MGMT202: Evaluating Henri Fayol's Management Contributions

This report delves into the contributions of Henri Fayol, a pivotal figure in the development of modern management theory. It begins by identifying Fayol as a key academic thinker and then explores his significant impact on the business world, particularly through his introduction of 'Fayolism.' The report outlines the five core pillars of Fayolism—planning, organizing, commanding, coordinating, and controlling—and elaborates on Fayol's 14 principles of management, such as division of work, authority and responsibility, and unity of command. It emphasizes how these principles provide a framework for effective workplace management, promoting stability and growth within organizations. The report highlights the importance of Fayol's theories in fostering employee motivation, ensuring systematic problem-solving, and establishing clear organizational structures. The report also references the impact of his work, offering key insights into how business organizations can leverage Fayol's principles to enhance their productivity and overall performance.

Individual written project on a
key management thinker

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identification of one academic thinker:.......................................................................................3
Contribution of Henri Fayol in the business world:.....................................................................4
Fayolism:......................................................................................................................................4
principles of business management:............................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Business management is one of the most common term in the world, this concept has
changed the world forever. Business management is challenging process, company need to
consider certain type of management theories provided by management thinker. The whole
business organization depend on theories and framework provided by the management thinker,
they have covered almost every area of the management (Nicotera, 2019). This report will
discuss one management thinker and its contribution to the business world. Later this report will
discuss different type of management theory and its impact over the business world. At last, this
report will discuss examples of successful business organization consider theories provided by
the management thinker.
MAIN BODY
Identification of one academic thinker:
Henri Fayol is well-known as further of business management theory, introduce Fayolism
and principles of business management. He was one of the best managing director in
Commentry-Fourchambault mining company (1900) employed over 1000 people, Fayol was best
known for his skills for management of mining company. He successfully managed mining
business for over 30 years with same theory he used to design during his job period, Henri
concluded certain type of management principles during his time, he highlighted key area where
business fail to manage their operation (Petronio and Child, 2020). Henri Fayol introduced his
first book in the year 1916, well-known as Fayolism which include five key pillars to manage a
business organization. Fayol was consider as competitor of Frederick Taylor who was well-
known for its management theory which change the business world for ever.
Henri Fayol is one of the best academic and management thinker who have provided
'Fayol's management theory', this theory is considered by almost every business organization in
the world. This may include five most important steps a company should consider, these are;
planning, organizing, command, coordination and control (de Camargo Fiorini and et.al., 2018).
These five element are key pillar of every business organization providing support to the
company's operation and dealing. It is very that management is challenging process, company
need to have proper planning and strategies to manage their operation. Henri Fayol and his
theory impacted the business world. He further introduced certain other management theory
allowing business organization to enjoy continuous growth and stability. Henri Fayol provided

the management principles which denote how company should manage their operation by
different levels.
Contribution of Henri Fayol in the business world:
Henri Fayol has provided two most important aspects in the business world, the theory of
business management and principles of managing a business. Henri introduced, the theory of
Fayolism which not only allow company to ensure effective management but this help them to
ensure continuous growth and internal stability. So, on the basis of his contribution to
contemporary management, he is now known as the father of modern management. All these
principles and its five main functions helps out companies to the great extent. These principles
serve employees and people as a guideline for decision-making as well as management actions.
It makes them able in solving any kind of problem in a systematic as well as in an easier manner.
His practical knowledge and expert management skills boost confidence of people, and they get
self-motivated by following all principles of Henri fayol. It is also known that before human
resource management, fayol wrote about ways of motivating people and some ways that are
being used nowadays include: commanding respect through values, inspiring initiatives and
making sure that people have enough time as well as training that they need to be productive and
happy at work. This contribution helps out companies in improving their productivity and
performance as well.
Fayolism:
Fayolism is theory of business management which allow business to manage their
operation on five, typically six key pillars, Henri Fayol argued that there are multiple ways to
manage business because each business organization have different product and structure. Many
business organization consider fayolism as important aspect in the process of management,
workplace depend on key element described by Henri Fayol, these are:
Planning- Planning is first function given by Henri Fayol describes that the planning is kind of
attempt that predicts future of the business and helps to examine trends that can occur in the
future (Di Fiore, 2018). Planning defines the goal and direction to achieve that goal.
Organizing- Organizing is defined as the activity that helps organization is accumulating all the
required resources to attain plan like the raw material, capital and tools. Organizing helps
company to reach that goal.

Commanding- Commanding is another element that helps organization to achieve the business
goal be optimal utilization of all the workers. This works in the favour of whole organization.
Coordinating- The aim of coordination is to ensure that all the departments work in harmony so
that the functioning organization becomes a smooth process. Good coordination facilitates better
work and it is achieved by conducting frequent meetings between organization.
Controlling- This element is designed in such a way that it ensure all the work in organization
must be directed towards the defines goals and the standards of work. Controlling checks the gap
between planned goal and achieved goal.
principles of business management:
The farther of modern business management often called Henri Fayol provided 14 core
principles to manage an workplace, he believed that these 14 principles allow business to enjoy
stable business growth and workplace healthiness, these principles are:
Division work: Henri Fayol believed that when business divide work according to the
capabilities and ability of worker then they enjoy stable workplace environment, division of
work according to the requirement is one of the most important thing in the workplace (Edwards,
2018).
Authority and responsibility: This is important area that promote motivation among employee,
Henri Fayol believed that assigning authority and responsibility promote efficiency in the
workplace allow employee to feel motivated.
Discipline: Discipline does matter when it comes to business management, Henri Fayol
believed that management depend on behaviour of employee. He said company should promote
discipline in the workplace allowing employee to work according to the requirement.
Unity of command: This simply means Henri Fayol demand company to assign boss or leader
over group of employee who command them according to the work and allow them to become
effective in the workplace, discipline also will be maintained.
Unity of direction: This is one of the most important element, leader of the company or business
need to provide clear direction to the employee allowing them to get clear vision, direction is key
element which promote healthy workplace.
Subordination: Henri Fayol believed that team working is key process to manage critical
project, he argued that subordination does matter to maintain healthiness in the workplace.
Company need to have subordination strategies to manage work of employee.

Remuneration: Remuneration simply means financial and non financial benefit to employee,
this simply means company need to promote employee's efforts to make workplace effective,
remuneration work as motivating factor impacting performance of employee.
Centralization: Henri Fayol see this as critical factor, he believed that every business
organization have different structure including hierarchical and division, he believed company
should also have centralization including both.
Scalar chain: This is another important principles in which Henri Fayol demand company to
cover every part of business organization, he stated that company should follow step by step
process, following senior management (Edwards, 2018).
Order: Company should run according to order which means every employee need to follow
order to maintain work culture, Henri Fayol demand company to have positive working
environment.
Equity: Henri Fayol want company to treat every employee in equal manner, there should not
be any kind of discrimination which impact firm's performance, Henri Fayol believed that this
factor provide internal stability.
Stability: stability is one of the most important factor which allow company to promote health
working environment, this simply means employee should feel job security in the workplace
which promote stability in the business organization.
Initiatives: This simply means company should promote initiatives this allow employee to take
initiatives to grow and development themselves, initiatives should be taken to maintain
effectiveness in the workplace.
Esprit de Crops: This is motivation factor which promote effectiveness of employee,
management should promote efforts of employee and boost their morale, here mutual
understanding does matter.

CONCLUSION
This report describes what business management is and how business management is a
challenging process. All the business management in the organization is dependent upon the
different kind of theories. The report above has discussed Henri Fayol that is a great management
thinker and how his efforts has contributed the business world. Further, the report has discussed
the different types of management theories that impact the business world.

REFERENCES
Books and journals
de Camargo Fiorini and et.al., 2018. Management theory and big data literature: From a review
to a research agenda. International Journal of Information Management, 43, pp.112-129.
Edwards, R., 2018. An elaboration of the administrative theory of the 14 principles of
management by Henri Fayol. International journal for empirical education and
research, 1(1), pp.41-51.
Edwards, R., 2018. An elaboration of the administrative theory of the 14 principles of
management by Henri Fayol. International journal for empirical education and
research, 1(1), pp.41-51.
Nicotera, A.M., 2019. Classical Management Theory. In Origins and Traditions of
Organizational Communication (pp. 89-105). Routledge.
Petronio, S. and Child, J.T., 2020. Conceptualization and operationalization: Utility of
communication privacy management theory. Current Opinion in Psychology, 31, pp.76-
82.
Di Fiore, A., 2018. Planning Doesn’t Have to Be the Enemy of Agile. Harvard Business Review.
[Online]. Available: https://hbr. org/2018/09/planning-doesnt-have-to-be-the-enemy-of-
agile [Megtekintés: 11-Dec-2019].
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