1. Division of Labor- There is an efficient result in the operational level when tasks are distributed to qualified and competent workers, or when people do specialize.
2. Authority-With formal authority, managers have the right to command, and give orders to their subordinates.
3. Discipline- Members in any organization have to respect the rules and agreements governing it. Respect and obedience to rules is embodied in the conduct of good life and discipline.
4. Unity of Command- Employees must receive instruction only from one person. Reporting to more than one manager results to conflicts in instruction and confusion of authority.
5. Unity of Direction-Operations within any organization having the same objective must be directed by only one manager using one plan. In a department for example, there should not be two or more supervisors, each having different policy to follow.
6. Subordination of the Individual Interest to Common Good- The interest of the organization as a whole should take precedence over the interest of individual employees.
7. Renumeration- Compensation for work done should be fair to both employees and employers.
8. Centralization- We have this approach by decreasing the role of subordinates in decision making. Managers should retain their final responsibility, while at the same time give their subordinates enough authority to do their jobs properly.
9. Hierarchy-The line of authority in any organization turns in the order of rank from top management to the lowest level of the enterprise.
10. Order- Either material or human resources should be in the right place at the right time. People should be in the jobs or positions they are suited to.
11. Equity- Managers should be both friendly and fair to their subordinates.
12. Stability of Staff- A high employee turnover rate undermines the efficient functioning of an organization.
13. Initiative- Subordinates should be given freedom to share their ideas and carry out their plans.
14. Esprit de Corps- Promotion team spirit will give the organization a sense of unity. To Fayol, even small factors should help to develop the spirit. He suggested the use of verbal communication instead of formal and written communication.
These principles, if not all, are fundamental trends in today's institutions depending on their organizational structures and objectives.
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