Henri Fayol (1841-1925)

Administrative Theory of ManagementStudents – Ahmad Fatayer & Nathan Storrs

University of South Florida, EIN6319 Spring 2017

Agenda Introduction and Background Social Environment and His

Theory Theory and Contribution 5 Functions and 14 Principles of

Management Relevant Today? Comments by Others Fayol vs. Taylor Criticism Conclusion

Q & A Appendix

Publications References Timeline Fayol Quotes

Introduction and Background Born in Istanbul in 1841 of a French Family Graduated at age 19 as mining engineer in 1860 Worked at French mining and steel company, Comambault Promoted to Managing Director in 1888. Saved Company from

bankruptcy Stayed at same company until his retirement in 1918 Known as the Father of Modern General Management

(Fayolism) Published his first book in 1916 General and Industrial

Management His work - Administrative Theory in Management His work was not known in the US until 1949

Social Environment and His Theory Held Executive position as CEO over 30 years Developed his theory based on his experience and

observations During World War I , post revolutionized France Fayolism – theory of management that analyzed and

synthesized the role of management in organizations Believed that management theory deserved more focus:

“Young men, who begin practical work as engineers soon after leaving industrial schools, are in a particularly good position both for learning administration and for showing their ability in this direction . . .” (Wren)

Social Environment and His Theory Examined the organization from top-down Realized that the problem of personnel and its

management is the key to industrial success Theories on how management should deal with that

problem Management is a process of 5 functions and its 14

principles as a tool to carry out the process

5 Functions /Elements of Management 1) Planning – plan and put forth actions to be taken 2) Organizing – define authority and responsibility 3) Coordinating – lay out the timing and sequencing of activities 4) Commanding – put the plan into action, execute the plan 5) Controlling – monitor and correct tasks to meet project’s goals

and deliverables Known in today’s management as – planning, organizing, leading,

controlling and forecasting Fayol says-

“to manage is to forecast and plan, to organize, to command, to coordinate and to control. To foresee and plan means examining the future and drawing up the plan of action.”

14 Principles of Management1. Division of Work2. Authority and

Responsibility3. Discipline4. Unity of Command5. Unity of Direction6. Subordination of

Individual’s Interests to the General Interests

7. Remuneration8. Centralization9. Scalar chain10. Order 11. Equity12. Stability of Tenure of

Personnel13. Initiative14. Esprit de corps

14 Principles of Management 1) Division of work -

Known as Division of Labor Work should be divided among the individuals and groups

to focus on specific tasks Specialization promotes efficiency of the workforce and

increases productivity Fayol warned too much specialization might bore the

employee and long term development might be needed 2) Authority and Responsibility –

Authority is the right to give orders and obtain obedience Responsibility involves being accountable and whoever

assumes authority also assumes responsibility

14 Principles cont. 3) Discipline –

Employees must obey and respect the rules that govern the organization

Good discipline is the result of effective leadership Penalties should be applied as necessary

4) Unity of command – every employee should receive orders from only one

manager Otherwise, having multiple managers could lead to

confusion and conflicts 5) Unity of direction –

The entire organization should be moving towards a common objective or goal in a common direction

14 Principles cont. 6) Subordination of individual’s interests to the general

interests – The interests of any one employee or group of employees

should not take priority over the interests of the organization

7) Remuneration – All workers must be paid a fair wage for their services Variables such as cost of living, supply of qualified

personnel, and business profits should be considered Remuneration also can be non-monetary (recognition, time

off)

14 Principles cont. 8) Centralization / Decentralization –

Refers to the degree to which subordinates are involved in decision making

Employees should be given the greatest feasible freedom 9) Scalar chain –

The line of authority from top management to the lowest ranks represents the scalar chain.

Communications should follow this chain in norm situations But during emergencies and if a quick action is necessary,

this chain can be broken under “Gang Plank”

14 Principles cont. 10) Order –

there should be a specific place for every employee in an organization

11) Equity – managers should be kind and fair to their

subordinates. All employees should be treated equally 12) Stability of Tenure of Personnel –

retaining productive employees should always be a high priority of management

14 Principles cont.

13) Initiative – management should encourage workers to initiate

new ideas and new ways to complete tasks 14) Esprit de corps –

promoting team spirit will build harmony and unity within the organization

Relevant Today? These principles are flexible and adaptable to any

organization Universal use in private, public, education,

government..etc. Significant influence in modern management theory Helped managers - how to organize and interact with their

employees in productive way “Fayol’s principles in management are not only the guides

for early management, they are also presented in contemporary management theories to describe what today’s managers should do to be effective and efficient.” (Archer,1990;Fells,200;Hales,1986)

Relevant Today? Variety in org structures makes these considerations

even more relevant today Appropriate structures depend on organization’s

needs. Use the initiative and creativity of all people at all

levels of the organization for competitive advantage Unity of Command – Very relevant in today’s matrix

org structures Theme of finding the appropriate balance between

freedom and control, between creativity and efficiency

Comments by Others In the words of Urwick: “Isolation and analysis of

management as a separate function was his Fayol’s, unique and original addition to the body of management theory.”

The concepts and principles of Fayol have stood the test of time and form part of the modern science of management. “His contribution to the theory of management is probably the

most revolutionary and constructive that has ever been made.” (Theo Haimann)

Fayol was the first person to attempt to systematize management by accentuating the higher levels of control (Robbins, 1991:37).

Fayol vs. Frederick Taylor Frederick Winslow Taylor (1856-1915), another

theorist of the time, studied efficiency techniques in his 1911 book the Principles of Scientific Management

Taylor worked primarily on the operative level, from the bottom of the industrial hierarchy upwards

Fayol concentrated on the managing director and worked downwards

Taylor known as the father of scientific management where Fayol known as the father of administrative theory in management

Criticism

Fayol did not conduct research or provided empirical data rather his work was from his own experience and observations

Conclusion Remarkable Contribution to the Administrative Theory in Management His work is referred to as Fayolism Developed 5 functions and 14 principals of management Devoted his life teaching his administrative theory His work contributed to scientific management as Taylor did First theorist in modern general management Fayol’s words –

“The administrative apparatus is further a concept for very wide application. Not only is it useful to those who may have been managing or controlling an industrial undertaking but to my mind its absence is fundamental weakness in our public services, and I cannot imagine better service to our country than to ensure its application by the state”

Q & A

Appendix

Publications References Timeline Fayol Quotes

Publications “Positive administration in industry.” Article in La Technique moderne,

1918. “The theory of administration in the state.” Paper to the Second

International Congress of Administrative Science. 1923. Industrial and General Administration by Henri Fayol, translated by J.A.

Coubrough. London, Sir Isaac pitman & Sons, 1930. General and Industrial Management by Henri Fayol, translated form

the French version edition (Administration industrielle et Générale) by Constance Storrs, with foreword by L. Urwick. London, Pitman, 1949.

General and Industrial Management by Henri Fayol, revised by Irwin Gray. New York: IEEE, c1984, published under the sponsorship of the IEEE Engineering Management Society.

References Wikipedia, retrieved from the web, January 16, 2017, from https://en.wikipedia.org/wiki/Henri_Fayol General and Industrial Management by Henri Fayol, translated form the French version edition

(Administration industrielle et Générale) by Constance Storrs, with foreword by L. Urwick. London, Pitman, 1949. Page vi.

Wikipedia, retrieved from the web, January 16, 2017, from https://en.wikipedia.org/wiki/Fayolism Daft, Richard L (1983), Organization Theory and Design, The West series in management., West Pub.

Co. General and Industrial Management by Henri Fayol, revised by Irwin Gray. New York: IEEE, c1984

(Published under the sponsorship of the IEEE Engineering Management Society.” ISBN: 0879421789, pages 61-82.

Retrieved from the web, February 5 ,2017, form http://www.yourarticlelibrary.com/management/henry-fayols/contribution-of-henry-fayol-to-management-thought/74132/

Retrieved from the web, January 19,2017, from http://www.yourarticlelibrary.com/management/comparison-between-taylor-and-fayol-theory-of-management-similarities-and-dissimilarities/25625/

Retrieved from the web, February 5, 2017, form http://www.yourarticlelibrary.com/management/henry-fayols/contribution-of-henry-fayol-to-management-thought/74132/

Retrieved from the web, February 5, 2017, from https://collegelisted.com/blogs/sample-essays/henry-fayol-theory-still-stay-relavant-in-today-management

Wren, Bedeian and Breeze. The foundations of Henri Fayol’s administrative theory. Management Decision 40/9 [2002] 906-918. Accessed Feb. 7, 2017 from http://bus.lsu.edu/management/faculty/abedeian/articles/Fayol.pdf

Timeline

Source: https://www.timetoast.com/timelines/henry-fayol

Timeline

Timeline

Fayol Quotes

Source: http://www.quotescosmos.com/people/Henri-Fayol.html