Classic Theory of the Organization (Fayol)
Henri Fayol (1841-1925), of French origin , is for some, the most distinguished author of the Administrative Theory. He pointed out that the administrative theory can be applied to every human organization (universaly). He is considered the father of the administrative process and creator - promoter of the division of the functional areas for enterprises.
The first jobs of Henri Fayol, represent the theory school of the "Administrative Process". In 1916, he published the book Administracion Industrielle et Genérate (General and Industrial Administration). The book held his opinions about the apropiate administration of enterprises and the people within it.
Fayol identified five rules or duties of Administration:
- Planning: designing a plan of action for the future.
- Organización: supplying and mobilizing resources to put the plan in motion.
- Management: managing, selecting and evaluating employees with the purpose of acheiving the best work to acheive what was planned.
- Coordinación: integration of efforts and the assurement that the information is shared and the problems solved.
- Control: guaranteeing that things happen according to plan and the execution of the necesary correcting actions for the deviations found.
More importantly, Fayol believed that administration could be taught. He was very interested in improving the quality of administration and he proposed several principles to orient what was to be done in administration, which are shown as follows:
1. Work division.
2. Authority and responsibility.
3. Discipline.
4. Leadership unit.
5. Management unit.
6. General interest on the individual.
7. Just pay to the personnel.
8. Delegation vs. centralization.
9. Hierarquy.
10. Order.
11. Equity.
12. Stability of personnel.
13. Initiative.
14. Team spirit.
Fayol stated that these administrative principles are in no way rigid, since in different situations, the use of personal criteria and measure is required. What is important is that they constitute universal guidelines; they can be applied in any human organization.
