14 Principles of Management by Henri Fayol [Overview 2025]

Every task has its own SOP that helps in its execution. Similarly, management has its own set of principles that are usually incorporated into different situations for the execution of different tasks in an organization. In this blog, you will learn about Henri Fayol's top 14 principles of management. You will also learn about the great French mining engineer who introduced those principles, and today, all the tasks and situations of organizations and corporations revolve around them. So, let's get started.

Jules Henri Fayol—Father of Management Theory 

Jules Henri Fayol (29th July 1841 - 19 Nov 1925) is the father of the modern management theory. He introduced the 14 principles of management. Besides being the father of modern management, he was a French mining engineer, mining executive, author, and director of mines who developed a general theory of business administration, often called Fayolism. 

Principles of Modern Management 

The 14 principles of management founded by Henri Fayol act as an evergreen guideline to the corporation's managers who run successful corporations or startups and want to achieve all the organizational goals. He even articulated all those principles and ideas in his book named “Administration Industrielle et Générale” in 1916. In this section, you will learn about the principles of management in detail, their applications, and their relevance in the modern business world. 

1) Division of Work 

Division of Work is the first principle of the modern management theory given by Henri Fayol. This states that there should be a systematic division of work among the employees based on their skill set, knowledge, authority, and work experience. This division can further lead to enhanced productivity and growth among the employees, leading towards the long-term success of the organization.

• Application :In modern organizations, new job roles have emerged in different sectors. For instance, in the information technology (IT) sector, there are many different kinds of job roles available including Tester, Software or Hardware Engineer, Software Developer, and Designer. Each of them has their own skills and knowledge that help them to execute the work accordingly and with more efficiency. The key benefits of the Division of Work principle is that it helps in the enhancement of overall work productivity. It eradicates the duplication of efforts. It also helps the employees in uplifting their skills and knowledge. 

2) Authority And Responsibility

The second principle of Modern Management given by Henri Fayol is Authority and Responsibility. This principle states that authority and responsibility are equally proportional to each other. It is something like that, the higher the authority, the higher the responsibility. For example, a manager of an organization has the authority to assign tasks to its subordinates and ask them for reports on a daily basis. However, with authority, he/she is equally answerable to the decisions or mistakes made by the team or any team member. 

• Application :Managers in an organization assign and delegate tasks to subordinates or employees and expect the completion of the tasks with a positive outcome. He/she also has the authority to ask the team about the status of the tasks. Furthermore, if the task is not completed on time, then he/she has the right to ask the team for the results of the task. And if the team or any individual fails to achieve the goal, then he or she is answerable For example, In a marketing team, the TL delegates a marketing campaign to the team and expects good audience engagement from its team. However, if, in the end, the team fails to achieve the goal, then he or she is answerable for the failure of the overall team.  The key benefit of the Authority & Responsibility principle is that it helps in the accountability of the tasks among the team members. This also leads to the empowerment of the team members and motivates them to complete their tasks on time and efficiently. 

3)Discipline

Discipline is the key to the completion of any work. Not in your personal life but in your professional life, being disciplined can help you complete the work efficiently and effectively. It is crucial to maintain decorum in the corporate world to achieve the goals in a desired period. It involves adherence to rules, regulations, and values set by the organization.

• Application :Every organization has a code of conduct on the basis of which all the employees work on the given tasks. Maintaining time punctuality, meeting work deadlines, and completing other assigned tasks on time highlights the importance of discipline in the organization. Companies like Google emphasize discipline in innovation, encouraging employees to follow structured processes for brainstorming and project execution. The key benefit of the Discipline principle is that it helps to create a disciplined environment in the organization. It helps the employees to stay focused and makes them more serious about the achievements of the organizational goals. Remote work setups have further underscored the importance of self-discipline among employees.

4)Unity of Command 

The Unity of Command is another principle of modern management given by Jules Henri Fayol. This principle states that one employee must receive the orders from only a single higher authority at a time. This helps maintain clarity in the work and avoids the misunderstanding and confusion in the execution of the task. 

• Application :In any organization, unity of command refers to maintaining a hierarchical order is a must to ensure the clarity in work. Also, it ensures that an employee reports only to a single higher authority. For example, in a marketing department, a content writer should report to the content manager but not the sales department head. This clear chain of command minimizes conflicting instructions and maintains accountabilityThe key benefit of the unity of command principle is that all the departments must have an assigned team leader to whom the team members of that department should report. It ensures that decision-making and communication flow smoothly, especially in complex projects.

5) Unity of Direction 

The Unity of Direction is another principle of modern management given by Jules Henri Fayol. This principle states that there is only one goal for which the whole organization to follow including higher authority, executives, and other lower authorities. This ensures that all the employees are working under one plan and one leader. 

• Application :For any organization, it is very important to work under a unified leadership and plan. This ensures the completion of tasks on time with more effectiveness & efficiency. For example, if an organization has launched a new project, then it is the responsibility of the higher authority to have a unified set of rules and strategies set by the project manager. This coordination ensures that all efforts are directed toward achieving the product's success.  The key benefit of this unity of direction principle in this dynamic and fast-paced work environment is that unified leadership and goals help the teams in achieving the objectives in an effective manner. Since organizations in today’s world may coordinate with international clients and in diverse sectors, hence unity of direction ensures cohesion among diverse teams working towards shared objectives. 

6) Subordination of Individual Interest 

The next principle of modern management given by Jules Henri Fayol is Subordination of Individual Interest. This principle states that employees always prioritize their professional work over their personal interests.  

• Application :In an organization, it is very important to have a team that makes the work their top priority over any other personal stuff during their working time. They need to know that their professional goals or work is more important than other stuff while they are in their workspace. For example, the sales team might collectively decide to work overtime to meet a critical deadline, even if it conflicts with personal plans. This collective effort ensures the company’s reputation and goals are upheld.The key benefit of the subordination of individual interest principle in this dynamic and fast-paced work environment is that it develops a team spirit and hardworking environment among the team members. It also enhances the team members' motivation and professionalism toward achieving the goals. Modern organizations often emphasize the importance of shared vision and collective success during training and team-building activities.

7) Remuneration 

Remuneration is the next principle of modern management given by Jules Henri Fayol. According to Henri Fayol, it is to ensure that there should be a fair reward or compensation given to the employees. The remuneration ensures that an employee is getting a fine amount of monetary rewards. However, the compensation is like what it offers the employee with peace of mind and satisfaction.    

• Application :Every organization must provide some kind of reward or compensation to the employee for their hard work. This kind of compensation ensures the importance of the employee and their hard work. For instance, Companies like Microsoft and Apple offer competitive salaries, bonuses, and stock options to attract and retain top talent. They also provide non-monetary rewards like career growth opportunities, recognition programs, and wellness benefits.The key benefit of this remuneration principle in this dynamic and fast-paced work environment is that it develops an environment of peace among the employees. It also helps them to stay positive and motivated toward their objectives, work, and organization. In today’s competitive job market, fair remuneration is crucial for attracting skilled professionals. Organizations are also adopting performance-based incentives to align employee contributions with company goals.

8) Centralization & Decentralization

Centralization & Decentralization is the next principle of modern management given by Jules Henri Fayol in the 19th century. According to Henri Fayol, every organization has two types of structures that include centralization and decentralization. Centralization refers to the organizational situation there is one single leadership and management for the team.

It means all the departments will work under a single leader and they need to report to a single leader. In short, in centralization, the decision-making power is under a unified leadership. Only a selected leader has the authority to make rules & regulations and all the other employees have to follow the orders and rules of the organization and the higher authority. 

On the other hand, the decentralization is completely different from the centralization. Unlike centralization, decentralization is a situation when there is no unified leadership, and all the employees need to follow the orders of more than one leader. This kind of structure is usually implemented by large companies or MNCs. All the laws or rules are made by the committee members and they need to be followed by the other employees.  

• Application :Both structures, whether it is centralized or decentralized, have their own significance. Many organizations follow centralization, and they have unified leadership and management. They need to follow the orders of a single leader or manager. Whereas in organizations like Amazon and Google, a decentralization structure is followed. In large organizations like Amazon, strategic decisions are centralized, whereas operational decisions are decentralized to empower regional teams. This balance enables agility and responsiveness while maintaining overall control. The key benefit of the centralization and decentralization principle is that both structures have their own importance. Hence, different organizations use different structures; some have implemented centralized structures and others have decentralized structures for the execution of operations. However, the trend toward decentralization is growing, especially in agile and matrix organizational structures. It fosters innovation, faster decision-making, and employee engagement while keeping strategic oversight centralized. 

9) Scalar Chain

Scalar Chain is the next principle of modern management given by Jules Henri Fayol in the 19th century. According to Henri Fayol, every organization must follow a hierarchical chain to report the daily tasks or report any kind of issue you may face while working.  There must be a straight line of higher authority and communication. This arrangement is often called the “Gang Plank.” It ensures a seamless flow of information or smooth communication in the organization in the different types of emergencies. 

• Application :The Scalar Chain is one of the most important aspects of any organization. Since it is a line that ensures that all the arrangements are in proper order. For instance, in the marketing team of any organization, if any error in the content is deducted, then the SEO will coordinate directly with the content manager rather than directly with the marketing head. This will not only help in the correction of the wrong content but also ensures a seamless flow of communication and coordination among the content team leading to less chances of errors and more productivity. The key benefit of the scalar chain principle is that it establishes a proper clear line of communication among the organization. Nowadays, there are a diverse range of tools and techniques through which teams can maintain a proper sequence of communication to ensure a seamless flow of work productivity. Sites like Slack, Google Chat and other tools are there to ensure a correct and seamless workflow of teams and it also encourages the team in enhancing the overall performance and productivity of the team. 

10) Order

Order is the next principle of modern management given by Jules Henri Fayol in the 19th century. According to Henri Fayol, in any organization, there must be a synchronization among the employees and things in the different departments. This rule can create a positive environment in the organization. It also helps to create a favorable working culture in the business firm. Fayol emphasizes the importance of the correct order of the resources as well as objects. This correct ordering can create peace of mind among the employees, leading towards the long-term success of the employees as well as the organization.  

• Application :Order is in the 10th position among the list of 14 principles of modern management by Henri Fayol. This principle ensures that correct order in any organization can help to create clarity in the management. For example, in a logistics company, the correct order of the elements, such as goods and other inventory, is ensured by the inventory management systems and other advanced tools and techniques. It ensures that all the inventory is stored in allocated places and helps in the reduction of retrieval time and other errors. Similarly, the seating arrangement in the organizations can ensure a seamless flow of ideas and the right communication. It also helps in the prevention of confusion, leading to fewer chances of error in the projects and within teams.   In today’s digital world, where each and everything takes place with accuracy. Maintaining an accurate order is very crucial in the modern management such as modern supply chains, virtual workscapes, and office layouts. Systems and Technologies like ERP systems and collaborative tools ensure resources are optimally allocated.

11)Equity

Equity is the 11th principle of modern management given by Jules Henri Fayol in the 19th century. According to Henri Fayol, every employee of an organization must be treated politely without any discrimination. All employees must be treated respectfully, whether he/she is of a low-level employees or someone from a higher authority. The more any employee of an organization is treated equally and politely, the more he/she will provide the organization and management with trust, work punctuality, and motivation. This also leads to an enhanced level of work productivity from the employees.  

• Application :Equity is in the 11th position among the list of 14 principles of modern management by Henri Fayol. This principle ensures that every employee should be treated equally in the business firm. For maintaining an accurate flow of work, every employee must treated well not just on monetary terms but on social terms too. For example, many multinational companies (MNCs), such as Google, Netflix, and Tata Consultancy Services (TCS), focus on embracing the diversity, equity, and other qualities among the employees. They make sure that all their employees are treated well, irrespective of their race, caste, gender, social or financial background, job profiles, and position in the organization. This kind of commitment enhances employee satisfaction and retention. In today’s business world where everyone is tackling their own problems on a personal or social front, it is the responsibility of every leader or manager of an organization to provide the employees with equality and a positive environment.  Equity or Equality in any organization does not just ensure non-discrimination behaivour. In fact, not only in the domestic but in the Global corporate working landscape, organizations are now emphasizing the importance of creating a workplace where employees are treated in a positive manner. Therefore, companies are adopting transparent policies and practices to ensure fair treatment for all. Countries like Japan and Germany have now implemented the rule of flexible working hours and a 4-day working system to ensure a positive environment among the employees. These practices also lead to motivation and help to boost the overall performance of the entire team and the overall productivity of the organization.

12)Stability Of Tenure

Being an employee, what is the most important thing that you expect from your job, even before your salary? Your job security or stability of tenure, right? We know that most of you will respond to this answer. Well, this is absolutely true. The Stability of tenure is one of the important aspects of any job for the employees.    Building trust among the employees regarding the job security is very crucial in this corporate and business world. In fact, it is the prime duty of the team leaders, managers, or any other higher authority to create a safe surroundings for each working employee. And for building a secure environment, it is important to enhance the engagement of the employees. This also leads to an enhanced level of work productivity from the employees.  

• Application :Stability of Tenure is in the 12th position among the list of 14 principles of modern management by Henri Fayol. This principle ensures that every employee must given job security in the business firm. For maintaining an accurate flow of work, every employee must treated well, not just on monetary terms but on social terms too. Fayol highlighted the importance of retaining employees for long periods to ensure stability and efficiency. Frequent turnover disrupts workflow and increases recruitment costs.For example, many multinational companies (MNCs), such as Tata Group and IBM. These organizations have their prime focus on training, career development programs, business workshops, experienced mentorships, and positive workspace to boost the employees' confidence and professional retention. The organization needs to make sure that all its employees are treated well, irrespective of their race, caste, gender, social or financial background, job profiles, and position in the organization. This kind of training and commitment enhances employee satisfaction and retention. The key benefit of stability of tenure is that it is not only for the employee but also for the management. As in this ever-evolving corporate culture, if employees are provided with a learning workspace, then it will help them to grow professionally and personally, too. Hence, in this case, the employee is willing to stay in the organization, which leads the business to long-term organizational growth. Stability enables teams to build expertise and foster trust. 

13)Initiative

The initiative is the 13th principle of modern management given by Jules Henri Fayol in the 19th century. According to Henri Fayol, organizations must encourage employees to take initiative for the assigned projects and tasks. This doesn’t help the employee boost their confidence but also enhances creativity, problem-solving skills, and innovation. Jules Henri Fayol believed that organizations thrive when employees feel empowered to contribute ideas.

• Application :The initiative is in the 13th position among the list of 14 principles of modern management by Henri Fayol. This principle ensures that every employee must be encouraged to take the initiative about their assigned tasks, work, or projects. This helps to raise a spirit of responsibility in the employees.  For example, many companies (MNCs), such as Tata Group, IBM, Google, Accenture, TCS, and Infosys. These organizations encourage their employees to spend their time in innovation and creativity. And these kinds of policies and activities help the employees and other workers in idea generation. These things also build their inner confidence and build their innovation, leadership, and creativity. These practices also help them to produce groundbreaking products and services, complete big projects, and achieve long-term. The key benefit of initiative is that it is not only for the employee but also for the management. As in this ever-evolving corporate culture, if employees are provided with a positive cheerful workspace, then it will help them to grow professionally and personally, too. Hence, in this case, it is important to encourage the employees to take initiative for their tasks and projects. It will help them to build their inner innovation and adaptability. Many organizations adopt an open-door policy to encourage employee suggestions and creative problem-solving.     

14)Esprit de Corps

The esprit de corps is a French phrase that means “team spirit”. It is the 14th and the last principle of modern management theory given by Jules Henri Fayol in the 19th century. According to Henri Fayol, there must be a team spirit in every organization. Hence, it is a fact that no individual is completely itself. Every individual has their own specialty through which an organization works. Whether, it is the director, manager, team leader, or warehouse worker, everyone has their own talent or experience that makes the organization run. 

• Application :The esprit de corps is in the 14th position among the list of 14 principles of modern management by Henri Fayol. This principle ensures that every organization must follow team spirit. Fayolemphasized the importance of developing harmony and unity among employees to enhance organizational effectiveness.For example, many companies (MNCs), such as Tata Group, IBM, Google, Accenture, TCS, and Infosys. These organizations encourage their employees to boost their team spirit. It also helps them in the enhancement of their innovation and creativity. And these kinds of policies and activities help the employees and other workers in idea generation. These things also build their inner confidence, build their innovation, leadership, creativity, and unity among teams and other departments. These practices also help them to produce groundbreaking products and services, complete big projects, and achieve long-term. The key benefit of esprit de corps is that it is not only for the employee but also for the management. As in this ever-evolving corporate culture, if employees must know the importance of teamwork, then it will help them to grow professionally and personally, too. However, it is crucial for the organizations to encourage the employees to work with their team for their tasks and projects. It will help them to build their inner innovation and adaptability. In modern workplaces, where collaboration is key, team spirit is crucial for success. Tools like Trello and Asana, combined with inclusive leadership, ensure teams remain cohesive and motivated.

Conclusion

These 14 Principles of Management by Jules Henri Fayol, also known as Henri Fayol in the 19th Century. These principles have now become the foundation for the modern management. He gave the top 14 principles of management which are now implemented by the majority of corporates. These principles include Division of Work, Authority & Responsibility, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interest, Remuneration, Centralization & Decentralization, Scalar Chain, Order, Equity, Stability of Tenure, Initiative, and Espirit de Corps. And these principles are now used as timeless guidelines to execute different operations in the corporate world. Organizations that adopt these principles create structured, efficient, and harmonious workplaces, paving the way for sustainable success.Whether you’re a budding entrepreneur or a seasoned executive, applying Fayol’s principles can help you navigate challenges and drive organizational growth. By balancing authority and responsibility, fostering teamwork, and prioritizing fairness, businesses can build a strong foundation for long-term success.