HENRY FAYOL (1841-1925)

Henry Fayol was a French industrialist. The observation of Henry Fayol on the principle
of Management was brought out in French language in 1916. Later, it was published in
English Language in 1949. The Principle of Management of Henry Fayol was known to
the world only after 1949 later the publication of his Management Thoughts in English.
Henry Fayol concentrated on top Management. It is known from his book ‘General and
Industrial Management’. Management plays a very important part in the government
undertakings; of all undertakings, large or small, industrial, commercial, political,
religious or any other. As such, in every concern, there is management function to be
performed. The management function and the organizational functions include planning,
organizing, staffing, directing and controlling. but organizational function include
purchase, sales, production and accounting.

PRINCIPLE OF MANAGEMENT
1. Division Of Work Or Specialization
Division of work makes a man specialist. The reason is that division of work helps
to specialize in an activity which increases the output with perfection. Besides it, it
avoids waste of time. According to Henry Fayol, division of work is applied to
both technical and managerial kind of work.
2. Authority And Responsibility
Management is getting things done by others. A superior gives direction to his
sub-ordinates to perform the job. Then the super-visor may exercise his authority.
The post he holds invests him with this authority. Authority is closely connected
with responsibility. Responsibility is shouldered whenever authority is exercised.
Responsibility is essential to perform a job correctly.
3. Discipline
According to Henry Fayol, discipline is essential in all levels of
managementpeople. Discipline is obtained through judicial application of
penalties. Limits of acceptable behavior are absolutely necessary to define, so that
 everyone in an organization knows what can and cannot be done. Often this
principle is difficult for a supervisor to apply impartially.
4. Unity Of Command
An employee should receive orders from only one supervisor. Yet, because of a
number of interacting variables in any job situation, line and staff as authority
become opposed to line and staff as function
5. Unity Of Direction
There should be only one plan, and the person should be responsible for
supervising it; all activities have the same objective, should be supervised by one
person.
6. Subordination of Individual To General Interest
Fayol believed that the individual should subordinate self-interest to the general
good. It is incumbent upon management to reduce conflict between the individual
and the general well being wherever possible.
7. Remuneration
Remuneration for work must be fair and accurate, affording maximum satisfaction
for both employee and employer. The manager must examine tasks, identify
responsibilities, and decide upon a just level of compensation.
8. Centralization
Fayol thought centralization of authority to be desirable, at least for overall
control. Certainly, both formulation of policy and the generation of basic rules and
procedures ought to be centralized.
9. Lines Of Command Or Scalar Chain
Organizations need a formalized hierarchy that reflects the flow of authority and
responsibility. Fayol suggested that a chain of command is necessary most of the
time, but, at times, it is best ignored. The communication flows to top to bottom or
bottom to top. It should be proper.
10. Order
 It is applied to both material and men. The material should be kept in order in the
place where it is necessary. The personnel are selected scientifically and assigned
duties according to there qualification and ability.
11. Equity
Employees must be seen as persons, not things to be manipulated. If managers
hope to create a good working environment, they must treat everyone fairly and
with equity. Equity refers to a combination of fairness, kindness and justice.
12. Stability Of Tenure
A high turnover rate is expensive for an organization. Turnover of a high degree is
both a cause and an effect of bad management, and one way of evaluating a
manager/supervisor is to examine the turnover and absenteeism rate of persons
working under that manager.
Another form of absenteeism not usually reflected in statistics is that of employees
who are "present but absent."
13. Initiative
Initiative should be encouraged at all levels. And subordinates should be asked to
submit plans and new ideas. Henry Fayol suggests that managers can take
decisions after getting suggestions from the subordinates. Initiative is the keenest
satisfaction of an intelligent man with experience.
14. Esprit De Corps
As a good Frenchman, Fayol believed in esprit de corps. This means union is
strength or Team Spirit. He felt that all successful organizations survive only when
a feeling of unity pervades the group and that viable organizations cleat with crises
as a team.