Henry Fayol administrative mgmt:

Henry Fayol & his administrative mgmt: He has been considered as the real father of modern mgmt. He was a French industrialist & graduated as a mining engineer in 1860. Fayol contributed his famous ‘Functional approach’ to the mgmt literature. Fayols writing were first published in 1908 in French but unfortunately, upto 1918, it was not translated into English. His ideas were accepted after his death in 1925. As an industrial executive, he found that all activities of industrial undertaking could be divided into six groups as follows:1. Technical (Production), 2.Commercial (buying, selling & exchange),3.Financial (optimum use of capital),4. Security (Protection of property),5.Accounting (including statistics),6.Management (planning, organizing, commanding, co-ordinating & controlling). According to Fayol, following are the basic principle of mgmt: 1.Division of work: this is the principle of specialization which is so well expressed by economists as being necessary to efficiency in the utilization of labour. Fayol goes beyond shop labour to apply the principles to all kinds of work, managerial as well as technical.2.Delegation of authority & responsibility: in this principle Fayol finds authority & responsibility to be related with the latter, the corollary of the former & arising from the latter. He conceives authority as combination of official authority deriving from a manger’s official position, and personnel authority, “compounded of intelligence, experience, moral worth, past services etc”.3.Discipline: Holding that discipline is “respect for agreements which are directed as achieving obedience, application, energy & the outward marks of respect”, Fayol declares that discipline requires good superiors at all levels, clear & fair agreements & judicious application of penalties.4.Material & social order: Fayol thinks of it as the simple edge of a place for everything, & everything in its place. This is essentially a principle of organization in the arrangement of things & persons.5.Unity of direction: Unity of direction is the principle that each group of activities having the same objective must have one hand & one plan. As distinguished from the principle of unity of command, Fayol perceives unity of direction as related to the functioning of personnel.6.Centralisation of authority: although Fayol does not use the term ‘Centralization of Authority’ his principle definitely refers to the extent to which authority is concentrated or dispersed in an enterprise. Individual circumstances will determine the degree of centralization that will give the best over all yield.7.Unit of command: This is the principle that an employee should receive orders from one superior only.8.Stability & tenure of personnel: finding that such instability Is both the cause & effect of bad mgmt, Fayol points out the dangers & costs of unnecessary turnover.9.Scalar chain: Fayol thinks of the scalar chain as a line of authority, ‘chain of superiors’ from the highest to the lowest ranks & held that, while it is an error of subordinate to depart ‘needlessly’ from lines of authority, the chain should be short-circuited when scrupulous following of it would detrimental.10.Remuneration of personnel: Fayol perceives that remuneration & methods of payment should be fair & afford the maximum satisfaction to employee & employer.11.Subordination of individual interest to general interest: In any group the interest of the group should supersede that of the individual; when these are around to differ, it is the function of management to reconcile them.12.Equity: Fayol perceives this principle as one of eliciting loyalty and devotion from personnel by a combination of kindliness and justice in manager dealing with subordinates.13.Initiative: is conceived as the thinking out and execution of plan. Since it is one of the “Keenest satisfactions for an intelligent man to experience”, Fayol exhorts managers to “sacrifice personal vanity” in order to permit subordinates to exercise it.14. Esprit de corps: this is the principle that ‘union is strength’ an extension of the principle of unity of command. Fayol here emphasizes the need for team-work & the importance of communication in obtaining it. Fayol also stressed that managers should possess physical, mental, moral, educational & technical qualities to conduct multifarious operations of a business enterprise. Physical qualities: Health, vigour etc. Mental Qualities: Ability to understand & learn, judgement mental vigour, adaptability. Moral qualities: Energy, firmness, willingness to accept responsibility, initiative, loyality, tact, dignity. Educational qualities: General acquaintance with matters not belonging exclusively to the functions performed. Technical qualities: Peculiar to the function & experience arising from the work proper.