Profile of Henri Fayol, a Founding Daddy of Management

Background and Carrier

Henri Fayol was a French industrialist and administrator, working in the mine industry and looking for appropriate way to business management. He went to school in Lyon (the next major city of France) and enrolled at the engineering university of Saint-Etienne (Ecole Nationale des Mines). He received an education as a mine engineer and graduated in 1860 out of this school at the age of 19. He was initially employed as an engineer at Boigues, Rambourg and Co. In 1874, the corporation became Commentry-Fourchambault SA or Comambault). It is important to notice he spend all his professional life in the same company experiencing its growth and knowing well its framework and creation methods. Fayol was first remarked as an engineer when he wrote a newspaper proposing a solution to fire hazard, fire fitting and spontaneous combustion in mine, destructing men and installations. In 1866, he was appointed director of a single mine of Commentry at age 25. The business was going right through extension and added several other mines to the company in other part of France such as Monvicq coal mine and Berry Flat iron Ore Mine. He became the directors of those mines as well at age 31. In once, those expansions did not translated in increase of dividend. Quite the contrary, Fayol had to handle the fact that Comambault was at dire financial straits. In the late 1880s', the company had didn't pay dividends for at least 4 years. In 1888, at age 47 he became the CEO of the Comambault conglomerate. The objective of his objective as a CEO was to make the company feasible again which he does. He worked directly with his professionals to turn the company around, shutting inefficient units, investing in research and technology and expanding the geographical base of the company. In 1908, in a discourse he gave he reminded this bout of industrial record

In 1888, the business Commentry-Fourchambault was on the verge of disappearing in abandoning its vegetation and in resuming the exhaustion of the mine shares, when a change of hq came. Since then, the company prospered again. The company's history demonstrates its fall season and growing are uniquely an impact of the administrative process applied. This is with the same mines and the same plants, with the same money, in the same commercial situation, the same board of directors, and the same personal that the business raises again to this minute. Therefore, some administrative methods leave the business to its wreck; other methods give it its success back again. Work, experience, knowledge and good will of several thousands of people had been sterilized by some dysfunctional administrative process. And other administrative procedures emphasize all its strength.

Fayol was brain of a very large business with over 10, 000 employees, which at that time, was much like today's international companies. He remained CEO until his pension by the end of WWI, in 1918. Before his pension in 1916, Fayol published his main e book Administration Industrielle et Generale in the professional publication called Bulletin de la Socit de l'industrie minrale. In 1917, he creates the Centre for Administrative Studies (CAS) in Paris. His reflections were released as a reserve only in 1925, the entire year of his death. This centre was important in diffusing his ideas. It organised seminars and colloquium with industrialists, general population sector officials of the French status, engineers, the military services, and various academics. The CAS was a system from which cooperation and further works could be achieved. From 1921 to 1925, he collaborated to several studies with respect to the French's public sector. Notably, he produced a study of the Post and Telecom Section as well as the French Tobacco and Match monopoly.

Why a founding Father of Management?

One exceptional feature about Henri Fayol's affect in management is the actual fact that he is little known in comparison to Taylor (1856-1915) who resided roughly at exactly the same time. The epoch of the great development of the XIX century industry does not describe why one strikes more fame than the other. In 1912, Charles de la Poix de Frminville achieved Taylor and stated to pass on the principles of Taylorian company of work. Taylor's work handled the workshop of creation and Fayol's with the mining industry and its general management. One must say that one aspects of the relative gradual diffusion of Fayol's ideas, is due to timing. In 1916 and 1918, France was dealing with the WWI and its own aftermath. Although many of Fayol's principles he developed in studies during 1921-25 might have been used for bettering the management of the French state agencies and enterprises weren't followed. The reason have to be found in the institutional change of France at that time, whereby France was separating the chapel from their state in education, the growth of the general public sector, labour union and large businesses correlated with the climb of professional managers and the eye in technology development. My view is that, for ideological reason, when the French talk about was trying to reinforce itself (by establishing national system of education, nationalisation of companies (coach system, post & telecom, etc. ) but also vis- -vis the threat of Germany), Fayol's pragmatic criticism and recommendation to change the state's forms of management were not always welcome. The reinforcement of the state of hawaii own industry and the legislation of market by status agencies went well until 1986.

That is in the large part, the key reason why the French themselves did not consider Henri Fayol's work the convenient resource to cope with the management of the French's express agencies and market sectors. The US business institution considered Henri Fayol's works worthwhile teaching their undergraduates. It only because the last 10 years (around the finish of the 1990) French's scholars have been learning back their own managerial roots. Despite the background of how Fayol's ideas happen, you can ask us what is important in these to be consider foundational to management thought. In fact, there is certainly, as any traditional management thinker, a simple originality in Fayol's proposition on the need of management regarding the working of the industry.

Fayol's Originality

To a big extend, all management thinkers and professionals view the management function as the means to organise specialized function of the business enterprise toward an best monetary efficiency. In this value, Henri Fayol, Frederick Taylor or Alfred Sloan do not vary in their goal. One will discover Fayol's formulation of the role of management in the industry in a talk he provided in 1900 at the Congrs International des Mines et de la Metallurgie. Fayol makes the next remarks

The specialized and commercial services are somewhat well identified, which is false of the administrative services. Just how it is built and the attribution it fulfils aren't popular, its operations are not immediately clear. It generally does not visibly built, forge, sell or buy. . . but nevertheless, everybody understands that if it does not work well, the business runs downhill.

[Something on] recruitment: It is necessary to web page link theory and practice in engineers' education. Nonetheless it is about the proportion of every we may vary. Some think one needs to overcharge the programs as well as the lectures given in the engineering schools, other think that we have already come to the limit of theoretical teaching which one waist our elite's youngsters a couple of years that might be better used in lively life.

He also make clear in his publication, General and Industrial Management, the difference of skills and attention one must deal with engineering work and management work. Fayol drew attention to the need for schools and universities to teach people about administration as a subject of its own right (in conjunction to engineering, and not engineering exclusively). The point of his reflection on the education needs of the engineers was hoping to deal with the qualities necessary to make a good supervisor rather than relying on the formal guidelines of engineering, its aura amidst the bourgeoisie to provide good job to their kids. For example, the list of qualities needed to get effective manager is rather dissimilar to what must be an engineer together

Physical qualities: health, vigor, address (manner of behaving)

Mental qualities: ability to comprehend, judge and adapt

Moral characteristics: energy, firmness, willingness to accept responsibility, effort, tact, loyalty and dignity

General education

Special knowledge: pertaining to the functional framework of work, function, technical and so on.

Experience: understanding of work, recollection of lessons from experience.

Fayol take the need of education very seriously. He implies three main resources of issues that could trouble the good education of professionals: (a) the challenge of industrial amount, (b) the role of higher complex education and its own mistreatment of mathematics and (c) intellectual attention.

The issue of industrial concentration

Managing great business has always offered great difficulties. To get a grasp than it, suffice to glance over the various charges a CEO has to take into account. Those challenges are inherent to the type of things and have existed whatsoever time. But what didn't exist at all times was the recent industrial development and industrial amount which increased noticeably the percentage of big discounts and show having less good CEO.

The role of higher education and the abuse of mathematics

We maltreatment mathematics in the fact that more one understands it, more one can govern businesses. Also, [we are in the notion that] their study, above all else, develops and makes the judgement correct. Those are flaws which cause serious issues to your country and which appears to me useful to combat. (. . . ) A long personal experience taught me that the utilization of higher mathematics is worthless in business management, and that engineers, pitworkers or steelworkers hardly ever utilize it.

I firmly think that elementary mathematics donate to form your judgement, as all the branches of general culture. I nevertheless do not assume that an extreme higher numerical culture, imposed without need to future engineers gets the same result. The excessive culture of any kind of science is harmful to both the physic and the intellect. The studies of mathematics do not make exception. Analyzed at length with intensity, it leaves intact only the well balanced brains. One considers transcending mathematicians without good sense and we see numerous men of good sense who are not mathematicians.

Intellectual curiosity

You are not prepared to take the route of your company, even small. University did not provide you with the administration, commercial and accountancy notions you need to be a CEO. Even though school would have provided them, you will still lack practice and experience that can only be attained by the contact of men and things. (. . . ) one asks anyone to bring along your diploma, representation, logic and a soul of observation and determination to the fulfillment of your activity.

Work to complete your professional knowledge, but do not overlook general instruction. Directors uplifting high esteem and admiration never stopped, you will notice, to learn through regular effort. (. . . ) You belong to the intellectual elite, which means you should not be uninterested in information, you should be aware of the general ideas agitating society in all domains.

One sees that Fayol observed that the engineering education (such as he received using its predominance of mathematics) did not answer the challenge you are facing when coping with company and human issues. He saw in general management the field of practice and representation that was needed in the domain name where anatomist, although provide successful techniques for coping with materials, was unable to address the individual aspects. It generally does not imply that management was sort of humanism but the normal counter-part of the rationalisation associated with an organisation (private or general population) having at heart that one needs to take a special focus on the question of human being company if one wishes an industry to operate.

Fayol's Administrative Theory

As a result of his experience and of a continuing reflection on the way to make corporation work best, in situation of change, he reckons one needs to create an administrative "theory" which considers

The need of projections. It wants to establish something of yearly projections for the permanent objectives and regular monthly projections for special activities in the company appropriate the global planning. The role of projection for the non-public is to be able to examine what has been achieved as people continue working.

To attack bureaucracy by facilitating the face to face relationships, avoiding the multiplicity of hierarchies which raise the irresponsibility of the directors. Also one must stability in hierarchy and the possibility to praise or penalize the utilization of vitality.

Pragmatism must be applied in the division of labour by controlling decisions to be always well balanced with the problem.

The need to use control managers to be able to take decisions swiftly before it turns to be catastrophic.

In the overall literature in management, Fayol is often viewed as the top-down supervisor that exercised the various tools of governance to the circulation of task. In fact, his main focus had not been to formalise the tools of decision making in a straightforward chart to check out. Fayol's point was an organisation could not be monitored with a simplest view involving both function of the company and its individual components. And for that matter, it is first necessary to consider the company, not only from the duties analysis view pursuing technology request the industry, but as an integration of several key functions. Quite simply, Fayol invites us to understand at once the complexity of the management of business company by taking into account the next functions

Techniques (production, transformation), business (business and sales), money (capital management and research), security (safety of goods and people), accounting (balance sheet, inventory, manufacturer price, figures, etc) and administration (foresight, organisation, order, coordination and control).

Donald Reid (in his newspaper on Fayol called "Fayol: From Experience to Theory") make clear that Fayol, as a practitioner, did accumulate lots of industrial and managerial experience before adding his ideas on paper. He kept copious records of his observations, having a specific involvement in organisational failing and the type of responsibility and authority among key decision makers. In 1861, Fayol write in his notebook a good example of management failure. In one mine, he noticed that all work had to be discontinued because of a personal injury to an operating horse. The mine director was absent and the steady manager got no authority to get the replacement unit of the injured horse. In the case of the horse substitute, it was the inability of the business structure to cope with this technological problem that triggers inefficiency. Fayol does identify that specialist was required to overrun slim conception of decision making that didn't keep the final objective in mind. Fayol was able to overrun the lack of the stable supervisor to be able to get things done. In this case, one views that power is neither authoritative nor working with no versatility demanded by the health of the situation (the development of coal in cases like this). In his work, Standard and Industrial Management, he reviewed all areas of management involved in the running of an business. Regarding the authority, he came with a list of principles

Unity of command

Hierarchical chain of command

Separation of powers (expert, subordination, responsibility and control)

Centralisation

Order.

But he did not concentrate only on expert since his interest was about the working of the commercial business in its entirety. Since the majority of the issues he encountered were not specialized in the sense of related to engineering skill; but mainly managerial, he came to the conclusion that a person needed a certain element of creative imagination in the managerial methods in order to support industrial realities. For instance, he provided the probability of experienced personnel to be supervisors of work groupings. In producing working groups with the power to act and make decisions in the mines, it better both inspiration and effectiveness. The target was to make sure they are in charge of quality and the timing of work. He discovered that employees are involved in the supervision of the business to a greater or lesser level.

In his publication Standard and Industrial Management, he attracts a comprehensive perspective of all his experience. You can call this a "general theory". But it is clear that in Fayol's words, it is an attempt to generalise the total of experience he has seen in managing Comambault in order to provide a compendium of his ideas that can transcend industry and organisational types. One sees that in keeping the area of management large (from the decision making, the task romance as well as the selection of human resources) Fayol recognized the following ideas of management (see text 1 of the reading list)

Division of work - specialisation of labour

Authority - the right to direct the task of others but requiring commensurate responsibility for activities and performance

Discipline - obedience and respect for the company and fellow workers

Unity of command line - one "superior" somewhat than many - in contrast to F W Taylor

Unity of direction - one decided course of action leading to target and coordination of effort

Subordination of specific interest to the overall interest

Remuneration - to incentivise and make employees more valuable

Centralisation - to attain the "right" percentage of centralised and decentralised decision making to optimise personnel

Scalar chain - the chain of authority from top to bottom, allowing also for lateral communication and decision making (the" gang plank")

Order - people and resources in their appropriate place

Equity - equitable employee relations predicated on respect and kindliness

Stability of tenure of employees - to aid in resources planning

Initiative - motivating energy and zeal throughout the organisation

Esprit de Corps - building a sense of owed and team work

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