• Henri Fayol (1841-

1925) was a French

management theorist
whose theories
concerning scientific
organisation of labour
were widely influential
in the beginning of
twentieth century.
• He graduated from the
mining academy of St.
Etienne in 1860 in
mining engineering.
• The 19 year old engineer started at the mining
company ‘Compagnie de commentary-
Fourchambean-Decazeville, ultimately acting
as its managing director from 1888 to 1918.
• Fayol was the first to identify four functions of
management – Planning, Organising,
Directing and Controlling although is version
was a bit different – Plan, Organise,
Command, Coordinate and Control.
 According to Fayol, all activities of an industrial
undertaking could be divided into 6 groups,
• Technical- Those connected with production
• Commercial- Those related to buying , selling and
Exchange.
• Financial – Those concerned with securing of capital
and its use.
• Security- Those connected with protection of property
and persons.
• Accounting – Those connected with preparation of
financial statements like P&L Account and Balance
sheet, cost accounting & statistics etc
• Managerial- Those connected with planning ,
organising, commanding, co-ordinating and controlling
 He sub-divided the managerial functions or
activities into five groups. They are:
• Forecasting and Planning – This activity means
examining the future and preparing the plan of action.
• Organising – This function means securing the various
factors of production such as materials, men ,
machines etc
• Commanding – This activity means putting the factors
of production into operation.
• Co-ordinating – This function means binding together
the activities of different groups of personnel.
• Controlling – This activity means ensuring that
everything occurs with the plan adopted, instructions
issued and principles established.
• Based largely on his own experience, he
developed his concept of administration.
• The 14 principles of management
propounded by him were discussed in detail in
his book published in 1917, ‘Administration
industrielle et generale’.
• It was published in English as ‘General and
Industrial Management’ in 1949 and is widely
considered a foundational work in classical
management theory.
• For his contribution he is also known as the
‘Father of General Management’
 [Link] of work
• This principle implies that every
employee should be assigned only
one type of work so as to bring
about specialization in every
activity.
• Fayol applied the principle of
division of work or specialization to
both the managerial as well as
technical activities. He observed
that specialization belongs to the
natural order.
• Division of work tends to increase
efficiency. It helps to avoid waste
of time and effort caused by
changes from one work to another
 [Link] & Responsibility
• Authority is the right to
give order to the
subordinates.
• Responsibility means the
duty which the
subordinate is expected to
perform by virtue of his
position in the
organization.
•
 [Link]
• Discipline means getting
obedience to rules and
regulations of the
organization.
• According to Fayol, discipline
is obedience, application,
energy and outward mark of
respect. Discipline is
necessary for the smooth
running of the organization.
• Maintenance of discipline in
the organization depends
upon the quality of
leadership, clear and fair
arrangements and a judicious
application of sanctions.
 [Link] of Command
• A subordinate should receive orders from one superior
only.
• If he receives orders from more than one superior, he will
not be able to carry out orders in a proper manner.
• Dual command is the permanent source of conflict.
Therefore, in every organization, each subordinate should
have one superior whose command he has to obey.
 [Link] of Direction
• By unity of direction Fayol meant, “One unit and one
plan” for the group of activities having the same
objective.
• In other words, all the activities of a work unit or group
should be directed towards its common objective. This
will lead to better coordination and help in the
effective management of the enterprise.
[Link] of Individual Interest
into Group Interest
• The business enterprise is superior to its individual
employees.
• The interests of the business organization must prevail
upon the personal interests of the individuals.
• This principles call for reconciliation of goals of
individuals with those of the organization.
 [Link] of Personnel
• The employees must be
remunerated fully for
their services rendered
to the concern.
• The method of employee
remuneration should be
just and fair to
everybody.
• As far as possible, it
should accord
satisfaction to both the
employees and the
concern.
 8. Centralisation
• Fayol referred to
the centralization in
the context of
authority.
• It means
concentration of
authority at one
place or at one
level in the
organization.
 [Link] Chain
• Scalar chain is the chain of
superiors ranging from the
chief executive or ultimate
authority to the lowest
level in the organisation.
• The line of authority is the
route followed via every
link in the chain by all
communications which
starts from or goes to the
ultimate authority.
 [Link]
• Fayol said that there
should be a place for
everything and
everyone. At the same
time, everything and
everyone should be in
their own place.
• This means “right man
in the right place”.
 [Link]
• The employees should be
treated with kindness and
equity if devotion and loyalty
are expected of them.
• The managers in the
organization should be
experienced good natured so
as to deal with the
subordinates in a proper
manner.
• They should be impartial and
should not discriminate with
regard to caste, religion, etc.
[Link] of Tenure of Personnel
• Management should
remove the feeling
of insecurity of jobs
from the minds of
personnel.
• If the job of a person
is not secure, he will
be on lookout for job
elsewhere and his
work will not be
satisfactory.
 13. Initiative
• Fayol wanted that
subordinates should be
given an opportunity to
take some initiative in
making and executing the
plans.
• Employees get satisfaction
when they are allowed to
take initiative.
• Initiative on their part can
be a great source of
organisational strength.
 [Link] de corps
• Esprit de corps means
the spirit of loyalty and
devotion which unites
the members of the
group.
• This principle means “
Union is strength”
• So there must be team
work and proper
communication among
the members of the
team.
 The qualities of a successful manager
emphasised by fayol are the following:
• Physical – Health....etc
• Mental – Ability to understand, learn, Judge
• Moral – Energy , Firmness, willingness to accept
responsibility, loyalty and dignity.
• General Education
• Special Knowledge – Knowledge to a peculiar
function.
• Experience – Knowledge arising from the work
proper