Notes on Henry Fayol and Administrative Theory

Introduction to Henry Fayol

• Considered one of the fathers of modern management.
• Work was not widely known in the US until 1949.
• Emphasized the importance of administrative ability over technical ability for organizational success.
• Developed insights from his experience as managing director of a French steelmaker, Common Vault.

Fayol's Contribution to Management

• Created the functions of management: planning, organizing, leading, controlling.
• Developed 14 principles of management that are foundational for effective organizational management.

The 14 Principles of Management

1. Division of Work

   • Specialization leads to expertise and efficiency.
   • Workers can excel in specific tasks.

2. Authority and Responsibility

   • Authority should match responsibility.
   • Managers are accountable for their orders.

3. Discipline

   • Clear rules and procedures for employees.
   • Order and good behavior are essential; penalties for non-compliance.

4. Unity of Command

   • Each worker should report to one supervisor to avoid confusion.
   • Essential for clarity in expectations.

5. Unity of Direction

   • All members should work towards common goals to ensure organizational success.

6. Subordination of Individual Interests to General Interests

   • Collective interests should supersede individual interests for team success.

7. Renumeration

   • Fair pay practices are vital for worker motivation and commitment.
   • Factors affecting pay include labor supply and living costs.

8. Centralization

   • Degree of decision-making authority varies between centralization and decentralization.
   • Organizations should balance centralization with enabling employee initiative.

9. Scalar Chain

   • Clear hierarchy allows employees to understand reporting lines and responsibilities.

10. Order

    • Maintain an organized environment for efficiency and safety.

11. Equity

    • Fair treatment is crucial for worker commitment and performance.

12. Stability of Tenure of Personnel

    • Minimize employee turnover to reduce costs and disruptions.

13. Initiative

    • Encourage worker initiative to develop skills and relieve management tasks.

14. Spirit of Cooperation

    • Foster team morale and unity through communication and teamwork.

Conclusion

• Fayol's principles remain relevant and are widely practiced today.
• Emphasized that leadership ability is key to organizational success.
• Shifted the focus towards managerial training and education.

Next Steps

• Upcoming discussion on Max Weber's contributions to management.
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