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ClassicalManagement Thought
Henri Fayol and Administrative Management
dr hab. Jerzy SupernatInstitute of
Administrative StudiesUniversity of Wroclaw
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Classical Management Thought
Henri Fayol (1841-1925) One of the earliest
people to write and lecture on management
issues. Sometimes referred to as the first
management thinker or the Father of Modern
Management.
dr hab. Jerzy Supernat
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Classical Management Thought
Frenchman Henri Fayol the Father of
Administrative Management was a contemporary of
American Frederick W. Taylor the Father of
Scientific Management (1856-1915). H. Fayol
initiated a theoretical analysis appropriate to
all organizations and attempted towards a
comprehensive theory of management Management
plays a very important part in the government of
undertakings of all undertak-ings, large or
small, industrial, commercial, political,
religious or any other. H. Fayol believed that
principles of effective management could be
defined and taught and that managerial
organization is as valid an area of management as
workers organization. H. Fayol's work included
defining of a body of principles, which would
enable a manager to buildup a formal structure of
the organization and to manage it in a rational
way. H. Fayol was a staunch advocate of the
universality of management concepts and
principles. The perception and analysis of
management as a separate discipline is his
original contribution to management thought.
dr hab. Jerzy Supernat
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Classical Management Thought
Administrative management focuses on the
functions and principles of management.
dr hab. Jerzy Supernat
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Classical Management Thought

H. Fayol, Administration industrielle et
générale, Bulletin de la Société de lIndustrie
Minérale, N 10, 5-164 , Paris 1916. H. Fayol,
Industrial and General Administration, trans.
J.A. Coubrough, International Management
Institute, Geneva 1930. H. Fayol, General and
Industrial Management, trans. Constance Storrs,
Sir Isaac Pitman and Sons, London 1949. H.
Fayol, Administracja przemyslowa i ogólna,przel.
Józef A. Teslar, Wydawnictwo Instytutu Nauko-wego
Organizacji i Kierownictwa, Poznan 1947 (first
edition came out in 1925).
Henri Fayol, circa 1916
dr hab. Jerzy Supernat
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Classical Management Thought

Published Istanbul, Feb. 2005
dr hab. Jerzy Supernat
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Classical Management Thought

• According to H. Fayol all activities of
  organizations or industrial undertakings can be
  divided into six groups (six functions) as
  follows
• technical (production, manufacture, adaptation)
• commercial (buying, selling, exchange)
• financial (search for and optimum use of
  capital)
• security (protection of property and persons)
• accounting (stocktaking, balance sheet, costs,
  statistics)
• managerial (planning, organization, command,
  coordi-nation, control)
• H. Fayol Be the undertaking simple or complex,
  big or small, this six groups of activities or
  essentials functions are always present.

dr hab. Jerzy Supernat
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Classical Management Thought
H. Fayol was the first to identify the specific
man-agerial function comprising five elements
(the ele-ments of management)
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• planning (prévoyance)
• organization (organisation)
• command (commandement)
• coordination (coordination)
• control (contrôle)

To continue from slide 14.
dr hab. Jerzy Supernat
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Classical Management Thought

• To forecast and plan examining the future and
  drawing up the plan of action.
• Characteristics of the good plan
• unity (making sure that the objectives of each
  part of the organization are securely welded
  together)
• continuity (using both short and long-term
  forecasting)
• flexibility (being able to adapt the plan in the
  light of changing circumstances)
• precision (attempting to accurately predict
  courses of action)

dr hab. Jerzy Supernat
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Classical Management Thought
To organize building up the structure, material
and human, of the undertaking. The task of
management is to build up an organization which
will allow the basic activities to be carried out
in an optimal manner. Central to this is a
structure in which plans are efficiently prepared
and carried out.
dr hab. Jerzy Supernat
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Classical Management Thought
To command maintaining activity among the
personnel. Fayols third element comes logically
after the first two. An organization must start
with a plan, a definition of its goals. It then
must produce an organization structure
appropriate to the achievements of those goals.
Third, the organization must be put in motion,
which is command, maintaining activity among the
personnel.
dr hab. Jerzy Supernat
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Classical Management Thought
To coordinate binding together, unifying and
harmonizing all activity and effort. Essentially
this is making sure that one departments efforts
are coincident with the efforts of other
depart-ments, and keeping all activities in
perspective with re-gard to the overall aims of
the organization.
dr hab. Jerzy Supernat
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Classical Management Thought
To control seeing that everything occurs in
con-formity with established rule and expressed
com-mand. Control is logically the final element
of management which checks that the other four
elements are in fact performing properly. To be
effective, control must operate quickly and there
must be a system of sanctions.
dr hab. Jerzy Supernat
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Classical Management Thought
H. Fayol discriminated between management and
what he described as government. Thus
management () is activity spread, like all
other activities between head and members of the
body corporate. The managerial function is quite
distinct from other five essentials functions (of
an undertaking JS). It should not be confused
with government. To govern is to conduct the
undertaking towards its objective by seeking to
derive optimum advantage from all available
resources and to assure the smooth working of the
six essential functions. Management is merely one
of the six functions whose smooth working
government has to ensure. H. Fayol appears to
be drawing a distinction between what now be
termed day to day management and stra-tegic
management government equating to the latter.
dr hab. Jerzy Supernat
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Classical Management Thought

• General principles of management according to H.
  Fayol
• Division of work
• Authority
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual interest to the
  general interest
• Remuneration
• Centralization
• Scalar chain (line of authority)
• Order
• Equity
• Stability of tenure of personnel
• Initiative
• Esprit de corps

dr hab. Jerzy Supernat
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Classical Management Thought
Division of work The object of division of work
is to produce more and better work with the same
effort. The worker always on the same part, the
manager concerned always with the same matters,
acquire an ability, sureness and accuracy which
increase their output. () It is not merely
appli-cable to technical work, but without
exception to all work involving a more or less
considerable number of people and demanding
abilities of various types (to managerial effort
also JS), and it results in specialization and
se-paration of powers. () division of work has
its limits which experience and a sense of
proportion teach us may not be exceeded.
dr hab. Jerzy Supernat
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Classical Management Thought
When it comes to getting things done, we need
fewer architects and more bricklayers. Colleen C.
Barrett
dr hab. Jerzy Supernat
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Classical Management Thought
Authority Authority is the right to give orders
and the power to exact obedience. Distinction
must be made between a managers official
authority deriving from office and personal
authority, compounded of intelligence,
experien-ce, moral worth, ability to lead, past
services, etc. In the make-up of a good head
personal authority is the indi-spensable
complement of official authority. Authority is
not to be conceived of apart from responsibility,
that is apart from sanction reward or penalty
which goes with the exercise of power.
Responsibility is a corollary of authority, it is
its natural consequence and essential
coun-terpart, and wheresoever authority is
exercised responsi-bility arises.
dr hab. Jerzy Supernat
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Classical Management Thought
You can delegate authority, but not
responsibility. Stephen W. Comiskey
dr hab. Jerzy Supernat
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Classical Management Thought
Discipline Discipline is in essence obedience,
application (diligence JS), energy, behaviour
and outward marks of respect observed in
accordance with the standing agreements between
the firm and its employees () general opinion is
deeply convinced that discipline is absolutely
essential for the smooth running of business and
that without dis-cipline no enterprise could
prosper. () It (discipline JS) is incumbent
upon managers at high levels as much as upon
humble employees, and the means of establishing
and maintaining it are 1) good superiors at all
levels, 2) agreements as clear and fair as
possible, 3) sanctions (penalties) judiciously
applied.
dr hab. Jerzy Supernat
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Classical Management Thought
No horse gets anywhere until he is harnessed. No
stream or gas drives anything until it is
confined. No Niagara is ever turned into light
and power until it is tunneled. No life ever
grows great until it is focused, dedicated,
disciplined. Harry Emerson Fosdick
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Classical Management Thought
Unity of command For any action whatsoever, an
employee should receive orders from one superior
only. Such is the rule of unity of command,
arising from general and ever-present neces-sity
and wielding an influence on the conduct of
affairs which, to may way of thinking, is at
least equal to any other principle whatsoever.
Should it be violated, author-ity is undermined,
discipline is in jeopardy, order dis-turbed and
stability threatened. () In all human
associ-ations, in industry, commerce, army, home,
State, dual command is a perpetual source of
conflicts, very grave sometimes, which have
special claim on the attention of superiors of
all ranks.
dr hab. Jerzy Supernat
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Classical Management Thought
Some men must follow, and some command, though
all are made of clay. Henry Wadsworth Longfellow
dr hab. Jerzy Supernat
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Classical Management Thought
Unity of direction This principle is expressed
as one head and one plan for a group of
activities having the same objective. It is the
condition essential to unity of action,
coordination of strength and focusing of effort.
A body with two heads is in the social as in the
animal sphere a monster, and has difficulty in
surviving. Unity of direction (one head one plan)
must not be confused with unity of command (one
employee to have orders from one superior only).
Unity of direction is provided for by sound
organization of the body corporate, unity of
command turns on the functioning of the
personnel. Unity of command cannot exist without
unity of direction, but does not flow from it.
dr hab. Jerzy Supernat
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Classical Management Thought
Play needs direction as well as work. Elbert
Hubbard
dr hab. Jerzy Supernat
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Classical Management Thought
Subordination of individual interest to the
general interest This principle calls to mind
the fact that in a business the interest of one
employee or group of employees should not prevail
over that of the concern () ignorance,
ambi-tion, selfishness, laziness, weakness, and
all human pas-sions tend to cause the general
interest to be lost sight of in favour of
individual interest and a perpetual struggle has
to be waged against them. Two interests of a
diffe-rent order, but claiming equal respect,
confront each other and means must be found to
reconcile them. That represents one of the
greatest difficulties of management. Means of
effecting it are 1) firmness and good example on
the part of superiors, 2) agreements as fair as
possi-ble, 3) constant supervision.
dr hab. Jerzy Supernat
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Classical Management Thought
The shepherd always tries to persuade the sheep
that their interests and his own are the
same. Stendhal (Marie-Henri Beyle )
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Classical Management Thought
Remuneration of personnel Remuneration of
personnel is the price of services rendered. It
should be fair and, as far as possible, afford
satisfaction both to personnel and firm (employee
and employer). () Every mode of payment likely
to make the personnel more valuable and improve
its lot in life, and also to inspire keenness on
the part of employees at all levels, should be
matter for managers constant atten-tion.
dr hab. Jerzy Supernat
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Classical Management Thought
Remuneration! O! That's the Latin word for three
farthings. William Shakespeare
farthing a former British coin worth one
quarter of an old penny
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Classical Management Thought
Centralization Like division of work,
centralization belongs to the natu-ral order ()
Centralization is not a system of manage-ment
good or bad of itself, capable of being adopted
or discarded at a whim of managers or of
circumstances it is always present to a greater
or lesser extent. The question of centralization
or decentralization is simply question of
proportion, it is a matter of finding the optimum
degree for the particular concern. () The
finding of the measure which shall give the best
overall yield that is the problem of
centralization. Everything which goes to increase
the importance of the subordinates role is
decentralization, everything which goes to reduce
it is centralization.
dr hab. Jerzy Supernat
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Classical Management Thought
The greatest advances of civilization, whether in
architecture or painting, in science and
literature, in industry or agriculture, have
never come from centralized government. Milton
Friedman
dr hab. Jerzy Supernat
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Classical Management Thought
Scalar chain The scalar chain (hierarchy) is the
chain of superiors ranging from the ultimate
authority to the lowest ranks. The line of
authority is the route followed via every link
in the chain by all communications which start
from or go to the ultimate authority. To counter
possible communication delays caused by the unity
of command principle, H. Fayol developed gang
plank approach, which allowed communications to
cross lines of authority but only if agreed to by
all parties and if superiors were kept informed
at all times.
dr hab. Jerzy Supernat
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Classical Management Thought
In a hierarchy, every employee tends to rise to
his level of incompetence. Laurence J. Peter
dr hab. Jerzy Supernat
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Classical Management Thought
Order The formula is known in the case of
material things A place for everything and
everything in its place. The formula is the same
for human order A place for everyone and
everyone in his place. () For social order to
prevail in a concern there must, in accordance
with the definition, be an appointed place for
every employee and every employee be in his
appointed place. Perfect order requires, further,
that the place be suitable for the em-ployee and
the employee for the place in English idiom
The right man in the right place. Thus
understood, social order presupposes the
successful execution of the two most difficult
managerial activities good organization and good
selection.
dr hab. Jerzy Supernat
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Classical Management Thought
What we imagine is order is merely the prevailing
form of chaos. Kerry Thornley
dr hab. Jerzy Supernat
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Classical Management Thought
Equity Why equity and not justice? Justice is
putting into execu-tion established conventions,
but conventions cannot fore-see everything, they
need to be interpreted or their in-adequacy
supplemented. For the personnel to be encour-aged
to carry out its duties with all the devotion and
loyalty of which it is capable it must be treated
with kindli-ness, and equity results from the
combination of kindli-ness and justice. Equity
excludes neither forcefulness nor sternness and
the application of it requires much good sense,
experience and good nature.
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Classical Management Thought
A good judge decides fairly, preferring equity
to strict law. Legal maxim
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Classical Management Thought
Stability of tenure of personnel Time is
required for an employee to get used to new work
and succeed in doing well, always assuming that
he possesses the requisite abilities. ()
insecurity of tenure is especially to be feared
in large concerns, where the settling in of
managers is generally a lengthy matter. Much time
is needed to get to know men and things in a
large concern in order to be in a position to
decide on a plan of action, to gain confidence in
oneself and inspire it in others. () Generally
the managerial personnel of pros-perous concerns
is stable, that of unsuccessful ones is unstable.
Instability of tenure is at one and the same time
cause and effect of bad running.
dr hab. Jerzy Supernat
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Classical Management Thought
To the extent that tenure supports academic
freedom, I support tenure. I want no person or
system to have any power, real or apparent, to
chill academic freedom. James E. Rogers
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Classical Management Thought
Initiative Thinking out a plan and ensuring its
success is one of the keenest satisfactions for
an intelligent man to experience. It is also one
of the most powerful stimulants of human
endeavour. This power of thinking out and
executing is what is called initiative, and
freedom to propose and to execute belongs, too,
each in its way, to initiative. () The manager
must be able to sacrifice some personal vanity in
order to grant this sort of satisfaction to
subordi-nates. Other things being equal,
moreover, a manager able to permit the exercise
of initiative on the part of sub-ordinates is
infinitely superior to one who cannot do so.
dr hab. Jerzy Supernat
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Classical Management Thought
If opportunity doesn't knock build a
door. Milton Berle
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Classical Management Thought
Esprit de corps Dividing enemy forces to weaken
them is clever, but dividing ones own team is a
grave sin against the busi-ness. Whether this
error results from inadequate manage-rial
capacity or imperfect grasp of things, or from
egoism which sacrifices general interest to
personal interest, it is always reprehensible
because harmful to the business. There is no
merit in sowing dissension among subordi-nates
any beginner can do it. On the contrary, real
talent is needed to coordinate effort, encourage
keenness, use each mans abilities, and reward
each ones merit without arousing possible
jealousies and disturbing harmonious relations.
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Classical Management Thought
The Three Musketeers
One for all, and all for one. / Unus pro omnibus,
omnes pro uno.
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Classical Management Thought

• Fayols general principles of management in a
  nutshell
• Division of work specialization allows the
  individual to build up expertise and thereby be
  more productive.
• Authority the right to issue commands, along
  with which must go the equivalent responsi-bility
  for its exercise.
• Discipline which is two-sided, for employees
  only obey orders if management play their part by
  providing good leadership.
• Unity of command each worker should receive
  orders from only one superior with no other
  conflicting lines of command.
• Unity of direction people engaged in the same
  kind of activities must have the same ob-jectives
  in a single plan.
• Subordination of individual interests to the
  general interest management must see that the
  goals of the firm are always paramount.
• Remuneration payment is an important motivator
  although there is no such thing as a perfect
  system.
• Centralization whether an organization should
  be centralized or decentralized depends upon such
  factors as the condition of the business and the
  quality of its personnel.
• Scalar chain a hierarchy is necessary for unity
  of direction but lateral communication is also
  fundamental as long as superiors know that such
  communication takes place.
• Order both material order and social order are
  necessary.
• Equity in running an organization, a
  combination of kindliness and justice is needed
  in treating employees if equity is to be
  achieved.
• Stability of tenure of personnel turnover is
  disruptive shared experience is important.
• Initiative allowing all personnel to show their
  initiative in some way is a source of strength
  for the organization even though it may well
  involve a sacrifice of personal vanity on the
  part of many managers.
• Esprit de corps there is a need for harmony and
  unity within the organization.

dr hab. Jerzy Supernat
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Classical Management Thought
Henri Fayol
dr hab. Jerzy Supernat