Old ideas. Modern impact. Let’s learn why a 100-year-old management model still drives the world’s biggest companies in 2025.

You see Management everywhere. From a small two-person startup to a large organization, management is a vital set of rules. Small startups use it to grow. Big companies use it to make good decisions and stay on track. It’s the system behind how things get done.

But what guides that system? What keeps it from falling into chaos when people, projects, and goals collide?

That’s where the principles of management come in. These aren’t just random guidelines. They’re tested ideas built on decades of real-world experience. And no name stands taller in this space than Henri Fayol, the man who introduced a clear and practical way to manage teams, resources, and goals.

In this blog, you’ll learn the 14 principles of management that were introduced 100 years ago, but still used to shape the modern world’s organizations. This applies to all areas, not only businesses; you can use it whether you’re a student, an aspiring manager, or a team lead.

Let’s start with the basics – and build up to how these principles still matter in the age of AI and agile work.

What Are the Principles of Management?

Every business aims to achieve some goals while solving a real-world problem by promoting its services. As there are different employees and different roles businesses handle, every workplace needs some form of direction.

As teams grow and tasks multiply, it becomes harder to keep things on track without a basic framework. This is what the model of principles of management answers. 

They’re not theories to be memorized, but they’re practical steps to help managers plan, organize, lead, and control their teams. Like who’s responsible for what, and how someone is handling something. 

Originally shaped by business thinkers over a century ago, these principles are still used because they work. Whether it’s a manufacturing company or a digital startup, the challenges of managing people and tasks are often the same. For students applying these concepts, having support in translating theory into projects or papers is key especially with structured formats like a case study in management.

These principles help in a few key ways:

• Work assignment – To make sure work is assigned to the concerned person
• Responsibility – knowing who’s in charge of what
• Fair treatment – building trust and clear expectations
• Team coordination – To manage different parts of the organization to work together to achieve common goals. 
• Consistency – creating a stable way of working over time

In many workplaces, the small things often cause the biggest slowdowns. Tasks get missed. People don’t know who’s handling what. These management principles were created to stop that from happening. They give teams a way to stay organized and work more smoothly.

Let’s now look at who came up with these ideas, and why his approach became so widely used across different kinds of businesses.

The Origin of Modern Management – The Man Behind It

The concept of principles of management was not initiated by a university or a classroom. They came from years of real-world experience. One of the first people to organize those experiences into a working system was Henri Fayol. Long before management became an academic subject, Fayol was already applying structure to leadership, teamwork, and operations.

Who Was Henri Fayol?

Every theory and every principle was once created and implemented by someone, right? The same is for principles of management. When you hear it. You might be thinking, Who is the person behind that? Well, it’s Henri Fayol; he was not a professor or from a similar background; he worked as a mining engineer at a company named Compagnie de Commentry-Fourchambault-Decazeville. 

The company was in financial trouble and poorly organized when he joined. He started working there, and after some years, he became the manager. He saw what was wrong and fixed it slowly. That’s all.

He didn’t just tell people what to do. He looked at how things worked. Like who was doing what. Where people got stuck. What happened when no one knew who to ask? Simple stuff like that.

Over time, he started writing down what worked. He wasn’t trying to invent anything big — he just wanted things to run better. Later, he put it all into a book, and that’s where the 14 principles came from.

He didn’t come from a business school. He came from real work.

Henri Fayol’s 14 Principles of Management

Fayol didn’t just fix problems in the moment. He took time to notice what actually helped teams work better. Over the years, he put together 14 principles based on what he saw inside real companies. These weren’t ideas made for textbooks. They came from the workplace.

Each principle covers a basic part of how a team or company can work in a more organized and fair way. And even now, over 100 years later, they’re still useful, because teams still face the same kind of challenges.

We’ll see how the model works based on a real business scenario of a bakery. But before that, you must be curious about how to remember the 14 principles in order. 

A Shortcut to Remember All 14 Principles

When I first read through Henri Fayol’s 14 principles, I found them practical, but honestly, not that easy to memorize. Each one made sense, but trying to remember the full list in order? 

So I came up with a simple phrase to help lock them in

One sentence. Fourteen words. Each word starts with the same letter as one of the original principles

“Disciplined actions drive unity under shared responsibility, creating structure, order, equality, stability, initiative, excellence”.

And here’s what each word stands for:

• Disciplined → Division of Work
• Actions → Authority and Responsibility
• Drive → Discipline
• Unity → Unity of Command
• Under → Unity of Direction
• Shared → Subordination of Individual Interest to General Interest
• Responsibility → Remuneration
• Creating → Centralization
• Structure → Scalar Chain
• Order → Order
• Equality → Equity
• Stability → Stability of Personnel
• Initiative → Initiative
• Excellence → Esprit de Corps

You can think of this one phrase like a soft summary of all 14

It’s not just easier to remember. It captures the whole idea of good management in one go

Now, let’s see how Fayol’s 14 principles show up in this bakery setup. One at a time.

Let’s take a small Bakery as a scenario to understand the 14 principles better

Let’s say there’s a bakery run by a team of seven people. It’s not a big company — just a local place with steady customers. One person handles baking. One manages orders. One person runs the front counter. Another deals with suppliers. The rest help with prep, delivery, and cleaning. The owner oversees everything and tries to keep it running smoothly.

Like any business, things get busy. If roles aren’t clear, orders get mixed up. If no one’s responsible for restocking ingredients, they run out of flour midday. When there’s no system, mistakes happen — and customers notice.

1. Division of Work

The first principle of 14 is that Fayol believed that when work is divided properly, people do it better and faster. If one person is involved in multiple activities, they may not handle any of them properly. But if each one has only one responsibility, they can set clear roles and a time period. They will get it faster and with less burden. 

How it applies in the bakery:

In our hypothetical example, the baker only focuses on baking. The person at the front handles customers. Someone else does the supply orders. If no one switches between multiple tasks, things will go smoothly. Chances of fewer mistakes, less stress, and faster overall service. 

2. Authority and Responsibility

In this principle of mgt, Fayol highlights that if a person has a job to do, they should also have the power to do it. This simply means one cannot expect something from someone if they don’t allow them the tools or permissions to act. At the same time, if they have that authority, they should also take responsibility for the results.

How it applies in the bakery:

The team member in charge of ordering supplies has to be trusted to place the orders on time. They can’t keep running to the owner for approval every time the flour runs low. But if they forget to order, it’s on them. They have the control, and they also take the blame or credit.

3. Discipline

Although discipline is a vital part of any project or organization. But discipline doesn’t mean being strict all the time. It just means people follow rules and respect their work. Without it, things fall apart. Teams need a basic structure to work well together.

How it applies in the bakery:

If someone shows up late or doesn’t clean their station, it affects the whole team. Maybe the ovens start late. Maybe the counter gets backed up. So the team agrees on simple rules, come on time, clean as you go, and follow safety steps. When everyone sticks to that, the workday runs better.

4. Unity of Command

In the 14 principles of management model, Fayol believes in the unity of command. This simply means that one person (manager) should be there to give direction. If there are multiple entities giving different orders at the same time, it might cause confusion and unexpected results at the end. 

How it applies in the bakery Example:

 If the baker tells the delivery guy to take an extra box to a customer, but the manager tells him to wait for payment confirmation, now he’s stuck in the middle. To keep things clear, only one person, usually the manager, should be giving him instructions.

5. Unity of Direction

This is about having one clear goal for each group or activity. Everyone working on the same thing should be following the same plan.

In the bakery:

Let’s say the team is launching a weekend cake special. One person’s promoting it online. Another is preparing ingredients. A third is setting up the display. All of them are working toward the same goal — selling that new item. They don’t each follow their own version of the plan. It keeps everything aligned.

6. Subordination of Individual Interest to General Interest

This means the team’s goal should come before personal preferences. If everyone only does what suits them, the business can’t run well.

In the bakery:

Let’s say one team member prefers starting their shift late. But morning is the busiest time, and the team needs all hands on deck. In this case, they follow the bakery’s schedule — not their personal one. The overall goal comes first.

7. Remuneration

This is often considered as one of the most important parts. This means people should be paid fairly for the work they do. It doesn’t always mean big money, but it should feel fair to both the worker and the business.

In the bakery:

If one employee handles closing, cleaning, and stock updates, but gets paid the same as someone doing fewer tasks, it starts to feel unfair. The owner might adjust pay slightly or give a bonus to balance it. This fairness keeps the staff loyal and motivated. If you’re trying to explain these ideas in essays or management coursework, getting help from an expert academic writing service  can make a major difference in how well you present them.

8. Principle of Centralization and Decentralization

Some decisions should come from the top. Others can be handled by the team. It depends on what the decision is.

In the bakery:

The owner handles big stuff, like setting prices or planning new locations. But smaller things, like where to put the bread rack or how early to start prep, can be decided by the team. That way, not everything has to go through the owner, and the team doesn’t waste time waiting.

9. Scalar Chain

This means there should be a clear line of communication. Everyone should know who to report to, and how information flows. It avoids confusion and delays.

In the bakery:

If someone runs into a problem with supplies, they don’t need to go straight to the owner. They can first talk to the shift lead. If that person can’t solve it, it can go higher. But if something serious happens — like a safety issue — they can talk to the owner directly. Fayol had a name for that kind of shortcut. He called it a “gang plank.”

10. Order

In the fourteen principles of management by the Henri Fayol model, this principle means that everything and everyone should have a proper place. When tools and people are organized, work runs more smoothly and time isn’t wasted.

In the bakery:

The flour is always stored in the same spot. The trays are stacked where the baker needs them. Each worker knows their station. This avoids scrambling around looking for things when the bakery gets busy.

11. Equity

In the model of Henry Fayol, the Equity principle is about treating people fairly. This does not always mean the same, but accordingly to their roles and responsibilities. 

In the bakery:

Let’s say two workers do the same job. One feels like they’re always getting credit. The other feels ignored, even when they’re working just as hard. That kind of thing builds frustration. A fair manager notices this and takes time to treat both workers with the same level of attention and respect.

12. Stability of Personnel

Keeping the same people in their roles helps build a stronger team. Constant turnover creates stress and slows things down.

In the bakery:

 If a new cashier is hired every month, the front counter stays messy. But when the same team sticks around, they get used to the flow. Customers feel more welcome, and the work feels less chaotic.

13. Initiative

Let people take small decisions and suggest ideas. It builds trust and keeps the team engaged.

In the bakery:

One team member suggests offering mini versions of the cakes for walk-in customers. The owner listens and gives it a try. That sense of ownership makes the team feel more involved and sometimes leads to great results.

14. Esprit de Corps

Esprit de Corps is the last principle of the Henri Fayol model. This is about team spirit. When you make people realize they are part of something, they work better together and result in highly possible outcomes. 

In the bakery:

The team laughs together during breaks, helps each other during the rush, and shares ideas without judgment. It’s not just a job — it feels like a team. That’s what this principle is all about.

Why the 14 Principles of Management are Important for Students? 

As a student, you might be thinking, “I’m not running a business, what do these principles mean to me?”

Fair question. But here’s the thing: these principles don’t just live inside companies. You’ll find them everywhere. In group projects, student clubs, internships, and even part-time jobs.

• Ever had a group project where no one knew who was doing what? That’s a breakdown in the division of work.

• Ever felt left out while someone else got all the credit? That’s a lack of equity.

• Ever worked under two different people giving opposite directions? Unity of command wasn’t followed.

Understanding these principles gives you an edge. It helps you manage better, even as a student. And it prepares you for real-world roles — whether you’re leading a team or just working in one.

Want to Go Deeper?

These principles aren’t just for business owners. You’ll use them in group projects, internships, and assignments. Knowing them gives you a real edge.

If you ever need help applying them in your coursework — whether it’s for a case study, an essay, or a management report — Scholarytic is built exactly for that

Check out Scholarytic

Final Thoughts

Henri Fayol’s 14 principles might be over a century old
But they still solve problems teams face every day, unclear roles, poor communication, and a lack of direction. Whether you’re managing a project, working in a student group, or planning a real business idea

These principles give you a solid base to build from

•  Understand them
•  Apply them

And when you need support, you already know where to go