Table of Contents

• What are administrative principles?

  • Characteristics of administrative principles
• Difference between principles, functions, and administrative processes
• List of the most important administrative principles

  • 1. Division of labor
  • 2. Authority and responsibility
  • 3. Discipline
  • 4. Unity of command
  • 5. Unity of direction
  • 6. Equity
  • 7. Initiative
• Importance in business management

  • 1. They reduce improvisation
  • 2. They align management teams
  • 3. They accelerate the training of new managers
  • 4. They diagnose problems with precision
  • 5. They help you scale
• How to apply them in a real company (practical case)
• Common mistakes when applying the principles

  • Mistake 1: Applying them as dogma
  • Mistake 2: Ignoring them completely
  • Mistake 3: Confusing a principle with a technique
  • Mistake 4: Trying to apply all 14 at once
  • Mistake 5: Not measuring results
• Frequently asked questions

  • What are administrative principles?
  • What is the difference between principles and administrative functions?
  • What is the most important administrative principle?
  • How many administrative principles exist?
  • Are administrative principles useful for an SME?

What are administrative principles?

An administrative principle is a fundamental rule that guides decision-making in the management of an organization. It is not an immutable law or a magic recipe: it is a practical truth that has proven its validity over time and across very different contexts.

To understand it better, think of it like traffic rules. "Drive on the right" (or on the left, depending on the country) is not a cosmic truth, but if nobody follows it, there are accidents. Administrative principles do something similar: if nobody respects them, the company becomes chaotic, inefficient, or unfair.

Characteristics of administrative principles

• Universal: they apply to companies, NGOs, governments, sports clubs, hospitals. Any human organization that pursues a purpose.
• Flexible: they adapt to size, sector, culture, and moment. They are not applied the same way in a 5-person startup as in a multinational bank.
• Guiding: they guide, they don't force. A good manager knows when to bend them.
• Complementary: none works alone. Division of labor without coordination creates silos; discipline without equity creates turnover.
• Verifiable: they emerged from observing real companies, not from philosophical speculation.

Difference between principles, functions, and administrative processes

This is the distinction that confuses students and professionals the most. Let's clarify it with an analogy.

Imagine that running a company is like cooking a complex dish:

• Functions are the major tasks: buy ingredients, cook, plate, serve.
• Processes are the specific steps of each function: to cook, first peel the vegetables, then sauté them, then add the sauce.
• Principles are the rules that make everything work: keep the workspace clean, measure before adding salt, taste while cooking.
• Techniques are specific tools: using a mandoline to slice, a meat thermometer.

Concept	Question it answers	Administrative example
Function	What needs to be done?	Planning
Process	How is it done, step by step?	Annual strategic planning
Principle	What direction to go?	Unity of direction
Technique	What tool do I use?	SWOT analysis

Without principles, processes become mechanical. Without processes, principles are good intentions. You need all four levels to manage well.

List of the most important administrative principles

Although Fayol proposed 14, in practice they are usually grouped around 7 essential principles that every manager should master:

1. Division of labor

Specialize each person in a part of the work to gain efficiency. It is the foundation of modern productivity, from an assembly line to a software development team.

2. Authority and responsibility

Whoever gives orders is accountable for the results. Authority cannot exist without responsibility, nor responsibility without authority.

3. Discipline

Respect for the agreements between the company and workers. It is not submission: it is mutual fulfillment of what was agreed upon.

4. Unity of command

Each person receives orders from a single boss. This is the most debated principle today, because matrix structures deliberately break it.

5. Unity of direction

Activities that pursue the same objective are grouped under a single plan and a single responsible person.

6. Equity

Fair and benevolent treatment. Not just complying with the law, but treating people with humanity.

7. Initiative

Allow and encourage employees to propose and execute ideas. It is the engine of internal innovation.

Fayol added seven more (remuneration, centralization, hierarchy, order, stability of personnel, subordination of general interest, team spirit) that complete the picture.

Importance in business management

Why bother learning administrative principles in the era of agile, no-code, and AI? Five concrete reasons:

1. They reduce improvisation

Without principles, every decision is made from scratch. With principles, you have shortcuts: "faced with this dilemma, this is what usually works." It is the difference between a surgeon who operates with a protocol and one who improvises.

2. They align management teams

If five managers interpret "discipline" in five different ways, the team receives contradictory messages. Sharing principles makes decisions coherent across departments.

3. They accelerate the training of new managers

A new department head can start with a framework of reference, instead of learning by trial and error for years. Principles are the "source code" of the management profession.

4. They diagnose problems with precision

Many business conflicts are violations of a principle:

• Role confusion → against unity of command.
• Lack of proposals → against initiative.
• High turnover → against stability of personnel (and often against equity).
• Contradictory decisions between areas → against unity of direction.

If you can name the problem, you solve it faster.

5. They help you scale

What works with 10 people breaks with 100, and breaks again with 1,000. Principles anticipate the breaking points: when you grow, you consciously decide when to centralize, when to decentralize, when to add hierarchy.

How to apply them in a real company (practical case)

Let's look at a case. Imagine a mid-sized e-commerce company, 80 people, that is losing money. The CEO hires you as a consultant. Applying the principles, you diagnose:

Observed symptoms:

• Three different teams purchase similar software without coordinating.
• A developer reports to three people (CTO, Head of Product, founder).
• Turnover over the last year is 35%.
• Nobody proposes new ideas; everything is escalated to the CEO.
• Salaries are low relative to the market.

Diagnosis by principles:

• Lack of unity of direction → there are three parallel "software purchasing" plans.
• Violation of unity of command → a developer with three bosses.
• Lack of stability of personnel → 35% turnover is a systemic symptom.
• Lack of initiative → everything escalates because there is no delegation or psychological safety.
• Remuneration misaligned with the market.

Action plan:

1. Centralize software purchases under a single owner (unity of direction).
2. Redesign the reporting matrix: each person with a single functional lead (unity of command).
3. Salary audit and adjustment to the 60th percentile of the market (remuneration).
4. Delegate decisions up to a certain amount to managers, with public celebration of well-intentioned mistakes (initiative + psychological safety).
5. Retention plan: onboarding, career plans, quarterly surveys (stability).

In six months, turnover drops to 18%, decisions speed up, and the team starts proposing improvements. Without hiring stars or firing anyone. Just by applying principles.

Common mistakes when applying the principles

Mistake 1: Applying them as dogma

"This is done this way because Fayol says so." Principles are guiding. Applying them without context generates useless bureaucracy.

Mistake 2: Ignoring them completely

"Principles are from the last century, we are agile." False: agile companies apply unity of direction (one objective per sprint), initiative (autonomous teams), and equity (culture of respect). They just call them differently.

Mistake 3: Confusing a principle with a technique

"We don't have principles because we use OKRs." OKRs are a technique for applying the principle of unity of direction. They don't replace it; they implement it.

Mistake 4: Trying to apply all 14 at once

Companies have limited resources. It is better to identify the 3-4 most critical principles for your moment and work on them deeply.

Mistake 5: Not measuring results

A principle is useful if it improves things. If you apply it and nothing happens (or it gets worse), review how you are implementing it.

Frequently asked questions

What are administrative principles?

They are the fundamental rules that guide the management of any organization. The best known are the 14 by Henri Fayol (1916), but alternative groupings of 7, 11, or more principles exist.

What is the difference between principles and administrative functions?

Functions (planning, organizing, directing, controlling) are the major tasks of a manager. Principles are the rules that guide how those functions are executed. They are complementary: without principles, functions become chaotic.

What is the most important administrative principle?

It depends on the context. In general, authority and responsibility is the most fundamental (without it, nothing works). In startups, initiative tends to be critical. In large companies, unity of direction.

How many administrative principles exist?

There is no fixed number. Fayol proposed 14, which is the most widely taught list. Other authors propose between 5 and 11. Quality of application matters more than the number.

Are administrative principles useful for an SME?

Yes, and especially so. An SME with few resources cannot afford improvisation. Applying principles (even informally) saves time, money, and conflicts.