Henry Fayol's Principal of management

Fayol was a key figure in the turn-of-the-century Classical School of management theory. He saw a manager's job as:

1. Planning

2. Organizing

3. Commanding

4. Coordinating activities

5. Controlling performance

Most of his theory is very task-oriented, rather than people-oriented.

Fayol laid down the following principles of organization (he called them principles of management):

· Specialization of labor: Specializing encourages continuous improvement in skills and the development of improvements in methods.

· Authority. The right to give orders and the power to exact obedience.

· Unity of direction: A single mind generates a single plan and all play their part in that plan.

· Subordination of Individual Interests: When at work, only work things should be pursued or thought about.

· Centralization: Consolidation of management functions. Decisions are made from the top.

· Scalar Chain (line of authority): Formal chain of command running from top to bottom of the organization eg like military

· Order: All materials and personnel have a prescribed place, and they must remain there.

· Personnel Tenure: Limited turnover of personnel. Lifetime employment for good workers.

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