Wednesday, December 1, 2010

Operational Management/ Henri Fayol: The Father of modern operational theory.

Operational Management/ Henri Fayol: The Father of modern operational theory
Reviewed by adminon Apr 01 2013
Rating: 5
Perhaps the real father of modern management theory is the (French industrialist)
Henri Fayol. His acute observations on the Principles of general
management first appeared in 1916 in French, under the little
“administration industrielte in generale “.
This monograph, reprinted in French several times, was not translated
into English until 1929. No English translation was made or published in the US until
Industrial Activities:
Fayol found that industrial activates could be divided into six groups as shown in
1. Technical (Production)
2. Commercial (buying, Selling and exchanging).
3. Financial (Search for, and optimum use of capital).
4. Security (Protection of property and persons).
5. Accounting (including Statistics).
6. Managerial (Planning, organization, command, contribution and control).
Henri Fayol pointed out that these activities exist in
every size of business. Fayol
observed that first five were well known and he devoted most of his book to an
analysis of the sixth.
 Planning, Organization, Staffing, Leading, Control.
Fayol’s activities in industrial undertaking:
General Principles of Management:
Fayol listed Fourteen Principles based on experience. He noting that
Principles of management are flexible, not absolute and must be usable regard less of
changing and special conditions. Some kinds of Principles appeared to be
indispensable in every undertaking.
1. Division of Work :-
Fayol applies the principle to all kind of work, management as well as technical.
2. Authority and responsibility :
Henri Fayol finds authority and responsibility to be related with the latter arising
from the former. He sees authority as a combination of official factors, manager’s
position and personal factors, “Compounded of intelligence, experience, moral
worth, past services etc.
3. Discipline :
Fayol declares that discipline requires good superiors at all levels.
4. Unity of Command:
This means that employees should receive order from one superior only.
5. Unity Of Direction:
According to this principal, each group of activities with same objective must
have one head and one plan.
6. Subordination of individuals to general interest:
When the two are found to differ, management must reconcile them.
7. Remuneration:
Remuneration and method of payment should b fair and have maximum possible
satisfaction to employees and employer.
8. Centralization:
Without using the term centralization of authority ‘’Fayol refers authority
dispersed or concentrated.
9. Scalar Chain:
Fayol thinks of this as “Chain of Superior” from beigest to low ranks should be
short circuited.
10. Order:
Fayol classify this into “material” and “social” order. This is essential principle in
arrangement of things and people in an organization.
11. Equity:
Loyalty and devotion should be elected from personnel on biases of kindliness
and justice, when dealing with subordinate.
12. Stability of tenure:
In bad management, Fayol points out id dangers and costs.
13. Initiative:
Initiative is execution of a plan.
14. Esprit decrops:
This is the principle that in the union there is strength. This principle emphasis on
work, Unity of communication. In order to accomplishment of objective.
Element of Management:
Fayol said the element of management is its functions. Planning, Organizing,
Staffing, Leading, and controlling. He point out that the principles of management
can apply not only to business but also to practical, religious, military and other


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