According to Fayol, which principle deals with the importance of remuneration as a driver of performance?

Henri Fayol emphasized the importance of fair remuneration as a principle that directly impacts employee motivation and performance. He recognized that adequate compensation is essential for employees to feel valued and engaged in their work. When employees are compensated fairly for their efforts, they are more likely to be motivated to perform at their best, thereby enhancing overall productivity within an organization.

Fayol considered remuneration to encompass not only salary but also other benefits and incentives that contribute to an employee’s overall satisfaction. This principle highlights the notion that when people feel they are rewarded appropriately for their contributions, it leads to increased morale and loyalty, ultimately driving better performance in their roles.

The other concepts, while significant in Fayol's framework of management principles, do not focus specifically on remuneration as a motivator. Divisional work pertains to the organization of tasks, authority and responsibility relate to managerial accountability, and initiative emphasizes encouraging employees to take action and contribute ideas. Each of these principles contributes to effective management, but the principle of remuneration directly addresses how financial and non-financial rewards influence workers' performance.