Henri Fayol

French Mining Engineer

Founder of Modern
Management Method

Prepared by: CHRISTINE C. AMPARO

& JENNIFER S. BODOSO
Maed management
 Henri
Fayol
French Mining Engineer
Founder of Modern
Management Method

Industrial and General

Administration
 Henri Fayol (29 July 1841 – 19
November 1925)was a French mining
engineer, mining executive, author and
director of mines who developed a
general theory of business administration
that is often called Fayolism. He and his
colleagues developed this theory
independently of scientific management
but roughly contemporaneously.
 Henry Fayol is known as the father
of modern management theory. He was
an engineer at the Compagnie de
Commentry-Fourchambault-Decazeville
mining company and worked his way up
to become a manager during the peak of
the Industrial Revolution in France.
 by: Henri Fayol

Prepared by: CHRISTINE C.

AMPARO
 01 Principle

Division of Work
 Division of
Work
Segragating work in the
workforce amongst the
worker will enhance the
quality of the product.
Improves the productivity,
efficiency , accuracy and
speed of the workers.
 Division of
Work
Stressed on the specialization of jobs

Work of all kinds must be divided and allotted to various persons

Simpler and results in efficiency

Helps the individual in acquiring speed, accuracy in his

performance
Specialization leads to efficiency and economy in spheres of
business
 02 Principle

Authority and Responsibility

 Authority and
Responsibility
These are two key aspects
of management. Authority
facilitates the management
to work efficiently, and
responsibility makes them
responsible for the work
done under their guidance
or leadership
 Authority and
Responsibility
Authority is given to a person, he should also be
made responsible.
He should also have concerned authority, if anyone
is made responsible.
Authority refers to the right of superiors,
responsibility means obligation for the
performance of the job assigned.
 Authority and
Responsibility
Should be a balanced.

Authority –- Responsibility==+ +=+= Irresponsible

Behavior

Responsibility-Authority == Ineffective
03 Principle

Discipline
 Discipline
Without discipline, nothing
can be accomplished. It is
the core value for any project
or any management. Good
performance and sensible
interrelation make the
management job easy and
comprehensive. Employees
good behaviour also helps
them smoothly build and
progress in their professional
careers.
 Discipline

Sincerity , obedience , respect of authority and observance of

rules and regulations of the enterprise.

Subordinate should respect their superiors and obey their

order.

Smooth running of enterprise.

Discipline can be enforced if-

- Good superiors
- Clear and fair agreements with workers
- Sanctions are judiciously applied.
by: Henri Fayol
 Principle

Unity of Command
 Unity of
Command
This means an employee
should have only one boss
and follow his command. If
an employee has to follow
more than one boss, there
begins a conflict of interest
and can create confusion.
 Unity of
Command
Every employee must receive orders and be accountable to only
one superior.

It is necessary to avoid conflicting orders and to ensure order and

stability in the organization.

Under the concept of Unity of Command the employee will always

report to his immediate superior in the hierarchical ladder who
alone will communicate orders, instructions and guidelines to
him.
 05 Principle

Unity of Direction
 Unity of
Direction
According to Fayol, the
unity of direction principle
implies that each group of
activities having some
objectives must have one
head and one plan.
 Unity of
Direction
There should be one head and one plan for a group
of activities having the same objective.

This is essential to ensure unity and coordination

in the enterprise.
Unity of command does not exist without unity of
direction but not necessarily flow from it.
 06 Principle

Subordination of Individual Interest

to the General Interest
 Subordination of Individual Interest to the
General Interest
INDIVIDUAL
GenerAL INTEREST
INTEREST
General interest
Individual interest refers to what
generally refers to decisions we are
self interest. going to take that is
Actually where favorable to us and
there is something for our organization.
profitable to us. No personal gains or
any favors.
 Subordination of Individual
Interest
to the General Interest

This principle states that

the overall interest of the
team should take
precedence over personal
ones. The interest of the
organization should not be
sabotaged by the interest of an individual. If anyone goes
rogue, the organization will collapse.
 Subordination of Individual Interest
to the General Interest
The interest of one employee or group of employees should
not prevail over that of the entire organization.

Efforts should be made to reconcile individual interests with

common interests.

Where there is a conflict between the two, the interests of

the organization should prevail over individual interests.

This requires continuous and exemplary supervision and fair

agreements.
 by: Henri Fayol

Prepared by: JENNIFER S.

BODOSO
 07 Principle

Remuneration
 - - Remuneration- -
Remuneration is th
e price for
services received. P
ay should be fair
to both the employee
and the firm.
If an organization w
ants efficient
employees and best
performance,
then it should have
a good
remuneration policy
.
This policy should g
ive maximum
satisfaction to both
employers and
employees. It shou
ld include both
financial and non-fi
nancial
incentives.
 2 Types of
Remuneration
Non-monetary - a compliment, more
responsibilities, credits.

Monetary - compensation, bonus or

other financial compensation
 08 Principle

Centralization
 - - Centralization - -
Centralization implies th
e
concentration of decisio
n
making authority at the
top
management (executive
board). Sharing of auth
orities
for the decision-making
process with lower leve
ls
(middle and lower
management), is referre
d to as
decentralization by Hen
ri
Fayol. Henri Fayol indic
ated
that an organization sh
ould
strive for a good balanc
e in
this.
 Centralization

In centralization, the authority is concentrated

only in a few hands.

Therefore, there should be a balance between

centralization and decentralization.
The degree to which centralization or
decentralization should be adopted depends on
the specific organization
 09 Principle

Scalar Chain
 - - Scalar Chain - -
Hierarchy presents itself
in any given
organization. This varies
from senior
management (executive bo
ard) to the
lowest levels in the organiz
ation. Henri
Fayol ’s “hierarchy” mana
gement principle
states that there should be
a clear line in
the area of authority (fro
m top to bottom
and all managers at all lev
els).
This can be seen as a type
of management
structure. Each employee
can contact a
manager or a superior in
an emergency
situation without challen
ging the hierarchy.
Especially, when it concer
ns reports about
calamities to the immedia
te
managers/superiors.
 Scalar
Chain
The chain of command is usually depicted on an
organizational chart, which identifies the superior and
subordinate relationships in the organizational structure

It is the line of authority from top to bottom of the

organization. This chain implements the unity-of-command
principle and allows the orderly flow of information.
by: Henri Fayol
10 Principle

Order
 - - Order - -

This principle states that there

should be an orderly placement
of resources (manpower,
money, materials, etc.) in the
right place at the right time.
This ensures the proper use of
resources in a structured
fashion. Misplacement of any of
these resources will lead to
misuse and disorder in the
organization. 
 Order
Order conveys that there should be a place
of everything and everything should be at
its place.
This applies not only to arrangement of
materials and stores, but also to placement
of personnel.
11 Principle

Equity
 Equity
Equity is a combination of
kindness and justice. This
principle states that managers
should use kindliness and
justice towards everyone they
manage. This creates loyalty
and devotion among the
employees towards the
organization they work for.
 Equity

Equity implies that the employee should be

treated with justice and kindness.
Managers should be impartial in their dealings
with subordinates.
Equity helps to create cordial relations between
management and workers which is essential for the
successful functioning of any enterprise.
 12 Principle
Stability of Tenure of
Personnel
 Stability of
Tenure of
Personnel
This principle states that an organization
should work to minimize staff turnover and
maximize efficiency. Any new employee
cannot be expected to get used to the culture
of an organization right away. They need to
be given enough time to settle into their jobs
to become efficient. Both old and new
employees should also be ensured job security
because instability can lead to inefficiency.
There should also be a clear and effective
method to handle vacancies when they arise
because it takes time and expense to train
new ones.
 Stability of Tenure of
Personnel
Employees work better if job security and career
progress is assured to them.
Employee turnover should be reduced and long
term commitment should be encouraged.
Insecure tenure and high rate of employee
turnover will affect the organization adversely.
 by: Henri Fayol

Prepared by: JENNIFER S.

BODOSO
13 Principle

Initiative
14 Principles of Management

13th

Initiative
 Initiative
According to Henri Fayol, employee
initiatives form one of the important sources
of strength of the organization. This
management principle hence encourages the
employees to come up with new ideas. This
makes the employees be more involved in
organizational development.
Positive effects of this principle:

Develops feeling of belongingness in

employees.

Employees get satisfaction.

Consequences of violation of this principle:

Employees will not work to the best of

their ability.

Demotivation among employees.

 14 Principle

Esprit de Corps
14 Principles of Management

14th

ESPRIT DE
CORPS
 Esprit de Corps-
The management principle ‘esprit de corps’ of the 14
principles of management stands for striving for the
involvement and unity of the employees. Managers
are responsible for the development of morale in the
workplace, individually and in the area of
communication. Esprit de corps contributes to the
development of the culture and creates an
atmosphere of mutual trust and understanding.
Positive effects of this principle:

Develops team spirit.

Achievement of group goals.
High morale of employees.
Cooperation and coordination in the
organization.
Consequences of violation of this principle:

Team goal may not be achieved.

Conflicting environment in the organization.
Lack maximum participation from
employees
No team spirit and more stress on
individualism.