ADMINISTRATIVE MANAGEMENT HENRY FAYOL

Henry Fayol was a major contributor to administrative management approach. Henry Fayol observations on the principles of general management first appeared in 1916 in French under the title Administration Industriella et Gernrale , and this was translated into English in 1949 under the title of General and Industrial Administration. His book has two parts .First part is of theory of administration and the second part with the discussion on raining for administration. Fayol felt that the activities of business could be divided into six groups: i) Technical, ii) Commercial iii) Financial iv) Security v) Accounting and vi) Managerial. In addition to this Fayol listed out fourteen principles of management they are: i) Division of Labour: The more people specialize the more efficiently they can perform their work. ii) Authority: Managers must give orders so that they can get things done. iii) Discipline: Members in an organization need to respect the rules and agreements that govern the oganissation. iv) Unity of Command: Each employee must receive instructions from only one person. Fayol believed that when an employee reported to more than one manger, conflicts in instructions and confusion of authority will occur in the company. v) Unity of Direction: Those operations within the organisation that have the same objective should be directed by only one manager using one plan. vi) Subordination of Individual Interest to Common Goal: Every employee in the organisation should show interest for the activities done in the organisation. vii) Remuneration: Compensation for work done should be fair to both employees and employers. viii) Centralisation: Decreasing the role of subordinates in decision making is centralization, increasing their role is decentralization Fayol believed that

managers should retain final responsibility, but should at the same time give their subordinates enough authority to do their jobs properly. ix) The Hierarchy: The lines of authority in an organisation are often represented today by the near boxes and lines of the organisation chart that runs in order of rank form the top management to the lowest level of the enterprise. x) Order : Materials and people should be in the right place at the right time. People in particular should be in the jobs or positions in which they are most suited. xi) Equity : Managers should be both friendly and fair to their subordinates. xii) Stability of Staff : A high employee turnover rate undermines the efficient functioning of an organisation. xiii) Initiative : Subordinates should be given the freedom to conceive and carry out their plan, even though some mistakes may result.

xiv) Esprit de corps. Promoting term spirit will give the organisation a sense of unity. O Fayol, even small factor could help to develop the sprit . Conclusion : The universality of the principles of management could be understood throughout the treatise of Fayol. He should be regarded as the father of modern management theory since he was first to emphaisise that better management is not merely a question of improving the output of labour, but of planning of the subordinate units of an organisation.