Exploring the Use of Henry Fayol's Management Functions in Business

This essay explores the enduring relevance of Henry Fayol's management functions—planning, organizing, commanding, coordinating, and controlling—in contemporary business. It examines whether modern managers still utilize these principles, initially introduced in the 20th century, amidst evolving business environments and alternative management approaches. The essay contrasts Fayol's traditional functions with modern managerial roles, including interpersonal, informational, and decisional categories. It highlights that while modern managers have adapted and integrated new skills such as coaching, motivating, and team building, the core functions outlined by Fayol remain foundational in developing strategic blueprints and achieving organizational goals. The analysis concludes that Fayol's principles, though adapted, continue to significantly influence management practices, emphasizing the importance of both management and leadership in achieving business success.

Running Head: Management functions
The real world of Management

“Do managers use Henry Fayol’s management functions in business these days”.
Henry Fayol was one of great management thinkers in 20th Century. He wrote a book as “General
and Industrial Management”. This book was the most influential management book of the 20th
century. Book describes major functions, activities, objectives and qualities management. Along
with this, the book also discusses regarding the principles of management. Henry Fayol used to
support management education through he gained several critics as well as several followers who
respect and admire him as well (Fayol, 2016).
Under this assessment, the significance of Henry Fayol's functions practiced by managers and
leaders will be discussed. Yet these functions were introduced in the 20th century but before
starting any task, every manager uses these functions so that the project could be accomplished
in an effective manner. Apart from this, assessment will also conclude the significance of
management functions introduced by Henry Fayol in contemporary business environment
(Chang, 2016).
Henry Fayol identified primarily five functions of management which later on turned into six
functions. These functions are:
 Planning & Forecasting
 Organising
 Commanding
 Co-ordinating
 Controlling (Laudon & Laudon, 2016).
Planning: This is the foremost function of a manager and it is performed just before initiating a
new project. Under this step, all further steps are assumed in relation to the attainment of desired
goals. According to Henry Fayol, drawing up an effective plan of action is the toughest and
hardest amongst all the five functions of a manager. Under this step, manager should involve
every member of the organization in relation to sharing their views so that the most appropriate
decision could be taken. Planning should be done with respect to the time so that it could be
worthwhile and should be linked and coordinates with further functions (Kerzner & Kerzner,
2017). In the planning process, managers are required to develop plans on the basis of available
resources with the organization.

Organising: Effective results could only be attained when planning and related functions are
well-organised. In relation to this, capital, staff, raw materials and all other resources should be
managed in an appropriate manner so that the further actions could be executed in a significant
manner. Under this step, organizational structure also plays vital role because division of tasks
and functions have a relatively crucial impact on organizational performance. With the increase
in number of functions, organization expands from both manners i.e. horizontally as well as
vertically. Thus, it is important for a manager to execute organising in an effective manner with
the objective of attainment of desired goals and objectives (Schraeder, et. al., 2015).
Commanding: In this step, managers and leaders need to give clear orders to its employees and
subordinates so that they could know what exactly they are required to do. This would help the
managers to get the work done from them as per their requirements. In this context, it is
necessary for managers to show confidence over its employees. Managers could perform this
duty in an effective manner only when the task distribution is done in fair manner. Apart from
this, it is the duty of managers to direct and command the employees so that the work could be
done as per the expectations. Motivating teammates and encouraging them towards work is
another crucial task for the managers (Stamenova & Levine, 2018).
Coordinating: When all functions of an organization are well managed, then organizational
performance could be enhanced. Managers are responsible to develop coordination amongst the
teammates as well as amongst the departments. This is the main concept in relation to improving
organizational performance as well as productivity (Edward, 2017). In relation to the
development of coordination amongst the teammates, managers could organise team building
exercises, interactive sessions, etc. Apart from this, managers need to create an effective
platform through which employees could easily communicate with each other. With addition to
building coordination amongst the organization, it is also necessary for the managers to develop
an effective workplace environment so that the employees could feel safe and secure. This will
help the organization to attain its desired goals and objectives (Weske, 2012).
Controlling: As this is the last step of management functions but this is not the least one. Under
this step, managers could evaluate the performance of above functions and could analyse that
everything is going as per the planning process or not. In relation with this, control is
implemented in the organization in four-step process:

 Establish performance standards based on organizational objectives
 Measure and report on actual performance
 Compare results with expectations and set up performance standards
 Take corrective or preventive measures as needed to improve performance (Peaucelle,
2015).
Apart from these five functions of Henry Fayol, the sixth function by him is mostly managerial.
It includes activities such as planning, organising, commanding, coordination and controlling.
Ultimately, the sixth function as the mixture of overall five functions (Wood & Wood, 2002).
Basic functions which a manager executes in these days in business context are similar to the
Henry Fayol's management function which was introduced in the 20th Century. From this, it
could be evaluated that those management functions plays vital role in business context. These
functions are executed by all managers at every level but the amount of time which a manager
spends on one function is totally depended upon the situation and the structure of organization.
For example: if a multinational corporation is planning to expand its business in other parts of
the globe where they are not present yet. In this context, it can be evaluated that various
managers from the top level to middle-level management will execute these functions various
times before setting up the business in the target market. This is because it is obvious that if a
multinational corporation is expanding its business in the international market, a big investment
will be required along with talented, qualified as well as experienced candidates and various
other resources (Shafritz, Ott & Jang, 2015). In order to control and manage these resources with
the objective of successful expansion of the business in international market, execution of Henry
Fayol’s management functions by managers and leaders at every situation is must and important.
In relation to this, various authors and philosophers argue that in contemporary business
environment, managers do not execute management functions introduced by Henry Fayol.
Modern managers follow following set of functions before starting a project:
 Planning
 Organizing
 Staffing
 Leading

 Controlling
Apart from these functions, there are numerous functions which a manager is required to execute
in order to attain desired goals and objectives with regards to the organizational expectations. A
manager does not focus on these management functions, he also requires executing various other
functions such as guiding teammates, cheering, coaching, issue resolving and a decision maker.
Until and unless, a manager and a leader will not think about his teammates, accomplishment of
the organizational goals is bit difficult task. Team leaders and managers have adopted the
strategy under which they take their teammates along with themselves in order to build
confidence amongst them, encouraging team building exercises, etc. This proves that with the
changing business environment, management functions are being updated but traditional
management functions introduced by Henry Fayol in the 20th Century are still effective and
practiced by every manager before initiating a project (Guthrie, 2017).
According to various business experts, managers’ roles fall into three categories which are
interpersonal, informational and decisional. Under these three categories, ten roles for a manager
are described as per contemporary business environment. Following are these roles:
Informational:
 Monitor: Gain information from every stakeholder along with maintaining personal
contact with them.
 Disseminator: Converts gained information into reports, memos, etc. and forward it to
further organizational members (Yashkova, et. al., 2016).
 Spokesperson: Information is forwarded to outsiders through reports, memos, etc.
Interpersonal:
 Figurehead: Perform only ceremonial and symbolic duties such as signing documents and
greeting visitors.
 Leader: Motivates and directs subordinates
 Liaison: develops link between outsiders and inside the organization through meetings,
phone calls, etc.
Decisional:

 Entrepreneur: Generates new ideas to accomplish project
 Disturbance Handler: Resolve conflict, disputes, and related situations
 Resource Allocator: Collect resources and allocate them to the subordinates and different
departments with the motive of gaining desired goals.
 Negotiator: Represent departments.
Thus, it could be evaluated that there is not much difference amongst the traditional managerial
functions introduced by Henry Fayol and the functions of contemporary business environment.
Fayol has also introduced 14 administrative principles which are also executed by managers to
administrate and control their actions. It is very crucial for an organization to work as per the
organizational structure, policies, and standards (Wheelen & Hunger, 2011). First and last
function i.e. planning and controlling are effective and useful for every manager. Thus, there is
not much discussion carried about these two functions in comparison to other functions.
Organising is another crucial function and it is quite similar to the planning which forecasts
future of an organization (Moran, Abramson & Moran, 2014).
There are numerous theories related with the management functions and amongst them, one of
the theories was introduced by Henry Fayol and this was probably the first theory in relation to
the management functions. Further, other researchers have developed their theories by evaluating
the weaknesses of Henry Fayol’s theory, thus, all these theories are inspired by Henry Fayol’s
theory for management functions. Irrespective of the nature of business, every organization is
required to implement managerial functions and amongst all theories, the most innovative and
effective theory was introduced by Henry Fayol in 20th Century.
It has been reviewed and researched by various business experts that everyone cannot be a
manager or a leader. Skills are required such as convincing, coordinating, and leading, etc. along
with high patience, ability to manage a group of individuals, etc. are required for being a
manager or a leader. With the help of these attributes, they could develop confidence amongst
the teammates and other employees so that they could be more productive. Modern workplace
has traditional workplace has various differences and in relation to this, managers and leaders
have also adopted advanced measures and updated their skills to enhance organizational
performance. Due to emerging challenges, managers and leaders are being more creative and
innovative and in modern business environment, only that manager or a leader could attain

positive results that are flexible and have the ability to invent new ways to overcome from
challenges and issues. In relation to this, it can be evaluated that in modern business environment
also, Henry Fayol's management functions are executed but the major difference has been
occurred is that managers in modern days are more flexible and adaptable, they do not afraid to
change and from adaptation of new methods to improve organizational performance (Crane &
Matten, 2016). Modern day business experts and managers are more collaborative and mindful.
In this context they believe in inspiring its team to gain desired goals through new ways and for
inventing new ways, organization provide them sufficient resources and measures through which
employees could think out of the box in relevance with accomplishing goals and objectives.
Apart from these approaches, modern day managers still use Henry Fayol’s managerial functions
in order to develop a blueprint in order to accomplish the project.
From the aforesaid information, it can be concluded that management and leadership both are
crucial aspects of a business. Both acts as the two sides of a coin and both have equal
significance in organizational context. But the fact cannot be denied that a manager cannot be a
leader but a leader can be a manager. There is a slight difference between a manager and a
leader. Whereas managers follow Henry Fayol’s management functions, leaders use to polish
their own skills and leadership style to develop coordination and interaction amongst its
teammates with the objective of accomplishment of desired goals and objectives. Thus, it could
be said that in modern day business also, managers use Henry Fayol's traditional managerial
approach with the objective to gain positive outcomes.

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