Administrative Theory–Henri Fayo

Managers became more concerned with management of organizations than

with improving the efficiency of individual jobs. They tried to identify the
functions of a manager with emphasis on co-ordination of resources towards
the achievement of stated objectives. This stream of the classical approach is
known as administrative theory or functional approach or management
process approach.
He published his famous book Administrative Industrielle et Generale in 1916.
It was published in English under the title General and Industrial Management
in 1949
Managerial Functions
Fayol analysed the managerial job in terms of a series of functions which are performed
by managers in all types of organisations at all levels, Fayol said, “To manage is to
forecast and plan, to organize, to command, to co-ordinate and to control.”
Thus, the functions or elements which constitute the management process are:
1. Planning- To foresee and provide means for the future.
2. Organising- to provide a business everything useful to its functioning— raw
materials, tools, capital and personnel.
3. Commanding (maintaining activity among personnel).
4. Co-ordinating (unifying and harmonizing all activities and efforts).
5. Controlling (seeing that everything occurs in conformity with established rules and
expressed command).
Management Principles : Fayol gave the following general
principles of management :

• . Division work: The work of every person in the organization should be

limited as far as possible to the performance of a single leading function
• Authority and responsibility: . The two are co-extensive and, therefore,
a parity should be maintained between them. Wherever authority is
exercised responsibility arises
• Discipline: It implies respect for rules and agreements designed to
secure obedience. Discipline requires clear and fair agreements, good
supervision and judicious application of penalties.
• Unity of command: Every employee must receive orders and be
accountable to only one boss. It is necessary to avoid conflicting orders
and to ensure order and stability in the organization
• . Unity of direction: There should be one head and one plan for a group
of activities having the same objective. Unity of command is concerned
with grouping of persons whereas unity of direction relates to grouping
of activities.
• Subordination of individual to general interests: Efforts should be made
to reconcile individual interests with common interests.
• Remuneration of personnel: The amount of remuneration and the
methods of payment should be just and fair and should provide
maximumpossible satisfaction to both employees and employers
• Centralization: According to Fayol, the question of centralization and
decentralization is a matter of finding the optimum degree for the
particular concern. The degree of concentration of authority should be
based upon optimum utilization of all faculties of the personnel.
• Scalar chain: Scalar chain refers to the chain of superiors ranging from
the ultimate authority to the lowest level in the organization. It should
be short circuited and not carried to the extent it proves detrimental
to the organization
• Equity: Equity implies that employees should be treated with justice
and kindness. Managers should be fair and impartial in their dealings
with subordinates
• Stability of tenure of personnel: Employees cannot work efficiently
unless job security is assured to them. Time is required for an
employee to get used to new work and succeed in doing it well.
Therefore, management must strive to minimize employee turnover.
• Initiative:. It develops the interest of employees in their jobs and
provides job satisfaction to them
• Esprit de corps: It implies unity of effort through harmony of interests.
Note: Fayol warned that these principles are flexible guidelines rather
than hard and fast laws. They should be used with discretion rather
than blindly.
Relevance of Fayol’s Principles Today
• attatch table here. page 4.14 4.15 mujse nhi horaha
• Managerial Skills: Fayol recognized the need for managers to acquire
and learn certain abilities and skills. He identified the following
qualities of a manager :
• (i) Physical (health, vigour and address),
• (ii) Mental (ability to understand and learn, judgement and
adaptability),
• (iii) Moral (energy, firmness, initiative, loyalty, tact and dignity),
• (iv) General education (general acquaintance with matters not
belonging exclusively to the functions performed),
• (v) Special knowledge (peculiar to the function performed), and
• (vi) Experience (knowledge arising from work proper)
Some Limitations of Fayo’s Theory
• Too formal: Fayol’s theory is said to be very formal. However, in any
scientific and analytical study facts and observations have to be
presented in a formal manner
• Vague: Some of the concepts have not been properly defined. For
example, the principle of division of work does not tell how the task
should be divided
• Inconsistency: Principles of administrative theory were based on
personal experience and limited observations. They are generalizations
and lack empirical evidence. They have not been verified under
controlled scientific conditions. Some of them are contradictory. For
example, the unity of command principle is incompatible with division
of work.
 Comparison Between Taylor and Fayo
• Table chipka de yaha bhi page 4.17