Henry Fayol was born in 1841 in France and was basically an engineer in a mining company. He became the Managing Director of the company later and under his leadership the company achieved lot off financial success. His works “General and Industrial Management” (1916) and “The Theory of Administration in the State” (1923) are considered to be major contributions in the field of public administration.
Henry Fayol is regarded as the father of administrative management approach. Later writers like Gullick and Urwick have been greatly influenced by Fayol. In English speaking countries it was believed that management was about conducting affairs of industrial enterprises while public casino bonus administration was the art of conducting governmental functions i.e. a distinction was drawn between the administrations of different areas. But Fayol was of the view that administrative theory was applied equally to all types of organizations. He was of the view that “administration is administration wherever it is”. Fayol laid down his theory of general management applicable to all kinds off administration and in all fields whether social, political or economic.
According to Fayol, all the functions which are carried out in an industrial enterprise can be grouped into following groups of activities:
- Technical Activities
- Commercial Activities
- Financial Activities
- Security Activities
- Accounting Activities
- Managerial Activities
As is illustrated above, Fayol describes management as a function i. e. a kind of activity. It comprises of planning, organising, command, co-ordination and control. He mentions that the managerial function can be performed at different hierarchical levels in an organisation but those at higher levels devote more time for this function as is show in the figure below. All the six activities mentioned above are closely inter-related. The managerial activities out of these are sort of universal activities since all the human endeavours need management in one form or the other.
Elements of Management according to Fayol
According to Fayol there are five elements of management activities. These are:
- Planning - It enables the separation of short term and long term priorities of the organization and helps in preparing a plan of action.
- Organization - It means building up the structure, material and human resource of the organization.
- Command - It enables the control of management over the personnel.
- Co-ordination - It means harmonizing all activities and efforts in the working of organization.
- Control – It ensures conformity with the plan of action framed by the management.
Fayol’s Principles of Management
Fayol enunciated fourteen principles of management. These are:
- Division of Work - It means dividing work to promote greater productivity and efficiency. It also ensures a better span of attention.
- Authority and Responsibility -Authority of a person is his ‘right to give orders and to exact obedience. Hence it acts as a resource to enable a person to carry out his responsibility. Authority should be commensurate with responsibility.
- Discipline – Discipline in an organization is essential in order to ensure obedience and respect for the agreements arrived at in the organization.
- Unity of Command - For any function, an employee should have only one boss.
- Unity of Direction - It means one head and one plan for each activity.
- Subordination of individual interest to general interest – The interest of an individual or group should not prevail over that of the organization.
- Remuneration of Personnel - Fair and adequate remuneration should be provided to the personnel working for the organization.
- Centralization - According to Fayol, the centralization of authority is necessary to ensure unity of command and unity of direction.
- Scalar Chain - It refers to the hierarchy existing in the organization. The line of authority from the top level to the lowest rungs should be clear and unambiguous.
- Order or Placement - Right person for right job should be selected to do the job properly.
- Equity - Equity ensuring justice and fairness should be there to ensure cordial employer- employee relations in the organization.
- Stability of tenure of personnel – The conditions in the organization should be such that the turnover of employees is minimum.
- Initiative - The management has the responsibility to encourage initiative in the organization. This acts as a great source for the organization and helps the employees to think out of box.
- Espirit de corps – It ensures team spirit and harmony in the organization and is a great source of strength for the organization.