Henri fayol

HENRI FAYOL

Prepared By:DIVYANSHU ROYDHIREN RANAWATBHAVNESH MATHURVAGEESH SHARMA

Henri Fayol

(1841 - 1925)

Henri Fayol’s Background• Born in July,1841 in Istanbul, Turkey

• His father, an engineer, was appointed superintendent of works to build the Galata Bridge, which bridged the Golden Horn.

• His family then returned to France in 1847.

• Graduated from the National School of Mines in Saint Etrenne in 1860

Cont…

•After graduation he went to work and spent his entire career at the mining company, “CommentryFourchamboult-Decazeville”.

•By 1890, the company was one of the largest producers of iron and steel in France and regarded as a vital industry.

•Fayol became managing director in 1888,when the mine company employed over 10,000 people, and held that position over 30 years until 1918.

•He is credited with saving the company from bankruptcy

•During his career he lectured at Ecole Superievre de la Guerre

•On his retirement he established the Centre of Administrative Studies

Cont…

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

• In 1916 he published these experience in the book "Administration Industrielle et Générale", and at about the same time as Frederick Winslow Taylor published his Principles of Scientific Management.

• He was a director of mines who developed a general theory of business administration.

• He was one of the most influential contributors to modern concepts of management.

BIG CONTRIBUTIONS OF HENRI FAYOL

•He was the First management thinker who provided the conceptual framework of the function of management in his book.

•Due to his contribution to management theory & principles he was rightly treated as the “FATHER OF MODERN MANAGEMENT THEORY”.

•He wanted the formal education of management in schools & colleges.

•Provided a link between strategies and organisational theories.

Subordination of Individual

Interests to the common interest

Division of Labor

Unity of Command

Line of Authority

Fayol's Principles of Management

Centralization

Unity of Direction

Initiative

Equity

Order

Discipline

Stability and tenure of employees

Esprit de Corp

Remuneration of Personnel

Authority & Responsibility

Fayol’s Principles of Management

1) Division of work:

• By separating a work into smaller tasks

• Development of proficiency

• Focus on planning workers in right role.


2) Scalar chain :

•Represents organization’s hierarchy

•allow the workers to be familiar where the stands


3) Centralization :

•Centralization refers the degree of which subordinates are involved in decision making process.

•Fayol preferred a less centralized management hierarchy

•He did not plan decision made away from the problem.


4) Unity of Direction :

•This involved one head and one plan for a group of activities having the same

objective. Whereas unity of command required that each employee should receive

orders from one superior only, unity of direction could be summed up in the

phrase one head, one plan.

• In fayol’s own words, it is the condition essential to unity of action,

coordination of strength and focusing of effort. A body with two heads is in social

as in the animal sphere a monster and has difficulty in surviving.

5) Equity :

Every worker should be seen with one Eye.

There should be equal justice and impartiality and generosity.

By this workers will perform their job with full interest, devotion and full ability.

6) Subordination of Individual Interests to the common interest :

Fayol drew attention to the fact that one of the greatest

problems of management was to reconcile the general interest with that of the individual and group interests.

As he put it, ignorance, ambition, selfishness, laziness, weakness and all human passions tend to cause the general interest to be lost sight of in favor of individual interest and a perpetual struggle has to be waged against them.

7) Authority & Responsibility :

This was ‘the right to give orders and the power to exact obedience’. Fayol drew a distinction between official authority ( which derived from a manager’s appointed position in an organization) and personal authority (which stemmed from such attributes as intelligence, experience, integrity and leadership ability). His claimed that in a first class manager, personal authority is the indispensable component of official authority.

Fayol argued, authority was always allied to responsibility and the proper exercise of both required the ability to make judgments and if necessary, impose sanctions.

Fayol thought that authority should derive from expertise, leadership skill, knowledge, etc., and lead to a sincere commitment from subordinates

8) Remuneration of Personnel :

Fayol considered the factor that determine levels of pay but are independent

of the employer’s will such as the cost of living, availability of labour, the

business environment and the economic situation. He also examined the

various modes of compensation available such as time rates, job rates, piece

rates, bonuses, profit-sharing, payment in kind and various non-financial

incentive. He concluded that whether wages are made up of money only or

whether they include various additions such as heating,, light, housing, food, is

of little consequence provided that the employee be satisfied.

9) Stability and tenure of employees :

This dealt with issues relating to personnel planning, management development and labor turnover. Fayol called for suitable induction period to enable employees and particularly managers, to acclimatize themselves to new work and situations. As he observed, insecurity of tenure is especially to be feared in large concern in order to be in a position to decide on a plan of action, to gain confident in one self and inspire it in others.

10) Unity of Command :

• This was the nation that an employee should receive orders

from one superior only. According to Fayol, dual command was

bound to generate tension, confusion and conflict.

• He noted the tendency to divide command between individuals

and also to blur the lines of demarcation between departments.

• The outcome, he claimed, was a dilution of responsibility and

the erosion of clear lines of communication. A higher manager

might sometimes give orders directly to workers further down

the hierarchy, thereby bypassing middle management.

• 11) Order : • Fayol advocated the maintenance of the tidy material order with appropriate

and well kept storage facility, general cleanliness and the preparation of a diagram of plan of the premises showing the various sections and facilities. Similarly he insisted that ‘for social order to prevail the must… be an appointed place for every employee and every employee be in the appointed place’.

• It is applied to both material and men. The material should be kept in order in the place where it is necessary. The personnel are selected scientifically and assigned duties according to the required KSA’s.

Fayol’s Principles of Management 12) Discipline :

This was in essence obedience, application, energy, behavior and outward marks of respect observed in accordance with standing agreement between the firm and its employees. Fayol conceded that the discipline would take different forms in various organizations but maintained that it was nevertheless, in all circumstances, an essential ingredient. In Fayol’s view the move away from individual bargaining toward collective bargaining merely adjusted the rule governing discipline.

Managers need to enforce rules to achieve company goals.

13) Initiative :

This was the power to conceive a plan and ensure it success. It was central to ensuring high motivation and job satisfaction, being one of the most powerful stimulants to human Endeavour. Broadly speaking, claimed fayol, the maximum opportunity to exercise initiative should be extended to all employees through delegated authority.


14) Esprit de Corp : •This involved the building and maintaining of harmony among the workforce. •Fayol strongly attacked the use of management style based on a belief in divide and rule.

•As he put it, ‘dividing enemy force to weaken them is clear, but dividing one’s own team is a grave sin against businesses.

PLANNINGPLANNING

LEADINGLEADING

CONTROLLINGCONTROLLING ORGANIZINGORGANIZING

Fayol’s Functions of Management

COMMAND

There are five elements of management such as planning, organization, command, coordination and control.

According to fayol, planning (attempting to assess the future and making provision for it) was an ensential part of management. Central to the process was the development of a formal plan of action that he described as, ‘ a kind of future picture wherein proximate events are outlined with some distinctness, whilst remote events appear progressively less distinct, and it entails the running of the business as foreseen and provided against over a definite period.

An ideal plan of action should combine UNITY(i.e an overall master plan supported by specific plan for each activity), CONTINUITY (i.e the guiding action must be consistent as plans develop over the time) FLEXIBILITY (i.e possess the ability to adjust to unforeseen event) and finally, PRECISE (i.e be as accurate as possible).

The second element of management identified by fayol was organizing, by which he meant providing a business with everything useful to its functioning : raw material, tool, capital and personnel.

He paid particular attention to what he termed the composition of the boy corporate (the organizational structure) claiming that the form taken by the organization would depend almost entirely on the number of people employed.

As organizations grew and become more complex the number of employees would generate the need more than layers of supervision.

Its objective to get the optimum return from all employees. Successful command depended on a combination of personal quality and a knowledge of the general principle of management

In fayol’s view a manager who has command should :Have a thorough knowledge of personnel.Eliminate the incompetentBe well versed in the agreement binding the bsiness and

employees.Set a good exampleConduct periodic audits of the organization and use

summarize charts to further this.Bring together chief assistants by means of conferences, at

which unity of direction and focusing of effort are provided for.

Not become engrossed in detailAim at making unity, energy, initiative and loyalty prevail

among personnel.

It aimed at securing the optimum harmonization of all the activities of an organization in such a way as to facilitate its working, and its success’.

He was concerned here with maintaining the balance between the various activities of the organization thereby ensuring, for the example, that expenditure was proportionate to income; equipment procurement to production needs and stocks to consumption.

The object of control in this context was to point up

weaknesses and errors so that they might be rectified

and prevented from reoccurring . As fayol put it,

control operates on the everything, things, people,

actions. Control stimulated the process of feedback

whereby the organization adapted to changing

circumstance and constantly renewed itself.

UNITY At any one time an organization should have only one guiding organizational goal

CONTINUITY Planning is an ongoing process and previous plans should be modified to fit together in the corporate framework

ACCURACY Managers should collect and utilize all available information to make a plan as accurate as possible

FLEXIBILITY A manager should not be stuck with a static plan, but be able to change and alter as situations do.

•Common Criticism

•Tylor’s Argument

•Too Formal

•Vague

•Inconsistency

•Fayol was everything but a theorist, he had over 30 years of experience leading a French mining company.

•Therefore one can’t really say that his ideas come out of the bloom

•Fayol’s work was seen as a blueprint of good management.

Queries

Henri fayol

Presentations & Public Speaking

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