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CommerceISC Class 12 · Principles of Management

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.PrincipleMeaning in brief
1Division of workWork is divided into small tasks and assigned according to competence; specialisation raises efficiency
2Authority and responsibilityAuthority (right to command) must match responsibility (obligation to perform)
3DisciplineObedience to rules and agreements, with fair rules and penalties
4Unity of commandEach employee receives orders from one superior only
5Unity of directionOne head and one plan for a group of activities with the same objective
6Subordination of individual interest to general interestThe organisation's interest comes before that of any individual or group
7RemunerationFair pay that satisfies both employees and the firm
8Centralisation and decentralisationA proper balance between concentrating and dispersing authority
9Scalar chainA formal line of authority from top to bottom; a gang plank allows quick communication at the same level
10OrderA place for everything and everything in its place; a place for everyone and everyone in his place
11EquityKindliness and justice in dealing with employees; no bias
12Stability of tenureEmployees should not be moved or removed frequently
13InitiativeEmployees are encouraged to think out and carry out plans
14Esprit de corpsTeam 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

BasisTaylorFayol
BackgroundMechanical engineerMining engineer and top executive
FocusShop-floor (operative) levelTop management and whole organisation
ConcernProductivity and efficiency of workersGeneral administration
ApproachScientific observation and experimentPersonal experience
Known asFather of scientific managementFather of general (modern) management
CommandFunctional foremanship (many supervisors)Unity of command (one boss)
ApplicabilitySpecialised situationsUniversal

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.

  1. 1Find the key phrase in the case: one boss (unity of command), team spirit (esprit de corps), personal goal against company (subordination).
  2. 2Name the principle exactly and explain it in your own words.
  3. 3State the effect of the violation if asked.
  4. 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
  1. The assistant has two bosses: unity of command is violated.
  2. 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
  1. Direct communication at the same level in an emergency.
  2. 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
  1. 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
  1. Unity of command: an employee receives orders from one superior only; it concerns people.
  2. 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
  1. (i) Stability of tenure of personnel.
  2. (ii) Unity of direction: two plans for one objective cause duplication.
  3. (iii) Authority and responsibility: responsibility without matching authority.
  4. (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
  1. Focus: Taylor on the shop-floor level; Fayol on top management and the whole organisation.
  2. Approach: Taylor used scientific observation and experiment; Fayol drew on personal experience.
  3. Command: Taylor proposed functional foremanship with many supervisors; Fayol advised unity of command with one boss.
  4. 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
  1. Conflicting orders: unity of command is violated; each employee should report to one superior.
  2. Constant transfers: stability of tenure is ignored; employees should be kept in post long enough to settle and perform.
  3. Favouritism: equity is missing; treat all employees fairly and kindly without bias.
  4. Departments with separate plans: unity of direction is lacking; one head and one plan for activities with the same objective.
  5. Little team spirit: esprit de corps is weak; build unity through 'we' language, joint goals and recognition.
  6. 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.

  1. 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.

  2. 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.

  3. 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.

  4. 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).

  5. 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. 1.How many principles did Fayol give?Show answer

    Fourteen.

  2. 2.What is a gang plank?Show answer

    Direct communication between employees at the same level, with superiors informed.

  3. 3.Who is the father of modern general management?Show answer

    Henri Fayol.

  4. 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.