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14 Principles of Management

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 Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.
 Authority. The right to issue commands, along with which must go the balanced responsibility for its function.
 Discipline. Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership.
 Unity of Command. Each worker should have only one boss with no other conflicting lines of command.
 Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.
 Subordination of individual interest (to the general interest). Management must see that the goals of the firms are always paramount.
 Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.
 Centralization (or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel.
 Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels.
 Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.
 Equity. In running a business a ‘combination

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