3. Henri Fayol (Istanbul, 29 July
1841–Paris, 19 November
1925) was a French mining
engineer and director of
mines who developed a
general theory of business
administration.[1] He and his
colleagues developed this
theory independently
of scientific management but
roughly contemporaneously.
He was one of the most
influential contributors to
modern concepts
of management
4. BIOGRAPHPY
Fayol was born in 1841 in a suburb of Istanbul, Turkey, where his
father, an engineer, was appointed superintendent of works to build
a bridge over the Golden Horn[1] (Galata Bridge). They returned to
France in 1847, where Fayol studied at the mining school "École
Nationale Supérieure des Mines" in Saint-Étienne.
When 19 years old he started as an engineer at a mining company
"Compagnie de Commentry-Fourchambeau-Decazeville"
in Commentry. By 1900 the company was one of the largest
producers of iron and steel in France and was regarded as a vital
industry.[1] Fayol became managing director in 1888, when the mine
company employed over 1,000 people, and held that position over
30 years until 1918.
In 1916 he published his experience in the book "Administration
Industrielle et Générale", at about the same time as Frederick
Winslow Taylor published his Principles of Scientific Management.
5. THEORY
Fayolism
Fayol's work was one of the first
comprehensive statements of a general
theory of management. He proposed
that there were six primary functions of
management and 14 principles of
management.
6. Functions
1. forecasting
2. planning
3. organizing
4. commanding
5.coordinating
6. monitoring (French:
contrôler: in the sense
that a manager must
receive feedback about a
process in order to make
necessary adjustments).
Functions of management
7. PRINCIPLES OF MANAGEMENT
1. Division of work.
This principle is the same as
Adam Smith's 'division of
labour'. Specialisation increases
output by making employees
more efficient.
2. Authority &
Responsibility.
Managers must be able to give
orders. Authority gives them
this right. Note that
responsibility arises wherever
authority is exercised.
8. PRINCIPLES OF MANAGEMENT
Discipline.
Employees must obey and
respect the rules that govern
the organisation. Good
discipline is the result of
effective leadership, a clear
understanding between
management and workers
regarding the organisation's
rules, and the judicious use of
penalties for infractions of the
rules.
Unity of command.
Every employee should
receive orders from only one
superior.
9. PRINCIPLES OF MANAGEMENT
Unity of direction.
Each group of organisational
activities that have the same
objective should be directed
by one manager using one
plan.
Subordination of individual
interests to the general
interest. The interests of any
one employee or group of
employees should not take
precedence over the interests
of the organisation as a whole.
10. PRINCIPLES OF MANAGEMENT
Remuneration.
Workers must be paid a fair
wage for their services.
Centralisation.
Centralisation refers to the
degree to which subordinates
are involved in decision
making. Whether decision
making is centralized (to
management) or
decentralized (to
subordinates) is a question of
proper proportion. The task is
to find the optimum degree of
centralisation for each
situation.
11. PRINCIPLES OF MANAGEMENT
Scalar chain.
The line of authority from top
management to the lowest
ranks represents the scalar
chain. Communications
should follow this chain.
However, if following the
chain creates delays, cross-
communications can be
allowed if agreed to by all
parties and superiors are kept
informed.
Order.
People and materials should
be in the right place at the
right time.
12. PRINCIPLES OF MANAGEMENT
Equity.
Managers should be kind
and fair to their
subordinates.
Stability of tenure of
personnel.
High employee turnover is
inefficient. Management
should provide orderly
personnel planning and
ensure that replacements
are available to fill
vacancies.
13. PRINCIPLES OF MANAGEMENT
Initiative.
Employees who are
allowed to originate and
carry out plans will exert
high levels of effort.
Esprit de corps.
Promoting team spirit
will build harmony and
unity within the
organisation.
14. Fayol's work has stood the test of time and
has been shown to be relevant and
appropriate to contemporary management.
Many of today’s management texts including
Daft[4] have reduced the six functions to four:
(1) planning; (2) organizing; (3) leading; and
(4) controlling. Daft's text is organized
around Fayol's four functions....