Unit 1

Contributions of Henri Fayol in

Management Field
 A French mining engineer developed 14
principles of management based on his
management experience.
He pioneer in the field of management
education.
He has been rightly called as father of
management process school
 This school is based on two assumptions; first,
although the objective of an organization may
differ; for example, business, government,
education, or religion, yet there is a core
management process that remains the same
for all institutions.
Second, the Administrative management
process can be reduced to a set of separate
functions and related principles.
 As one of the oldest and most popular
approaches to management thought, Henri
Fayols (29 July 184119 November 1925)
theory holds that administration of all
organizationswhether public or private, or
large or small requires the same rational
process or functions.
 Industrial Activities Identified by
Fayol
Fayol identifies the following six major activities
of any industrial or business organization:
Technical (production and manufacturing);
Commercial (buying, selling and exchanging);
Financial (search for an optimum use of capital);
Security (safeguarding property and people);
Accounting (including statistics); and
Managerial.
 Specifying the functions or elements
of management process
Planning.
Organizing.
Commanding.
Coordinating.
Controlling.
 Fayols Principles of Management

, Fayol identified fourteen universal principles of

management which are aimed at showing managers
how to carry out their functional duties. He himself
followed them.
Fayol was of the opinion that the application of these
principles should be flexible enough to match each
specific organizational situation.
A principles may be defined as fundamentals
statement of basic truth that provides a guide to
thought and action
Principles of management originate and grow as a
result of past experienceand accomplishments
 NEED OF PRINCIPLES OF
MANAGEMENT
To improve efficiency
To crystalline the nature of management
To improve research
To attain social goals
1 Division of work :There is an efficient result in
the operational level when tasks are distributed
to qualified and competent workers or when
people do specialize.

2 Authority :With formal authority managers

have the right to command and give orders to
their subordinates.
3 Discipline : 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
4 Unity 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
5 Unity of Direction : 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.
6.Subordination of the Individual Interest to :General
interest Individual interest must be subordinate to
general interest when there is conflict between the two
The agreement between the employers and the
employees should be fair and there should be constant
vigilance and supervision.
7 Renumeration: Compensation for work done
should be fair to both employees and employers.

8 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
9 Scalar chain :The line of authority in any
organization turns in the order of rank from top
management to the lowest level of the
enterprise
10 Order :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
11 Equity: Equity is combination of justice and
kindness Equity in treatment and behaviour is liked
by everyone and it brings loyalty in the
organisation.This brings cordial relation between
the management and labour.

12 Stability of Staff :Employees work better if job

security and career progress are assured to them A
high employee turnover rate will effect the
organization
13 Initiative : Managers should encourage their
employees for taking initiative with in limits of
authority and discipline Initiative increases the zeal
and energy on the part of human beings Fayols
describes initiative as one of the keenest
satisfactions for an intelligent man to experience.

14 Esprit de Corps :Teamwork is fundamentally

important to an organization Work teams and
extensive face to face verbal communication
encourages team work.
Fayol conclusion could be faulted in two major
points
1 He assumed that all organizations at the stage
of development should have some functional
division of work and
2 The number of employees was the main
determination of the general form oorganisation