HENRY FAYOL'S CONTRIBUTION TO MANAGEMENT

Henry Fayol was a French mining engineer widely regarded as the father of modern management theory and is credited with providing general administrative management theories

Most of Henry Fayol's contribution to management was given after he reflected on his career at French Company Compagnie de Commentry-Fourchambault-Decazeville mining company where he moved the struggling company to a striving company.

Henry Fayol contributed four major things to management: six business functions. five functions of management, qualities of a good manager and fourteen general principles of management.

The six business functions, as outlined, by Henry Fayol are:

1. Technical activities: These include activities like production and adaption

2. Commercial activities: These include activities like buying and selling of goods.

3. Security activities: These are activities aimed at protection of life and property in the business organization.

4. Managerial activities: These include the five management functions (planning, organizing, commanding, coordinating and controlling) given by Henry Fayol.

5. Accounting activities: These includes activities such as stock-taking, analyzing cost and preparation of financial statement.

6. Financial activities: All activities aimed at optimizing the use of money in the business.

Henry Fayol also gave five functions of management, namely;

1. Planning

2. Organizing

3. Coordinating

4. Commanding

5. Controlling.

However, the five functions of management have been condensed into four management functions, namely: Planning, Organizing, Leading and Controlling.

If you are not yet familiar with these four functions, I recommend that you read this post.

Thirdly, Henry Fayol enumerated six qualities of a good manager, namely;

1. Physical qualities

2. Mental qualities

3. Moral qualities

4. Technical qualities

5. Education

6. Experience

Lastly, Henry Fayol gave 14 general principles of management, namely;

1. Division of work: Work and task should be divided so that maximum productivity and efficiency can be attained.

2. Authority and responsibility: Authority is the right to give order and responsibility is the obligation to perform a task. 

Authority and responsibility should be balanced; No one should be greater than the other and no one should be lesser than the other.

3. Discipline: The rules, objectives, policies and procedures of the organization must be obeyed and follow by every member of the organization. 

Any form of indiscipline should not be condone in the organization.

4. Unity of command: Each subordinate should receive order from only one boss to avoid confusion and clash of interests.

5. Unity of direction: Each and every member of the organization should work towards the achievement of the common objectives of the organization

6. Subordination of individual interest to the general interest: This means that the general interest of the organization must take precedence over any individual interest

7. Remuneration of employees: Workers must get adequate financial and non-financial reward for their work in the organization.

Since most people are motivated by money, remuneration is such a big and important issue in management of people.

8. Centralization and decentralization: Too much centralization or decentralization is not good.

There should be a balance between between centralization and decentralization in the organization.

9. Initiative: Subordinate should be given the freedom to take initiative and execute the plans of the organization

10. Stability of tenure of personnel: Hugh labour turnover should be discouraged. The organization should ensure the stability of employment of its staffs.

11. Equity: Equity and fairness should be encouraged so that the cooperation of every organization members can be sustained.

12. Order: There is no sound management if everything is disorganized in the organization.

Therefore, there should be a place for everything in the organization.

13. Scalar chain: There should be am hierarchy of command linking every member of an organization.

14. Espirit de corps: This is the basis for effective management. Management required the cooperation of every one in the organization.

As such, the cooperation and inclusion of every one in the organization should be advocated.

Refer to this post if you are not familiar with these fourteen principles.

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