Fayol's principles of administration

Henri Fayol (1841–1925), a French mining engineer, in General and Industrial Management (1916) gave 14 principles of management (administrative principles), as guidelines for managers. He also described five functions: planning, organising, commanding, coordinating and controlling.

The 14 principles

1. Division of work: specialisation increases efficiency (separate masons, carpenters, bar benders).
2. Authority and responsibility: the right to give orders must go with responsibility for results.
3. Discipline: obedience and respect for rules and agreements.
4. Unity of command: each employee receives orders from one superior only.
5. Unity of direction: one head and one plan for a group of activities with the same objective.
6. Subordination of individual interest to general interest.
7. Remuneration: fair pay for both employees and the firm.
8. Centralisation: the degree to which authority is concentrated or dispersed, suited to the situation.
9. Scalar chain: the line of authority from top to bottom; Fayol's "gangplank" allows cross-communication.
10. Order: the right person and material in the right place at the right time.
11. Equity: kindness and justice to employees.
12. Stability of tenure: avoid high labour turnover.
13. Initiative: allow employees to plan and carry out ideas.
14. Esprit de corps: team spirit and harmony ("union is strength").

Use in construction

A site has unity of command (each foreman reports to a single engineer), clear authority, order in stores and layout, and discipline in safety. Fayol's ideas are general, universal and can be applied in any organisation.