solely focus
on his/ her area of expertise. Going beyond your
responsibilities and taking on tasks of colleagues is not
permitted within a bureaucracy.
2. Hierarchical of authority
Managers are organized into hierarchical layers, where
each layer of management is responsible for its staff
and overall performance. In bureaucratic
organizational structures, there are many hierarchical
positions. This is essentially the trademark and
foundation of a bureaucracy. The hierarchy of
authority is a system in which different positions are
related in order of precedence and in which the
highest rung on the ladder has the greatest power.
The bottom layers of bureaucratic organizational
structures are always subject to supervision and
control of higher layers. This hierarchy reflects lines of
bureaucratic communication and the degree of
delegation and clearly lays out how powers and
responsibilities are divided.
3. Formal selection
All employees are selected on the basis of technical
skills and competences, which have been acquired
through training, education and experience. One of
the basic principles is that employees are paid for
their services and that level of their salary is
dependent on their position. Their contract terms are
determined by organizational rules and requirements
and the employee has no ownership interest in the
company.
4. Rules and requirements
Formal rules and requirements are required to ensure
uniformity, so that employees know exactly what is
expected of them. In this sense, the rules and
requirements can be considered predictable. All
administrative processes are defined in the official
rules. By enforcing strict rules, the organization can
more easily achieve uniformity and all employee
efforts can be better coordinated. The rules and
requirements are more or less stable and always
formalized in so-called official reports. Should new
rules and requirements be introduced, then senior
management or directors are responsible for this.
5. Impersonal
Regulations and clear requirements create distant and
impersonal relationships between employees, with
the additional advantage of preventing nepotism or
involvement from outsiders or politics. These
impersonal relationships are a prominent feature of
bureaucracies. Interpersonal relationships are solely
characterized by a system of public law and rules and
requirements. Official views are free from any
personal involvement, emotions and feelings.
Decisions are solely made on the basis of rational
factors, rather than personal factors.
6. Career orientation
Employees of a bureaucratic organization are selected
on the basis of their expertise. This helps in the
deployment of the right people in the right positions
and thereby optimally utilizing human capital. In a
bureaucracy, it is possible to build a career on the
basis of experience and expertise. As a result, it offers
lifetime employment. The right division of labor
within a bureaucratic organization also allows
employees to specialize themselves further, so that
they may become experts in their own field and
significantly improve their performance.
Advantages
Generally speaking, the term bureaucracy has a
negative connotation and is often linked to
government agencies and large organizations.
Nevertheless, the great benefit of a bureaucracy is
that large organizations with many hierarchical layers
can become structured and work effectively. It is
precisely the established rules and procedures that
allows for high efficiency and consistent execution of
work by all employees.
All this makes it easier for management to maintain
control and make adjustments when necessary.
Bureaucracy is especially inevitable in organizations
where legislation plays an important role in delivering
a consistent output.
Disadvantages
Bureaucracy is characterized by a large amount of red
tape, paperwork, many desks, certain office culture
and slow bureaucratic communication due to its many
hierarchical layers. This is the system’s biggest
disadvantage of a bureaucratic organization. It is also
unfortunate that employees remain fairly distanced
from each other and the organization, making them
less loyal.

Bureaucracy is also extremely dependent on

regulatory and policy compliance. This restricts
employees to come up with innovative ideas, making
them feel like just a number instead of an individual.
Later research (the human relations theory)
demonstrated that employees appreciate attention
and want to have a voice in decision making.

Problems

Because employees of a bureaucratic organization

have no opportunity to voice their opinion or
influence decision making, a bureaucracy may
demotivate employees in the long run.

Moreover, over the course of time, employees may

start to get annoyed at the various rules and
requirements, with the risk that they may start
boycotting and/ or abusing these rules and standing
up to the established order. It is therefore very
important that bureaucratic organizations properly
inform employees well in advance about their
approach to work and requires them to accept this.
Only employees who agree to this approach are
suitable to work within a bureaucratic organization.