Management Contributions of Henry Fayol

1. PRINCIPLES OF MANAGEMENT
I B.COM A
DATE:10-07-2017

2. Henry Fayo’l

3. Henry Fayol(France, 1841-1925)
• He Was Born In 1841 at Constantinople in France
• Graduated As a Mining Engineer in 1860
• In 1860 he Joined A French Coal Mining Company
as an Engineer.
• He was promoted as the Manager of the
Collieries for 22 Years.
• In 1888,When the Company was almost bankrupt
due to Heavy Losses, he was Appointed as its
Managing Director

4. • He served as Managing Director for 30 years
and Retired in 1918 after Expanding Company
into Large Coal Steel Combine with a Strong
Financial position .
• After Retiring From his Executive Position in
1918, he Devoted himself to Popularising his
theory of Management.

5. According to Fayol, all the activities of industrial
undertakings could be divided into six groups
a) Technical Activities: Those Connected with Production or
Manufacture.
b) Commercial Activities: Those Related to Buying, selling and
exchange.
c) Financial Activities: Those Connected with Securing of
Capital and its use.
d) Security Activities: Those Connected with Preparation of
financial statement Like P&L A/C,Balance Sheet ,Statistics etc
e) Managerial Activities: Connected with P-O-C-C-C

6. Fayol Sub-divided the Managerial
Functions into Five Groups.
a) Forecasting and Planning: It Means
examining the future and preparing the
plan of action
b) Organising: It means Securing the various
factors of production such as materials ,
men, machines etc
c) Commanding: It Means Using the factors
of Production into operation.

7. d. Co –ordinating: It mean Binding together the
activities of different groups of personnel.
e. Controlling: It means ensuring that
everything occurs with the plan adopted ,
instructions issued and principles
established.

9. Fayol Formulated 14 Principles of
Management
1. Division of Labour
2. Authority and Responsbility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest to Group
Interest
7. Remmuneration of Personnel

10. 8. Centralization
9. Scalar Chain
10.Order
11.Equity
12.Stability of Tenure
13.Initiative
14.Espirit De Corps

11. 1.Division of Labour
• This is the Principle of Specialisation. It is
necessary for Promoting efficiency in the
utilisation of labour.

12. 2.Authority and Responsibility
• This principle implies that authority and
responsibility should be related to each other.
Responsibility without Authority is meaningless.

13. 3.Discipline
• All the employees should be disciplined.
Discipline is obedience, application , energy ,
behaviour and outward mark of respect
shown by employees

14. 4.Unity of Command
• For any action the employee should get orders
and instructions from only one superior.

15. 5.Unity of Direction
• It implies that each group of activities having
the common objective must have
‘ One head One Plan’

16. 6.Subordination of Individual Interest
to Group Interest
• The necessity of protecting group or common
interest as against individual interest.

17. 7.Remmuneration of Personnel
• Employee remmuneration should be just fair
and should afford the maximum satisfaction
to both employees and employer.

18. 8.Centralisation
• The degree of concentration of authority
should vary according to the needs of the
individual situation.

19. 9.Scalar Chain
• The principle implies that there should be a
scalar chain of authority and of
communication from highest to lowest.

20. 10.Order
• Its means Arrangement of things and persons.
“ There must be a place for everything , and
everything must be in its place”

21. 11.Equity
• It is the combination of justice and kindness.
Equity should be followed at all levels.

22. 12.Stability of Tenure of Personnel
• Employees must be assured of security for the
Job. If employee is assured of security of
service he will take keen interest in giving
best performance

23. 13.Initiative
• The Managers of an undertaking should
permit their subordinates to take some
initiative in thinking out and executing plans.

24. 14.Espirit de corps
• This Principle means Union is Strength.
“ United we stand , divided we fall “

25. Qualities of Successful Manager
emphasised by Fayol are
a) Physical – Health
b) Mental – Ability to understand and Learn, judgement ,
Adaptability
c) Moral – Energy , firmness , willingness to accept
responsibility with initiative , loyalty , and Dignity
d) General Education
e) Special Knowledge – Knowledge peculiar to the
function.
f) Experience