Henri Fayol's Management Theory

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Introduction Henri Fayol’s management theory is almost a century old, he developed his own theory of management through observations and experience, in which he listed planning, organizing, command, coordination and control as the five main elements, Wren (2001). Further on to help managers to manage more effectively, Fayol contributed 14 principles of management which consist of Division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to the common good, remuneration of personnel, centralization, scaler chain, order, equity, stability of personnel tenure, initiative and lastly Esprit de corps, Rodrigues (2001). It might be interesting to note that Fayol’s 14 principle of management is similar to the principles developed by Benedict of Nursia in the sixth century. Benedict created his principles to effectively run monasteries and Fayol created his principles to guide managers in running their organizations, Kennedy (1999). This indicate that two different leaders who lived different times in history can create a set of similar principles to manage their organization but is Henri Fayol’s management theory relevant today? Fells (2000) ascertained that the interpretation of Fayol’s 14 principles of management must be flexible and adapt to the situation at hand. This essay sets out to determine whether is Fayol’s management theory is still as relevant today as it was more than 100 years ago. Five of Fayol’s principles set alongside real-life companies will highlight the relevance of Fayol’s principles in today’s business context. For Principle no. 10: Order: “The formula is known in the case of material things: A place for everything and everything in its place. The formula is the same for human order: A place for everyone and everyone in his place.”(Fayol 1916, p.269) In current context for

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