Fayol

Henri Fayol (Istanbul, 29 July 1841–Paris, 19 November 1925) was a French mining engineer and director of mines who developed a general theory of business administration.[1] He and his colleagues developed this theory independently of scientific management but roughly contemporaneously. He was one of the most influential contributors to modern concepts of management.

Biography

Fayol was bornin 1841 in a suburb of Istanbul, Ottoman Empire, where his father, an engineer, was appointed superintendent of works to build a bridge over the Golden Horn[1] (Galata Bridge). They returned to France in 1847, where Fayol studied at the mining school "École Nationale Supérieure des Mines" in Saint-Étienne.
When 19 years old he started as an engineer at a mining company "Compagnie deCommentry-Fourchambeau-Decazeville" in Commentry. By 1900 the company was one of the largest producers of iron and steel in France and was regarded as a vital industry.[1] Fayol became managing director in 1888, when the mine company employed over 1,000 people, and held that position over 30 years until 1918.
In 1916 he published his experience in the book "Administration Industrielle et Générale", at about thesame time as Frederick Winslow Taylor published his Principles of Scientific Management

Theory


[edit] Fayolism

Fayol's work was one of the first comprehensive statements of a general theory of management.[2] He proposed that there were five primary functions of management and 14 principles of management[3]
Functions of management
1. to forecast and plan
2. to organize
3. to command4. to coordinate
5. to control (French: contrôler: in the sense that a manager must receive feedback about a process in order to make necessary adjustments).
Principles of Management
1. Division of work. This principle is the same as Adam Smith's 'division of labour'. Specialisation increases output by making employees more efficient.
2. Authority. Managers must be able to give orders.Authority gives them this right. Note that responsibility arises wherever authority is exercised.
3. Discipline. Employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organization's rules, and the judicious use of penalties for infractions of the rules.4. Unity of command. Every employee should receive orders from only one superior. like from top to bottom in an organization.
5. Unity of direction. Each group of organisational activities that have the same objective should be directed by one manager using one plan.
6. Subordination of individual interests to the general interest. The interests of any one employee or group of employeesshould not take precedence over the interests of the organization as a whole.
7. Remuneration. Workers must be paid a fair wage for their services.
8. Centralisation. Centralisation refers to the degree to which subordinates are involved in decision making. Whether decision making is centralized (to management) or decentralized (to subordinates) is a question of proper proportion. The task is tofind the optimum degree of centralisation for each situation.
9. Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However, if following the chain creates delays, cross-communications can be allowed if agreed to by all parties and superiors are kept informed.
10. Order. People and materials shouldbe in the right place at the right time.
11. Equity. Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel. High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.
13. Initiative. Employees who are allowed to originate and carry out plans will exert high...