Henri Fayol

Henri Fayol (1841 - 1925)


He born in Paris in 1841. He has worked in Commentary Fourchambault Coal Company from 1860 to 1918. He promoted and became head manager in 1888. Just before he became head manager, company was almost bankrupted. However in Fayol's management, company made big rushes. He announced his ideas to world with his article 'Administration Industrielle et Générale' in 1916. He had been continuing his study on management in 'Centre de l'Admisitration Scientific' before his death.

Executive Theory

Taylor's study on scientific management was limited to employees. Taylor saw that this system could be applied to upper degrees,too. But he did not make any special study on upper management.

According to Fayol , there has to be six different functions in a business:

1. Technical Functions
2. Commercial Functions
3. Financial Functions
4. Security Functions
5. Accounting Functions
6. Management Functions

Fayol dwelled upon the management functions and positted that there are five processes of management, basically.

Fayol's Ideas About Management Functions

-Planning

Planning was very important for Fayol. He thought the word "management" means prevision. Remembering about resources, possible problems in the future was vitally important while doing a plan.

-Organizing

Fayol suggests that there should not be more than six degrees of employees under the direction of a manager. Fayol also says it is useful for a organization diagram to show the ways of communication, to avoid coincidences between departments and show responsibilities of workers clearly.

-Implementation

Implementation function has to be used by the directors in a way which helps business to increase it's profit according to Fayol.

-Coordination

Fayol described a business which satisfied good coordination like that: All departments know about what the other departments had done. Sourcing Department knows what and when to buy, Production Department knows how much to generate, Financial Department knows when it must find money.

-Control

The purpose of the Control Function is to find inaccuracies and be sure about it to not to be made again.