3. INDEX
Biography
Contribution to the field of management
Evaluation
Application of Fayol’s theory in organizations
Limitation of the theory
Conclusion
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4. "To manage is to forecast and to plan, to
organise, to command, to coordinate and to
control".
- Henri Fayol
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5. Biography
French mining engineer and a management theorist
Studied at mining school in Saint-Etienne
Started as an engineer at a mining company and became
Director in 1888.
Wrote a book in 1916 “Administration Industrielle et generale.”
First management thinker who provided the conceptual
framework of the functions of management in his book.
Due to his contribution to management theory and principles,
Henry Fayol is rightly treated as the Father of Modern
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6. Contribution to the field of Management
Administrative Management Theory
Principles of Management
Viewed management as a profession that can
be trained and developed
Emphasized the broad policy aspects of top
level managers ( top down approach)
Offered universal managerial prescriptions
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7. Administrative Management Theory
The functions of management according to
Fayol are:
Planning
Organising
Staffing
Commanding
Coordinating
Controlling
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8. Principles of Management
1. Division of work.
2. Authority and responsibility.
3. Discipline.
4. Unity of command.
5. Unity of direction.
6. Subordination of personal interest to
organizational interests.
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9. Contd…
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
13. Span of co-operation
14. Initiative
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10. Viewed management as a profession
Fayol’s theory of management was the first
complete theory of management as we
understand today.
It incorporated proven principles, elements,
procedures and techniques based on his
practical experience.
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11. Offered universal managerial prescriptions
He recommended the selection and training
of workers and managers.
He suggested certain qualities of manager’s
winch include physical, mental, moral,
educational technical and experience.
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12. Application
Emergence of knowledge society.
Development of socially concerned Humanistic
society.
Growing use of innovations and R & D.
Social accountability of business.
Satisfaction of human and social values in
man-machine system.
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13. Evaluation
Fayol’s contribution to management theory is
certainly remarkable.
He gave overall concepts of general
management and suggested the basic
functions of management.
In fact, the 14-principles are the outcome of
his long experience as a practicing manager.
He also advocated the use of organisation
charts.
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14. Limitations
Stressed a “one best way” way of organizing and
managing.
Theory based on intuition and observation rather than
on empirical investigation.
Today’s environment are more turbulent and
unpredictable.
Too general for today’s highly complex organization.
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15. Conclusion
The management principles suggested by him
are universally accepted by modern authorities
on management and are treated as valid even to
this day. This is because these principles are
practical in nature and also result-oriented. These
basic principles are useful for effective
management of business activities.
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