HENRI FAYOLHENRI FAYOL(1841 – 1925)(1841 – 1925)

.… 14 General Principles…..… 14 General Principles….

Part I:Part I: Why Management TeachingWhy Management TeachingPart II:Part II: Principles & Element of Principles & Element of

Management ManagementPart III:Part III: Personal Observations Personal Observations

& Experience& ExperiencePart IV:Part IV: Lessons of WarLessons of War

……FAYOL’s FOURTEEN PRINCIPLES*FAYOL’s FOURTEEN PRINCIPLES**(Not Process But e.l.e.m.e.n.ts of *(Not Process But e.l.e.m.e.n.ts of

Management)Management)

1.Division of Labour1.Division of Labour2.Authority 2.Authority power to extract power to extract obedienceobedience3. Discipline 3. Discipline based on respect (fear based on respect (fear xxx!)xxx!)4. Unity of Command 4. Unity of Command only ONE superioronly ONE superior5.Unity of Direction 5.Unity of Direction Sound O.S., base Sound O.S., base

same objectivesame objective6. Sub-ordination of individual interest to 6. Sub-ordination of individual interest to general interestgeneral interest7. Remuneration 7. Remuneration Daily/wage, price-rate, Daily/wage, price-rate,

bonus, profit sharingbonus, profit sharing

8.8. CentralizationCentralization Matter of proportion Matter of proportion (Role of Sub-ordinate (Role of Sub-ordinate ↑ →↑ → Decentralization ) Decentralization )

9. Scalar Chain 9. Scalar Chain Top to lowest chain (short -Top to lowest chain (short - circuited ?!) circuited ?!)

10. Order 10. Order Everything in place!Everything in place!

11.Equity 11.Equity Kindliness & Justice for employee Kindliness & Justice for employee relations !relations !

12. Stability of Tenure of Personnel 12. Stability of Tenure of Personnel Personnel Personnel Planning ! Planning !

13. Initiative13. Initiative Zeal of energy Zeal of energy

14.14. ESPRIT de CorpsESPRIT de Corps harmony + Unity ! harmony + Unity ! Team SpiritTeam Spirit

““SixSix” Groups of Activities” Groups of Activities

1.1. TechnicalTechnical2.2. CommercialCommercial3.3. FinancialFinancial4.4. SecuritySecurity5.5. AccountingAccounting6.6. ManagerialManagerial

““SixSix””Qualities and Abilities of ManagerQualities and Abilities of Manager

Physical…Physical…health, vigour, addresshealth, vigour, address

Mental…Mental…understand, learn, judgmentunderstand, learn, judgment

Moral…Moral…initiative, dignity, firmnessinitiative, dignity, firmness

General Education…General Education…General General acquaintancesacquaintances

Special Knowledge…Special Knowledge…Peculiar to functionPeculiar to function

Experience… Experience… Recollection of lessonsRecollection of lessons

MANAGING MEANS LOOKING AHEAD!MANAGING MEANS LOOKING AHEAD!

Plan – Organize – Command – Co-ordinate – Control ! Plan – Organize – Command – Co-ordinate – Control !

..a/a…..a/a…FIVE FUNCTIONSFIVE FUNCTIONS…a/a..…a/a..

COUBROUGH InterpretationCOUBROUGH Interpretation

…Administration V ...Management Just 1 of these functions Smooth functioning of 6 !!

More time by Mgrs (? !) Conduct towards objectivesMore time by Mgrs (? !) Conduct towards objectives

STORRS InterpretationSTORRS Interpretation……Manage… V …Govern… Manage… V …Govern…

To govern is to 1 of above 6 functionsTo govern is to 1 of above 6 functions

Conduct towards objectives More time at high level Conduct towards objectives More time at high level

Note: Note: In FrenchIn French Govern Govern Big e.g. Chief of Ship, State Big e.g. Chief of Ship, State

……

Administrator Administrator SMALL mattersSMALL matters

Hence, Coughbrough’s TRANSLATION is better !Hence, Coughbrough’s TRANSLATION is better !

TRANSLATION ERROR A = M TRANSLATION ERROR A = M M.B.A. M.B.A. !!

PRINCIPLES f.l.e.x.i.b.l.e. PRINCIPLES f.l.e.x.i.b.l.e. ! ! !! ! !

:∞…:∞…issue of proportionissue of proportion… ∞:… ∞: