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The father of Modern Management Thought

Henri Fayol born in Istanbul on 29July 1841. He was a French mining engineer and director of mines who developed a general theory of business administration. 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. He died in Paris on 19th November 1925.

Fayol's work was one of the first comprehensive statements of a general theory of management.He proposed Fayolism that there were five primary functions of management and 14 principles of management. Fayol was born in 1841 in a suburb of Istanbul. His father, was an engineer, was appointed as a superintendent of works to build the Galata Bridge, which bridged the Golden Horn. The family returned to France in 1847, where Fayol graduated from the mining academy "cole Nationale Suprieure des Mines" in Saint-tienne in 1860.

He started at the mining company "Compagnie de Commentry-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. Fayol became the managing director in 1888, when the mine company employed over 10,000 people, and held that position over 30 years until 1918. Based largely on his own management experience, he developed his concept of administration. In 1916 he published these experience in the book "Administration Industrielle et Gnrale", at about the same time as Frederick Winslow Taylor published his Principles of Scientific Management.

Administrative management theory. Principles of management Viewed management as profession that can be trained and developed. Emphasized the policy of top down approach. Offered universal management prescription

To

forecast and plan, To organize To command or direct To coordinate To develop output To control ,in the sense that a manager must receive feedback about a process in order to make necessary adjustments and must analyse the deviations)

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. Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised. 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. Unity of command. Every employee should receive orders from only one superior. Unity of direction. Each group of organisational activities that have the same objective should be directed by one manager using one plan.

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 organization as a whole. Remuneration. Workers must be paid a fair wage for their services. 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 to find the optimum degree of centralisation for each situation. 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.

Order. People and materials should be in the right place at the right time. Equity. Managers should be kind and fair to their subordinates. 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. Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort. Esprit de corps. Promoting team spirit will build harmony and unity within the organization

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