Henry Fayol is described as the father of modern management theory. His contribution to management theory is very significant. Modern ideas and practices in management can be directly attributed to the contribution made by Henry Fayol.
Henry Fayol, previously managing director of a large French coal mining firm, his achievements include some of the following:-
1.0 Developed a blueprint of a cohesive doctrine of management.
2.0 Originated the symbol of formal organization, the organization chart which remains the chief instrument of modern business management.
3.0 Proposed all operations in a business organization to be classified into:-
- Accounting: Recording and taking stock of costs- Profit and Losses
- Commercial:- Buying raw materials and selling products
- Financial:- Acquiring and employing capital
- Managerial: Administering the activities of an organization by performing certain basic functions based on principles
- Security: Protecting employees and property
- Technical:- Producing manufacturing products
4.0 He advocated the fourteen(14) principles of Management Theory namely:
- Division of work:-the more staff socialized, the more efficient they can perform their work
- Authority and Responsibility:-Authority is the right to command and the power to make people obey. Along with authority goes responsibility
- Discipline:-Employees need to obey and respect the rules that govern the organization
- Unity of command:-Every employee should receive orders and instructions from only one superior
- Unity of direction:-There should be one manager and one plan for all operations having the same objective
- Subordination of individual interests to the general interest:-the general interests of the organization must take precedence over individual/personal interests
- Remuneration:-Workers must be paid a fair wage for their services
- Centralization:- Whether decision making is centralized or decentralized is a matter of proper proportion
- Scalar chain: It is a graded chain of authority from top to bottom through which all communications flow
- Order People and materials should be in the right place and right time
- Equity:- Manager should be fair, just and impartial and unbiased to their subordinates
- Stability of tenure of personnel: The management must implement a plan of action which encourage long range commitment of employees
- Initiatives- The opportunity to perform independently is an essential component of employee growth and development
- Esprit de corps:-Need for teamwork and the importance of effective communication in obtaining it.
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