Public Administration: Administrative Thought Henri Fayol

Public
Administration

Administrative thought
Henri Fayol
Introduction
• Henri Fayol was born in Constantinople, Istanbul, Turkey in 1841.

• Educated in France. At the age of 19 he started his career as engineer.
• He worked as an engineer in a mining company. By 1888, he had raised to
the position of managing director of the company. He was one of the
successful managing directors under whom the company achieved great
financial success.
● Based on his experience he wrote a book "General and Industrial
Management" (1916)
● His papers on 'the theory of administration in the state' (1923) is considered
as a major contribution to the theory of public administration.
● Fayol:- Founder of Managerial Approach.
Although scientific management was for long considered an American
invention and rooted in the writing of Taylor, Fayal's writing in fact precede
those of Taylor.
Importance of Fayol's ideas was discovered outside Europe only after the
translation of his works into English.
Administration & Management
• Fayol's work was translated into English by Constance

Storrs.
• French Title :- Administration and Industrielle et Generale
• English Title:- General and Industrial Management
• This created confusion as well as disagreement among
scholars.
• Brodie:- If one has to go by Storrs' translation, one
cannot avoid the feeling that Fayol was mostly
concerned with industrial management, which would
be a mistake. The better & correct term would have
been 'business & General Administration"

Universal Administrative theory
A widespread tendency in western country was to

draw a distinction between management (Activity
confined to industrial undertaking) & public
Administration (Conducting governmental activities)
Fayol believed that such distinction is false and
misleading. To him, distinction based on purpose of
activity is untenable.
The totality of activities of an industrial
undertaking is divided into 6 groups:-
1) Technical Activities:- production, manufacture, adaptation.

2) Commercial activities:- Buying, selling and exchange
3) Financial activities:- search for and optimum use of capital
4) Security activities:- protection of property & Persons

5) Accounting activities:- stock-taking, balance sheets, costs and
statistics.
6) Managerial activities:- management as a function, a kind of
activities. Element of this activity includes; planning,
organisation, command, coordination and control.
Management was not being taught and was not part of the
curriculum. This was because of absence of theory. His "general
and industrial management" is an attempt to fill this gap.
Elements of Management
1. Planning:- Fayol used the French term 'Prevoyance" (to foresee).

The plan should have the characteristics of unity, continuity,
flexibility & precision.
2. Organization:- this is needed to create a structure of duties &
functions for the attainment of the objective.
3. Command:- needed for setting the human organization in motion
to achieve the objective of the broader organization.
4. Coordination:- it consists of working together and harmonizing all
activities and efforts so as to facilitate the working of the
organization.
5. Control:- to ensure everything occurs in conformity with
established rules & expressed commands.
Attributes of Manager
• Fayol suggest that managers should have the following

attributes
1. Physical: Health, vigour and appearance
2. Mental: ability to understand and learn, Judgment, mental

vigour and adaptability
3. Moral: Firmness and willingness to accept responsibility
-
4. General education: General acquaintance with matters not

-
belonging exclusively to function performed
5. Special knowledge: of function being handled
6. Experience: knowledge arising from the work proper.

-
Principles of Administration
• Fayol States that the principles of administration are not rigid.

They must be capable of adaptation to various enterprise and
setting. He derives 14 principles
1) Division of work:- more & better work with same effort
2) Authority & Responsibility:- authority should be
commensurate with responsibilities.
3) Discipline:- obedience should be observed
4) Unity of command:- for any action, an employee should have
only one boss
5) Unity of direction:- one head and one plan for each activity.
6) Subordination of individual interest to general interest:-
interest of one employee or group should not prevail over that of
the total organization.
7) Remuneration:- remuneration should be fair and afford
satisfaction to both personnel and firm.

8. Centralization:- the degree of initiative left to the managers
varies depending upon top managers, subordinated and business
condition.
9. Scalar chain (Hierarchy):- the line of authority of superiors
ranging from the ultimate authority to the lowest ranks.
10.Order (Placement):- once the basic job structure has been
devised and the personnel to fill the various slots have been
selected, each employee occupies that job.
11.Equity:- to motivation personnel to fulfill their duties with
devotion & loyalty there must be equity based on kindness &
justice in employer- employee relations.
12.Stability of tenure:- suitable condition should be created to
minimise turnover of employees.
13.Initiative:- the ability to think afresh would act as a powerful
motivator of human behaviour
14.Esprit de corps:- Harmony, union among the personnel of an
organization is a source of great strength in organization.
Need for administrative training
 Fayol is a pioneer in suggesting the need for systematic training

in administration.
 He suggests that training is a continuous process, starting from

the school and covering in-service training of the employees
within the organization.
 He considers every superior officer in an organization as a

teacher to his immediate subordinates.

Gangplank
• It refers to the need for "level jumping" in a hierarchical
organization.
• Although he places emphasis on formal organization, he is
alive to the dangers of conformity to hierarchy and
formalism.
• 'it is an error to depart needlessly from the line of
authority, but it is even greater one to keep it when
detrimental to the business.
• While suggesting "Gangplank", Fayol is rather cautious. He
feels that it may be less relevant to govt. agencies in
which the lines of authority are less clear, than in private
organization.
Fayol vs. Taylor
Fayol Taylor
• He concentrated on the top level i.e. • He concentrated on the operative
managerial activities and shop floor level
• He worked from top to bottom theory • He worked from bottom to top level
• He emphasised on the function of • He emphasised on the efficiency of
management as a whole and principle workers & managers in actual
involved therein production
• he focused on improving overall • He focused on increasing productivity
administration by observing certain through work simplification and
principles. standardization
• His approach was flexible • His approach was relatively rigid.
• He advocated "unity of command. • He advocated "functional
• He provided systematic theory of foremanship'
administration • He approved a science of industrial
management
Taylor & Fayol
(Similarities)
• Both had a common objective efficiency & economy
• Both stressed on practical aspect
• Both believed in concept of "economic man"
• Both believed that managerial qualities can be acquired

through training.
• Both applied scientific method to problem of management.
• Both realised the universality of management.
Criticism of Fayol
1) Un -s ci e ntif ic the o ry : - hi s id e a s a re b a s e d o n pe rs o n a l
ex p eri e n ce s .
2) M e ch a nis tic th e o ry : - n e gl e ct ed h u m a n a s pe c t
3) De hu m a n izi ng th e or y: c o n c ep t o f e co no m i c m a n
4) N or m a tiv e th e o ry: P ra ct ic a l l y d i ff i cu l t t o fo ll o w
cri t i c ize d by l ate r t h i nk e rs ; hu m a n re l a t i o n s c ho o l ,
be h a v i o ra l is t e tc .
C r i t i c i s m b y Pe t e r Dr u c k e r
 Mechanistic model of an ideal organization was imposed on a
living business.
 14 principles of Fayol overlap.
 Narrow functional base:- although functionalism is empirically
convenient, it is found to be deficient in design and logic.
 Besides, the empirical base used by Fayol for generating a full-
fledged theory of management is too narrow. fayol, proceeded to
theorise on functionalism on the basis of the functions
undertaken in a manufacturing company. Contemporary
organization is definitely larger in size and much more complex.
 Clash of Unity of command & Coordination: To Fayol, the principle
of unity of command is of supreme importance. It would be
dysfunctional to strengthen the hierarchy, where the sense of
unity is less, personal contact is limited and real difference of
outlook is desirable.
 Chief executive would face problem of coordination.
Conclusion
We need to evaluate Fayol "contextually" rather than finding shortcoming

in his theory, it should be appreciated for laying down some fundamentally
strong principles.
Among the early writer on management, Fayol has the unique distinction of
attempting to build a universal science of management applicable to
commerce, industry, politics, religion, war or philanthropy.
 He did not altogether neglect human side of organization. Bertram
Gross said "To Fayol personnel is the essence of the organization."
 He was also careful to state that his principle not be considered as rigid
rules.
 He developed administration into a science.
 He gave the idea of :Gang-plank" & need for administrative training
 Fayol was pioneer of the concept of viewing management as being
made up of functions.
Even peter Drucker, a severe critic of Fayol's Theory of functionalism,
acknowledge
Fayol's model is still unsurpassed in some respect. Fayol's functional
organization is still the best way to structure a small business; especially a small
manufacturing business.

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Public

• Henri Fayol was born in Constantinople, Istanbul, Turkey in 1841.

• Fayol's work was translated into English by Constance

A widespread tendency in western country was to

1) Technical Activities:- production, manufacture, adaptation.

3) Financial activities:- search for and optimum use of capital

4) Security activities:- protection of property & Persons

1. Planning:- Fayol used the French term 'Prevoyance" (to foresee).

• Fayol suggest that managers should have the following

1. Physical: Health, vigour and appearance

2. Mental: ability to understand and learn, Judgment, mental

4. General education: General acquaintance with matters not

belonging exclusively to function performed

5. Special knowledge: of function being handled

6. Experience: knowledge arising from the work proper.

• Fayol States that the principles of administration are not rigid.

 Fayol is a pioneer in suggesting the need for systematic training

 He suggests that training is a continuous process, starting from

 He considers every superior officer in an organization as a

• Both had a common objective efficiency & economy

• Both stressed on practical aspect

• Both believed in concept of "economic man"

• Both believed that managerial qualities can be acquired

We need to evaluate Fayol "contextually" rather than finding shortcoming

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