Administrative Management Theory School - Henri Fayol

Fayol's Administrative Management Theory

According to the Administrative Management Theory / School, management is the process of getting things done through people. Here importance is given to groups and not to individuals.

The first expert of Administrative Management Theory was Henri Fayol (1841-1925). Fayol is called the "Father of Modern Management". Henri Fayol was a French industrialist and a management consultant. He started the functional approach to management.

The other management experts who contributed to the Administrative Management schools are Mary Parker Follett, Luther Gulick, Lyndall Urwick, James Mooney, Alan Reiley, Oliver Sheldon, Ernest Dale, etc.

Henri Fayol in his book titled "Industrial and General Administration" published in 1916, gave following 14 principles of management :-

1. Division of Work,
2. Discipline,
3. Authority and responsibility,
4. Subordination of Individual Interest to General Interest,
5. Remuneration,
6. Centralisation,
7. Order,
8. Equity,
9. Initiative,
10. Esprit De Corps,
11. Stability of Tenure,
12. Unity of Direction,
13. Scalar Chain, and
14. Unity of Command.

Henri Fayol also classified (divided) the business activities into :-

1. Technical,
2. Commercial,
3. Financial,
4. Accounting,
5. Security, and
6. Managerial Activities.

According to Henri Fayol, there are five functions of management, viz.,

1. Planning,
2. Organising,
3. Commanding (Directing),
4. Coordinating, and
5. Controlling.

According to Fayol, a manager requires the following qualities and skills :-

1. Physical Qualities,
2. Mental qualities,
3. Moral qualities,
4. General education,
5. Special knowledge, and
6. Work Experience

Criticism of Administrative Management Theory

Henri Fayol's management principles and functions are used even today for managing the organisations. However, his Administrative Management Theory is criticised on the following grounds :-

1. Management Oriented Theory : The administrative management theory is management oriented. It does not give much attention to the problems of the workers.
2. Lack of Importance to Informal Organisation : The administrative management theory does not give any importance to informal organisation or groups. It gives importance only to the formal organisation structure.
3. Concepts Borrowed From Military Science : Some of the concepts of administrative management theory were borrowed from military science. They tried to apply these concepts to the social and business organisations. For e.g. Henri Fayol gave importance to "commanding" and not "directing" the workers.
4. Mechanical Approach : The administrative management theory has a mechanical approach. It does not deal with some of the important aspects of management such as motivation, communication and leading.