Henri Fayol Management Principals Through Experience Essay Example

on a military assignment. Fayol's father worked as an architectural engineer and the family had modest means. Fayol received his education in a missionary school located in La Voulte, France. It is believed that this education played a significant role in shaping his character development. After completing his education at the missionary school, Fayol enrolled at the Lycee at Lyon as a preparation for his future education at the National School of Mines in St.

Etienne, “where he graduated as a qualified mining engineer” (Breeze, 1985, p. 45). In 1875, Fayol married Adelade Celeste Marie Saule; the couple had three children, Marie, Madeleine, and Henri Joseph. Despite its humble beginnings, Fayol's family had connections to influential individuals within and outside the mining industry, including graduates from the Saint-Etienne Mining School (Sasaki, 1995). This era marked the beginning of scientific advancements in French society and industry in the late nineteenth and early twentieth century.

During this period, scientific theory influenced various fields such as medicine, management, urban planning, and education. In essence, the scientific method was seen as the solution to every problem. These prevailing influences of the time greatly shaped Henri Fayol's life and his work in management. Fayol heavily incorporated the scientific method's principles of observation, examination, and implementation into his work. Concurrently, significant changes were occurring in France, starting with the separation of church and state within the country's educational system.

In a similar vein, the French industry of that era underwent significant changes. The dominance of a strong state was gradually being replaced by a powerful industrial sector. Mergers and acquisitions expanded across different regions, resulting in the emergence of major players

in specific industries. These influential industries also gave rise to increasingly influential trade unions. Despite a slowdown in company earnings, the cost of living remained relatively stable, enabling a moderate level of economic prosperity.

According to Fayol, in a time of changing industrial, political, and social dynamics, it was important to have a solid administrative regime for stability. However, he also recognized that certain authoritarian practices of the past were no longer needed due to the emergence of unionism. Thus, Fayol implemented worker-friendly policies, aligning his actions with his beliefs and adapting to the new power structures.

In the French mining industry, the prevailing concept was the "company controlled town," where businesses monitored church attendance and set up "company stores" in established areas. However, Fayol made policy changes that eliminated these practices. His company would no longer interfere with church attendance or establish new stores where existing businesses already served local needs. These changes were significant as they marked a departure from business control over all aspects of employee life, whether personal or professional (Reid, 1995).

Henri Fayol started his professional journey as a mining engineer at the age of 19 years old, working for the Commentry Mine of Boigues Rambourg and Company in 1860. During his employment, the most pressing managerial issue faced by the Commentry Mine was the occurrence of mine fires and ground subsidence at the Commentry and Motivicq Pits. With his engineering role, Fayol was tasked with addressing these fire-related challenges.

According to Henri’s son, Henri Junior (as cited in Breeze, 1985), Fayol's initial task was to address fires in the mines. Fayol's technical expertise and scientific approach to

observation and experimentation significantly advanced firefighting within the mines, enabling the prevention and eventual recovery of the mines from such fires. Besides fire control, Fayol also conducted research on mine shaft design, workface safety, rock formations' impact on production, and the geological structure of the Commentry region (Breeze, 1985). Fayol's success in various technical aspects of mineral engineering, coupled with the previous manager's untimely death, led to his promotion as mine manager in 1866, six years after his initial encounter with mine fires.

In 1888, Fayol was promoted to the position of managing director of the Society de Commentry-Forchambault, which managed a conglomerate of mines including Fayol’s Commentry mine. Fayol was tasked with conducting a study of the operation in preparation for selling off the remaining assets and liquidating the company, which was close to bankruptcy. During this time, Fayol kept a diary where he recorded his experiences as a young engineer and mine manager. These experiences became the foundation for his administrative theory, which he later implemented company-wide. Fayol's study resulted in a proposal to revive the profitability of the company instead of selling it, based on the management principles he had observed and developed during his time at Commentry.

The board unanimously agreed, resulting in the restoration of profitability and the subsequent undertaking of expansion, ultimately leading to the successful turnaround of the company's fortunes. According to Fayol, this turnaround was achieved by implementing his management principles: "By simply adopting a new approach to running the company, we witnessed a rise in performance that was comparable to our earlier decline, despite having the same mines, mills, financial resources, markets, Board of Directors, and

personnel" (as cited in Wren, 2001, p. 75). However, some scholars (Wren, 2001; Breeze, 1985) attribute the reversal of fortunes for the Society de Commentry-Forchambault not only to the shift in economic trends but also to Fayol's extensive knowledge of mining and general business acumen. For instance, Wren (2001) points out that Fayol successfully acquired other mines and plants, implemented changes in purchasing and selling practices while placing greater emphasis on them, as well as delegated metallurgical research to individuals with more expertise, leading to technological advancements within the industry.

Upon retiring from the mining industry, Fayol dedicated the rest of his life to advocating for his theory of administration (Fells, 2000, p. 345). This advocacy involved conducting various studies on management in the public service sector. One such study, conducted in 1919-1920, focused on the French Postal Service, while another study examined the tobacco and match monopoly. In both cases, Fayol advocated for the adoption of management practices he had developed during his time in the iron and steel industry.

Unfortunately, Breeze (1995) points out that Henri Fayol lacked an understanding of the political realities associated with implementing significant changes in the public sector. Consequently, he encountered frustration in his efforts to promote and bring about positive changes during his lifetime. Fayol, who had extensive experience as a mining engineer and later as a manager in the mining industry, formulated his theories and ideas on management. His contributions can be categorized into four main aspects: 1. Definition of Management 2. Management Processes 3. Principles of Management 4. Management Tools. In terms of defining management, Fayol (1949) identifies six activities: Technical activities relating to production,

manufacturing, and adaptation to specific situations; however, he acknowledges that technical function may not always take precedence.

According to Fayol (1949, p. 3), even in industrial undertakings, there are circumstances where one of the other functions may have a much greater influence. Commercial activities involve the buying of raw materials (New Straits Times, 1998) and selling products, including pricing issues. Financial activities encompass acquiring and using capital, which Fayol (1949, p. 4) emphasizes is always necessary. Security activities focus on safeguarding both property and employees from harm or loss. Accounting activities involve keeping an up-to-date financial record of the company's assets and being able to forecast future trends, which include stock taking, balance sheets, costs, and statistics (Crainer, 1998, p. 102). Fayol also discusses managerial activities separately. According to him, management activities can be broken down into five processes: forecasting and planning involve examining the future and creating a plan of action for the organization to achieve desired outcomes by determining the steps and methods it will take (Wren, 2001).

To organize, building up the structure, material, and human resources of the undertaking.

To command, maintaining activity directed at achieving the goals of the organization by the personnel. Fayol included "selection, evaluation, and training" of personnel as essential components of command (Wren, 2001).

To coordinate, binding together, unifying, and harmonizing all activity and effort toward the end goals of the company.

To control, seeing that everything occurs in conformity with established rules and expressed command. Principles of Management Fayol (1949, p. 9) purported that, "The soundness and good working order of the corporate body depend on a certain number of

conditions termed indiscriminately principles..."

While Fayol listed 14 such principles, he was quick to admit that the list was certainly not rigid, and could be expanded or diminished depending on the circumstances. Fayol's principles included:

Division of work, creating specialization among workers so that individuals and groups of employees could focus their attention on a limited number of tasks, thereby creating expertise.

Increased efficiency and productivity are the results of this. According to Fayol, there are limits to the division of work that should not be exceeded (Fayol, 1949, p. 20). Authority involves issuing commands and expecting compliance while taking on responsibility. Managers must assume responsibility when exercising authority (New Straits Times, 1998). The more authority given, the greater the responsibility. Fayol identifies two sources of authority: positional and personal. Discipline is a dual issue where employees must follow rules and orders from their superiors, and superiors must be effective leaders with clear agreements on rules, behaviors, practices, and appropriate punishments for implementation. When either side fails, discipline suffers. Wren emphasizes that "the value of these rules depends on the leaders' tact, skill, and conduct" (Wren, 2002,p.914). Unity of command states that employees should only receive orders from one supervisor.

The proverb "No one can serve two masters at the same time" is applicable in this context. According to Fayol, if this principle is violated, it will result in "confusion and despondency amongst the employees and conflict between supervisors and their superiors" (as cited in Wren, Bedeian, &Breeze, 2002). The principle of unity of direction states that all employees within an organization should be working towards the same objectives under the guidance of a

single manager and plan. This promotes coordination among activities that complement each other instead of conflicting. The principle of subordination of individual interest to general interest emphasizes that the goals, needs, and objectives of the organization should take priority over those of individual or group employees. Rodriguez (2001) explains that it is important to hire employees who share in the organization's goals and objectives. Fayol also points out that ignorance, ambition, selfishness, laziness, weakness, and other human passions often cause individuals to lose sight of the general interest in favor of their own interests (Fayol, 1949 p.6). In his book "General and Industrial Management," Fayol extensively addresses the principle of remuneration for personnel. He argues that payment for work done must be fair for both the company and individuals while also providing sufficient motivation (Rodriguez, 2001).

When determining a fair wage, the first aspect to take into account is the external circumstances that are outside of the organization's control. This includes considering factors such as the cost of living, the size of the workforce, and the business and economic conditions of the organization.

Next, a mode of payment must be decided upon. According to Fayol, there are three options: time rates, job rates, and piece rates. Time rates involve payment based on the amount of time spent. Job rates involve payment based on the completion of a specific job, regardless of the time it takes. Piece rates are similar to job rates, but payment is determined by the weight, length, or capacity of a product and is based on the amount produced. Fayol argues that each method has its disadvantages.

In conclusion, Fayol examines additional methods

of payment such as bonuses and profit sharing, which have the potential to motivate workers at all levels of the company, including the top management. Additionally, he mentions non-financial incentives like heating, lighting, food, and housing, which may not have monetary value for employees but contribute to their satisfaction and consequently enhance their performance. The degree of centralization in a business, which is determined by its condition and type, determines the level of authority delegated to workers.

According to Fayol, excessive centralization or decentralization can result in inefficiency. He believed that managers should maintain ultimate responsibility while granting subordinates enough authority to perform their duties effectively (New Straits Times, 1998). Additionally, communication within an organization should follow the established chain of command or hierarchical structure.

This flow of communication allows all those in need of information to be kept informed, thus enabling them to make informed decisions and coordinate their actions. According to Fayol, there are exceptions to this flow, such as situations where following the chain of command would be slow and detrimental to the organization's current operations. In these cases, lateral communication may be permitted, as long as superiors are informed and approve of bypassing the chain. The principle of order applies to both materials and personnel and aligns with the adage.