Henry Fayol (born 1841 in Istanbul; died 1925 in Paris) was a French management theorist.

Fayol was one of the most influential contributors to modern concepts o f management, having proposed that there are five primary functions of managemen t: (1) planning, (2) organizing, (3) commanding, (4) coordinating, and (5) contr olling (Fayol, 1949, 1987). Controlling is described in the sense that a manager must receive feedback on a process in order to make necessary adjustments. Fayo l's work has stood the test of time and has been shown to be relevant and approp riate to contemporary management. Many of today s management texts including Daft (2005) have reduced the five functions to four: (1) planning, (2) organizing, (3 ) leading, and (4) controlling. Daft's text is organized around Fayol's four fun ctions.Fayol believed management theories could be developed, then taught. His t heories were published in a monograph titled General and Industrial Management ( 1916). This is an extraordinary little book that offers the first theory of gene ral management and statement of management principles.Fayol suggested that it is important to have unity of command: a concept that suggests there should be onl y one supervisor for each person in an organization. Like Socrates, Fayol sugges ted that management is a universal human activity that applies equally well to t he family as it does to the corporation. the Father of Modern Operational Management Theory Fayol has been described as the father of modern operational management theory ( George, p. 146). Although his ideas have become a universal part of the modern m anagement concepts, some writers continue to associate him with Frederick Winslo w Taylor. Taylor's scientific management deals with the efficient organisation o f production in the context of a competitive enterprise that has to control its production costs. That was only one of the many areas that Fayol addressed. Perh aps the connection with Taylor is more one of time, than of perspective. Accordi ng to Claude George (1968), a primary difference between Fayol and Taylor was th at Taylor viewed management processes from the bottom up, while Fayol viewed it from the top down. George's comment may have originated from Fayol himself. In t he classic General and Industrial Management Fayol wrote that "Taylor's approach differs from the one we have outlined in that he examines the firm from the "bo ttom up." He starts with the most elemental units of activity -- the workers' ac tions -- then studies the effects of their actions on productivity, devises new methods for making them more efficient, and applies what he learns at lower leve ls to the hierarchy...(Fayol, 1987, p. 43)." He suggests that Taylor has staff a nalysts and advisors working with individuals at lower levels of the organizatio n to identify the ways to improve efficiency. According to Fayol, the approach r esults in a "negation of the principle of unity of command (p. 44)." Fayol criti cized Taylor s functional management in this way. the most marked outward character istics of functional management lies in the fact that each workman, instead of c oming in direct contact with the management at one point only, receives his dail y orders and help from eight different bosses (Fayol, 1949, p. 68.) Those eight, Fa yol said, were (1) route clerks, (2) instruction card men, (3) cost and time cle rks, (4) gang bosses, (5) speed bosses, (6) inspectors, (7) repair bosses, and t he ( shop disciplinarian (p. 68). This, he said, was an unworkable situation, an d that Taylor must have somehow reconciled the dichotomy in some way not describ ed in Taylor's works. Fayol graduated from the mining academy of St. Etienne (cole des Mines de Saint-ti enne) in 1860. The nineteen-year old engineer started at the mining company Comp agnie de Commentry-Fourchambeau-Decazeville, ultimately acting as its managing d irector from 1888 to 1918. Based largely on his own management experience, Fayol developed his concept of administration. The 14 principles of management were d iscussed in detail in his book published in 1917, Administration industrielle et gnrale. It was first published in English as General and Industrial Management in

1949 and is widely considered a foundational work in classical management theor y. In 1987 Irwin Gray edited and published a revised version of Fayol s classic th at was intended to free the reader from the difficulties of sifting through langu age and thought that are limited to the time and place of composition (Fayol, 19 87, p. ix). Fayol was a key figure in the turn-of-the-century Classical School of management theory. He saw a manager's job as: planning organizing commanding coordinating a ctivities controlling performance Notice that most of these activities are very task-oriented, rather than people-oriented. This is very like Taylor and Scienti fic Management. 14 Principals of Henry Fayol 1. Specialization of labor. Specializing encourages continuous improvement in sk ills and the development of improvements in methods. 2. Authority. The right to give orders and the power to exact obedience. 3. Discipline. No slacking, bending of rules. 4. Unity of command. Each employee has one and only one boss. 5. Unity of direction. A single mind generates a single plan and all play thei r part in that plan. 6. Subordination of Individual Interests. When at work, only work things shoul d be pursued or thought about. 7. Remuneration. Employees receive fair payment for services, not what the com pany can get away with. 8. Centralization. Consolidation of management functions. Decisions are made f rom the top. 9. Scalar Chain (line of authority). Formal chain of command running from top to bottom of the organization, like military 10. Order. All materials and personnel have a prescribed place, and they must remain there. 11. Equity. Equality of treatment (but not necessarily identical treatment) 12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for g ood workers. 13. Initiative. Thinking out a plan and do what it takes to make it happen. 14. Esprit de corps. Harmony, cohesion among personnel. Out of the 14, the most important elements are specialization, unity of command, scalar chain, and, coordination by managers (an amalgam of authority and unity of direction). Henry Fayol synthesised 14 principles for organisational design and effective ad ministration. It is worthwhile reflecting on these are comparing the conclusions to contemporary utterances by Peters, Kanter and Handy to name but three manage ment gurus. Fayol's 14 principles are: 1. Specialisation/division of labour A principle of work allocation and specialisation in order to...

Management Principles developed by Henri Fayol: DIVISION OF WORK: Work should be divided among individuals and groups to ens ure that effort and attention are focused on special portions of the task. Fayo l presented work specialization as the best way to use the human resources of th e organization. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exa

ct obedience. Responsibility involves being accountable, and is therefore natura lly associated with authority. Whoever assumes authority also assumes responsibi lity. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort. UNITY OF COMMAND: Workers should receive orders from only one manager. UNITY OF DIRECTION: The entire organization should be moving towards a commo n objective in a common direction. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interest s of one person should not take priority over the interests of the organization as a whole. REMUNERATION: Many variables, such as cost of living, supply of qualified pe rsonnel, general business conditions, and success of the business, should be con sidered in determining a worker s rate of pay. CENTRALIZATION: Fayol defined centralization as lowering the importance of t he subordinate role. Decentralization is increasing the importance. The degree t o which centralization or decentralization should be adopted depends on the spec ific organization in which the manager is working. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority sca le. Each manager, from the first line supervisor to the president, possess certa in amounts of authority. The President possesses the most authority; the first l ine supervisor the least. Lower level managers should always keep upper level ma nagers informed of their work activities. The existence of a scalar chain and ad herence to it are necessary if the organization is to be successful. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible. EQUITY: All employees should be treated as equally as possible. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should alwa ys be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers. INITIATIVE: Management should take steps to encourage worker initiative, whi ch is defined as new or additional work activity undertaken through self directi on. ESPIRIT DE CORPS: Management should encourage harmony and general good feeli ngs among employees

Dear All,

Please find below mentioned described details of those 14 priciples, which was d eveloped by Mr. Fayol. Henri Fayol was an industrialist of the early twentieth century. He developed fo urteen principles of management that are still taught today. The definition of m anagement is taken as "The process of coordinating and integrating work activiti es so that they are completed efficiently and effectively with and through other people." The principles are the universal truths of management that can be taug ht. Principles of Management Division of work. This principle is the same as Adam Smith's 'division of labour '. Specialisation increases output by making employees more efficient. 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 organisati on. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organisation's rules, and the judi cious 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 o bjective 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 inter ests of the organisation as a whole. Remuneration. Workers must be paid a fair wage for their services. Centralisation. Centralisation refers to the degree to which subordinates are in volved in decision making. Whether decision making is centralised (to management ) or decentralised (to subordinates) is a question of proper proportion. The tas k is to find the optimum degree of centralisation for each situation. Scalar chain. The esents the scalar llowing the chain to by all parties line of authority from top management to the lowest ranks repr chain. Communications should follow this chain. However, if fo creates delays, cross-communications can be allowed if agreed 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. Managem ent should provide orderly personnel planning and ensure that replacements are a vailable to fill vacancies. Initiative. Employees who are allowed to originate and carry out plans will exer t high levels of effort. Esprit de corps. Promoting team spirit will build harmony and unity within the o rganisation.

1. Division of work: Specialization allows the individual to build up experience , and to continously improve his skills. Thereby he can be more productive. 2. A uthority: The right to issue commands, along with which must go the balanced res ponsibility for its function.3. Discipline: Employees must obey, but this is two -sided: employees will only obey orders if management play their part by providi ng good leadership.4. Unity Of Command: Each worker should have only one boss wi th no other conflicting lines of command.5: Unity Of Direction: People engaged i n the same kind of activities must have the same objectives in a single plan. th is is essential to ensure unity and coordination in the enterprise. Unity of com mand does not exist without unity of direction but does not necessarily flows fr om it.6. Sub ordination Of Individual Interest: ( to the general interest). Mana gement must see that the goals of the firms are always paramount.7. Remuneration : Payment is an important motivator although by analyzing a number of possibilit ies, Fayol points out that there is no such thing as a perfect system.8. Central ization Or Decentralization: This is a matter of degree depending on the conditi on of the business and the quality of its personnel.9. Scalar Chain(line of Auth ority): A hierachy is necessary for unity of direction.but lateral communication is also fundamental, as long as superiors know that such communication is takin g place.Scalar chain refers to the number of levels in the hierachy from the ult imate authority to the lowest level in the organization.it should not be over-st retched and consist of too-many levels.10. Order: Both material order and social order are necessary.the former minimizes lost time and useless handling of mate rials.the latter is achieved through organization and selection.11. Equity: In r unning a business a " combination of kindliness and justice" is needed. Treating employees well is important to achieve equity.12. Stability of Tenure of Person nel: Employees work better if job security and career progress are assured to th em.An insecure tenure and a high rate of employee turnover will affect the organ ization adversely.13. Initiative: Allowing all personnel to show their initiativ e in some way is a source of strength for the organization. Even though it may w ell involve a sacrifice of "personnel vanity" on the part of many managers.14. E sprit De Corps: Management must foster the morale of its employees. He further s uggests that " real talent is needed to coordinate effort, encourage keenness, u se each person's abilities, and reward each one's merit without arousing possibl e jealousies and disturbing harmonious relation".Out of the 14, the most importa nt elements are specialization, unity of command, scalar chain, and, coordinatio n by managers (an amalgam of authority and unity of direction).