Fayol: – Operational Management Theory

Fayol saw that activities of an industrial undertaking could be divided into 6 groups.

  1. Technical (Production)

  2. Commercial (Buying, Selling and exchanging)

  3. Financial (Search for and optimum use of capital.)

  4. Security (Production of property and persons.)

  5. Accounting (Including Statistics.)

  6. anagerial (Planning, Organization, command, coordination and control)

Fayal focused his Analysis on the 6th groups and formulated 14th Principles.

  1. Division of work.

  2. Authority and responsibility.

  3. Discipline.

  4. Unity of command.

  5. Unity of direction.

  6. Subordination of undivided to general interest.

  7. Remuneration.

  8. Centralization.

  9. Sector Chain.

  10. Order-a place for everything and everything in its place.

  11. Equity.

  12. Stability of tenure.

  13. Initiative.

  14. Espirit do corps “In union there is strength”