Henri Fayol (Istanbul, 29 July 1841–Paris, 19 November 1925) was a French mining engineer and director of mines who developed a general theory of business administration. He and his colleagues developed this theory independently of scientific management but roughly contemporaneously. He was one of the most influential contributors to modern concepts of management
BIOGRAPHPY Fayol was born in 1841 in a suburb of Istanbul, Turkey, where his father, an engineer, was appointed superintendent of works to build a bridge over the Golden Horn (Galata Bridge). They returned to France in 1847, where Fayol studied at the mining school "École Nationale Supérieure des Mines" in Saint-Étienne. When 19 years old he started as an engineer at a mining company "Compagnie de Commentry-Fourchambeau-Decazeville" in Commentry. By 1900 the company was one of the largest producers of iron and steel in France and was regarded as a vital industry. Fayol became managing director in 1888, when the mine company employed over 1,000 people, and held that position over 30 years until 1918. In 1916 he published his experience in the book "Administration Industrielle et Générale", at about the same time as Frederick Winslow Taylor published his Principles of Scientific Management.
THEORY Fayolism Fayols work was one of the first comprehensive statements of a general theory of management. He proposed that there were six primary functions of management and 14 principles of management.
Functions1. forecasting2. planning3. organizing4. commanding5.coordinating6. monitoring (French:contrôler: in the sensethat a manager mustreceive feedback about aprocess in order to makenecessary adjustments). Functions of management
PRINCIPLES OF MANAGEMENT 1. Division of work. This principle is the same as Adam Smiths division of labour. Specialisation increases output by making employees more efficient. 2. Authority & Responsibility. Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised.
PRINCIPLES OF MANAGEMENT Discipline. Employees must obey and respect the rules that govern the organisation. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organisations rules, and the judicious use of penalties for infractions of the rules. Unity of command. Every employee should receive orders from only one superior.
PRINCIPLES OF MANAGEMENT Unity of direction. Each group of organisational activities that have the same objective should be directed by one manager using one plan. Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organisation as a whole.
PRINCIPLES OF MANAGEMENT Remuneration. Workers must be paid a fair wage for their services. Centralisation. Centralisation refers to the degree to which subordinates are involved in decision making. Whether decision making is centralized (to management) or decentralized (to subordinates) is a question of proper proportion. The task is to find the optimum degree of centralisation for each situation.
PRINCIPLES OF MANAGEMENT Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However, if following the chain creates delays, cross- communications can be allowed if agreed to by all parties and superiors are kept informed. Order. People and materials should be in the right place at the right time.
PRINCIPLES OF MANAGEMENT Equity. Managers should be kind and fair to their subordinates. Stability of tenure of personnel. High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.
PRINCIPLES OF MANAGEMENT Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort. Esprit de corps. Promoting team spirit will build harmony and unity within the organisation.
Fayols work has stood the test of time and has been shown to be relevant and appropriate to contemporary management. Many of today’s management texts including Daft have reduced the six functions to four: (1) planning; (2) organizing; (3) leading; and (4) controlling. Dafts text is organized around Fayols four functions....