Henri Fayol (1841-1925)

A Frenchman (pictured right) who had a big impact on management thinking through his book, General and Industrial Management (see below).

Key book

General and Industrial Management (1916)

Management has five functions:

1. Plan and forecast 

Drawing up the best plan of action for the future based on 10 year forecasts revised every five years.

2. Organize 

Creating the best structure.

3. Command 

Telling people what to do.

4. Co-ordinate 

Effectively combining different people and activities.

5. Control 

Making sure people do their jobs and conform to the organization’s rules.

There are also 14 principles of good management:

1. Specialization  of work

This leads to greater efficiency.

2. Authority (power) matching responsibility (accountability for results).

3. Discipline and respect 

Subordinates must obey their superiors.

4. Unity of command 

Every subordinate has only one superior.

5. Unity of direction 

Every employee working together to achieve the organization’s objectives.

6. Reconciling the aims of the individual and the organization 

This is “one of the great difficulties of management” and is achieved by:

• good example.

• agreement.

• constant supervision.

7. Fair pay

8. Balancing centralization and decentralization of decision making

9. The scalar chain 

Hierarchical and autocratic management.

10. Order 

Balancing employees’ needs with the resources available to satisfy them.

11. Equity

Fair treatment of employees.

12. Stability of tenure 

Job security.

13. Initiative

Allowing people to use their own initiative at the expense of the manager’s personal vanity.

14. Esprit de corps

Inspiring employees to achieve the organization’s aims with unity and enthusiasm.

Key quotes on leadership and management

To manage is to forecast and plan, to organize, to command, to co-ordinate and to control.

 A good leader should possess and infuse into those around him courage to accept responsibility.