Henri Fayol | Elements of Management by Henry Fayol

Henri Fayol was a French mining engineer and management theorist. He developed the theory of Scientific Management. He studied at the mining school "Ecole Nationale Superieure des Mines" in Saint-Etienne of France. He is well known as the father of modern management theory. Fayol started as an engineer at a mining company and he became its managing director in 1888.

Fayol's contributions were first published in book titled "Administration Industrielle et Generale", in 1916. He looked at the problems of managing an organisation from top management point of view. He has used the term 'administration' instead of 'management'. His contributions are generally termed as operational management or administrative management.

Fayol has divided the activities of an industrial organisation into six groups.

• Technical: Related to production.
• Commercial: Related to buying, selling and exchange.
• Financial: It is search for capital and its optimum use.
• Security: Protection of property and person.
• Accounting (Including statistics).
• Managerial: It includes planning, organisation, command, coordination, and control.

Fayol has identified the qualities required in a manager. According to him the qualities a manager has to possess are as under;

• Physical (health, vigour, and address)
• Mental (ability to understand and learn, judgement, mental vigour, and capability)
• Moral (energy, firmness, initiative, loyalty, tact, and dignity)
• Education (general acquaintance)
• Technical (peculiar to the function being performed)
• Experience (arising form the work).

Fayol listed and reviewed fourteen principles of management on the following aspects.

1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest to General Interest
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps

The principles enunciated are not aimed at being exhaustive but are the ones to which Fayol had recourse most often. He stresses the universality of such principles and their application not only to business but also for the success of all associations of individuals.

Fayol regarded the elements of management as the functions of management. He said that management should be viewed as a process consisting of 5 elements. They are

• Planning
• Organising
• Commanding
• Coordination
• Controlling

He has regarded planning as the most important managerial function. Creation of organisation structure and commanding function is necessary to execute plans. Coordination is necessary to make sure that every one is working together , and control looks whether everything is proceeding according to the plan.