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  • 1. HENRI FAYOLPrepared By:Ahmad Norshafik Bin Mazi205437Muhamad Zawawi Bin Abdul Razak206343Muhammad Noorhafizi Bin Noor Azay207278
  • 2. Henri Fayol(1841 - 1925)
  • 3. Henri Fayols Background* Born in 1841 in a suburb of Istanbul, Ottoman Empire.* His father, an engineer, was appointed superintendent ofworks to build the Galata Bridge, which bridged the GoldenHorn.* His family then returned to France in 1847.* Graduated from the National School of Mines in SaintEtrenne in 1860
  • 4. Cont.* After graduation he went to work and spent his entire career atthe mining company, Commentry-Fourchamboult-Decazeville.* By 1890, the company was one of the largest producers of ironand steel in France and regarded as a vital industry.* Fayol became managing director in 1888,when the minecompany employed over 10,000 people, and held that positionover 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 AdministrativeStudies
  • 5. 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 Gnrale", and atabout the same time as Frederick WinslowTaylor published his Principles of Scientificmanagement.Management.
  • 6. Fayols Big Contributions to Management1) Universality of management:The same skills are needed to manage a coal minethat 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 toHenri Fayol!!!
  • 7. Subordination ofIndividual Interests tothe common interestDivision ofLaborUnity ofCommandLine ofAuthorityFayols Principlesof ManagementCentralizationUnity ofDirectionInitiativeEquityOrderDisciplineStability andtenure ofemployeesEsprit deCorpRemuneration ofPersonnelAuthority &Responsibility
  • 8. Fayols Principles of Management1) Division of LaborThe object of this was to produce moreand better work with the same effort.Specialization, claimed fayol, was part ofthe natural order, observable in theanimal and in human societies. Divisionof work should not be limited totechnical activities only but extendedacross all aspects of an organization.
  • 9. Fayols Principles of Management2) Scalar chainThis was the chain of superior ranging from theultimate authority to the lowest ranks. More familiarterms for the scalar chain would be hierarchy andchannels or lines of communication.Fayol combined these two concepts in his examinationof the scalar chain, establishing the need for theultimate authority but conceding that reference ofevery issue up to the organization to the highest pointis not always the swiftest. It is even the timedisastrously lengthy in large concerns, notably ingovernmental ones.
  • 10. Fayols Principles of Management3) CentralizationFayol preferred a less centralized management hierarchy. Hedidnt want decisions made too far away from the problem .In considering the extent to which any organization should havea centralized or decentralized structure. Consistent with this was his view that his principle should notbe forced but applied pragmatically depending on circumstances.As he put it, the question of centralization or decentralization, is asimple question of proportion, it is a matter of finding theoptimum degree for the particular concern.. Everything which goes to increase the importance of thesubordinates role is decentralization, everything which goes toreduce it is centralization.
  • 11. Fayols Principles of Management4) Unity of Direction This involved one head and one plan for a group of activitieshaving the same objective. Whereas unity of command required thateach employee should receive orders from one superior only, unityof direction could be summed up in the phrase one head, one plan. In fayols own words, it is the condition essential to unity ofaction, coordination of strength and focusing of effort. A body withtwo heads is in social as in the animal sphere a monster and hasdifficulty in surviving.
  • 12. 5) EquityEmployees should be treated fairly.For personnel to be encouraged to carry outtheir duties with all the devotion andloyalty of which they are capable, they mustbe treated with respect for their own senseof integrity, and equality results from thecombination of respect and justice
  • 13. 6) Subordination of Individual Intereststo the common interestFayol drew attention to the fact that one of thegreatest problems of management was to reconcilethe general interest with that of the individual andgroup interests.As he put it, ignorance, ambition, selfishness,laziness, weakness and all human passions tend tocause the general interest to be lost sight of in favor ofindividual interest and a perpetual struggle has to bewaged against them.
  • 14. 7) Authority & ResponsibilityThis was the right to give orders and the power to exactobedience. Foyal drew a distinction between officialauthority ( which derived from a managers appointedposition in an organization) and personal authority (whichstemmed from such attributes as intelligence, experience,integrity and leadership ability). His claimed that in a firstclass manager, personal authority is the indispensablecomponent of official authority.
  • 15. Fayol argued, authority was always allied toresponsibility and the proper exercise of bothrequired the ability to make judgments and ifnecessary, impose sanctions.Fayol thought that authority should derive fromexpertise, leadership skill, knowledge, etc., andlead to a sincere commitment from subordinates
  • 16. 8) Remuneration of PersonnelFayol considered the factor that determine levels of pay but areindependent of the employers will such as the cost of living,availability of labour, the business environment and the economicsituation. He also examined the various modes of compensationavailable such as time rates, job rates, piece rates, bonuses, profit-sharing, payment in kind and various non-financial incentive. Heconcluded that whether wages are made up of money only or whetherthey include various additions such as heating,, light, housing, food, isof little consequence provided that the employee be satisfied.
  • 17. 9) Stability and tenure of employeesThis dealt with issues relating to personnel planning,management development and labour turnover. Fayolcalled for suitable induction period to enable employeesand particularly managers, to acclimatize themselves tonew work and situations. As he observed, insecurity oftenure is especially to be feared in large concern in orderto be in a position to decide on a plan of action, to gainconfident in one self and inspire it in others.
  • 18. 10) Unity of Command This was the nation that an employee should receive orders from onesuperior only. According to Fayol, dual command was bound togenerate tension, confusion and conflict. He noted the tendency to divide command between individuals andalso to blur the lines of demarcation between departments. The outcome, he claimed, was a dilution of responsibility and theerosion of clear lines of communication. A higher manager mightsometimes give orders directly to workers further down the hierarchy,thereby bypassing middle management.
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