Administrative management theory, Fayol

Henri Fayol (1841-1925), a French mining engineer, wrote "General and Industrial Management" (1916). Unlike Taylor, who studied the shop floor, Fayol studied management from the top, and described the functions and principles that apply to all managers. His administrative theory has two parts.

Five functions of management

Planning, organizing, commanding, coordinating and controlling.

Fourteen principles of management

1. Division of work: Specialization increases efficiency.
2. Authority and responsibility: Right to give orders goes with accountability for results.
3. Discipline: Obedience and respect for rules, shown by both workers and managers.
4. Unity of command: An employee gets orders from only one superior.
5. Unity of direction: One head and one plan for a group of activities with the same objective.
6. Subordination of individual interest to general interest: Organizational goals come first.
7. Remuneration: Fair pay that satisfies both employee and employer.
8. Centralization: The degree of authority kept at the top should suit the situation.
9. Scalar chain: The line of authority from top to bottom; "gang plank" allows direct cross-contact in urgent cases.
10. Order: A place for everything and everything in its place (material and social order).
11. Equity: Kindness combined with justice towards employees.
12. Stability of tenure: Avoid unnecessary turnover; give time to learn.
13. Initiative: Allow employees to propose and carry out plans.
14. Esprit de corps: Team spirit; "union is strength".

Evaluation

• Principles are general, flexible and universal, to be applied according to need.
• Criticism: they are based on one person's experience, too general and can be rigid or contradictory (unity of command vs speed).
• Relevance: Nepali offices follow scalar chain and discipline in the civil service; stability of tenure and equity are weak in some public enterprises with frequent changes of leadership.