Fayol's Fourteen Principles and a Comparison with Taylor (ISC Class 12 Commerce)
Updated 18 October 2026 · Fact-checked
Henri Fayol gave fourteen principles: division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration, centralisation and decentralisation, scalar chain, order, equity, stability of tenure, initiative and esprit de corps. Taylor focused on the shop floor with scientific methods; Fayol on general administration at top level.
Understand Fayol's Fourteen Principles and Taylor Compared
1. The fourteen principles
| No. | Principle | Meaning in brief |
|---|---|---|
| 1 | Division of work | Work is divided into small tasks and assigned according to competence; specialisation raises efficiency |
| 2 | Authority and responsibility | Authority (right to command) must match responsibility (obligation to perform) |
| 3 | Discipline | Obedience to rules and agreements, with fair rules and penalties |
| 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 | The organisation's interest comes before that of any individual or group |
| 7 | Remuneration | Fair pay that satisfies both employees and the firm |
| 8 | Centralisation and decentralisation | A proper balance between concentrating and dispersing authority |
| 9 | Scalar chain | A formal line of authority from top to bottom; a gang plank allows quick communication at the same level |
| 10 | Order | A place for everything and everything in its place; a place for everyone and everyone in his place |
| 11 | Equity | Kindliness and justice in dealing with employees; no bias |
| 12 | Stability of tenure | Employees should not be moved or removed frequently |
| 13 | Initiative | Employees are encouraged to think out and carry out plans |
| 14 | Esprit de corps | Team spirit and unity among employees |
2. Key pairs
- Unity of command concerns people (one boss each); unity of direction concerns the organisation (one plan and one head for activities with the same objective). Violating the first causes confusion of orders; violating the second causes duplication and waste.
- Order has two aspects: material (tools, files, stock) and social (right person in the right position). Explain both.
- Equity is fair and kind treatment without discrimination on grounds such as caste, gender or religion; it is not equality (identical treatment).
- Subordination of individual interest is violated when an employee pursues personal goals at the cost of the organisation's objectives.
- Scalar chain and gang plank: communication follows the chain of authority; in an emergency two employees at the same level may communicate directly through a gang plank, keeping superiors informed.
- Esprit de corps: managers should build team spirit, using 'we' instead of 'I'.
3. Relevance today. Division of work underpins modern manufacturing and services. Unity of command and scalar chain still define reporting lines, though matrix and flat structures adapt them. Equity, remuneration, stability of tenure, initiative and esprit de corps match modern HR practices. Taylor's science lives on in process improvement and data-driven decisions. Principles are applied flexibly, and digital firms use decentralised, cross-functional teams.
4. Taylor versus Fayol
| Basis | Taylor | Fayol |
|---|---|---|
| Background | Mechanical engineer | Mining engineer and top executive |
| Focus | Shop-floor (operative) level | Top management and whole organisation |
| Concern | Productivity and efficiency of workers | General administration |
| Approach | Scientific observation and experiment | Personal experience |
| Known as | Father of scientific management | Father of general (modern) management |
| Command | Functional foremanship (many supervisors) | Unity of command (one boss) |
| Applicability | Specialised situations | Universal |
Fayol's Fourteen Principles and Taylor Compared: key facts
- Fayol 1 to 7
- Division of work
- Authority and responsibility
- Discipline
- Unity of command
- Unity of direction
- Subordination of interest
- Remuneration
- First seven.
- Fayol 8 to 14
- Centralisation
- Scalar chain
- Order
- Equity
- Stability of tenure
- Initiative
- Esprit de corps
- Last seven.
- Taylor versus Fayol
- Taylor: shop floor, experiment | Fayol: top management, experience
- Two-line summary.
How to answer Fayol's Fourteen Principles and Taylor Compared questions
Questions describe a situation and ask which Fayol principle is applied or violated, or ask for a comparison.
- 1Find the key phrase in the case: one boss (unity of command), team spirit (esprit de corps), personal goal against company (subordination).
- 2Name the principle exactly and explain it in your own words.
- 3State the effect of the violation if asked.
- 4For Taylor versus Fayol, use at least four bases from the table.
Fayol's Fourteen Principles and Taylor Compared in real life
The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.
Unity of command
Suppose a store assistant is told by the floor manager to arrange the shelves and by the cashier supervisor to man the counter at the same time.
Which principle is violated and what is the result?
Try it first, then show the solutionSolution
- The assistant has two bosses: unity of command is violated.
- Conflicting orders cause confusion and delay.
Answer: Unity of command; confusion and delay.
Memory hook: One employee, one boss.
Gang plank
Imagine that a packing supervisor and a dispatch supervisor, both at the same level, talk directly to fix an urgent delivery and then inform their managers.
Which Fayol idea is used?
Try it first, then show the solutionSolution
- Direct communication at the same level in an emergency.
- Superiors are kept informed.
Answer: Scalar chain with a gang plank.
Memory hook: A bridge across the chain.
Tricks to remember Fayol's Fourteen Principles and Taylor Compared
Short memory aids. Say each one aloud once, then use it on a question the same day.
Command is people, direction is plan
Unity of command: one boss for each person. Unity of direction: one head, one plan for one objective.
Use it when: Separating the two.
Equity is fairness, not sameness
Equity means fair and kind treatment, not identical treatment.
Use it when: Avoiding the equality error.
Fayol's Fourteen Principles and Taylor Compared: solved examples
Ordered from board level to HOTS. Try each one before you open the solution.
Example 1: Name the principle · 1 mark · MCQBoard level
A company arranges tools in marked racks and assigns a fixed seat to each team member. This applies Fayol's principle of:
(a) equity
(b) order
(c) discipline
(d) initiative
Try it first, then show the solutionSolution
- A place for everything and everyone: order.
Answer: (b)
Example 2: Command and direction · 2 marks · Short answerBoard level
Distinguish between unity of command and unity of direction.
Try it first, then show the solutionSolution
- Unity of command: an employee receives orders from one superior only; it concerns people.
- Unity of direction: one head and one plan for a group of activities with the same objective; it concerns the organisation.
Answer: Command: one boss for each person; direction: one plan for one objective.
Example 3: Identify the violation · 4 marks · Short answerHarder board level
Identify the Fayol principle violated: (i) a manager transfers an employee every month, (ii) two department heads each run a separate marketing plan for the same product, (iii) a clerk is told to collect cash but is given no power to sign receipts, (iv) a supervisor gives pay rises to relatives only.
Try it first, then show the solutionSolution
- (i) Stability of tenure of personnel.
- (ii) Unity of direction: two plans for one objective cause duplication.
- (iii) Authority and responsibility: responsibility without matching authority.
- (iv) Equity: bias against other employees.
Answer: (i) stability of tenure, (ii) unity of direction, (iii) authority and responsibility, (iv) equity.
Example 4: Taylor versus Fayol · 4 marks · Short answerHarder board level
A student says, 'Taylor and Fayol both gave rules for managers, so their ideas are the same.' Show with four bases how their work differs.
Try it first, then show the solutionSolution
- Focus: Taylor on the shop-floor level; Fayol on top management and the whole organisation.
- Approach: Taylor used scientific observation and experiment; Fayol drew on personal experience.
- Command: Taylor proposed functional foremanship with many supervisors; Fayol advised unity of command with one boss.
- Applicability: Taylor's ideas suit specialised situations; Fayol's are meant to be universal.
Answer: Differences in focus, approach, command and applicability.
Example 5: Diagnose a firm · 8 marks · Long answerHOTS / competency
Suppose a growing company has frequent conflicting orders from different superiors, constant transfers of staff, widespread favouritism, departments each pursuing their own plans, and little team spirit. Use five of Fayol's principles to diagnose the problems and recommend a remedy for each.
Try it first, then show the solutionSolution
- Conflicting orders: unity of command is violated; each employee should report to one superior.
- Constant transfers: stability of tenure is ignored; employees should be kept in post long enough to settle and perform.
- Favouritism: equity is missing; treat all employees fairly and kindly without bias.
- Departments with separate plans: unity of direction is lacking; one head and one plan for activities with the same objective.
- Little team spirit: esprit de corps is weak; build unity through 'we' language, joint goals and recognition.
- Also check that authority matches responsibility and that rules are applied with discipline.
Answer: Five principles diagnosed with remedies.
Where students lose marks in Fayol's Fourteen Principles and Taylor Compared
The slips examiners see most often, and what to write instead.
Mistake: Writing equity as equality
The chapter specifically warns about the difference.
Wrong working
Equity means all employees get the same pay.
Right working
Equity means fair and kind treatment of all employees without bias.
Do this: Fairness, not sameness.
Usually costs: 1 mark.
Mistake: Explaining order only as tidiness
Order has material and social aspects.
Wrong working
Order means keeping things tidy.
Right working
Order means a place for everything (material order) and a place for everyone, with everyone in his place (social order).
Do this: Give both aspects.
Usually costs: 1 mark.
Mistake: Confusing unity of command with unity of direction
One concerns people, the other plans.
Wrong working
Unity of direction means one boss for each employee.
Right working
That is unity of command. Unity of direction means one head and one plan for activities with the same objective.
Do this: Command is boss, direction is plan.
Usually costs: 1-2 marks.
Exam tips
- Use the exact names: division of work, esprit de corps, subordination of individual interest to general interest.
- Explain each principle in your own words and not by repeating its name.
- Know which thinker gave which: unity of command is Fayol's.
- Use a table with four bases for Taylor versus Fayol.
Practice questions on Fayol's Fourteen Principles and Taylor Compared
Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.
Q1 · 1 mark · Very short answerBoard level
Name the Fayol principle that says a place for everything and everything in its place.
Hint
Material order.
Answer
Order.
Q2 · 2 marks · Short answerBoard level
State what is meant by equity as a principle of management.
Hint
Fair, not same.
Answer
Equity means kindliness and justice in dealing with employees, without bias or discrimination on grounds such as caste, gender or religion; it does not mean identical treatment.
Q3 · 2 marks · Short answerHarder board level
Why is division of work said to raise efficiency?
Hint
Specialisation.
Answer
Work is divided into small tasks assigned according to competence, and repetition builds specialisation and skill, so output per person rises.
Q4 · 4 marks · Short answerHarder board level
A factory with 12 workers making 40 units each per day splits work into three stages with 4 workers each, and daily output rises to 600 units. Calculate the original output, the increase, the percentage increase and the principle used.
Hint
Compute original total first.
Answer
Original = 12 x 40 = 480 units. Increase = 600 - 480 = 120 units. Percentage = 120 / 480 x 100 = 25%. Principle: division of work (specialisation).
Q5 · 4 marks · Short answerHOTS / competency
A manager claims that modern digital firms with cross-functional teams have made Fayol's unity of command obsolete. Evaluate in a balanced way.
Hint
Applied flexibly.
Answer
Partly true. Unity of command and the scalar chain still define reporting lines, though matrix and flat structures adapt them, and digital firms use decentralised cross-functional teams. Principles are applied flexibly, so the principle is modified, not abandoned: employees still need clarity about whom they report to.
Test your recall
Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.
1.How many principles did Fayol give?Show answer
Fourteen.
2.What is a gang plank?Show answer
Direct communication between employees at the same level, with superiors informed.
3.Who is the father of modern general management?Show answer
Henri Fayol.
4.Which principle is violated when a person has two bosses?Show answer
Unity of command.
Fayol's Fourteen Principles and Taylor Compared: frequently asked questions
Is esprit de corps the same as discipline?
No. Esprit de corps is team spirit; discipline is obedience to rules.
Does decentralisation mean no centralisation?
The principle is a proper balance between the two.
Do I need to remember the order of the fourteen?
The names matter most; the chapter lists them in a standard sequence.