Henri Fayol: The Administrative Theory Henri Fayol developed the Administrative Theory. While Weber emphasized the principles of an ideal bureaucratic organization, Fayol concentrated on the management layer. He focused on the personal duties of a manager at a much finer level than Weber did. Fayol stated that management had five principle roles: planning, organizing, commanding, coordinating, and controlling. Planning meant anticipating the future and acting towards it.
Organization meant the development of resources, both capital and human. Commanding meant keeping the processes of the business running. Coordinating meant syncing the group’s efforts in the best possible way. Controlling meant that all the above activities were done according to appropriate rules and procedures. Fayol created 14 principles of administration to go along with these five goals. 1. Division of work: work is divided according to skill and technical expertise; each item of work be given to the employee most qualified for it 2.
Authority and responsibility: Fayol defined authority as ‘the right to give orders and the power to exact obedience. ‘ He emphasized the importance of linking authority to responsibility. 3. Discipline: obedience and behavior of respect. 4. Unity of command: an employee should receive orders from one superior only. 5. Unity of direction: only one head shall lead a group with the same objective 6. Subordination of individual interests to the general interest: an individual should give priority to the company before himself 7.
Remuneration of personnel: pay should depend on performance 8. Centralization: an element of centralization should always be present; all employees should be linked to a central authority 9. Scalar chain (line of authority): communication with another department has to go up the chain of command and then down the other department’s chain of command to the appropriate level; only in cases of emergency, can communication occur from one department to another among low level employees (gang plank) 10.
Order: there is a place for everyone, and everyone should be in his place 11. Equity: employees should be treated equally and fairly 12. Stability of tenure of personnel: employees need a period of stability in a job in order to perform their best 13. Initiative: allow employees to be creative and solve problems 14. Esprit de corps: management should not divide their own team