Henri Fayol and Administrative Theory

Henri Fayol was born in Turkey in 1841. Fayol was a mining engineer who became the head of a large mining company. He wanted managers to be responsible for more than just increasing production. The story goes that he came to this insight when a mine was shut down after a horse broke a leg, and no one at the mine had authority to purchase another. Fayol saw this as a direct failure of management to plan and organize the work. Following this, Fayol began experimenting with different management structures.

He condensed his ideas and experiences into a set of management duties and principles, which he published in 1916 in the book, General and Industrial Management.

Management Duties

Fayol was concerned with how workers were managed and how they contributed to the organization. He felt that successful organizations, and therefore successful management, were linked to satisfied and motivated employees. Fayol’s five duties of management were as follows:

1. Foresight: Create a plan of action for the future.
2. Organization: Provide resources to implement the plan.
3. Command: Select and lead the best workers through clear instructions and orders.
4. Coordinate: Make sure the diverse efforts fit together through clear communication.
5. Control: Verify whether things are going according to plan and make corrections where needed.

These duties evolved into the four functions of management: planning (foresight), organizing (organization), leading (command and coordinate), and controlling (control).

Fayol also proposed a set of fourteen principles that he felt could guide management behavior, but he did not think the principles were rigid or exhaustive. He thought management principles needed to be flexible and adaptable and that they would be expanded through experience and experimentation. Some of Fayol’s principles are still included in management theory and practice, including the following:

• Scalar chain: An unbroken chain of command extends from the top to the bottom of the organization.
• Unity of command: Employees receive orders from only one superior.
• Unity of direction: Activities that are similar should be the responsibility of one person.
• Division of work: Workers specialize in a few tasks to become more proficient.

Key Functions of Management Today

Over the years, management theorists have built upon and refined Fayol’s original work, and, more recently, have combined the “command” and “coordinate” functions into one function: leading. Today, the key functions of management are considered to be the following: planning, organizing, staffing, leading, controlling, and motivating.

• Planning: Setting goals and determining how to achieve them. Managers decide what needs to happen and create specific action plans that outline the steps, resources, and timelines needed. For example, a sales manager plans quarterly revenue targets and develops strategies to reach them.
• Organizing: Structuring how work will be carried out. Managers establish clear roles, responsibilities, and reporting relationships. They also determine how to allocate and coordinate resources (people, equipment, money) to implement plans efficiently. For example, a production manager organizes workers into teams and assigns specific equipment to each production line.
• Staffing: Ensuring the right people are in the right roles. Managers analyze job requirements, recruit qualified candidates, and hire employees. They also maintain appropriate staffing levels and develop employees through training and professional development. For example, an IT manager identifies needed technical skills, interviews candidates, and arranges training on new systems.
• Leading: Guiding and influencing others to accomplish objectives. Managers provide direction, communicate expectations, and help employees understand how their work contributes to organizational goals. They make decisions and ensure work stays aligned with plans. For example, a project manager guides team members through project phases and helps resolve problems that arise.
• Controlling: Monitoring performance and making corrections. Managers track progress against plans, measure results, identify gaps or problems, and take corrective action when needed. For example, a marketing manager monitors campaign metrics against targets and adjusts strategies if results fall short.
• Motivating: Creating conditions that encourage high performance. Managers build employee engagement by connecting work to purpose, providing growth opportunities, recognizing contributions, and fostering a positive work environment. For example, a restaurant manager recognizes excellent customer service and creates friendly competitions between shifts.

All levels of management perform these functions; however, as with the skills required for effective management, the amount of time a manager spends on each function depends on the level of management and the needs of the organization. In the next readings, we will explore each of these functions in greater depth.