 History of Henry Fayol

 Concept of Principal of Management

 Key roles in management
 Fayol’s Principal
Henry Fayol is claimed to be the real father of
modern management. He was a French man
born in 1841 and was working as an engineer
with a mining industry. He improved the
condition of the company from virtual
bankruptcy to high success . From his practical
experience ,he developed some techniques. He
brought out some 14 basic management
principals , which he felt , could be used in all
management situation , irrespective of the
organizational framework.
We all know that management is an art of
getting things done , by others. No one excels
in this art like our mothers , which is why they
are the best managers around!. On a more
serious note, it has often been debated whether
the study of management is an art or a science.
One of the earliest scientist of management
Henry Fayol has laid down 14 principles of
management.
 Division of work :It involves dividing the whole
work into relevant number of task .The work is
assigned to workers based on competence.
 Authority and Responsiblity : This principles
result in quick decision making and implement
good relation between subordinate and superior.
 Discipline : This principles says follow the basic
rules and regulation and follow the commitments
to the organizations.
 Unity of command : This principles says that
employee should get orders and instruction from
one superior.
 Unity of Direction: This principles says, each group of activities having the same
objective must have one plan and one head.

 Subordination of individual interest into general interest: This principle implies

that individual interest must be subordinate to general interest if there is is any
conflict between the two.

 Remuneration of employee: This principles implies that wages of employee

should be fair and provide maximum satisfaction to employees and employers.

 Centralization and Decentralization : Centralization means concentration of

authority at upward and Decentralization means distribution of authority at every
level .Adoption of this principles lead to determination of appropriate level
Centralization and Decentralization a proper use of authority.

 Scalar chain : It is a chain of superior from the highest level of authority to the
lowest level in the organization. Any communication going up or down should
follow this chain.

 Order : This principles implies that their should be a place for every thing and
everything should be on its place and their should be the right person at the right
place
Equity: This principle implies that employee should be given kind , just and fair
treatment. Equity also involves that al l organizational rules should be follow by
everyone irrespective of the position people hold.

Stability of personnel : This means reasonable security of jobs. Employee should be

kept at there position at least for a minimum fixed period.

Initiative : It refer to taking steps ahead of other in doing the work or introducing a
new method of doing work in a better way . This principle says that manager should
encourage employee for taking initiative.

Esprit-de-corps : This is the French term which means “ Union is Strength ” . This
states that management should promote teams spirit among employees .
 Henry Fayols principles segregated the functions
of management into five distinct roles, these roles
help to understand management better. They are :-
 Forecasting and Planning ,
 Organizing,
 Commanding, Leading,
 Coordinating ,
 Controlling.

The management ought to have people who can

execute these roles efficiently in order to run the
organization smoothly.