3. Biography
• Henri Fayol was born in 1841 in Istanbul.
• He became engineer at an age of 19 and
joined a mining company
• He became director of mining company in
1888 which had more than 1,000 workers.
• In 1916, he published "14 Principles of
Management" in the book "Administration
Industrielle et Générale."
• He is known as “Father of Modern
Management Theories”
4. Importance of Modern Management
Theory
• Fayol's "14 Principles of modern
Management” was one of the earliest
theories of management to be created.
• It incorporated proven principals,
elements, procedures and techniques
based on his practical experience.
• The theory falls under the Administrative
Management school of thought.
• .
5. 14 Principles of Modern Management
• Divison of Work
The work must be divided among
individuals or groups such that they
become specialized in particular task to
maximize the output.
6. • Authority
Henri Fayol described “Authority” as right
to give orders and extract obedience.
“Responsibility” involves being
accountable. Mangers should have
authority to give orders keeping in mind
whoever assumes authority assumes
responsibility.
7. • Discipline
Discipline must be upheld in any
organization to make it successful
because to make an organization
successful common effort of all employee
is required.
8. • Unity of Command
The employees must receive command
from only one manager. A employee
receiving command from many manager
lead to chaos and is answerable to none.
9. • Unity of Direction
The whole organization should be working
to achieve same objective and in same
way. People with the same task should be
working under the direction of one
manager, using one plan. This will ensure
that action is properly coordinated.
10. • Subordination of Individual Interests to
the General Interest
The interest of an individual (with
whatever Authority) must not be prioritized
more than that of organization which will
lead to frequent change in organization’s
aim and direction of work.
11. • Remuneration
Employee satisfaction depends on fair
remuneration for everyone. This includes
financial and non-financial compensation
i.e. cost of living, supply of qualified
personnel, condition of job must be
considered while determing salary of
employee.
12. • Centralization
Centralization refers to how close
employees are to the decision-making
process. Decentralization is increasing
role of subordinates. It is important to aim
for an appropriate balance.
13. • Scalar Chain
Every organization should have an
hierarchy and every employee must know
where they stand and what authority and
responsibility they posses.
14. • Order
Everything in organization must be placed
in proper manner to ensure every
employee knows what, when and where
they have to do in order to increase
efficiency of firm.
15. • Equity
All the employees at same level must be
treated equally and managers should be
maintaining both discipline as necessary
and acting with kindness where
appropriate.
16. • Stability of Tenure of Personnel
Employees who are specialized in their job
must be retained in order to avoid
recruitment cost and hiring new
employees lead to decrease in efficiency
as new recruitment is closely related to
high product rejection. This also provide
employees with confidence of job safety to
increase dedication to work.
17. • Initiative
Management should take steps to
encourage worker initiative, which is
defined as new or additional work activity
undertaken through self direction.
18. • ESPIRIT DE CORPS
Management should encourage harmony
and general good feelings among
employees.
19. Drawbacks
• The principals given by Fayol is too
general in today’s complex organization
• Theory is more management oriented. It
does not give much attention to the
problems of the workers.
• Theory does not deal with some of the
important aspects of management such as
motivation, communication and leading
20. Conclusion
Henri Fayol’s 14 principal of modern
management is one of the widely
accepted principal because these
principals are practical in nature and gives
output.
Notas del editor
Administrative management theory attempts to find a rational way to design an organization as a whole. The theory generally calls for a formalized administrative structure, a clear division of labor, and delegation of power and authority to administrators relevant to their areas of responsibilities
