Henry Fayol's process approach towards management

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Henry Fayol's process approach towards management

This approach is based upon Henry Fayol's contributions (1841 -1924), and it emphasizes the breaking of the complex management process into separate interdependent areas of responsibility or functions.

Fayol believed that the management process was a teachable process and scientific methods could be applied to top administrative management. He divided the administrative activities into six groups, all of which were closely dependent on one another. These six areas are:

(a) Technical operations:

This is concerned with producing and manufacturing products.

(b) Commercial operations:

This area deals in purchasing raw materials for the products and selling the finished products.

(c) Financial operations:

This involves acquiring capital and allocating it to various functions and keeping an overview control of the flow of capital.

(d) Security operations:

This involves taking steps for the protection and safety of goods and people.

(e) Accounting operations:

This area covers all accounting aspects of the organization including recording and taking stock of costs, profits, liabilities, assets, preparing balance sheets and compiling accounting statistics.

(f) Managerial operations:

These managerial functions were Fayol's primary concern and he defined these operations in terms of five functions. These are planning organizing, command, coordination and control.

Fayol also proposed 14 principles of administration which he believed, would be most often applied.


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