Henri Fayol was a French mining engineer and director who developed one of the earliest comprehensive theories of management. After graduating from the National School of Mines in 1860, he spent his entire career at a mining company in France, eventually becoming managing director. He is credited with saving the company from bankruptcy. In his retirement, he established the Center of Administrative Studies and developed 14 principles of management, including division of work, authority, discipline, unity of command, and subordination of individual interests. He argued that the same skills are needed to manage different organizations and established management as a distinct field of study.

1. Henri Fayol
(1841 - 1925)
Hi I am….

2. Henri Fayol’s Background
 Graduated from the National School of
Mines in Saint Etrenne in 1860
 After graduation he went to work and spent
his entire career at Commentry-
Fourchamboult-Decazeville.
 In 1888 he became managing director,
when the mine company employed over
10,000 people

3. MAJOR ACHIVMENTS
 He is credited with saving the company
from bankruptcy
 During his career he lectured at Ecole
Superievre de la Guerre
 In his retirement he established the Center
of Administrative Studies

4. How do we manage an
Organization…?

6. Division Of Work
 Work should be divided among
individuals and groups to ensure that
effort and attention are focused on
special portions of the task.

7. Authority
 The right to issue commands, along
with which must go the balanced
responsibility for its function.

8. DISCIPLINE
 A successful organization requires the
common effort of workers. Penalties
should be applied judiciously to
encourage this common effort.

9. Unity Of Command
 Each worker should have only one
boss with no other conflicting lines of
command.

10. UNITY OF DIRECTION
 The entire organization should be
moving towards a common objective
in a common direction.

11. Subordination of individual
interest
 Management must see that the goals
of the firms are always paramount.

12. Remuneration
 Many variables, such as cost of living,
supply of qualified personnel, general
business conditions, and success of
the business, should be considered in
determining a worker’s rate of pay

13. CENTRALIZATION
 Fayol defined centralization as
lowering the importance of the
subordinate role

14. SCALAR CHAIN
 Scalar chain refers to the number of
levels in the hierarchy from the
ultimate authority to the lowest level in
the organization. It should not be over-
stretched and consist of too-many
levels

15. ORDER
 For the sake of efficiency and
coordination, all materials and people
related to a specific kind of work
should be treated as equally as
possible.

16. EQUITY
 In running a business a ‘combination
of kindliness and justice’ is needed.
Treating employees well is important
to achieve equity

17. STABILITY OF TENURE OF
PERSONNEL
 Retaining productive employees
should always be a high priority of
management

18. Initiative
 new or additional work activity
undertaken through self direction

19. Esprit de Corps
 Management should encourage
harmony and general good feelings
among employees.

20. Functions of these
management
 To forecast and plan
 To organize
 To command or direct
 To coordinate
 To control

21. Common criticisms of Henri Fayol
Management is not always universal:
Fayol was criticized because he only had
experience in a coal mine. Many have said just
because you can manage a coal mine does not
necessarily mean you can manage a hospital.
His writing is lessons learned in his career:
Everything that Fayol wrote about was something
from his career as the managing director of a
mining company. The criticism is that his
background was not all that diverse.

22. Fayol’s Big Contributions to
Management
 1) Universality of management: The
same skills are needed to manage a coal
mine that are needed to manage a
hospital, post office, university, etc..
 2) Management is a field in and of itself:
There were no schools of management
prior to Henri Fayol!!!

23. SINTO K K
MAHRM-2014