AED 4210 Organisation Theory and Management

ADMINISTRATIVE THEORY
By Dr. M. Luchembe
 Fayol’s contribution to management

At the end of this topic, students should be able to:

 Explain the 14 principles of management
developed by Fayol;

 Discuss the benefits of each of the principles of

management to modern organisations, and

 Identify weaknesses inherent in Fayol’s principles

of management in relation to modern organisations.
 Classical Theories
The two greatest exponents of classical theories were:
• Taylor F. W. (1856 – 1915) – USA (Scientific Management theory)
•  Henri Fayol (1841 – 1925) - France (Administrative theory)
 
• Both Taylor and Fayol laid the foundations of ideas about the organisation of people at
work and the organisation of work itself.
 
• By the 1930s, their work was being promoted and developed by writers such as L.F.
Urwick and Brech E. F. L. (More especially after the Second World War).
 
• Both Weber (German) and Fayol (French) made lasting contributions to the evolution of
management thought. Both sought to combine theory and practice.

• Their ideas have influenced succeeding generations of managers and scholars and, even
today, continue to significantly influence managerial thinking.
 Henri Fayol (1841-1925)

• Fayol was French. Began his working life as a

young mining engineer at the age of 19.
 
• He spent his entire working life with the same
company and rose to the position of managing
Director at the age of 47.
 
• Retired after his 77th birthday.
 
 Henri Fayol (1841-1925) cont’d.
• Under his leadership, the company grew and prospered in
spite of its near-bankrupt state when he took over.

• His work successes won him considerable fame and

popularity.

• In 1916, he published his major work on management (Title:

General and Industrial Management) thereby ensuring
himself a place in the annals of industrial history. He
developed the first comprehensive theory of management.
His major emphasis was on people (managerial).
 FAYOL’S SIX KEY ACTIVITIES IN A
FIRM/COMPANY/ORGANISATION

Fayol considered six key activities of any industrial

undertaking:

• Technical activities e.g. production of goods

• Commercial activities e.g. buying, selling and
exchanging activities
• Financial activities e.g. securing or raising and using
capital
 FAYOL’S SIX KEY ACTIVITIES IN A
FIRM/COMPANY/ORGANISATION Cont’d.

• Security activities e.g. safeguarding or protecting

property and people

• Accounting activities e.g. providing financial

information

• Managerial activities e.g. planning, organising,

coordination, control and command of people
 Fayol’s views on managerial ability

Managerial ability according to Fayol depended on certain

qualities and knowledge:
 
• Physical qualities: health, vigour etc.

• Mental qualities: ability to understand and learn,

judgement, mental vigour and adaptability

• Moral qualities: energy, firmness, willingness to accept

responsibility, initiative, loyalty, tact and dignity
 Fayol’s views on managerial ability cont’d.

• General education: general acquaintance with matters not

belonging exclusively to the function performed

• Special knowledge: that peculiar to the function, be it technical,

commercial, financial, managerial, and so on

• Experience: knowledge arising from the work proper; the

recollection of lessons a person has derived from things.

Conclusion
All supervisors and managers need some managerial training.
 The need for management theory

Fayol noted that managerial ability was essential for

organisational success.

He observed that the lack of management theory in

schools and universities made it more difficult to teach
and practice management because managers’
experiences were localised and not easily understood by
other managers or students of management.