Fayol's Remuneration Principle: Definition & Explanation

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  • 0:02 Remuneration Definition
  • 0:57 Henri Fayol
  • 2:01 How it Works
  • 2:32 Lesson Summary
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Lesson Transcript
Instructor: Ryan Hultzman
In this lesson, you'll learn what the term remuneration means and why it is important. You'll also learn what role the French theorist Henri Fayol played in making remuneration an important management concept.

Remuneration Definition

During a job interview, what is the one piece of information that you want to know more than anything? Is it what hours you will work? Is it what days you will work? Is it what your job title will be? It's more than likely you'll be thinking this one: 'How much will I get paid?' That question is exactly what remuneration is all about.

So, what exactly is remuneration? According to the Merriam-Webster dictionary, the word remunerate means 'to pay an equivalent for a service, loss or expense.' If remunerate means to pay someone, then remuneration means the pay that you receive for a service. We all know that pay is one of the deciding factors when choosing whether or not to accept an offer of employment, but how do we decide what is fair pay? Fortunately for us, the guiding principle for deciding this was established many years ago.

Henri Fayol

Henri Fayol was a management theorist in the late 1800s and early 1900s who also spent the majority of his working life working as a manger. It was during his years as a manager that Fayol began to feel that the entire concept of management was not very well-defined. There were no real guidelines as to what managers should or should not do, nor was there any instruction on the topic of management. Henri Fayol wanted to change this. He wanted management to be better-defined, and for the concept of management to be taught as early as primary school.

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