8. Centralization. The degree of importance in the subordinates’ (employees’) role in their
organization and the amount of decision making that occurs at a central level versus a decentralized
level. For example, in many organizations decisions are made centrally (i.e., in the “corporate office”),
which does not allow as much flexibility as decentralized decision making; this would mean each
individual area can make its own decisions.
9. Scalar chain. This refers to how authority is divided among managers. Specifically, Fayol said
lower-level managers should always keep upper-level managers informed.
10. Order. All materials and people related to one kind of work should be organized and neat. Things
should be easy to find.
11. Equity. All employees should be treated equally.
12. Stability of tenure of personnel. Retention of employees should be a high management priority.
The cost of hiring a new worker is expensive, so efforts should be maintained to keep current
13. Initiative. Management should take steps to encourage workers to take initiative. In addition,
workers should be self-directed and not need a lot of management control to accomplish tasks.
14. Esprit de corps. Managers should encourage harmony among employees. This harmony creates
good feelings among employees.
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