Henri Fayol

Henri Fayol (1841-1925) was a French neoclassical economic theoretician whose theories in scientific organisation of labour were widely influential in the beginning of 20th century. 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, directing, and controlling, although his version was a bit different: plan, organize, command, coordinate, control and response. He believed that the number of management principles that might help improve an organization's operation is potentially limitless.

Henri Fayol wrote down his concepts of administration, based largely on his own management experience. These 14 principles of management were discussed in detail in his book published in 1916; Administration Industrielle et General (General and Industrial Management)

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.
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. Scalar Chain (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.