Henri Fayol was a French mining engineer and director who is considered one of the most influential contributors to modern management theory. He developed 14 principles of management based on his experience of over 30 years as the director of a large mining company. Some of his key contributions included identifying the five main functions of management as planning, organizing, commanding, coordinating and controlling. He also emphasized unity of command, authority and responsibility, discipline and esprit de corps. Fayol is regarded as one of the founders of modern management concepts and theories.

1. HENRI FAYOL
Prepared By:
DIVYANSHU ROY
DHIREN RANAWAT
BHAVNESH MATHUR
VAGEESH SHARMA

2. Henri Fayol
(1841 - 1925)

3. Henri Fayol’s Background
• Born in July,1841 in Istanbul, Turkey
• His father, an engineer, was appointed superintendent of
works to build the Galata Bridge, which bridged the Golden
Horn.
• His family then returned to France in 1847.
• Graduated from the National School of Mines in Saint
Etrenne in 1860

4. Cont…
•After graduation he went to work and spent his entire career at the
mining company, “CommentryFourchamboult-Decazeville”.
•By 1890, the company was one of the largest producers of iron
and steel in France and regarded as a vital industry.
•Fayol became managing director in 1888,when the mine company
employed over 10,000 people, and held that position over 30 years
until 1918.
•He is credited with saving the company from bankruptcy
•During his career he lectured at Ecole Superievre de la Guerre
•On his retirement he established the Centre of Administrative
Studies

5. Cont…
• Based largely on his own management experience, he
developed his concept of administration.
• In 1916 he published these experience in the book
"Administration Industrielle et Générale", and at about
the same time as Frederick Winslow Taylor published
his Principles of Scientific Management.
• He was 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.

6. BIG CONTRIBUTIONS OF HENRI FAYOL
•He was the First management thinker who provided the
conceptual framework of the function of management in his
book.
•Due to his contribution to management theory & principles he
was rightly treated as the “FATHER OF MODERN
MANAGEMENT THEORY”.
•He wanted the formal education of management in schools &
colleges.
•Provided a link between strategies and organisational
theories.

7. Subordination of
Individual Interests to
the common interest
Division of
Labor
Unity of
Command
Line of
Authority
Authority &
Responsibility
Fayol's Principles
of Management Centralization
Unity of
Direction
Initiative
Equity
Order
Discipline
Stability and
tenure of
employees
Esprit de
Corp
Remuneration of
Personnel

8. Fayol’s Principles of Management
1) Division of work:
• By separating a work into smaller tasks
• Development of proficiency
• Focus on planning workers in right role.

9. Fayol’s Principles of Management
2) Scalar chain :
•Represents organization’s hierarchy
•allow the workers to be familiar where the stands

10. Fayol’s Principles of Management
3) Centralization :
•Centralization refers the degree of which subordinates are
involved in decision making process.
•Fayol preferred a less centralized management hierarchy
•He did not plan decision made away from the problem.

11. Fayol’s Principles of Management
4) Unity of Direction :
•This involved one head and one plan for a group of activities having the same
objective. Whereas unity of command required that each employee should receive
orders from one superior only, unity of direction could be summed up in the
phrase one head, one plan.
• In fayol’s own words, it is the condition essential to unity of action, coordination
of strength and focusing of effort. A body with two heads is in social as in the
animal sphere a monster and has difficulty in surviving.

12. 5) Equity :
Every worker should be seen with one Eye.
There should be equal justice and impartiality and generosity.
By this workers will perform their job with full interest,
devotion and full ability.

13. 6) Subordination of Individual Interests to the common interest :
Fayol drew attention to the fact that one of the greatest
problems of management was to reconcile the general interest
with that of the individual and group interests.
As he put it, ignorance, ambition, selfishness, laziness,
weakness and all human passions tend to cause the general
interest to be lost sight of in favor of individual interest and a
perpetual struggle has to be waged against them.

14. 7) Authority & Responsibility :
This was ‘the right to give orders and the power to exact
obedience’. Fayol drew a distinction between official authority
( which derived from a manager’s appointed position in an
organization) and personal authority (which stemmed from
such attributes as intelligence, experience, integrity and
leadership ability). His claimed that in a first class manager,
personal authority is the indispensable component of official
authority.

15. Fayol argued, authority was always allied to responsibility and
the proper exercise of both required the ability to make
judgments and if necessary, impose sanctions.
Fayol thought that authority should derive from expertise,
leadership skill, knowledge, etc., and lead to a sincere
commitment from subordinates

16. 8) Remuneration of Personnel :
Fayol considered the factor that determine levels of pay but are
independent of the employer’s will such as the cost of living, availability of
labour, the business environment and the economic situation. He also
examined the various modes of compensation available such as time rates,
job rates, piece rates, bonuses, profit-sharing, payment in kind and various
non-financial incentive. He concluded that whether wages are made up of
money only or whether they include various additions such as heating,,
light, housing, food, is of little consequence provided that the employee be
satisfied.

17. 9) Stability and tenure of employees :
This dealt with issues relating to personnel planning,
management development and labor turnover. Fayol called for
suitable induction period to enable employees and particularly
managers, to acclimatize themselves to new work and
situations. As he observed, insecurity of tenure is especially to
be feared in large concern in order to be in a position to decide
on a plan of action, to gain confident in one self and inspire it
in others.

18. 10) Unity of Command :
• This was the nation that an employee should receive orders from one
superior only. According to Fayol, dual command was bound to
generate tension, confusion and conflict.
• He noted the tendency to divide command between individuals and
also to blur the lines of demarcation between departments.
• The outcome, he claimed, was a dilution of responsibility and the
erosion of clear lines of communication. A higher manager might
sometimes give orders directly to workers further down the hierarchy,
thereby bypassing middle management.

19. • 11) Order :
• Fayol advocated the maintenance of the tidy material order with appropriate
and well kept storage facility, general cleanliness and the preparation of a
diagram of plan of the premises showing the various sections and facilities.
Similarly he insisted that ‘for social order to prevail the must… be an
appointed place for every employee and every employee be in the appointed
place’.
• It is applied to both material and men. The material should be kept in order
in the place where it is necessary. The personnel are selected scientifically
and assigned duties according to the required KSA’s.

20. Fayol’s Principles of Management
12) Discipline :
This was in essence obedience, application, energy, behavior and
outward marks of respect observed in accordance with standing
agreement between the firm and its employees. Fayol conceded that
the discipline would take different forms in various organizations but
maintained that it was nevertheless, in all circumstances, an essential
ingredient. In Fayol’s view the move away from individual bargaining
toward collective bargaining merely adjusted the rule governing
discipline.
Managers need to enforce rules to achieve company goals.

21. 13) Initiative :
This was the power to conceive a plan and ensure it
success. It was central to ensuring high motivation and job
satisfaction, being one of the most powerful stimulants to
human Endeavour. Broadly speaking, claimed fayol, the
maximum opportunity to exercise initiative should be
extended to all employees through delegated authority.

22. Fayol’s Principles of Management
14) Esprit de Corp :
•This involved the building and maintaining of
harmony among the workforce.
•Fayol strongly attacked the use of management
style based on a belief in divide and rule.
•As he put it, ‘dividing enemy force to weaken them
is clear, but dividing one’s own team is a grave sin
against businesses.

23. Fayol’s Functions of Management
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24. There are five elements of management such as planning,
organization, command, coordination and control.

25. According to fayol, planning (attempting to assess the
future and making provision for it) was an ensential
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 period.

26. An ideal plan of action should combine UNITY(i.e an
overall master plan supported by specific plan for
each activity), CONTINUITY (i.e the guiding action
must be consistent as plans develop over the time)
FLEXIBILITY (i.e possess the ability to adjust to
unforeseen event) and finally, PRECISE (i.e be as
accurate as possible).

27. 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.

28. Its objective to get the optimum return from all
employees. Successful command depended on a
combination of personal quality and a knowledge of
the general principle of management

29. 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 bsiness
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
Aim at making unity, energy, initiative and loyalty
prevail among personnel.

30. 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.

31. 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.

32. UNITY At any one time
an organization should have
only one guiding
organizational goal
CONTINUITY Planning
is an ongoing process and
previous plans should be
modified to fit together in the
corporate framework
ACCURACY Managers
should collect and utilize all
available information to make
a plan as accurate as possible
FLEXIBILITY A
manager should not be stuck
with a static plan, but be able
to change and alter as
situations do.

33. •Common Criticism
•Tylor’s Argument
•Too Formal
•Vague
•Inconsistency

34. •Fayol was everything but a theorist, he had over 30 years
of experience leading a French mining company.
•Therefore one can’t really say that his ideas come out of
the bloom
•Fayol’s work was seen as a blueprint of good
management.

35. Queries