Business Laws and Management · Principles of Management and Modern Approaches

Fayol's 14 Principles of Management with Examples

Updated 11 October 2026 · Fact-checked

Henri Fayol, a French mining engineer, gave 14 general principles of management: division of work, authority, discipline, unity of command, unity of direction, subordination of individual interest, remuneration, centralisation, scalar chain, order, equity, stability of tenure, initiative and esprit de corps. He also listed five functions: planning, organising, commanding, coordinating and controlling.

Understand Fayol's 14 Principles of Management

Henri Fayol (1841-1925) was a French mining engineer and manager. He looked at management from the top of the organisation. His ideas are often called administrative management. He believed management can be taught, because it follows general principles.

Fayol said these principles are flexible, not rigid. A manager must apply them according to the situation. They are guidelines, not fixed laws. Fayol also said the list is not complete; he gave the 14 he used most often.

He also described five functions of management: planning, organising, commanding, coordinating and controlling. Later writers often use planning, organising, staffing, directing and controlling instead. Know both lists, because MCQs ask either.

The 14 principles are:

Division of work: split work so people specialise and become efficient.
Authority and responsibility: the right to give orders goes with the duty to answer for results.
Discipline: obedience and respect for agreed rules.
Unity of command: each employee gets orders from one boss only.
Unity of direction: one head and one plan for a group of activities with the same objective.
Subordination of individual interest to general interest: the organisation's interest comes first.
Remuneration: fair pay for both employee and employer.
Centralisation (and decentralisation): the degree to which decision power is held at the top.
Scalar chain: the line of authority from top to bottom.
Order: right person and right thing in the right place at the right time.
Equity: kindness plus justice in treating employees.
Stability of tenure of personnel: avoid needless turnover.
Initiative: freedom to think out and carry out a plan.
Esprit de corps: team spirit and unity.

A useful comparison is with Taylor. Taylor focused on the shop floor and on efficiency of workers and tasks (scientific management). Fayol focused on top management and the whole organisation. Taylor's principles were developed by observation and experiment of work; Fayol's came from his experience as a manager. Taylor stressed specialisation through functional foremen, which breaks unity of command; Fayol insists on unity of command.

Key formulas to remember

Fayol's five functions: Planning, Organising, Commanding, Coordinating, Controlling; Fayol's original list. Commanding is the same idea as directing; staffing is not separate in his list.
Unity of command: One employee → one superior; Concerns who gives orders to a person. Its absence causes confusion and conflict of orders.
Unity of direction: One group of activities with the same objective → one head, one plan; Concerns the whole team or department, not the individual. Its absence causes activities to pull in different ways.
Scalar chain and gang plank: Scalar chain = formal line from top to bottom; gang plank = direct cross-link between same-level employees; The gang plank allows quick communication when the chain is slow, with the knowledge of superiors.
Fayol vs Taylor: Fayol = top management, whole organisation; Taylor = shop floor, work efficiency; Fayol's principles are universal in application; Taylor's focus on tasks and workers.

How to solve Fayol's 14 Principles of Management questions

Most questions give a short situation and ask which principle is followed or broken. Use the same routine each time.

1Read the situation and find the one key fact: who gives orders, who is paid what, who decides, or who is moved.
2Ask what the problem or practice is about: orders, planning, pay, authority, team, people or time.
3Match the fact to a principle using its keyword (one boss, one plan, fair pay, line of authority, team spirit).
4Check the close pairs: unity of command vs unity of direction, authority vs responsibility, centralisation vs scalar chain.
5Eliminate options that fit a different principle, even if the word sounds similar.
6For a written answer, name the principle, define it in one line, link it to the facts, and state the effect of following or breaking it.

Quickest way: Keyword matching for the 14 principles

When to use it: Use in the OMR paper when you have about one minute per question and need a quick, reliable match.

Underline the clue: 'two bosses' means unity of command; 'different plans for the same goal' means unity of direction.
'Right to order' with 'accountability' points to authority and responsibility.
'Rules, obedience, agreements' point to discipline.
'Fair wages' point to remuneration; 'kindness and justice' point to equity.
'Frequent resignations' point to stability of tenure; 'allowed to suggest and act' points to initiative.
'We feel like one family' points to esprit de corps; 'skills matched to tasks' points to division of work.
If two options seem right, choose the one that matches the exact keyword, not the general idea.

Common mistakes in Fayol's 14 Principles of Management

Mixing up unity of command and unity of direction.
Both words sound alike and both concern single leadership.
Fix: Command is about one person and one boss. Direction is about a group of activities and one plan.
Writing staffing as one of Fayol's five functions.
Textbooks on modern management list five functions with staffing in place.
Fix: Fayol's list is planning, organising, commanding, coordinating, controlling. Check the question for 'Fayol'.
Saying Fayol's principles are rigid laws.
The word 'principle' suggests a fixed rule.
Fix: Fayol said the principles are flexible and must be adapted to circumstances. An option saying 'rigid' is wrong.
Confusing Fayol's focus with Taylor's.
Both are classical thinkers and both aimed at efficiency.
Fix: Remember: Taylor = shop floor, scientific methods; Fayol = top management, general principles of administration.
Treating centralisation as always bad or always good.
Students memorise one side only.
Fix: Fayol said the right degree depends on the situation. Both extremes can harm the organisation.
Calling equity 'equality' of pay.
The words look similar.
Fix: Equity means fair, kind and just treatment, not identical treatment for everyone.

Worked examples

Example 1

In Sharma Textiles Pvt. Ltd., the production head and the marketing head both give instructions to the same supervisor, Ravi, about his daily work. The instructions often clash. Which Fayol principle is violated, and what is the effect?

Show the solution

Key fact: one employee, Ravi, is getting orders from two bosses.
This concerns who gives orders to one person, so the principle is about command, not about plans for a group.
The principle is unity of command: an employee should receive orders from one superior only.
Effect of violation: confusion, conflicting instructions, loss of authority of superiors, lower discipline and delay in work.

Answer: Unity of command is violated. Ravi should report to one superior to avoid conflict of orders and confusion.

Example 2

Which of the following is a difference between Fayol and Taylor? (a) Fayol gave 14 principles for top management, Taylor focused on shop-floor efficiency (b) Taylor gave 14 principles, Fayol gave five (c) Fayol rejected unity of command (d) Taylor focused on top management only

Show the solution

Check option (b): Fayol gave the 14 principles, not Taylor. Wrong.
Check option (c): Fayol insisted on unity of command, so rejecting it is wrong.
Check option (d): Taylor worked on shop-floor tasks and workers, not top management. Wrong.
Check option (a): Fayol's 14 general principles apply to the whole organisation at the top level; Taylor studied work at the shop floor. Correct.

Answer: Option (a)

Exam tips

In OMR questions, find the exact keyword in the situation and match it to one principle; do not guess from the general idea.
Revise the pairs that are most often tested: unity of command vs unity of direction, and Fayol vs Taylor.
Remember Fayol's five functions in his own words (commanding, coordinating). There is no negative marking, so always attempt every question.
For written answers, give the name, a one-line meaning, a short example and the effect of breaking it.
Use the 15 minutes of reading time to scan the management questions in Part B first, since these are usually quick to answer.

Practice questions from Principles of Management and Modern Approaches

Fayol's 14 Principles of Management in other exams

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

ACCA Applied KnowledgeFayol's Management Functions and Principles

Fayol's 14 Principles of Management: frequently asked questions

What are Fayol's 14 principles of management?

They are division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration, centralisation, scalar chain, order, equity, stability of tenure, initiative and esprit de corps. Learn them with one keyword and one example each.

What is the difference between unity of command and unity of direction?

Unity of command means an employee gets orders from only one superior. Unity of direction means a group of activities with one objective has one head and one plan. The first is about individuals, the second is about the team or department.

What is the difference between Fayol and Taylor?

Taylor studied work on the shop floor and aimed at efficiency through scientific methods. Fayol looked at the whole organisation from the manager's level and gave general principles of administration. Fayol's principles are flexible guidelines.

What are the five functions of management according to Fayol?

They are planning, organising, commanding, coordinating and controlling. Modern books often replace commanding and coordinating with staffing and directing. Check which list the question follows.