Life, biography and contributions

of
HENRY FAYOL (1841 – 1925)
Henri Fayol was a French coal-mine engineer, director of mines and modern management
theoretician. His scientific management theory forms the base for business administration
and business management. In the academic world, this is also known as Fayolism. Henri
Fayol provided one of the most influential modern management concepts of his time. He is
founder of the 14 Principles of management and the five functions of management.

Henri Fayol was born in a suburb of Istanbul, Turkey in 1841. His father, an engineer, was
appointed building supervisor for the construction of a bridge over the Golden Horn (Galata
Bridge). The family returned to France in 1847. He studied mining engineering at the ‘École
Nationale Superieure des Mines’ academy in Saint-Étienne.

Henri Fayol started his career as an engineer at the mining company Compagnie de
Commentry Fourchambeau Decazeville in Commentry at the age of 19. In 1888, He became
the Managing Director of this mining company that employed over 1,000 people. He was
very successful in this position for over 30 years (until 1918). Around 1900 the mining
company was one of the largest producers of iron and steel in France. At that time this
industry was considered to be vital for France.

In addition to being the Managing Director of the Commentry-Fourchambault mining

company (1900), Henri Fayol was also one of the founders of the principles of modern
management. His research work was in competition with that of another great theoretician
namely Frederick Taylor.

In 1916, he published his work experience in the book Administration Industrielle et Generale
(General and Industrial Management).

A few years later, Frederick Taylor published his theory about Scientific Management and
Taylorism.

His most valuable contributions were summarized in the article"Industrial and General
Administration"originally published in French in 1916 (Fayol, 1949). There he raised the
principles of administration and the functions of it.

Some have questioned the validity and applicability of administrative methods as they were
raised by Fayol more than 100 years ago. However, they continue to be relevant and impact
the organizational processes of today's society (Brunsson, 2015). Its main contributions can
be summarized in five points.
School of chiefs

The work of Henri Fayol complemented in many respects the work done by his
contemporary Frederick Taylor, another of the fathers of the modern administration.

While Taylor focused on factory-level work, Fayol concentrated on coordinating

administrative functions. (Peaucelle & Guthrie, 2015).

The school of chiefs is the concept used to refer to this new perspective introduced by Fayol
in the field of administration.

According to this perspective, each administrator must devote part of his time to planning
the particular activity he is in charge of within the organization.

This contribution to management theory has proved to be appropriate to guide companies

toward achieving their objectives by coordinating the efforts of the different functions of
the organization.

It has also helped to define the desirable profiles of the people who administer these
functions (Brunsson, 2015).

Administration Functions

Another contribution made by Henri Fayol has been the definition of five basic points that
frame the duties or functions of the administration within an organization.

These basic principles continue to be included, partially or totally, in newer management

theories (Pryor & Taneja, 2010). They are:

• Planning: It says that the administration must always elaborate an action plan for the
future

• Organization: It maintains that the administration must develop both the human and
material part of the company.

• Control: Indicates that it should be ensured that everything done is in accordance

with the established plan

• Direction: It proposes that the personnel of the organization should always be guided
and stimulated.

• Coordination: Based on the integration and harmonization of all activities and efforts
within the organization.
Principles of administration

The most recognized contribution of Fayol has been the definition of 14 principles of
administration that have been the raw material for the development of management
theories of the twentieth century.

These principles are a guide to what should be taken into account for all administrative
processes and are the following:

• Division of Labour

• Authority and responsibility

• Discipline

• Control unit

• Steering unit

• Subordination

• Remuneration

• Centralization

• Hierarchy

• Order

• Equity

• Staff Stability

• Initiative

• Group spirit
Basic functions or activities of companies

A third group of definitions introduced by Fayol are widely known in the field of
administration and constitute one of their most important contributions to organizational
theory (Pryor & Taneja, 2010).

These definitions were intended to define the basic functions of enterprises and business life
within six main interrelated activities. These activities are:

• Technical Activities

• Commercial activities

• Financial Activities

• Security Activities

• Accounting activities

• Administrative activities

Formalization of administration and its teaching

Some authors acknowledge not only Fayal’s theoretical contributions that allowed the
development of current management methods, but also his efforts to formalize and teach
management (Parker & Rison, 2011).

Among other actions, Fayol established the Center for Administrative Studies (CAS) after the
publication of his book in 1916 seeking the promulgation and popularization of his theories.

Henri Fayol also advocated the teaching of administration “in all layers of the population “in
his own words, which helped to establish administration as a discipline.

Publications and books by Henri Fayol et al.

 1929. Allgemeine und industrielle Verwaltung. München und Berlin: Oldenbourg.

 1927. The importance of the administrative factor. Readings in management: Landmarks

and new frontiers.

 1921. L’incapacité industrielle de l’Etat: les PTT. Dunod.

 1918. De l’importance de la fonction administrative dans la gouvernement des affaires…:

Conférence faite le 24 novembre 1917. Ph. Renouard.
 1918. Notice sur les travaux scientifiques et techniques de M. Henri Fayol. Gauthier-Villars.

 1918. L administration positive dans l industrie. La Technique Moderne, 1, 74.

 1917. Administration industrielle et générale; prévoyance, organisation, commandement,

coordination, controle. Paris, H. Dunod et E. Pinat, OCLC 40224931

 1916. General and Industrial Management. Martino Fine Books.

 1887. Etudes sur le terrain houiller de Commentry: lithologie et stratigraphie (Vol. 1). impr.
de Théolier.

REFERENCES:

https://www.toolshero.com/toolsheroes/henri-fayol/