2. Agenda
Introduction and Background
Social Environment and His Theory
Theory and Contribution
5 Functions and 14 Principles of
Management
Relevant Today?
Comments by Others
Fayol vs. Taylor
Criticism
Conclusion
Q & A
Appendix
Publications
References
Timeline
Fayol Quotes
3. Introduction and Background
Born in Istanbul in 1841 of a French Family
Graduated at age 19 as mining engineer in 1860
Worked at French mining and steel company, Comambault
Promoted to Managing Director in 1888. Saved Company from
bankruptcy
Stayed at same company until his retirement in 1918
Known as the Father of Modern General Management (Fayolism)
Published his first book in 1916 General and Industrial Management
His work - Administrative Theory in Management
His work was not known in the US until 1949
4. Social Environment and His Theory
Held Executive position as CEO over 30 years
Developed his theory based on his experience and
observations
During World War I , post revolutionized France
Fayolism – theory of management that analyzed and
synthesized the role of management in organizations
Believed that management theory deserved more focus:
“Young men, who begin practical work as engineers soon
after leaving industrial schools, are in a particularly good
position both for learning administration and for showing
their ability in this direction . . .” (Wren)
5. Social Environment and His Theory
Examined the organization from top-down
Realized that the problem of personnel and its management
is the key to industrial success
Theories on how management should deal with that problem
Management is a process of 5 functions and its 14 principles
as a tool to carry out the process
6. 5 Functions /Elements of Management
1) Planning – plan and put forth actions to be taken
2) Organizing – define authority and responsibility
3) Coordinating – lay out the timing and sequencing of activities
4) Commanding – put the plan into action, execute the plan
5) Controlling – monitor and correct tasks to meet project’s goals and
deliverables
Known in today’s management as – planning, organizing, leading,
controlling and forecasting
Fayol says-
“to manage is to forecast and plan, to organize, to command, to
coordinate and to control. To foresee and plan means examining the
future and drawing up the plan of action.”
7. 14 Principles of Management
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual’s
Interests to the General
Interests
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of Tenure of
Personnel
13. Initiative
14. Esprit de corps
8. 14 Principles of Management
1) Division of work -
Known as Division of Labor
Work should be divided among the individuals and groups to
focus on specific tasks
Specialization promotes efficiency of the workforce and
increases productivity
Fayol warned too much specialization might bore the employee
and long term development might be needed
2) Authority and Responsibility –
Authority is the right to give orders and obtain obedience
Responsibility involves being accountable and whoever assumes
authority also assumes responsibility
9. 14 Principles cont.
3) Discipline –
Employees must obey and respect the rules that govern the
organization
Good discipline is the result of effective leadership
Penalties should be applied as necessary
4) Unity of command –
every employee should receive orders from only one
manager
Otherwise, having multiple managers could lead to confusion
and conflicts
5) Unity of direction –
The entire organization should be moving towards a common
objective or goal in a common direction
10. 14 Principles cont.
6) Subordination of individual’s interests to the general
interests –
The interests of any one employee or group of employees should
not take priority over the interests of the organization
7) Remuneration –
All workers must be paid a fair wage for their services
Variables such as cost of living, supply of qualified personnel, and
business profits should be considered
Remuneration also can be non-monetary (recognition, time off)
11. 14 Principles cont.
8) Centralization / Decentralization –
Refers to the degree to which subordinates are involved in
decision making
Employees should be given the greatest feasible freedom
9) Scalar chain –
The line of authority from top management to the lowest
ranks represents the scalar chain.
Communications should follow this chain in norm situations
But during emergencies and if a quick action is necessary,
this chain can be broken under “Gang Plank”
12. 14 Principles cont.
10) Order –
there should be a specific place for every employee in an
organization
11) Equity –
managers should be kind and fair to their subordinates. All
employees should be treated equally
12) Stability of Tenure of Personnel –
retaining productive employees should always be a high
priority of management
13. 14 Principles cont.
13) Initiative –
management should encourage workers to initiate new ideas
and new ways to complete tasks
14) Esprit de corps –
promoting team spirit will build harmony and unity within
the organization
14. Relevant Today?
These principles are flexible and adaptable to any organization
Universal use in private, public, education, government..etc.
Significant influence in modern management theory
Helped managers - how to organize and interact with their
employees in productive way
“Fayol’s principles in management are not only the guides for
early management, they are also presented in contemporary
management theories to describe what today’s managers should
do to be effective and efficient.”
(Archer,1990;Fells,200;Hales,1986)
15. Relevant Today?
Variety in org structures makes these considerations even
more relevant today
Appropriate structures depend on organization’s needs.
Use the initiative and creativity of all people at all levels
of the organization for competitive advantage
Unity of Command – Very relevant in today’s matrix org
structures
Theme of finding the appropriate balance between
freedom and control, between creativity and efficiency
16. Comments by Others
In the words of Urwick: “Isolation and analysis of management
as a separate function was his Fayol’s, unique and original
addition to the body of management theory.”
The concepts and principles of Fayol have stood the test of
time and form part of the modern science of management.
“His contribution to the theory of management is probably the
most revolutionary and constructive that has ever been made.”
(Theo Haimann)
Fayol was the first person to attempt to systematize
management by accentuating the higher levels of control
(Robbins, 1991:37).
17. Fayol vs. Frederick Taylor
Frederick Winslow Taylor (1856-1915), another theorist of
the time, studied efficiency techniques in his 1911 book the
Principles of Scientific Management
Taylor worked primarily on the operative level, from the
bottom of the industrial hierarchy upwards
Fayol concentrated on the managing director and worked
downwards
Taylor known as the father of scientific management where
Fayol known as the father of administrative theory in
management
18. Criticism
Fayol did not conduct research or provided empirical data
rather his work was from his own experience and
observations
19. Conclusion
Remarkable Contribution to the Administrative Theory in Management
His work is referred to as Fayolism
Developed 5 functions and 14 principals of management
Devoted his life teaching his administrative theory
His work contributed to scientific management as Taylor did
First theorist in modern general management
Fayol’s words –
“The administrative apparatus is further a concept for very wide
application. Not only is it useful to those who may have been managing
or controlling an industrial undertaking but to my mind its absence is
fundamental weakness in our public services, and I cannot imagine
better service to our country than to ensure its application by the state”
22. Publications
“Positive administration in industry.” Article in La Technique moderne, 1918.
“The theory of administration in the state.” Paper to the Second International
Congress of Administrative Science. 1923.
Industrial and General Administration by Henri Fayol, translated by J.A.
Coubrough. London, Sir Isaac pitman & Sons, 1930.
General and Industrial Management by Henri Fayol, translated form the
French version edition (Administration industrielle et Générale) by Constance
Storrs, with foreword by L. Urwick. London, Pitman, 1949.
General and Industrial Management by Henri Fayol, revised by Irwin Gray.
New York: IEEE, c1984, published under the sponsorship of the IEEE
Engineering Management Society.
23. References
Wikipedia, retrieved from the web, January 16, 2017, from https://en.wikipedia.org/wiki/Henri_Fayol
General and Industrial Management by Henri Fayol, translated form the French version edition
(Administration industrielle et Générale) by Constance Storrs, with foreword by L. Urwick. London,
Pitman, 1949. Page vi.
Wikipedia, retrieved from the web, January 16, 2017, from https://en.wikipedia.org/wiki/Fayolism
Daft, Richard L (1983), Organization Theory and Design, The West series in management., West Pub. Co.
General and Industrial Management by Henri Fayol, revised by Irwin Gray. New York: IEEE, c1984
(Published under the sponsorship of the IEEE Engineering Management Society.” ISBN: 0879421789, pages
61-82.
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fayols/contribution-of-henry-fayol-to-management-thought/74132/
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Wren, Bedeian and Breeze. The foundations of Henri Fayol’s administrative theory. Management Decision
40/9 [2002] 906-918. Accessed Feb. 7, 2017 from
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