Fayol's 14 Principles of Management (Part 2): Principles 8–14 with Gang Plank Explained — Class 12

This post completes Henri Fayol's 14 Principles of Management, covering the second half that deals with broader organisational dynamics. These seven principles are just as frequently examined as the first seven — and they include the Gang Plank concept that trips up many students in scenario-based questions.

Principle 8: Centralisation and Decentralisation

What it means: Every organisation must find the right balance between concentrating authority at the top (centralisation) and delegating it downward (decentralisation).

No organisation is fully centralised or fully decentralised — it exists on a spectrum.

What determines the balance:

• Size of the organisation
• Experience and capability of lower-level managers
• Nature of the business and its tasks
• Degree of risk involved in decisions

Key point for exams: Fayol did not advocate for either extreme. The correct answer is always "appropriate balance depending on the situation."

Principle 9: Scalar Chain (with Gang Plank)

What it means: There should be a clear, unbroken chain of command from the highest to the lowest level of the organisation. Communication and authority flow up and down this chain.

CEO → General Manager → Department Head → Supervisor → Worker

Every level must be respected for the chain to function properly.

The Gang Plank (Fayol's exception):

Fayol recognised that following the full scalar chain for urgent communication could be dangerously slow. He therefore suggested the Gang Plank — a horizontal communication channel that allows two employees at the same level to communicate directly in emergencies, bypassing the full chain, with the knowledge and permission of their superiors.

Example:

Rajan (Sales Department) needs urgent information from Mohan (Accounts Department). Rather than routing through both their department heads and the CEO, they communicate directly — both keeping their respective superiors informed.

Exam scenario: If a question describes communication going directly between departments without following the full chain — and asks whether this violates the Scalar Chain — the answer is no, if it is a Gang Plank used with superior's approval.

Principle 10: Order

What it means: Everything and everyone should be in their proper place. Fayol applied order to two dimensions:

Example of violation: A factory where tools are scattered and workers frequently search for equipment — wasting time and creating safety risks.

Principle 11: Equity

What it means: Managers should be kind, fair, and just in their dealings with employees. Equity does not mean treating everyone identically — it means treating everyone fairly based on their circumstances.

Example: Giving the same warning to a habitual latecomer and an employee who is late for the first time due to a genuine emergency would be equal treatment but not equitable treatment.

Why it matters: Equitable treatment builds loyalty, trust, and commitment among employees.

Key distinction: Equity ≠ Equality. Equality = same treatment for all. Equity = fair treatment relative to circumstances.

Principle 12: Stability of Tenure

What it means: Employees should be given job security and adequate time to settle into their roles and become productive.

High employee turnover is costly — recruiting, training, and inducting new employees takes time and money. Stability allows employees to develop expertise, build relationships, and contribute meaningfully.

What happens if violated: Constant churn in the workforce means the organisation perpetually operates with inexperienced staff and bears repeated recruitment costs.

Important nuance: This principle does not mean employees can never be removed. It means unnecessary turnover should be avoided.

Principle 13: Initiative

What it means: Employees at all levels should be encouraged to think independently, develop ideas, and take initiative in executing plans — within the boundaries of their authority.

Why it matters: When employees feel trusted enough to exercise initiative, they develop a sense of ownership and engagement. This builds creativity, motivation, and a culture of continuous improvement.

What happens if violated: Employees become passive, wait for instructions for everything, and contribute only the minimum required.

Example: An employee suggestion scheme that genuinely acts on employees' ideas demonstrates this principle in practice.

Principle 14: Esprit de Corps

What it means: Management should promote team spirit, unity, and harmony among all members of the organisation. "Unity is strength" is the core idea.

This means building cohesion, avoiding unnecessary divisions or rivalries between departments, and fostering a sense of shared purpose.

Example: A manager who consistently pits team members against each other (even to increase competition) risks destroying trust, collaboration, and morale — violating this principle.

Fayol's advice: Prefer verbal communication over written memos for team matters — it builds rapport and avoids misunderstanding.

The Complete 14 Principles: Quick Reference Card

Common Scenario Questions and Which Principle Applies

These are the most common exam question types — a situation is described and you must identify the principle being followed or violated:

What's Next?

In Part 3, we cover F.W. Taylor's Scientific Management — his four principles, six techniques (including Functional Foremanship and the Differential Piece Wage System), and a comprehensive Fayol vs Taylor comparison table that is one of the most tested questions in the entire chapter.