Henri Fayol, Theory of Administration A. American early focus is worker productivity; in France, the focus is organization and its administration by engineer Henri Fayol, director of Comambault, the French mining company. B. 1918, Industrial and General Administration – translated into English in 1930’s to impact US management in organization theory C. “Fourteen principles” of organization identified general rules that successful organizations ought to follow: 1.
Division of work – work and tasks should be perform by people specialized in the work and similar tasks should be organized as a unit or department. 2. Authority – delegated persons ought to have the right to give orders and expect that they be followed. 3. Discipline – workers should be obedient and respectful of the organization 4. Unity of command – employees should receive orders from only one person with authority 5. Unity of direction – the organization and employees are dedicated to one plan of action or set of objectives. . Subordination of individual interests to the general interest – organizational conflict should be limited by the dominance of one objective. 7. Remuneration – although Fayol provides no guidance on pay, the organization must recognize the economic value of employees and that their economic interests are important. 8. Centralization – whether an organization should be centralized or decentralized depends upon such factors as communications and the importance of who should make the decision. 9.
Scalar chain – authority in an organization moves in a continuous chain of command from top to bottom. 10. Order – everything, people and resources, has a place that it belongs. 11. Equity – fairness is important in management-employee relations 12. Stability of tenure of personnel – turnover is disruptive; shared experience is important 13. Initiative – Workers are exhorted to be productive and motivated. 14. Esprit de corps – there is a need for harmony and unity within the organization