Henri Fayol developed classical management theory in the early 20th century consisting of 5 elements: planning, organizing, commanding, coordinating, and controlling. Fayol's principles became popular in the US in the 1940s. Fayol believed in a strict hierarchy with centralized decision making and respect for authority. He also believed in fair remuneration to encourage a stable workforce and avoidance of high turnover rates. Employees should subordinate personal interests to those of the organization and be encouraged through fair supervision and initiative.

1. FAYOL’S CLASSICAL MANAGEMENT Presented by: Julie Clerc

2. Henri Fayol (1841-1925)

3. Classical Management or“administrative science” Fayol’s Principles became popular in the United States in the1940s

4. 5 Elements of Classical Management Planning Planning Organizing Commanding (goal setting) Coordinating Controlling (evluating)

6. Miller’s 4 Categories Structure Power Reward Attitude

7. STRUCTUREor“scalar principle” -strict hierarchy with a clear vertical chain of command

8. POWER -centralization of decision making and respect for authority -accrues from a person’s Position and character -discipline and obedience could be expected only if both were present

10. ORGANIZATIONAL ATTITUDE -employees should subordinate their Personal interests to those of the organization -rational enforcement of agreements through fair supervision -encouraged employee initiative

11. “There is nothing rigid orabsolute in management affairs,it is all a question of proportion.Seldom do we have to applythe same principle twice in identical conditions; allowancesmust be made for differentchanging circumstances” Fayol 1949