Henri Fayol In The 21st Century

It's important to remember that what we now think of as the modern corporation has its roots in a set of conditions, assumptions, practices and norms prevalent in a very different social/business context.

Henri Fayol is often viewed as the "founding father" of the administrative backbone of corporate practice. Fayol began writing these principles in 1915 and continued his reflections on administering a group of mines until his death in 1925. When we looks at these principles today, we see a foreshadowing of the modern corporation and can also see places in which these deep mindsets are/are not facilitative in the 21st century.

Here are Fayol's Fourteen Principles of Management. See what you think about the ways in which they help/hinder today's organizations:

1. Division of Work – specialization allows the individual to build up expertise and therefore to become more productive
2. Authority – the right to issue commands, along with the appropriate responsibility
3. Discipline – two-sided—employees obey orders only if managers play their part by providing good leadership
4. Unity of command – one man, one boss—with no other conflicting lines of command
5. Unity of direction – staff involved in the same activities should have the same objectives
6. Subordination of individual interest to the general interest: the good of the organization must come first over any group, just as the interests of any group should come first over the individual
7. Remuneration – should be fair and equitable, encouraging productivity by rewarding well-directed effort; it should not be subject to abuse
8. Centralization – there is no formula to advocate centralization or decentralization; much depends on the optimum operating conditions of the business
9. Scalar Chain – Fayol recognized that although hierarchies are essential, they do not always make for the swiftest communication; lateral communication therefore is also fundamental
10. Order – avoidance of duplication and waste through good organization
11. Equity – a “combination of kindliness and justice” in dealing with employees
12. Stability of tenure – the more successful the business, the more stable the management
13. Initiative – encouraging people to use their initiative is a source of strength for he organization
14. Esprit de corps – management must foster and develop the morale of employees and encourage each person to use his or her abilities

Comments

[Mike Wagner]

Tom, very interesting. I had not heard of Fayol.

And, fyi, I got your podcast to work; love the conversation your generating about the nature of the corporation.

Thanks for stirring the pot!

Keep creating....practical surprise,
Mike

[Tom Guarriello]

Thanks, Mike. This research is certainly taking me to some very interesting places. Glad you got the podcast to work. Another one coming shortly.

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