seminar henri fayol

HENRI FAYOL Prepared By: Ahmad Norshafik Bin Mazi 205437 Muhamad Zawawi Bin Abdul Razak 206343 Muhammad Noorhafizi Bin Noor Azay 207278

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Page 1: Seminar henri fayol


Prepared By:Ahmad Norshafik Bin Mazi

205437Muhamad Zawawi Bin Abdul Razak 206343

Muhammad Noorhafizi Bin Noor Azay 207278

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Henri Fayol

(1841 - 1925)

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Henri Fayol’s Background* Born in 1841 in a suburb of Istanbul, Ottoman Empire.

* His father, an engineer, was appointed superintendent of works to build the Galata Bridge, which bridged the Golden Horn.

* His family then returned to France in 1847.

* Graduated from the National School of Mines in Saint Etrenne in 1860

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* After graduation he went to work and spent his entire career at the mining company, “Commentry-Fourchamboult-Decazeville”.

* By 1890, the company was one of the largest producers of iron and steel in France and regarded as a vital industry.

* Fayol became managing director in 1888,when the mine company employed over 10,000 people, and held that position over 30 years until 1918.

* He is credited with saving the company from bankruptcy

* During his career he lectured at Ecole Superievre de la Guerre

* In his retirement he established the Center of Administrative Studies

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Cont…* 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 Générale", and at about the same time as Frederick Winslow Taylor published his Principles of Scientific management.Management.

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Fayol’s Big Contributions to Management

1) Universality of management:

The same skills are needed to manage a coal mine that are needed to manage a hospital, post office, university, etc..

2) Management is a field in and of itself:

There were no schools of management prior to Henri Fayol!!!

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Subordination of Individual

Interests to the common interest

Division of Labor

Unity of Command

Line of Authority

Fayol's Principles of Management


Unity of Direction





Stability and tenure of employees

Esprit de Corp

Remuneration of Personnel

Authority & Responsibility

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Fayol’s Principles of Management

1) Division of Labor

The object of this was ‘to produce more and better work with the same effort’. Specialization, claimed fayol, was part of the natural order, observable in the animal and in human societies. Division of work should not be limited to technical activities only but extended across all aspects of an organization.

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Fayol’s Principles of Management

2) Scalar chain

This was the chain of superior ranging from the ultimate authority to the lowest ranks. More familiar terms for the scalar chain would be hierarchy and channels or lines of communication.

Fayol combined these two concepts in his examination of the scalar chain, establishing the need for the ultimate authority but conceding that reference of every issue up to the organization to the highest point is not always the swiftest. It is even the time disastrously lengthy in large concerns, notably in governmental ones’.

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Fayol’s Principles of Management 3) Centralization Fayol preferred a less centralized management hierarchy. He didn’t want decisions made too far away from the problem .

In considering the extent to which any organization should have a centralized or decentralized structure.

Consistent with this was his view that his principle should not be forced but applied pragmatically depending on circumstances. As he put it, the question of centralization or decentralization, is a simple question of proportion, it is a matter of finding the optimum degree for the particular concern..

Everything which goes to increase the importance of the subordinate’s role is decentralization, everything which goes to reduce it is centralization.

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Fayol’s Principles of Management

4) Unity of Direction This involved one head and one plan for a group of activities

having the same objective. Whereas unity of command required that

each employee should receive orders from one superior only, unity

of direction could be summed up in the phrase one head, one plan.

In fayol’s own words, it is the condition essential to unity of

action, coordination of strength and focusing of effort. A body with

two heads is in social as in the animal sphere a monster and has

difficulty in surviving.

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5) Equity

Employees should be treated fairly. For personnel to be encouraged to carry out their duties with all the devotion and loyalty of which they are capable, they must be treated with respect for their own sense of integrity, and equality results from the combination of respect and justice

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6) Subordination of Individual Interests to the common interest Fayol drew attention to the fact that one of the

greatest problems of management was to reconcile the general interest with that of the individual and group interests.

As he put it, ignorance, ambition, selfishness, laziness, weakness and all human passions tend to cause the general interest to be lost sight of in favor of individual interest and a perpetual struggle has to be waged against them.

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7) Authority & Responsibility

This was ‘the right to give orders and the power to exact obedience’. Foyal drew a distinction between official authority ( which derived from a manager’s appointed position in an organization) and personal authority (which stemmed from such attributes as intelligence, experience, integrity and leadership ability). His claimed that in a first class manager, personal authority is the indispensable component of official authority.

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Fayol argued, authority was always allied to responsibility and the proper exercise of both required the ability to make judgments and if necessary, impose sanctions.

Fayol thought that authority should derive from expertise, leadership skill, knowledge, etc., and lead to a sincere commitment from subordinates

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8) Remuneration of Personnel

Fayol considered the factor that determine levels of pay but are

independent of the employer’s will such as the cost of living,

availability of labour, the business environment and the economic

situation. He also examined the various modes of compensation

available such as time rates, job rates, piece rates, bonuses, profit-

sharing, payment in kind and various non-financial incentive. He

concluded that whether wages are made up of money only or

whether they include various additions such as heating,, light,

housing, food, is of little consequence provided that the employee

be satisfied.

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9) Stability and tenure of employees

This dealt with issues relating to personnel planning,

management development and labour turnover. Fayol called for suitable induction period to enable employees and particularly managers, to acclimatize themselves to new work and situations. As he observed, insecurity of tenure is especially to be feared in large concern in order to be in a position to decide on a plan of action, to gain confident in one self and inspire it in others.

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10) Unity of Command This was the nation that an employee should receive orders

from one superior only. According to Fayol, dual command

was bound to generate tension, confusion and conflict.

He noted the tendency to divide command between

individuals and also to blur the lines of demarcation between


The outcome, he claimed, was a dilution of responsibility and

the erosion of clear lines of communication. A higher manager

might sometimes give orders directly to workers further down

the hierarchy, thereby bypassing middle management.

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11) Order Fayol advocated the maintenance of the tidy material

order with appropriate and well kept storage facility, general cleanliness and the preparation of a diagram of plan of the premises showing the various sections and facilities. Similarly he insisted that ‘for social order to prevail the must… be an appointed place for every employee and every employee be in the appointed place’.

It is applied to both material and men. The material should be kept in order in the place where it is necessary. The personnel are selected scientifically and assigned duties according to the required KSA’s.

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Fayol’s Principles of Management

12) Discipline

This was in essence obedience, application, energy, behavior and outward marks of respect observed in accordance with standing agreement between the firm and its employees. Fayol conceded that the discipline would take different forms in various organizations but maintained that it was nevertheless, in all circumstances, an essential ingredient. In Fayol’s view the move away from individual bargaining toward collective bargaining merely adjusted the rule governing discipline.

Managers need to enforce rules to achieve company goals.

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13) Initiative This was the power to conceive a plan

and ensure it success. It was central to ensuring high motivation and job satisfaction, being one of the most powerful stimulants to human Endeavour. Broadly speaking, claimed fayol, the maximum opportunity to exercise initiative should be extended to all employees through delegated authority.

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Fayol’s Principles of Management

14) Esprit de Corp •This involved the building and maintaining of harmony among the workforce. •Fayol strongly attacked the use of management style based on a belief in divide and rule. •As he put it, ‘dividing enemy force to weaken them is clear, but dividing one’s own team is a grave sin against businesses.

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Fayol’s Functions of Management


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There are five elements of management such as planning, organization, command, coordination and control.

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According to fayol, planning (attempting to assess the future and making provision for it) was an ensential part of management. Central to the process was the development of a formal plan of action that he described as, ‘ a kind of future picture wherein proximate events are outlined with some distinctness, whilst remote events appear progressively less distinct, and it entails the running of the business as foreseen and provided against over a definite period.

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An ideal plan of action should combine UNITY(i.e an overall master plan supported by specific plan for each activity), CONTINUITY (i.e the guiding action must be consistent as plans develop over the time) FLEXIBILITY (i.e possess the ability to adjust to unforeseen event) and finally, PRECISE (i.e be as accurate as possible).

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The second element of management identified by fayol was organizing, by which he meant providing a business with everything useful to its functioning : raw material, tool, capital and personnel.

He paid particular attention to what he termed the composition of the boy corporate (the organizational structure) claiming that the form taken by the organization would depend almost entirely on the number of people employed.

As organizations grew and become more complex the number of employees would generate the need more than layers of supervision.

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Its objective to get the optimum return from all employees. Successful command depended on a combination of personal quality and a knowledge of the general principle of management

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In fayol’s view a manager who has command should :Have a thorough knowledge of personnel.Eliminate the incompetentBe well versed in the agreement binding the bsiness and

employees.Set a good exampleConduct periodic audits of the organization and use

summarize charts to further this.Bring together chief assistants by means of conferences, at

which unity of direction and focusing of effort are provided for.

Not become engrossed in detailAim at making unity, energy, initiative and loyalty prevail

among personnel.

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It aimed at securing the optimum harmonization of all the activities of an organization in such a way as to facilitate its working, and its success’.

He was concerned here with maintaining the balance between the various activities of the organization thereby ensuring, for the example, that expenditure was proportionate to income; equipment procurement to production needs and stocks to consumption.

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The object of control in this context was to point

up weaknesses and errors so that they might be

rectified and prevented from reoccurring . As

fayol put it, control operates on the everything,

things, people, actions. Control stimulated the

process of feedback whereby the organization

adapted to changing circumstance and

constantly renewed itself.

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UNITY At any one time an organization should have only one guiding organizational goal

CONTINUITY Planning is an ongoing process and previous plans should be modified to fit together in the corporate framework

ACCURACY Managers should collect and utilize all available information to make a plan as accurate as possible

FLEXIBILITY A manager should not be stuck with a static plan, but be able to change and alter as situations do.

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Common criticisms of Henri Fayol

Management is not always universal:

Fayol was criticized because he only had experience in a coal mine. Many have said just because you can manage a coal mine does not necessarily mean you can manage a hospital.

His writing is lessons learned in his career:

Everything that Fayol wrote about was something from his career as the managing director of a mining company. The criticism is that his background was not all that diverse.

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Common Criticism’s of Henri Fayol

Taylor’s argument:

Taylor thought that specialization was the best form of management. He thought that each worker did eight different things and that for each thing there should be a supervisor. Fayol thought that each person should only have one supervisor. Further, Fayol liked having teams do work together and making their own decisions rather than having a specialist do every little thing.

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Common Criticisms of Fayol

Modern Criticism:

Fayol refused to purchase stock in his own company because he felt it compromised his position as the firm’s managing director. Today, managers are expected to have their pay tied to stock because it is seen as their job to increase shareholder wealth.

Fayol, also, wanted to board of director’s and shareholders to have limited power because he felt they were incompetent. This is criticized by those today who demand shareholder rights be increased.

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Too formal:

Fayol's theory is said to be very formal. However, in any

scientific and analytical study facts and observations have to be

presented in a formal manner.

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Some of the concepts have not been properly defined. For

example, the principle of division of work does not tell how the

task should be divided. Again, to say that an organization needs

coordination is merely to state the obvious. In the words of

Herbert Simon, administrative theory suffers from superficiality,

oversimplification and lack of realism.

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Principles of administrative theory were based on personal

experience and limited observations. There is too much

generalizations and lack empirical evidence. They have not been

verified under controlled scientific conditions. Some of them are

contradictory. For example, the unity of command principle is

incompatible with division of work. The theory does not provide

guidance as to which principle should be given precedence over

the other.

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Pro-management Bias:

Administrative theory does not pay adequate attention to workers.

Workers are treated as biological machines or inert instruments in

the work process.

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Historical value:  Fayol's theory was relevant when organizations operated in a

stable and predictable environment. It seems less appropriate in

the turbulent environment of today. For example, present-day

managers cannot depend entirely on formal authority and must

use persuasion to get the work done. Similarly, the theory views

organizations as power center's and do not recognize the role of a

democratic form of organization.

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Properly implemented, they are leading to organizational effectiveness and efficiency. 

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Fayol was everything but a theorist; he had over 30 years of experience leading a French mining company. Therefore one cannot really say that his ideas came out of the blue, especially in a time where only little research about management processes has already been published. And it was Fayol himself who said his list of management principles is non-exhaustive and should be adapted flexibly to a company’s individual situation.

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Relevance:That a lot of his work has found its way into contemporary management theory in order to describe what today’s managers “should do to be effective and efficient. Fayol’s work was seen as a blueprint of good management, the productivity and living standards in America were increased. Furthermore he notes that much of the Japanese work style, i.e. just in time production, quality circles or lower level decision making, reflect techniques that were firstly introduced by Fayol.

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Q & A

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