“General Principles of Management”

Henri Fayol

In “General Principles of Management”, Henri briefly concludes 14 principles of management, including the followings:

  1. Division of work improves efficiency.
  2. Authority is the right to give orders and the power to exact obedience. It consists of official authority and personal authority. Official authority is conferred by position, while personal authority is the indispensable complement of official authority. Higher position always makes it harder to understand responsibility. Therefore, the use of sanction and paying attention to one’s moral character could avoid abuse of authority.
  3. Discipline should be based on respects rather than fears.
  4. An employee should receive orders from one superior only.
  5. Unity of direction is expressed as: one head and one plan for a group of activities having the same objective.
  6. Firms’ goals should contain individuals’ interest.
  7. Remuneration should depend on circumstances and the value of the employee and mode of payment adopted.
  8. Appropriate centralization depends on the personal character of the manager, the reliability of his subordinates and the condition of the business.
  9. Scalar chain makes efficiency.
  10. Formulate the best material order and social order.
  11. Pay attention to equity.
  12. Make sure the stability of tenure of personnel
  13. Encourage workers’ initiative
  14. Encourage team work
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