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Q.What is the contribution of Henry Fayol in the field of management?

Telangana TsbieTSBIE Telangana Intermediate (2nd Year) Commerce Board 2019Subjective· 10mImportance★★★★★
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Henri Fayol is known as the Father of General (Administrative) Management. His contribution was threefold: he classified all business activities into six groups, defined the five functions of management (planning, organising, commanding, coordinating, controlling), and laid down 14 general Principles of Management that serve as flexible, universal guidelines for managers.

Who was Henri Fayol?

Henri Fayol (1841-1925) was a French mining engineer who rose to become managing director of a large mining company. From his own practical experience he developed a general theory of administration, published in his book General and Industrial Management. Because he looked at management from the top-management (administrative) point of view and treated it as a universal process, he is called the Father of General or Administrative Management.

This topic sits in the Principles of Management portion of the TS Intermediate 2nd-year Commerce course, which aligns closely with the NCERT/CBSE commerce curriculum on management.

His Contributions

1. Classification of business activities

Fayol grouped all activities of an industrial undertaking into six categories: technical (production), commercial (buying and selling), financial (use of capital), security (protection of property and persons), accounting (records and statistics), and managerial (planning, organising, commanding, coordinating, controlling).

2. Functions of management

He was the first to clearly describe the five functions of management: Planning, Organising, Commanding (directing), Coordinating, and Controlling. This process view still forms the framework of modern management study.

3. The 14 Principles of Management

His best-known contribution is a set of 14 flexible guidelines:

  1. Division of work
  2. Authority and responsibility
  3. Discipline
  4. Unity of command
  5. Unity of direction
  6. Subordination of individual interest to general interest
  7. Remuneration of employees
  8. Centralisation and decentralisation
  9. Scalar chain
  10. Order
  11. Equity
  12. Stability of tenure of personnel
  13. Initiative
  14. Esprit de corps (team spirit) …

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