Henri Fayol (Istanbul, 29 July 1841Paris, 19 November 1925) was a French mining engineer and director of mines who

developed a general theory ofbusiness 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 born in 1841 in a suburb of Istanbul, Turkey, 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 "cole Nationale Suprieure des Mines" in Saint-tienne. When 19 years old he started as an engineer at a mining company "Compagnie de CommentryFourchambeau-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 Gnrale", at about the same 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 six primary functions of management and 14 principles of management [3]

Functions of management 1. forecasting 2. planning 3. organizing 4. commanding 5. coordinating 6. monitoring (French: contrler: 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 organisation. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organisation'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. 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 employees should not take precedence over the interests of the organisation 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 centralised (to management) or decentralised (to subordinates) is a question of proper proportion. The task is to find 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 should be 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 levels of effort. 14. Esprit de corps. Promoting team spirit will build harmony and unity within the organisation. Fayol's work has stood the test of time and has been shown to be relevant and appropriate to contemporary management. Many of todays management texts including Daft[4] have reduced the six functions to four: (1) planning; (2) organizing; (3) leading; and (4) controlling. Daft's text is organized around Fayol's four functions. [edit]See

also

Henri Fayol and the Administrative theory By Abhishek Jain Management science Project management

[edit]Publications Fayol published several articles and some books.

Fayol, Henri (1900) (in French), Bassins houillers de Commentry et de Decazeville, excursion sous la conduite de M. H. Fayol, Paris, OCLC 457845504

Fayol, Henri (1918) (in French), Notice sur les travaux scientifiques et techniques, Gauthier, OCLC 40327621

Fayol, Henri (1916) (in French), Administration industrielle et gnrale; prvoyance, organisation, commandement, coordination, controle, Paris, H. Dunod et E. Pinat, OCLC 40204128

Fayol, Henri (1921) (in French), L'Incapacit industrielle de l'tat: Les P. T. T, Paris Dunod, OCLC 162901547

1923. La rforme administrative des PTT, tir part, Dunod, 1923. de Calan, Pierre; Fayol, Henri (1963) (in French), Renaissance des liberts conomiques et sociales, Plon, OCLC 420135393

Articles, a selection:

Fayol H., Note sur le boisage aux houillres de Commentry (emploi du fer et des bois prpars) , Bulletin de la Socit de lIndustrie Minrale, 2e srie tome III, 1874, p. 569.

Fayol H., Guidage des puits de mine , Bulletin de la Socit de lIndustrie Minrale, 2e srie tome VI, 1877, p. 697.

Fayol H., Note sur le boisage, le dboisage et le remblayage dans les houillres de Commentry , Comptes rendus mensuels de la Socit de lIndustrie Minrale, juin 1878.

Fayol H., tudes sur l'altration et la combustion spontane de la houille expose l'air , Bulletin de la Socit de lIndustrie Minrale, congrs de Paris 1878, mdaille d'or, 2e srie tome VIII, 1878, p. 487-746.

Fayol H., tude sur le terrain houiller de Commentry , Comptes rendus des sances de lAcadmie des Sciences, 16 mai 1881.

Fayol H., Sur le terrain houiller de Commentry, Expriences faites pour expliquer la formation , Comptes rendus des sances de lAcadmie des Sciences, 30 mai 1881.

Fayol H., tude sur le terrain houiller de Commentry, sa formation attribue un charriage dans un lac profond , Comptes rendus des sances de lAcadmie des Sciences, 20 juin 1881.

Fayol H., Sur lorigine des troncs darbres fossiles perpendiculaires aux strates du terrain houiller , Comptes rendus des sances de lAcadmie des Sciences, 18 juillet 1881.

Fayol H., Note sur la suppression du poste de nuit dans le remblayage des grandes couches , Comptes rendus mensuels de la Socit de lIndustrie Minrale, octobre 1882.

Fayol H., Note sur les mouvements de terrain provoqus par l'exploitation des mines , Bulletin de la Socit de lIndustrie Minrale, 2e srie tome XIV, 1885, p. 805.

Fayol H., Launay L. de, Meunier S., Lithologie et stratigraphie, tude sur le terrain houiller de Commentry , Bulletin de la Socit de lIndustrie Minrale, 2 srie, tome XV, 1886, rdit en 1887 en ouvrage spar, tome I de trois portant le titres commun : tudes sur le terrain houiller de Commentry. Le volume II (1890) porte le sous titre Flore fossile par Bernard Renault et Ren Zeiller. Le volume III (1888) porte le sous titre Faune ichtyologique et entomologique, par Charles Brongniart, mile Sauvage.

Fayol H., Rsum de la thorie des deltas et histoire de la formation du bassin de Commentry , Bulletin de la Socit Gologique de France, aot 1888.

Fayol H., Sance solennelle de clture du congrs de la Socit de lIndustrie Minrale Paris , samedi 23 juin 1900, Bulletin de la Socit de lIndustrie Minrale, N 15, 1901, p. 759768.

Fayol H., Le cinquantenaire de la socit Commentry-Fourchambault et Decazeville , Comptes rendus mensuels des runions de la Socit de lIndustrie Minrale, congrs de Saint tienne, 16 juin 1908, p. 240-242.

Fayol H., Administration industrielle et gnrale , Bulletin de la Socit de lIndustrie Minrale, N 10, 1916, p. 5-164. Rdit 13 fois chez Dunod.

Fayol H., De limportance de la fonction administrative dans le gouvernement des affaires , confrence faite la Socit dencouragement pour lindustrie nationale (sance du 24 novembre 1917), Bulletin de la Socit de lIndustrie Minrale, N 12, 1917, p. 225-67.

Fayol H., Discussion sur lenseignement technique suprieur , extrait des procs verbaux de la Socit des Ingnieurs Civils de France, sance du 30 mars 1917, 16 pages, et Bulletin de la Socit de lIndustrie Minrale, N 12, 1917, p. 272-321.

Fayol H., Prface Administration industrielle et gnrale, lveil de lesprit public , tudes publies sous la direction de Henri Fayol, Bulletin de la Socit de lIndustrie Minrale, N 12, 1917, p. 145-152. dit en livre sous le titre Lveil de lesprit public chez Dunod et Pinat en 1918.

Fayol H., La rforme administrative des administrations publiques , Commerce et Industrie, revue pratique des mthodes modernes en affaires, janvier, 1918, p. 3-9.

Fayol H., Ladministration positive dans lindustrie , La Technique Moderne, fvrier, 1918, p. 73-75.

Fayol H., Lindustrialisation de ltat , confrence faite le 24 octobre 1918, Bulletin de la Socit de lIndustrie Minrale, N 15, 1919, p. 237-74.

Fayol H., Prface louvrage de Albert Schatz Lentreprise gouvernementale et son administration, Grasset, 1922.

Fayol H., Confrence sur lAdministration industrielle et gnrale, cole suprieure de guerre et Centre des Hautes tudes Militaires, 5 et 14 mai 1923.

Fayol H., La doctrine administrative dans ltat , confrence au 2 congrs international de Sciences Administratives, rdit en 1966 dans Revue Internationale des Sciences Administratives, Vol. XXXII, N2, 1923, p. 114-133.

Fayol H., Un entretien avec M. Fayol, la gestion des entreprises et loutillage administratif , sign L. M. du Crouzet, La Chronique Sociale de France, janvier 1925, p. 10-26.

Fayol H., Note de M. Fayol sur le Rapport prsent par M. Andr Citron au nom de la commission charge dtudier les questions concernant lorganisation et le fonctionnement du monopole des tabacs et des allumettes , Annexe C du rapport de Andr Citron, 1925, p. 163174.

[edit]References

1. 2.

^ a b c Morgen Witzel (2003). Fifty key figures in management. Routledge, 2003. ISBN 0415369770p.96. ^ Narayanan, Veekay K; Nath, Raghu (1993), Organization theory : a strategic approach, Irwin, p. 29, ISBN 9780256087789

3.

^ Fayol, Henri (1917) (in French), Administration industrielle et gnrale; prvoyance, organisation, commandement, coordination, controle, Paris, H. Dunod et E. Pinat, OCLC 40224931

4.

^ Daft, Richard L (1983), Organization theory and design, The West series in management., West Pub. Co., cop, ISBN 9780314696458

HENRI FAYOLS 14 Principles of Management

Management Principles developed by Henri Fayol:

1.

DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort. UNITY OF COMMAND: Workers should receive orders from only one manager. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a workers rate of pay. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.

2.

3.

4. 5. 6.

7.

8.

9.

10. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible. 11. EQUITY: All employees should be treated as equally as possible. 12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-

reject rates are usually associated with hiring new workers. 13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. 14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.

http://management.corporatemanagementsolution.com/fayol.htm http://faculty.babson.edu/krollag/org_site/encyclop/admin_theory.html http://en.wikipedia.org/wiki/Henri_Fayol