Fayol's Equity Principle: Definition & Explanation

Instructor: Ashley D. Manker
In this lesson, we will review Fayol's background and his 14 Principles of Management. We will also focus on his Equity Principle and why it's still relevant today.

Fayol's Background

Jules Henri Fayol (1841-1925) was born in Constantinople (capitol city of the Eastern Roman Empire that is known today as Istanbul, Turkey). Fayol's father was an engineer in the military. When Fayol's father completed his military service, his family moved to France, where Fayol attended elementary and high school. After high school, Fayol followed in his father's footsteps and became an engineer, too. He graduated from engineering school in 1860 and went to work for a company that owned coal, steel, and iron mines.

J. Henri Fayol

From 1860-1866, Fayol worked as an engineer and improved techniques for fighting underground coal fires. Since he worked so hard, he was rewarded with a promotion to manager. Six years later, he was again promoted to chief executive officer (CEO). As the CEO, he was responsible for improving operations for the company.

Although Fayol's training was in engineering, he realized that managing thousands of employees at different locations required skills that he had not learned in school. He viewed management as more than just supervising people. For Fayol, management involved all of the activities associated with producing, distributing, and selling products. He also realized that a manager needed to be able to strategize, organize equipment, deal with people, and much, much more.

Fayol's 14 Principles of Management

Fayol gained a lot of experience working as the CEO. He developed his own ideas about managing. He believed that all employees of the company, from foremen to CEOs, should receive some type of managerial training. He developed a list of principles of management. He believed that there were more than fourteen of them, but chose to focus on those he found to be the most useful in his own career. The fourteen principles that Fayol concentrated on were:

  • Division of Work
  • Authority
  • Discipline
  • Unity of command
  • Unity of direction
  • Subordination of individual interests to the general interest
  • Remuneration
  • Centralization
  • Line of authority
  • Order
  • Equity
  • Stability of tenure of personnel
  • Initiative
  • Esprit de corps (building harmony and unity)

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