Henri Fayol

Henri Fayol (born 1841 in Constantinople-Istanbul; died 1925 in Paris) was a French management theorist. He was referred to as "the father of modern management theory". Often associated with Frederick Winslow Taylor, his theories deal with the organisation of production in the context of a competitive enterprise that has to control its production costs. Fayol was the first to identify the four functions of management: planning, organizing, leading and controlling, although his version was a bit different: plan, organize, command, coordinate, and control. He believed that the number of management principles that might help improve an organization's operation is potentially limitless.

Henri Fayol graduated from the mining academy of St. Etienne (École des Mines de Saint-Étienne) in 1860. The nineteen-year old engineer started at the mining company Compagnie de Commentry-Fourchambeau-Decazeville, ultimately acting as its managing director from 1888 to 1918. Based largely on his own management experience, he developed his concept of administration. These 14 principles of management were discussed in detail in his book published in 1917, Administration industrielle et générale. It was published in English as General and Industrial Management in 1949 and is widely considered a foundational work in classical management theory.

1. Specialization of labor. Specializing encourages continuous improvement in skills and the development of improvements in methods.
2. Authority. The right to give orders and the power to exact obedience.
3. Discipline. No slacking, bending of rules. The workers should be obedient and respectful of the organization.
4. Unity of command. Each employee has one and only one boss.
5. Unity of direction. A single mind generates a single plan and all play their part in that plan.
6. Subordination of Individual Interests. When at work, only work things should be pursued or thought about.
7. Remuneration. Employees receive fair payment for services, not what the company can get away with.
8. Centralization. Consolidation of management functions. Decisions are made from the top.
9. Chain of Superiors (line of authority). Formal chain of command running from top to bottom of the organization, like military
10. Order. All materials and personnel have a prescribed place, and they must remain there.
11. Equity. Equality of treatment (but not necessarily identical treatment)
12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers.
13. Initiative. Thinking out a plan and do what it takes to make it happen.
14. Esprit de corps. Harmony, cohesion among personnel. It's a great source of strength in the organisation. Fayol stated that for promoting esprit de crops,the principle of unity of command should be observed and the dangers of divide and rule and the abuse of written communication should be avoided.