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Q.Explain the contribution of Henry Fayol in the field of management.

Telangana TsbieTSBIE Telangana Intermediate (2nd Year) Commerce Board 2016Subjective· 10mImportance★★★★★
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Henri Fayol is called the Father of Modern/Administrative Management. His main contributions were classifying business activities and management functions (planning, organising, commanding, coordinating, controlling) and, above all, his 14 Principles of Management, which provide universal guidelines for administering any organisation.

Henri Fayol and his contribution

Henri Fayol (1841-1925), a French mining engineer and administrator, studied management from the viewpoint of top management (administration), unlike F.W. Taylor who looked at the shop floor. For this reason he is known as the Father of Modern Management or the founder of the administrative-management school. His contribution has three parts: he classified business activities into six groups (technical, commercial, financial, security, accounting and managerial), he defined five management functions (planning, organising, commanding, coordinating and controlling), and he gave 14 Principles of Management. This is a frequently asked TS Inter 2nd-year Commerce question, and the TS syllabus treatment aligns with the NCERT/CBSE commerce curriculum.

The 14 Principles of Management

  1. Division of work — dividing work into specialised tasks improves efficiency through expertise.
  2. Authority and responsibility — the right to give orders must go with matching responsibility.
  3. Discipline — obedience to rules and agreements is essential for smooth working.
  4. Unity of command — each employee should receive orders from only one superior to avoid confusion.
  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 — organisational goals come before personal goals.
  7. Remuneration — pay should be fair and satisfactory to both employees and the organisation.
  8. Centralisation — the degree of concentration of authority should be balanced with decentralisation as per need.
  9. Scalar chain — a clear line of authority from top to bottom; the "gang plank" allows direct contact in emergencies. …

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