--- title: "Administrative management theory, Fayol" subject: "Organization and Management" chapter: 3 key: "semester_7/organization_and_management:admin-management-fayol" source: https://www.bctengineer.com/q/semester_7/organization_and_management/admin-management-fayol site: BCT Engineering --- # Administrative management theory, Fayol Organization and Management · Chapter 3: Theory of Management - Asked in: 2070 Asar, 8 marks; 2070 Chaitra, 8 marks; 2072 Kartik; year not given (asked 3 times) - Video: [Administrative Management and Henri Fayol's 14 Principles of Management](https://www.youtube.com/watch?v=7Rts70S_X3A) — Alanis Business Academy - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/organization_and_management/admin-management-fayol - Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-3 ## Question State and describe Henry Fayol's administrative management theory (14 principles of management). ## Short answer Fayol's administrative theory gives five functions of management (planning, organizing, commanding, coordinating, controlling) and fourteen principles including division of work, authority with responsibility, discipline, unity of command, unity of direction, subordination of individual interest, fair remuneration, centralization, scalar chain, order, equity, stability of tenure, initiative, and esprit de corps. ## Answer 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. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. How did Fayol differ from Taylor? A. Fayol studied the shop floor B. Fayol studied management from the top; Taylor studied the shop floor C. Both studied the shop floor D. Fayol rejected principles Answer: B. Fayol took a manager's top-level view. (Key point: Fayol's viewpoint) 2. Unity of direction means: A. An employee gets orders from one superior B. Authority line from top to bottom C. One head and one plan for a group of activities with the same objective D. Fair pay for employees Answer: C. Unity of direction concerns activities; unity of command concerns an employee's boss. (Key point: Unity of command vs direction) 3. What is the 'gang plank' in the scalar chain? A. A rule banning cross-contact B. Written pay rules C. A type of discipline D. Direct cross-contact allowed in urgent cases Answer: D. It allows bypassing the chain in urgency. (Key point: Gang plank) 4. Which are Fayol's five functions? A. Planning, organizing, commanding, coordinating, controlling B. Planning, organizing, staffing, directing, controlling C. Order, equity, initiative, discipline, tenure D. Division, authority, unity, scalar, order Answer: A. Fayol listed commanding and coordinating. 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