Page 1 - Lesson Note 3
P. 1
SAI INTERNATIONAL SCHOOL
Class-12
th
Business studies
Chapter – 2, Principles of Management
Topics: Henri Fayol’s Principles of Management
(Lesson Notes-5)
HENRI FAYOL’S PRINCIPLES OF MANAGEMENT
Background and History of Henry Fayol: Henry Fayol was born in France in 1841. He got
degree in mining engineering in 1860 and started working as engineer in a Coal Mining
Company. In1888, he was promoted as the Managing Director of the company. At that time
the company was in the situation of insolvency. He accepted the challenge and applied his
managerial techniques to bring out the company from this situation and he succeeded. When
he retired after 30 years, the company was a leading coal-steel company with strong financial
background.
Principles of Management by Henri Fayol:
1. Division of Work: Dividing work among the workforce helps improve the quality of
the overall product. Henri Fayol said that specialization in work increases the
productivity and improves efficiency. Division of labour also leads to the
specialization, accuracy, and speed of the workers. This principle is applicable both in
managerial as well as technical work.
2. Authority and Responsibility: These are the two key things in management. They
work hand in hand. While authority enables the management to delegate work,
responsibility makes them accountable for any work done under their leadership.
Henri Fayol said that the power of authority accompanying responsibility gives the
management the right to order subordinates along with a duty to be liable for acts of
their subordinates.
3. Discipline: Nothing good was ever achieved without discipline. The third principle
propagated by Henri Fayol was discipline. It is one of the core values in any system.
Good behaviour and civilized interactions make the management work smoothly and
