1. Cavendish University Armenia 2008
Contemporary Trends in Developing and Organizing Management
Foundation of Administrative school of management
Henri Fayol’s Contributions
Presented by
Suren Sarukhanyan
Nora Galstyan
Nune Simonyan
Gayane Ghazaryan
MBA 1st

2. Agenda Life and career Fayol’s administrative theory
Five managerial functions
14 universal principles of management

3. Henri Fayol Life and career
J HENDO 84 J
Was born in 1841 in Istanbul
Mining engineer
Died 1925 in Paris
Chief Executive Officer (Big Boss)

4. Fundamental ideas and Contributions
Fayol first spoke about importance of administrative management;
Management can be taught and learned.
``One becomes an engineer but one is born an administrator.’’ This is not true. It is true that knowledge alone, even a deep knowledge, of the principles of Chemistry, of Physics, of Mechanics, of Geology, etc., is not sufficient to make a good manager of a blast furnace, a rolling mill, or a mine, and cannot be doubted at all that even perfect knowledge of the principles of administration does not confer a technical ability.”
Fayol, H (1908a) , ``L’expose des principles geÂneÂraux d’ administration’’ (translated by Breeze, J.D.)
Fayol, H. (1916), ``Administration industrielle et geÂneÂrale’’

5. Fayol’s administrative theory
Classical school of management
Scientific School of management
Administrative School of management
“We all know that,
even if a firm has perfect machinery and
manufacturing processes, it is doomed to
failure if it is run by an inefficient staff.”
If scientific management focused on the productivity of individuals, the classical administrative approach concentrates on the total organization.

6. Fayol’s administrative theory
Fayol defined management theory as “a collection of principles, rules, methods, and procedures tried and checked by general experience.”

7. Five managerial functions
Fayol developed 5 managerial functions,
he noted that everyone was concerned with:
Foresight
Discipline
Organization
Order
Selection and training of Employees

8. 1. Division of work (labor)
14 universal principles of management
1. Division of work (labor)

9. 14 universal principles of management
2. Authority

10. 14 universal principles of management
3. Discipline

11. 14 universal principles of management
4. Unity of command

12. 14 universal principles of management
5. Unity of direction

13. 6. Subordination of the general to the individual interest
14 universal principles of management
6. Subordination of the general to the individual interest

14. 7. Remuneration of personal
14 universal principles of management
7. Remuneration of personal

15. 14 universal principles of management
8. Centralization

16. 14 universal principles of management
9. Scalar chain

17. 14 universal principles of management
10. Order

18. 14 universal principles of management
11. Equity

19. 12. Stability of tenure of personnel
14 universal principles of management
12. Stability of tenure of personnel

20. 14 universal principles of management
13. Initiative

21. 14 universal principles of management
14. Esprit de corps

22. Hope, no questions  Thank you…!
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