Henri Fayol

Istanbul, 29 July 1841Paris, 19 November

1925)
He was a French mining engineer and director of
mines
He developed a general theory of business
administration known as Fayolism.
Director of "Compagnie de Commentry-
Fourchambeau-Decazeville" in Commentry in 1888
Administrative Principle
by Henri Fayol

This theory dealt with the entire organization (both
workers and management) which functioned with
four basic principles. Which are:
Unity of command Each person receives order from
only one superior.
Division of work Specialization and efficiency were
incorporated in workers.
Unity of direction Related activities were grouped
under one manager.
Scalar Chain is the organizational structure which
starts from the CEOs to the labourers.

HENRI FAYOLS Administrative
Management
He described management as a universal set of
functions that included Planning, Organizing,
Commanding, Coordinating and Controlling.
He described the practice of management as
something distinct from accounting, finance,
production, distribution and other typical business
functions.
He argued that management was an activity common
to all endeavours in business, government and even in
the home.

HENRI FAYOLS Administrative
Management
Fayol separated General Principles of
Management from elements of
Management.

Elements of Management later on regarded as
functions of management. He described
management as a universal set of 6 functions :
1.Forecasting
2. Planning
3. Organizing
4. Commanding
5. Coordinating
6. Controlling
Many of todays management texts including
have reduced the six functions to 5:
(1) Planning
(2) Organizing
(3) Command
(4) Leading
(5) Controlling

He noted if firms have too much specialization then it
leads to poor quality and worker involvement.
Distinguished management activities from technical
activities.
Stressed the need for management education.
Found that there a lack of management theory.
Presented 14 Key principles of Mgmt as:

14 principle of Fayol are:
1. Division of work (allows for job specialization)
2. Authority & Responsibility (interrelated, Two types of authority
are official and personal authority. Official authority is derived
from managers position and personal authority is derived from
personal qualities such as intelligence, experience, moral worth
etc. Responsibility arises due to the assignment of work.)
3. Unity of command (Employee should have one commanding
authority and employee should be reporting to a single superior)
4. Discipline (Need of obedient, application, energy, behavior,
respectful employees)
5. Unity of direction (Different group of Employees with the same
objectives should work in one direction and should have a
communication and reporting to a single authority)
6. Subordination of individual interest to the general
interest(Setting an example of fairness and goodness is must,
which can discourage individual ambitiion, laziness, weakness)
7. Remuneration (Fair and satisfactory scale of remuneration)
8. Centralization (. Consolidation of management functions.
Decisions are made from top.)
9. Line of Authority (a clear chain from top to bottom of the
organization)
10. Order (A place for everything and everything should be in
place (material order), right man at the right place (social
order), demands precise knowledge of requirements and
resources and relation between them.)
11. Equity (combination of justice and kindness, brings loyalty,
needs good sense, experience and good nature)
12. Stability of tenure of personnel (giving enough time for
stability- the theory Z principle)
13. Initiative (thinking and execution of a plan. Increases zeal and
energy, but should be within the limits of authority and
discipline)
14. Esprit de corps (Union is strength and is an extension of unity
of command, setting right the erring employee with oral
directions and not with written explanation)


Notable publication

General and Industrial Management, 1916 (in
French); Sir Isaac Pitman,London, 1949 (in
English)