A Short Life Story of Henry Fayol (1841-1925) a French mining engineer, executive, author and director of mines who developed general theory of business administration that is often called Fayolism. He and his colleagues developed this theory independently of scientific management.

3. Who Was Henri Fayol

4. Fayol was born on 29 July 1841 in a suburb
of Istanbul, Turkey. His father (an engineer) was in
the military at the time and was appointed
superintendent of works to build Galata Bridge,
which bridged the Golden Horn. The family
returned to France in 1847. Henri Fayol was the
youngest of his class at the National School of
Mines at St. Étienne graduated from the mining
academy ("École Nationale Supérieure des Mines”
in Saint-Étienne) in 1860 at the age of 19.
BORN and EDUCATION

5. CAREER
• In 1860, Fayol was appointed as engineer at the
Commentry group of coal mining company named
"Commentry-Fourchambault-Company” as the mining
engineer, where he remained all his working life.

6. • During his time at the mine, he studied the causes of underground
fires, how to prevent them, how to fight them, how to reclaim mining
areas that had been burned, and developed a knowledge of the
structure of the basin.
• In 1888 he was promoted to managing director. During his time as
director, he made changes to improve the working situations in the
mines, such as allowing employees to work in teams, and changing the
division of labour.

7. • Eventually, the board decided to abandon its iron and
steel business and the coal mines due to bankruptcy. They
chose Henri Fayol to oversee this as the new managing
director.
• Upon receiving the position, Fayol presented the board
with a plan to restore the firm. The board accepted the
proposal. When he retired in 1918, the company was
financially strong and one of the largest industrial combines
in Europe.

8. Fayol left behind a staff of well-educated and skilled
people, “to whom he might safely leave the
management of the company”. Fayol remained on
the board of the Commentry-Fourchabault
Company until his death in 1925

9. Fayol’s career as singularly unidirectional,
but in fact Fayol pursued at least four
careers, “and in each of them he was pre-
eminent”

10.  Fayol achieved national distinction for his work
in mining engineering.
 As a business leader, rather than engineer,
Fayol applied a similar scientific approach to
the management problems he encountered.
 Fayol was also successful financially, as he
made a company on the verge of bankruptcy
economically sound.

11.  And, most important for the present argument,
Fayol took a keen interest in developing
management principles. He founded the Centre of
Administrative Studies, which held weekly
meetings attended by representatives of a variety
of professions. He made the Government pay
attention to management and in 1924 addressed
the International Federation of Universities at
Geneva on the importance of a management
doctrine as a means to promote peace

12. Fayolism
Fayol's work was one of the first comprehensive
statements of a general theory of management.
He proposed that there were
• Five primary functions of management and
• Fourteen principles of management.

13. Functions of
Management
Planning
Organising
Staffing
Directing
Controlling

14. PLANNING
 Planning consists of the activities involved in choosing courses of action
to achieve organizational objectives.
It is deciding in advance what to do, when to do, how to do and who will
do it, in order to achieve these objectives.
Both long- term and short- term plans are necessary to achieve goals.

15. ORGANISING
 Organizing involves the grouping of jobs into framework for coordination
and direction.
Formal organizations may be portrayed by use of anorganisation chart.
The matrix structure has evolved as a result of complex environments,
markets and technology.

16. STAFFING
 Staffing is planning, organizing, directing and controlling of procurement,
development, compensation, integration and maintenance of people for the
purpose of contributing to individual, organizational and socialgoals.

17. DIRECTING
The willing and effective cooperation of employees for the attainment of
organizational goals is possible through direction.
Tapping the maximum potentialities of the people is possible through and
command.

18. CONTROLLING
 The performance is to be verified in order to know whether the activitiesare
performed in conformity with the plans and objectives or not.
The purpose of control is to ensure the effective operation of anorganisation by
focusing on allresources- human, material, financeand machines.

21. The division of work is the course of tasks assigned to,
and completed by, a group of workers in order to increase efficiency. Division of
work, which is alsoknown as division of labour, is the breaking down of a job so as
to have anumber of different tasksthat make up the whole.
1. DIVISION OF WORK

22. Authority is the right to give orders and obtain obedience,
and responsibility is thecorollary of authority.
2. AUTHORITY AND RESPONSIBILITY

23. Employees must obey and respect the rules that govern the
organization. Good discipline is the result of effective
leadership.
3. DISCIPLINE

24. Every employee should receive orders from only
onesuperior or behalfof thesuperior.
4. UNITY OF COMMAND

25. Each group of organizational activities that have the
same objective should bedirected by one manager using
oneplanfor achievementof one commongoal.
5. UNITY OF DIRECTION

26. The interests of any one employee or group of
employees should not take precedence over the
interestsof theorganization as a whole.
6. SUBORDINATION OF
INDIVIDUAL’S INTEREST TO
GENERAL INTEREST

27. All Workers mustbe paid a fair wage for their services.
7. FAIR REMUNERATION

28. Centralization refers to the degree to which subordinates are
involved in decision making.
8. Centralization

29. The line of authority from top management to the
lowest ranks represents the scalar chain.
Communicationsshould followthis chain.
9. Scalarchain

30. This principle is concerned with systematic arrangement of men,
machine, material etc. There should be a specific place for every
employee in an organization
10. Order

31. High employee turnover is inefficient. Management should
provide orderly personnel planning and ensure that replacements
are available tofillvacancies.
11. Stability of tenureof personnel

32. Managers shouldbe kind andfair to their
subordinates.
12. Equity

33. Employees who are allowed to originate and carry outplans will
exert highlevels of effort.
13. Initiative

34. Promoting team spirit willbuildharmony and unity
withinthe organization.
14. Espritde corps

36. Henri Fayol’s Administrative Management is based on
six admin activities. They are-
1. Technical : Production and manufacture
2. Managerial : Planning, controlling, coordination
3. Commercial : Purchasing and selling
4. Financial : Use of capital
5. Accounting : Asset, Liabilities, cost, profits
6. Security : Protection of goods and Person
According to Fayol,
• Management was not personal talent; it is a
knowledge base skill.

37. Contribution of Henri Fayol
• Henri Fayol was concerned the principles of
organization and the function of management.
• Fayol laid the foundation of management as a
separate body of knowledge.
• He always insisted that if scientific forecasting
and proper methods are used in management than
company can get satisfactory results.

38. Which kind of management did
Fayol recommend?

39. • Fayol’s perspective was clearly that of the
organization. He concentrated on business
organizations and drew on his experience from the
mining and metallurgic industry.
• Fayol believed, however, that organizations share a
number of properties irrespective of whether they
belong to the private or public sectors, and
irrespective of their size.
• Fayol saw an organization as a social organism with
management as its nervous system

40. BOOKS

42. THANK YOU
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