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Fayol's Management Functions and Principles for ACCA BT

Updated 11 October 2026 · Fact-checked

Henri Fayol described management as five functions: planning, organising, commanding, coordinating and controlling. He also set out 14 principles, such as unity of command and division of work. In BT you must name each item, recognise it in a scenario, and say what it means in practice.

Understand Fayol's Management Functions and Principles

Henri Fayol was a French mining engineer and manager. He wrote about management in the early 1900s. His idea was simple: management is a set of activities that can be learned and applied in any organisation. It is not a talent you are born with.

Fayol said every manager does five things. These are the five functions of management. In the usual ACCA wording they are planning, organising, commanding, coordinating and controlling. Some textbooks later reworded them (for example, commanding as leading, or motivating). In the exam, use Fayol's own terms and add the modern wording if it helps.

Fayol also gave principles of management. These are guidelines, not laws. He said managers should adapt them to the situation. He listed 14, such as division of work, authority and responsibility, discipline, unity of command, unity of direction, scalar chain and esprit de corps. The BT exam usually tests whether you can match a principle to a short scenario.

Fayol's work is called the classical or administrative school. It focuses on the formal organisation and the manager's job as a process. Critics say it is rigid, assumes a stable environment and ignores human behaviour. Mintzberg later looked at what managers actually do day to day. He found it was fragmented and reactive, not neatly planned. That contrast is a popular exam point.

Key formulas to remember

Fayol's five functions
Planning, Organising, Commanding, Coordinating, Controlling
Planning sets objectives and the way to reach them. Organising arranges resources and structure. Commanding gives instructions and gets people to act. Coordinating harmonises the activities of all parts. Controlling checks results against plans and corrects deviations.
Fayol's 14 principles (part 1)
1 Division of work; 2 Authority and responsibility; 3 Discipline; 4 Unity of command; 5 Unity of direction; 6 Subordination of individual interest to general interest; 7 Remuneration
Division of work means specialisation raises efficiency. Authority must match responsibility. Unity of command means one employee has one boss. Unity of direction means one plan and one head for a group of activities with the same objective.
Fayol's 14 principles (part 2)
8 Centralisation; 9 Scalar chain; 10 Order; 11 Equity; 12 Stability of tenure; 13 Initiative; 14 Esprit de corps
Scalar chain is the line of authority from top to bottom. Equity is kindness combined with justice. Esprit de corps means team spirit and harmony. Remuneration should be fair to both employee and employer.

How to solve Fayol's Management Functions and Principles questions

Use this method for any Fayol question, whether it asks for a definition, a scenario match or a comparison.

  1. 1Read the last line first. Decide whether it asks about a function, a principle or a comparison with another theory.
  2. 2Underline the key action or problem in the scenario, such as 'two managers give conflicting orders' or 'targets are compared with results'.
  3. 3Match that action to the function or principle. Conflicting orders point to unity of command. Comparing results with plans points to controlling.
  4. 4Check the nearby options. Planning and coordinating, or unity of command and unity of direction, are often placed side by side.
  5. 5For multiple response questions, count how many answers are required and select exactly that number.
  6. 6For comparison questions, state Fayol's view first, then Mintzberg's view, then the difference in one sentence.
  7. 7Re-read the scenario once to confirm your choice fits every detail.

Quickest way: Keyword matching

When to use it: Use this for Section A objective questions where you have about 90 seconds per two-mark question.

  1. Link each function to one verb: plan = set goals, organise = arrange resources, command = instruct, coordinate = align, control = check and correct.
  2. Link command to 'one boss' and direction to 'one plan'.
  3. Link scalar chain to 'chain of authority' and esprit de corps to 'team spirit'.
  4. Pick the option that fits the verb or phrase, then eliminate the rest.
  5. If unsure, flag the question and move on. Return if time remains.

Common mistakes in Fayol's Management Functions and Principles

  • Confusing unity of command with unity of direction.

    Both names start with 'unity' and sound alike.

    Fix: Command is about people: one employee, one boss. Direction is about activities: one plan, one head for the same objective.

  • Listing the functions as plan, organise, lead, control (the modern version) when the question asks for Fayol's.

    Many textbooks use the later wording.

    Fix: Write Fayol's five: planning, organising, commanding, coordinating, controlling. Add 'also called leading' only as a note.

  • Treating Fayol's principles as rigid rules that must always apply.

    The word 'principles' sounds absolute.

    Fix: Remember Fayol said they are flexible and must be adapted to circumstances. Use this when evaluating them.

  • Mixing up Fayol's functions with Mintzberg's managerial roles.

    Both describe what managers do.

    Fix: Fayol gives functions (what managers should do). Mintzberg gives roles (what managers actually do): interpersonal, informational and decisional.

  • Choosing coordinating when the scenario describes controlling.

    Both involve checking that things fit together.

    Fix: Controlling compares results with plans and corrects. Coordinating aligns the activities of different departments so they work together.

Worked examples

Example 1

A junior accountant receives instructions from both the financial controller and the operations director. The instructions conflict. Which Fayol principle has been breached?

Show the solution
  1. The key problem is that one employee has two bosses.
  2. This relates to people and reporting lines, not to activities or plans.
  3. The principle that one employee should receive orders from one superior only is unity of command.

Answer: Unity of command.

Example 2

Explain the main difference between Fayol's and Mintzberg's views of management.

Show the solution
  1. State Fayol's view: management is a process of five functions (planning, organising, commanding, coordinating, controlling) that a manager should carry out in an orderly way.
  2. State Mintzberg's view: observation of real managers showed that their work is varied, brief and interrupted, so he described ten roles in three groups (interpersonal, informational, decisional).
  3. Give the difference: Fayol is prescriptive and describes what managers ought to do. Mintzberg is descriptive and shows what managers actually do.
  4. Add a short evaluation: Fayol's functions are a useful framework but assume a stable environment, while Mintzberg's roles reflect real, fast-moving work.

Answer: Fayol set out five functions managers should perform in a logical process. Mintzberg observed what managers actually do and found a fragmented job made up of ten roles in three groups.

Exam tips

  • Learn the five functions and 14 principles as a list. Many Section A questions simply ask you to recognise one from a short scenario.
  • Watch the near-duplicates: unity of command versus unity of direction, and coordinating versus controlling.
  • In Section B or multi-task questions, name the principle first and then link it to the scenario in one sentence.
  • For multiple response items, select exactly the number stated. Selecting more or fewer scores nothing.
  • Be ready to compare Fayol with Mintzberg. Use the words 'prescriptive' and 'descriptive'.

Practice questions from Leadership, management and supervision

Fayol's Management Functions and Principles in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Fayol's Management Functions and Principles: frequently asked questions

What are Fayol's five functions of management?

They are planning, organising, commanding, coordinating and controlling. Together they describe the process a manager follows to achieve organisational goals. Some books restate commanding as leading or motivating.

How many principles of management did Fayol list?

Fayol listed 14 principles. They include division of work, authority and responsibility, discipline, unity of command, unity of direction, scalar chain, equity, initiative and esprit de corps. Learn the ones most likely to appear in scenarios first.

What is the difference between Fayol and Mintzberg?

Fayol described the functions managers should perform in an orderly process. Mintzberg observed real managers and described ten roles in three groups. Fayol is prescriptive, while Mintzberg is descriptive.

What are the main criticisms of Fayol's work?

Critics say it is too rigid and assumes a stable environment. It also pays little attention to human behaviour and informal groups. However, Fayol himself said the principles should be applied flexibly.