Master Political Science for IAS: Yojna IAS - Your Path to Success!

 FACULTY NAME:
 KANHAIYA JHA
 BATCH NAME:
 PUBLIC ADMINISTRATION OPTIONAL
BATCH
 TOPIC NAME:
 HENRY FAYOL
 DATE OF PRESENTATION:
 07 / 03/ 2024

2
Administrative
Thought
Scientific Management and Scientific Management
movement
Classical Theory
Weber’s bureaucratic model post-Weberian
Developments;
Dynamic Administration (Mary Parker Follett)
Human Relations School (Elton Mayo and others)
Functions of the Executive (C.I. Barnard)
Simon’s decision -making theory
Participative Management (R. Likert, C. Argyris,
D.McGregor)
Unit Section Topic

• Henri Fayol was a French mining engineer,
mining executive, author and director of
mines who developed a general theory of
business administration that is often called
Fayolism.
• He and his colleagues developed this theory
independently of scientific management but
roughly contemporaneously.
• Fayol started his career as a Manager and
went on to occupy the highest position in
the organization.

• Fayol is considered to be the father of Modern Science of Management.
Fayol, as a theorist, has been contemporary to Taylor. But, Taylor’s ideas
got recognized much earlier to Fayol.
• Fayol being French wrote his ideas in French making them inaccessible to
the outside world. Fayol’s idea got due recognition only when it got
translated in English. What is Taylor to America is Fayol to Europe.
• Unlike Taylor, Fayol did not have the experience of whole of the
organization.
• Fayol started his career as a Manager and went on to occupy the highest
position in the organization. This difference in experience contributed
towards difference in orientation towards the Organizational Management.

• Henri Fayol’s Administration Industrielle et
Generale was first published in France in
1916,but it did not come to light in the English
peaking countries until its English translation
published in 1949 under the title General and
Industrial Management.
• His work is considered a classic and a
foundation in classical management theory.
The book offers a theory and principles of
management.

Classification all the industrial activities
1. Technical –
manufacturing &
production
2. Commercial -
purchasing &
selling
3. Financial –
capital & funds
4. Security-
safeguarding of
property.
5.Accounting-
stock-taking ;
balance sheet;
cost and statistics
6. Administrative
or managerial-
plan & policies;
POCCC

• production, manufacture, adaptation: These are sometimes more
conducive to the progress and goal attainment than other activities.
Technical
activities –
• buying, selling, and exchange: Knowledge of commercial activity is
just as important as knowledge of efficient production. Commercial
activity includes, together with acumen and decisions, a through
knowledge of the market and of the strengths of the competitors, long-
term foresight, the use of contracts and price regulation.
Commercial
activities –
• search for and optimum use of capital: Capital is a prerequisite for
personnel, plant, raw material, expansion of the plant or machinery,
reserves, etc. Proper financial management is necessary to obtain
capital, to make optimum use of available funds for the success of the
undertaking.
Financial
activities –

• protection of property and persons: It is necessary to safeguard the property and person’s theft,
fire and flood and all social disturbances including strikes.
Security
activities –
• stock-taking, balance sheets, costs, and statistics: An efficient accounting system, providing an
accurate idea of the organisation’s financial condition, is a powerful managerial instrument.
Accounting
activities –
• Fayol describes management as a function, a kind of activity. He is quite indifferent whether
those exercising this activity are described as ‘Managing Directors’, or ‘Supervisors’, or
‘Clerks’. He is connected with the function, not with the status of those who exercise it.
However, he is sensitive to the fact that those holding positions at higher level in the hierarchy
would devote a larger proportion of their time to this function than employees at lower levels.
Managerial
activities –

• Fayol says that irrespective of the nature of
organisation – big or small, simple or
complex, non-industrial or non-profit
making - the six activities are always
present though the importance a
significance of the first five activities may
vary.
• He laments that management was not being
taught and was not part of the curriculum.
This was not because its importance was not
recognised, but because of the absence of
theory.
• He felt that without theory no teaching is
possible.His “General and Industrial
Management” is an attempt to fill this gap.
Classification of Managerial activities

Managerial
activity
Planning
(Prevoyance):
Organising:
Command
Co-ordination
Control

 Planning
 Fayol used the French term Prevoyance which in French means to ‘foresee’, to ‘anticipate’ and
to ‘make plans’. The administration’s chief manifestation and most effective instrument, to
Fayol, is the plan of action.
 Planning enables the separation of the short-run events from the long-range considerations. It
endows forethought to the operations of an organisation. Fayol considers that experience is an
asset in drawing a realistic plan.
 To him, unity, continuity, flexibility and precision are the broad features of a good plan of
action.
• The quality of being united or integrated, forming a cohesive
whole or entity.
Unity:
• The uninterrupted and consistent flow or progression of something
over time or space.
Continuity:
• The ability to adapt, change, or bend easily without breaking or
losing integrity.
Flexibility:
• The level of accuracy, exactness, or meticulousness in achieving a
specific outcome or measurement.
Precision:

 Organisation
 To organise an industrial firm or a
government agency is to provide it
with everything required for its
functioning: raw materials, tools,
capitals, personnel, etc.
 Fayol classifies these activities
into two categories:
 the material organisation, and
 the human organisation.
 The latter includes
personnel, leadership
and organisation
structure.
 Every organisation has to perform
the following managerial
functions:
Ensure that the plan is
judiciously prepared and
strictly carried out;
See that the human and
material organisation is
consistent with the
objectives,
Resources and requirements of
the concern;
Set up a single, competent,
energetic guiding authority;
Harmonise activities and
coordinate efforts;
Formulate clear, distinct, precise
decisions;
Arrange for efficient selection
and appropriate placement of
the employees;
Define duties clearly;
Motivate employees to show
initiative and demonstrate
responsibility;
Reward employees in a fair
manner for services rendered;
Make use of sanctions
against irregular and
unethical conduct;
Provide for the maintenance of
discipline;
Ensure that individual
interests are subordinate to
the general interest;
Pay special attention to
unit of command;
Supervise both material and
human organisations;
Provide for appropriate
controls
Prevent excess of
regulations, red tape and
paper controls.

 Command
 "Command" refers to the authoritative direction or instruction given by someone in a position of authority, typically to
ensure compliance or to guide actions towards a specific objective or goal.
 The art of command, according to Fayol, rests on certain personal qualities and knowledge of the general principles of
management. Its degree of proficiency differs from unit to unit.
 Fayol claims that the manager who has to command should:
• Have a thorough knowledge of his personnel;
• Eliminate the incompetent;
• Be well-versed in the arrangement binding the business and its employees;
• Set a good example;
• Conduct periodic audit of the organisation and use summary charts;
• Bring together his chief assistants by means of conferences, at which unit of direction and focusing of effort are
provided for;
• Not become engrossed in detail; and
• Aim at making unity, energy, initiative and loyalty prevail among the personnel.

 Coordination
 It consists of working together and ‘harmonizing’ all activities and efforts so as to facilitate the
functioning of the organisation.
 Essentially, the objective of coordination is to ensure that one department’s efforts are coincident
with the efforts of other departments, and keeping all activities in perspective with regard to the
overall aims of the organisation.
 Control
 "Control" denotes the power or authority to influence or direct the behavior or course of events. It
involves regulating, managing, or restraining something to achieve a desired outcome or maintain
order.
 Its objective is to obtain conformity with the plan adopted, the instruction issued and principles
established.
 In the process, weakness and errors have to be rectified and their recurrence prevented.
 For control to be effective it must be done within a reasonable time and be followed up by sanctions.
He uses the term control in the wider French sense of watch, monitor, check, audit and obtains
feedback.

"Command"
• Typically involves giving orders or
instructions to others, often in a
hierarchical structure, to achieve a specific
objective or goal.
• It implies authority and direction.
"Control,"
• Refers to the ability to regulate or manage
processes, systems, or situations to achieve
desired outcomes.
• It may involve influence, monitoring, and
adjustment of variables to maintain stability
or achieve specific results.
• Control can be exercised over oneself,
others, or systems.

Fourteen principles of management
• Specialisation of labour produces more and better work with the same effort.
Division of work:
• Authority should be commensurate with responsibility. In other words, the occupant of each
position should be given enough authority to carry out all the responsibilities assigned to him.
Authority and responsibility:
• Obedience should be observed in accordance with the standing agreements between the firm and
its employees.
Discipline:
• For any action, an employee should have only one boss.
Unity of command:
• One head and one plan for each activity.
Unity of direction:
• The interest of one employee or group should not prevail over that of the total organisation.
Subordination of individual
interest to general interest:
• The remuneration paid for services rendered should be fair and afford satisfaction to both
personnel and the firm.
Remuneration of personnel:

• The degree of initiative left to managers varies depending upon top managers, subordinates and
business conditions.
Centralisation:
• The line of authority of superiors ranging from the ultimate authority to the lowest ranks.
Scalar chain (Hierarchy):
• Once the basic job structure has been devised and the personnel to fill the various slots have been
selected, each employee occupies that job wherein he or she can render the most effective service.
Order (Placement):
• For the personnel to be encouraged to fulfill their duties with devotion and loyalty there must be
equity based on kindness and justice in employer-employee relations.
Equity:
• Suitable conditions should be created to minimise turnover of employees.
Stability of tenure of
personnel:
• The ability to think afresh would act as a powerful motivator of human behaviour.
Initiative:
• Harmony, union among the personnel of an organisation is a source of great strength in the
organisation.
Esprit de corps:

Attributes of Manager
1.Physical :
• Health,
• appearance
• vitality
2.Mental :
• Ability to
understand
and learn,
• judgment,
• adaptability.
3.Moral :
• Firmness
and
willingness
to accept
responsibilit
y.
4.General
Education :
• General
acquaintanc
e
5.Special
Knowledge :
• Of the
functions
being
handled
• technical,
• financial
• managerial,
6.Experience :
• Knowledge
arising from
the work

 Scalar principle (or hierarchy)
o Fayol focused himself on the scalar principle (or
hierarchy) and three important conclusions from his
personal experience -
o The most important ability on the part of the worker is
technical ability (or qualification).
o As one goes up the hierarchy, the relative importance of
administrative qualification increases while that of
technical qualification is reached towards the middle point
in hierarchy.
o The most important qualification of administrator is
administrative ability and the higher the level of
authority the more dominant his ability.

 It merely refers to the need for level jumping in a
hierarchical organization. Although Fayol placed
emphasis on formal organization, he is alive to the
danger of conformity to hierarchy and formalism.
 He asserts that it is an error to depart needlessly
from the line of authority but it is even greater one
to keep it when detriment to the business-ensues.
The gangplank

 He illustrated the following figure to detail the problem -
o If 'F' follows the principles of proper channel of
communication, he has to send his massage or file to ‘N'
through E, D and so on covering all levels.
o It is however possible for F to use gangplank and avoid
going through A and all the other intervening layers as
intermediaries.
o Recourse to gangplank is only possible - when the
immediate superior (in the case E and M) authorises
such a relationship.
o Whenever a disagreement develops between F and N,
they must turn the matter to their superior.
 However, he feels that gangplank may be less relevant to
government agencies in which the lines of authority are less
clear than in private organisation.

 Fayol in his address to the Second International Congress of Administrative Science argued that
distinction between management and public administration is false and misleading. He notes:
o The meaning which I have given to the word administration and which has been generally
adopted broadens considerably the field of administrative science. It embraces not only the
public service but also enterprises of every size and description, of every form and every
purpose.
o All undertakings require planning, organisation, command, coordination and control, and
in order to function properly, all must observe the same general principles.
o We are no longer confronted with several administrative sciences, but with one, which can be
applied equally well to public and to private affairs.
 Fayol was also careful to state that his principles should not be considered as rigid rules. This is
clear when he observes:
o There is nothing …absolute in management affairs. Seldom do we have to apply the same principle
twice as in identical conditions; allowance must be made for different changing circumstances.
Administrative Theory: Universal but not rigid

 Fayol is a pioneer in suggesting the need for systematic training in administration. He
criticised civil engineering colleges in France for excluding administration from their syllabi.
 Fayol stresses on administrative training in the following words:
o Everyone needs some concepts of administration; in the home, in affairs of State, the need for
administrative ability is in proportion to the importance of the undertaking and for individual
people the need is everywhere greater in accordance
with the position occupied.
o Hence, there should be some generalized teaching of administration: elementary in the primary
schools, somewhat wider in the post primary schools, and quite advanced in higher social
educational establishments.
 Fayol suggests that training is a continuous process, starting from the school and covering
in-service training of the employees within an organisation. He considers every superior
officer in an organisation as a teacher to his immediate subordinates.
Need for Training of Administration

According to Drucker, Fayol has tried to impose a
mechanistic model of organisation on a living business. He
has also pointed out that his fourteen principles have a
lot of overlapping...
Criticism of Fayol
The founder of modern management"
Drucker has also pointed out that functionalism of Fayol
takes only a single dimension of management to
determine all aspects of organisation structure. Further, it is
also said that his ideas are based on functions undertaken in
a manufacturing company and thus his approach is
narrow. This may not be applicable to other organisations.

Herbert Simon in his term 'Proverb'. He
finds that every principle can have equally
plausible and acceptable contradictory
principles.

Fayol has laid stress on the concept of
unity of command but Henry H. Albers
points out that recent studies have
shown that it would be dysfunctional to
the organisation to strengthen hierarchy
and unity of command. It has also said
that the principle of unity of command, if
strictly followed will create for the chief
executive the problem of co-ordination

Bernard and Simon has pointed out that a managerial organisation
cannot be explained purely in terms of a set of principles about
formal organisation structures. They point out that practical
experience has shown that actual behaviour of organsiational
participants depart in many ways from the behavior that is planned.

Further, human relation theorist and behavioral theorists assert that
Fayol have ignored the human behavior complexities by not taking
appropriate stock of the psychological aspects and motivational factors
of individuals.

• E.F. Brech makes the following significant observation on Henri Fayol:
• The importance of Fayol's contribution lay in two features.
• The first was his systematic analysis of the process of management,
• the second, his firm advocacy of the principle that management can, and should
be thought.
• But these were revolutionary lines of thought in 1908, and still little accepted even
in 1925.

An Assessment
 Devoid of Max Weber’s sweep for social science generalisations or Frederick Taylor’s passion for
empiricism, Henri Fayol tries to generate a theory of management that has rudiments of both. His
predilection for macro-level theory building has a Weberian flavour.
 Indeed among the early writers on management Fayol has the unique distinction of attempting to build
a universal science of management applicable to ‘commerce, industry, politics, religion, war or
philanthropy’.
 Unlike other contemporary writers, Fayol wrote extensively on problems of public administration.
Fayol shares Taylor’s pragmatic approach in suggesting that the success of an enterprise depends upon
the presentation and application of simple methods in a logical and coherent manner.
 As Brech noted that Fayol made a systematic analysis of the process of management and
administration and advocated that management can and should be taught. Fayol tried to design a
rational system of organisation in which the fulfillment of the primary goal of the enterprise constitutes
the basic objective.

Master Political Science for IAS: Yojna IAS - Your Path to Success!

Master Political Science for IAS: Yojna IAS - Your Path to Success!

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