3. BACKGROUND AND PROFILE
Henri Fayol was born in 1841 at Istanbul Turkey.
He was a French management theorist.
Fayol was one of the most influential contributors
to modern concepts of management.
Fayol has been described as the father of modern
operational management theory
The nineteen-year old engineer started at the mining
company ultimately acting as its managing director
4. * He is a director of mines who developed
a general theory of business
administration.
* He was one of the most influential
contributors to modern concepts of
management.
Based largely on his own management experience,
Fayol developed his concept of administration.
He is a director of mines who developed a general theory of
business administration.
He was one of the most influential contributors to modern
concepts of management.
Due to his contribution to management theory and principles,
Henry Fayol is rightly treated as the Father of Modern
Management Thought.
5. Wrote a book in 1916 “Administration Industrielle et generale.”
First management thinker who provided the conceptual
framework of the functions of management in his book.
Due to his contribution to management theory and principles,
Henry Fayol is rightly treated as the Father of Modern
Management Thought.
6. CONTRIBUTION TO THE FIELD OF
MANAGEMENT
Administrative Management Theory
Principles of Management
Viewed management as a profession that can be trained and
developed
Emphasized the broad policy aspects of top level managers (
top down approach)
Offered universal managerial prescriptions
7. ADMINISTRATIVE MANAGEMENT THEORY
"To manage is to forecast and to plan, to
organize, to command, to coordinate and to
control".
- Henri Fayol
8. FUNCTIONS OF MANAGEMENT
The functions of management according to Fayol
are:
Planning
Organizing
Commanding
Coordinating
Controlling
10. PLANNING
According to fayol, planning (attempting to assess the future
and making provision for it) was an essential part of
management. Central to the process was the development of a
formal plan of action that he described as, ‘ a kind of future
picture wherein proximate events are outlined with some
distinctness, whilst remote events appear progressively less
distinct, and it entails the running of the business as foreseen
and provided against over a definite perioda
11. ORGANIZING
The second element of management identified by fayol was
organizing, by which he meant providing a business with
everything useful to its functioning : raw material, tool, capital
and personnel.
He paid particular attention to what he termed the composition
of the boy corporate (the organizational structure) claiming
that the form taken by the organization would depend almost
entirely on the number of people employed.
As organizations grew and become more complex the number
of employees would generate the need more than layers of
supervision.
12. COMMAND
In fayol’s view a manager who has command should :
Have a thorough knowledge of personnel.
Eliminate the incompetent
Be well versed in the agreement binding the business and
employees.
Set a good example
Conduct periodic audits of the organization and use
summarize charts to further this.
Bring together chief assistants by means of conferences, at
which unity of direction and focusing of effort are provided
for.
Not become engrossed in detail
13. COORDINATION
It aimed at securing the optimum harmonization of all the
activities of an organization in such a way as to facilitate its
working, and its success’.
He was concerned here with maintaining the balance between
the various activities of the organization thereby ensuring, for
the example, that expenditure was proportionate to income;
equipment procurement to production needs and stocks to
consumption.
14. CONTROL
The object of control in this context was to point up
weaknesses and errors so that they might be rectified and
prevented from reoccurring . As fayol put it, control operates
on the everything, things, people, actions. Control stimulated
the process of feedback whereby the organization adapted to
changing circumstance and constantly renewed itself.
15. PRINCIPLES OF MANAGEMENT
1. Division of work.
This principle is the same
as Adam Smith's 'division of
labour'. Specialization
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.
16. PRINCIPLES OF MANAGEMENT
3: 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 organisation's
rules, and the judicious use
of penalties for infractions of
the rules.
4. Unity of command.
Every employee should
receive orders from only one
superior.
17. PRINCIPLES OF MANAGEMENT
5. Unity of direction.
Each group of
organizational activities that
have the same objective
should be directed by one
manager using one plan.
6. 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 organization
as a whole.
18. PRINCIPLES OF MANAGEMENT
7. Remuneration.
Workers must be paid a fair
wage for their services.
8. Centralization.
Centralization 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.
19. PRINCIPLES OF MANAGEMENT
9. 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.
10. Order.
People and materials
should be in the right place
at the right time.
20. PRINCIPLES OF MANAGEMENT
11. Equity.
Managers should be kind
and fair to their
subordinates.
12.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.
21. PRINCIPLES OF MANAGEMENT
13. Initiative.
Employees who are
allowed to originate
and carry out plans will
exert high levels of
effort.
14. Esprit de corps.
Promoting team spirit
will build harmony and
unity within the
organization.
22.
23. VIEWED MANAGEMENT AS A PROFESSION
Fayol’s theory of management was the first
complete theory of management as we
understand today.
It incorporated proven principles, elements,
procedures and techniques based on his
practical experience.
24. OFFERED UNIVERSAL MANAGERIAL
PRESCRIPTIONS
He recommended the selection and training of workers
and managers.
He suggested certain qualities of manager’s winch
include physical, mental, moral, educational technical
and experience.
25. LIMITATIONS
Stressed a “one best way” way of organizing and managing.
Theory based on intuition and observation rather than on
empirical investigation.
Today’s environment are more turbulent and unpredictable.
Too general for today’s highly complex organization.
26. CONCLUSION
Fayol’s contribution to management theory is
certainly remarkable.
He gave overall concepts of general management
and suggested the basic functions of
management.
In fact, the 14-principles are the outcome of his
long experience as a practicing manager.
He also advocated the use of organization charts.
27. The management principles suggested by him are
universally accepted by modern authorities on
management and are treated as valid even to this
day. This is because these principles are practical in
nature and also result-oriented. These basic
principles are useful for effective management of
business activities
