Henri Fayol, a French engineer and director of mines, was little unknown

outside France until the late 40s when Constance Storrs published her
translation of Fayol's 1916 " Administration Industrielle et Generale ".

Fayol's career began as a mining engineer. He then moved into research

geology and in 1888 joined, Comambault as Director. Comambault was
in difficulty but Fayol turned the operation round. On retirement he
published his work - a comprehensive theory of administration -
described and classified administrative management roles and processes
then became recognised and referenced by others in the growing
discourse about management. He is frequently seen as a key, early
contributor to a classical or administrative management school of
thought (even though he himself would never have recognised such a
"school").

His theorising about administration was built on personal observation

and experience of what worked well in terms of organisation. His
aspiration for an "administrative science" sought a consistent set of
principles that all organizations must apply in order to run properly.

Division of work - specialisation provides the individual to build up experience,

continuous improvement in skills, and thereby be more productive. There is an efficient
result in the operational level when tasks are distributed to qualified and competent
workers, or when people do specializeThe specialization of the workforce according to
the skills a person , creating specific personal and professional development within the
labour force and therefore increasing productivity; leads to specialization which increases
the efficiency of labour. By separating a small part of work, the workers speed and
accuracy in its performance increases. This principle is applicable to both technical as
well as managerial work

Authority - the right to issue commands, along with which must go the balanced
responsibility for its function With formal authority, managers have the right to
command, and give orders to their subordinates The issue of commands followed by
responsibility for their consequences. Authority means the right of a superior to give
order to his subordinates; responsibility means obligation for performance. This principle
suggests that there must be parity between authority and responsibility.. They are co-
existent and go together, and are two sides of the same coin.
Discipline - which is two-sided, for employees only obey orders if management play
their part by providing good leadership. Members in any organization have to respect the
rules and agreements governing it. Respect and obedience to rules is embodied in the
conduct of good life and discipline. Discipline refers to obedience, proper conduct in
relation to others, respect of authority, etc. It is essential for the smooth functioning of all
organizations.

Unity of Command - each worker should have only one boss with no other conflicting
lines of command. Employees must receive instruction only from one person. Reporting
to more than one manager results to conflicts in instruction and confusion of authority.
This principle states that every subordinate should receive orders and be accountable to
one and only one superior. If an employee receives orders from more than one superior, it
is likely to create confusion and conflict.

Unity of Command also makes it easier to fix responsibility for mistakes The idea is that
an employee should receive instructions from one superior only. This generalisation still
holds - even where we are involved with team and matrix structures which involve
reporting to more than one boss - or being accountable to several clients. The basic
concern is that tensions and dilemmas arise where we report to two or more bosses. One
boss may want X, the other Y and the subordinate is caught between the devil and the
deep blue sea

Unity of direction - people engaged in the same kind of activities must have the same
objectives in a single plan
Operations within any organization having the same objective must be directed by only
one manager using one plan. In a department for example, there should not be two or
more supervisors, each having different policy to follow All those working in the same
line of activity must understand and pursue the same objectives. All related activities
should be put under one group, there should be one plan of action for them, and they
should be under the control of one manager.

It seeks to ensure unity of action, focusing of efforts and coordination of strength.

Subordination of individual interest to general interest - management must see that
the goals of the firms are always paramount.
The interest of the organization as a whole should take precedence over the interest of
individual employees The management must put aside personal considerations and put
company objectives first. Therefore the interests of goals of the organization must prevail
over the personal interests of individuals.

Remuneration - payment is an important motivator although by analysing a number of

possibilities, Fayol points out that there is no such thing as a perfect system
Compensation for work done should be fair to both employees and employers. Workers
must be paid sufficiently as this is a chief motivation of employees and therefore greatly
influences productivity. The quantum and methods of remuneration payable should be
fair, reasonable and rewarding of effort.

Centralisation or decentralisation - this is a matter of degree depending on the

condition of the business and the quality of its personnel Centralization- We have this
approach by decreasing the role of subordinates in decision making. Managers should
retain their final responsibility, while at the same time give their subordinates enough
authority to do their jobs properly The amount of power wielded with the central
management depends on company size. Centralization implies the concentration of
decision making authority at the top management. Sharing of authority with lower levels
is called decentralization. The organization should strive to achieve a proper balance.

Scalar chain (line of Authority) - a hierarchy is necessary for unity of direction but
lateral communication is also fundamental as long as superiors know that such
communication is taking place. The line of authority in any organization turns in the
order of rank from top management to the lowest level of the enterprise. Scalar Chain
refers to the chain of superiors ranging from top management to the lowest rank. The
principle suggests that there should be a clear line of authority from top to bottom linking
all managers at all levels. It is considered a chain of command. It involves a concept
called a "gang plank" using which a subordinate may contact a superior or his superior in
case of an emergency,defying the hierarchy of control.However the immediate superiors
must be informed about the matter

Order- both material order and social order are necessary. The
former minimises lost time and useless handling of materials. The
latter is achieved through organisation and selection. Either
material or human resources should be in the right place at the
right time. People should be in the jobs or positions they are
suited to. Social order ensures the fluid operation of a company
through authoritative procedure. Material order ensures safety
and efficiency in the workplace. The level of generalisation
becomes difficult with this principle. Basically an organisation
"should" provide an orderly place for each individual member -
who needs to see how their role fits into the organisation and be
confident, able to predict the organisations behaviour towards
them. Thus policies, rules, instructions and actions should be
understandable and understood. Orderliness implies steady
 evolutionary movement rather than wild, anxiety provoking,
unpredictable movement.
•

Equity - in running a business a 'combination of kindliness and justice' is needed in

treating employees if equity is to be achieved. Managers should be both friendly and fair
to their subordinates. Employees must be treated kindly, and justice must be enacted to
ensure a just workplace. Managers should be fair and impartial when dealing with
employees Equity, fairness and a sense of justice "should"pervade the organisation - in
principle and practice

Stability of tenure - this is essential due to the time and expense involved in training
good management. A high employee turnover rate undermines the efficient functioning
of an organization. The period of service should not be too short and employees should
not be moved from positions frequently. An employee cannot render useful service if he
is removed before he becomes accustomed to the work assigned to him. Time is needed
for the employee to adapt to his/her work and perform it effectively. Stability of tenure
promotes loyalty to the organisation, its purposes and values

Initiative - allowing all personnel to show their initiative in some way is a source of
strength for the organisation even though it may well involve a sacrifice of 'personal
vanity' on the part of many managers- Subordinates should be given freedom to share
their ideas and carry out their plans. Using the initiative of employees can add strength
and new ideas to an organization. Initiative on the part of employees is a source of
strength for the organization because it provides new and better ideas. Employees are
likely to take greater interest in the functioning of the organization. At all levels of the
organisational structure, zeal, enthusiasm and energy are enabled by people having the
scope for personal initiative. (Note: Tom Peters recommendations in respect of employee
empowerment)

Esprit de corps - management must foster the morale of its employees. He further
suggests that, "real talent is needed to coordinate effort, encourage keenness, use each
person's abilities, and reward each one's merit without arousing possible jealousies and
disturbing harmonious relations." Harmony and pulling together among personnel.
Promotion team spirit will give the organization a sense of unity. To Fayol, even small
factors should help to develop the spirit. He suggested the use of verbal communication
instead of formal and written communication This refers to the need of managers to
ensure and develop morale in the workplace; individually and communally. Team spirit
helps develop an atmosphere of mutual trust and understanding.

These can be used to initiate and aid the processes of change, organization, decision
making, skill management and the overall view of the management function.

Fayol also divided the management function into five key roles:

• To organise
• To plan and forecast (Prevoyance)
• To command
• To control
• To coordinate