HENRI FAYOLHENRI FAYOLBy By

Ajesh Mukundan pAjesh Mukundan pajeshmp@gmail.comajeshmp@gmail.com

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IntroductionIntroduction Henri fayol was born in 1841 at Istanbul Turkey.Henri fayol was born in 1841 at Istanbul Turkey. He was a French management theorist.He was a French management theorist. Fayol was one of the most influential Fayol was one of the most influential

contributors to modern concepts of contributors to modern concepts of management.management.

There are five primary functions of There are five primary functions of management: management:

(1) planning(1) planning

(2) organizing(2) organizing

(3) commanding(3) commanding

(4) coordinating (4) coordinating

(5) controlling (5) controlling

Controlling is described in the sense that a Controlling is described in the sense that a manager must receive feedback on a process in manager must receive feedback on a process in order to make necessary adjustments.order to make necessary adjustments.

Many of today’s management texts including Many of today’s management texts including Daft (2005) have reduced the five functions to Daft (2005) have reduced the five functions to four: four:

(1) planning (1) planning (2) organizing(2) organizing (3) leading(3) leading (4) controlling.(4) controlling. Fayol suggested that it is important to have Fayol suggested that it is important to have

unity of command : a concept unity of command : a concept that suggests there should be only one that suggests there should be only one supervisor for each person in an organization supervisor for each person in an organization

Fayol has been described as the father of Fayol has been described as the father of modern operational management theorymodern operational management theory

Although his ideas have become a universal Although his ideas have become a universal part of the modern management concepts, part of the modern management concepts, some writers continue to associate him some writers continue to associate him with Frederick Winslow Taylor .with Frederick Winslow Taylor .

A primary difference between Fayol and A primary difference between Fayol and Taylor was that Taylor viewed management Taylor was that Taylor viewed management processes from the bottom up, while Fayol processes from the bottom up, while Fayol viewed it from the top down. viewed it from the top down.

In the classic In the classic General and Industrial General and Industrial ManagementManagement Fayol wrote that "Taylor's Fayol wrote that "Taylor's approach differs from the one we have approach differs from the one we have outlined in that he examines the firm from outlined in that he examines the firm from the "bottom up." the "bottom up."

According to Fayol, the approach results in a According to Fayol, the approach results in a ‘‘negation of the principle of unity of command “ ‘‘negation of the principle of unity of command “ Fayol criticized Taylor’s functional management Fayol criticized Taylor’s functional management in this way.’’ in this way.’’

The most marked outward characteristics of The most marked outward characteristics of functional management lies in the fact that each functional management lies in the fact that each workman, instead of coming in direct contact workman, instead of coming in direct contact with the management at one point only, receives with the management at one point only, receives his daily orders and help from eight different his daily orders and help from eight different bosses. Fayol said, those eight, were (1) route bosses. Fayol said, those eight, were (1) route clerks, (2) instruction card men, (3) cost and clerks, (2) instruction card men, (3) cost and time clerks, (4) gang bosses, (5) speed bosses, time clerks, (4) gang bosses, (5) speed bosses, (6) inspectors, (7) repair bosses, and the (8) (6) inspectors, (7) repair bosses, and the (8) shop disciplinarian . This was an unworkable shop disciplinarian . This was an unworkable situation, and that Taylor must have somehow situation, and that Taylor must have somehow reconciled.reconciled.

The nineteen-year old engineer started at the The nineteen-year old engineer started at the mining company ultimately acting as its managing mining company ultimately acting as its managing director director

Based largely on his own management Based largely on his own management experience, Fayol developed his concept of experience, Fayol developed his concept of administration. administration.

The 14 principles of management was first The 14 principles of management was first published in English as published in English as General and Industrial General and Industrial ManagementManagement in 1949 and is widely considered a in 1949 and is widely considered a foundational work in classical management foundational work in classical management theory. theory.

The 14 points were shown below:The 14 points were shown below: Specialization of labour : Specialization of labour : Specializing encourages Specializing encourages

continuous improvement in skills and the continuous improvement in skills and the development of improvements in methods. development of improvements in methods.

Authority :Authority : The right to give orders and the power The right to give orders and the power to exact obedience.to exact obedience.

Discipline :Discipline : No slacking, bending of rules. The No slacking, bending of rules. The workers should be obedient and respectful of the workers should be obedient and respectful of the organization. organization.

Unity of command :Unity of command : Each employee has one and Each employee has one and only one boss. only one boss.

Unity of direction :Unity of direction : A single mind generates a A single mind generates a single plan and all play their part in that plan. single plan and all play their part in that plan.

Subordination of Individual Interests :Subordination of Individual Interests : When at When at work, only work things should be pursued or work, only work things should be pursued or thought about. thought about.

Remuneration :Remuneration : Employees receive fair payment Employees receive fair payment for services, not what the company can get away for services, not what the company can get away with. with.

Centralization :Centralization : Consolidation of management Consolidation of management functions. Decisions are made from the top. functions. Decisions are made from the top.

Chain of Superiors (line of authority) :Chain of Superiors (line of authority) : Formal Formal chain of command running from top to bottom of chain of command running from top to bottom of the organization, like military the organization, like military

OrderOrder :: All materials and personnel have a All materials and personnel have a prescribed place, and they must remain prescribed place, and they must remain there. there.

Equity :Equity : Equality of treatment (but not Equality of treatment (but not necessarily identical treatment) necessarily identical treatment)

Personnel Tenure :Personnel Tenure : Limited turnover of Limited turnover of personnel. Lifetime employment for good personnel. Lifetime employment for good workers. workers.

Initiative :Initiative : Thinking out a plan and do what it Thinking out a plan and do what it takes to make it happen. takes to make it happen.

Esprit de corps Esprit de corps :: Harmony, cohesion among Harmony, cohesion among personnel. It's a great source of strength in personnel. It's a great source of strength in the organisation. Fayol stated that for the organisation. Fayol stated that for promoting promoting esprit de corpsesprit de corps, the principle of , the principle of unity of command should be observed and the unity of command should be observed and the dangers of divide and rule and the abuse of dangers of divide and rule and the abuse of written communication should be avoidedwritten communication should be avoided

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