Henry Fayol

The Father of Modern Management

• Born in Constantinople (now Istanbul) in 1841
• Graduated from the École Nationale Supérieure des Mines in France
• Began his career at a struggling mining company, Commentry-
Fourchambault-Decazeville, in 1860 at the young age of 19
• Over the next 28 years, Fayol rose through the ranks of the company,
gaining experience in various departments including coal mining, iron
ore extraction, and steel production
• Witnessed firsthand the challenges of managing a complex
organization with a large workforce
• In 1888, Fayol was appointed the Managing Director of Commentry-
Fourchambault-Decazeville
• The company was in a dire state, with declining profits, low morale,
and labor unrest
• Fayol implemented a series of management reforms based on his
observations and experiences
• Fayol's management reforms resulted in a remarkable turnaround.
• Within a decade, the company became one of the largest and most
profitable iron and steel producers in France
• Fayol's success story brought him national recognition and established
him as a leading figure in French industry
• Largely Influenced by positivist philosophy of Auguste Comte and
Claude Bernard
Fayol's 14 Principles of Management
• Division of Work • Centralization
• Authority and Responsibility • Scalar Chain (Line of Authority)
• Discipline • Order
• Equity
• Unity of Command
• Stability of Tenure of Personnel
• Unity of Direction • Initiative
• Remuneration • Esprit de Corps
• Subordination of Individual Interests
to the General Interest
Fayol's 5 Functions of Management
• Planning: Defining the organization's goals and developing strategies
to achieve them.
• Organizing: Structuring the organization and allocating resources to
carry out plans.
• Commanding: Providing leadership and direction to employees.
• Coordinating: Ensuring that different parts of the organization work
together effectively.
• Controlling: Monitoring progress and taking corrective action as
needed.
Fayol's Impact on Management
• Paved the way for modern management theory
• His principles are still relevant today
• Influenced the development of other management theories
• Highlighted the importance of professional management
training
• Published two influential books:
• Administration Industrielle et Générale (General and
Industrial Administration) in 1916
• Éléments d'administration (Elements of Administration)
published posthumously in 1925