Fayol's Contribution to Management
Henry Fayol known as the Father of General Management contributed a lot to the study of management.
Contribution of Henry Fayol
Though Fayol is known for his 14 principles of management studied in class 12, he has Four Major Contributions:
(1) First to identify four functions of management.
He was the first to give the functions of management in terms of Planning, Organizing, Directing and Controlling by giving Plan, organize, command, coordinate and control as the main functions of a manager.
(2) Classification of activities of an Industrial undertaking.
He classified the activities of an industrial undertaking as under:
a) Technical activities: activities relating to production.
Example: Conducting quality control test, improving a design of the product.
b) Commercial activities: activities relating to buying and selling.
Example: Purchasing raw material, selling finished goods.
c) Financial activities: activities relating to arrangement and use of finances.
Planning annual budget and making forecast, Analyzing investment opportunities.
d) Security activities: activities relating to the safety of human and physical resources.
Implementing cybersecurity measures, conducting routine safety checkups.
e) Accounting activities: activities relating to preparing the accounting records.
Example: Maintaining financial records and preparing financial statements, conducting internal audit.
f) Managerial activities: activities relating to getting the work done through others.
Example: Planning production, managing day-today operations.
Fayol's Contribution to management
(3) Qualities of manager.
Henry Fayol suggested the qualities of a good manager:
1. Physical qualities: Physical qualities refer to the characteristics that pertain to a person's body and physical presence.
2. Moral qualities: Moral qualities define a person's character and ethical standards like integrity, compassion.
3. Education: Education refers to the formal process of learning through schools, colleges, and universities.
4. Knowledge: Knowledge is the understanding and awareness gained through education and experience.
5. Experience: Experience is the skill or knowledge acquired over time through involvement in specific activities.
(4) Fourteen Principles of Management:
Fayol has given Fayol’s Principles of Management
These have been discussed separately.
Principles of Management – Keywords and Brief Notes