Henri Fayol's Management Theory

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Within today’s construction industry, it is vital for organizations’ to have concrete management plans so projects are completed on time and on budget. Many management theories, which have been developed over the last several hundred years, are still being applied today, and with varying industries and organizations using different theories to suit them. In relation to the construction industry, Henri Fayol (1841-1925), a French Industrialist, may be said to have the most relevant management theory (Jarvis 2004).

Figure [ 1 ] Henri Fayol
Figure [ 1 ] Henri Fayol
Fayol’s theory falls under the category of administrative management, which is concerned with how an organization should be managed to maximize performance. Fayol’s theory is based on “personal observation and experience” and thus he formulated five primary management principles and fourteen organizational and management guidelines (Jarvis 2004). The principles and guidelines are dissimilar to other management thinkers’ theories, as they are not steps to achieve good employee performance; rather they are to assist in achieving optimal business planning and organization.

The five primary management principles follow, and aim to be discussed as to how they related to project planning in the Australian construction industry in the 21st century: 1. To Forecast and Plan: anticipate the future and draw up a plan in accordance 2. To Organize: To build up and develop the institutions resources, being both human and material, for the undertaking 3. To Command: maintain momentum and activity among workers 4. To Coordinate: bind together and continue to operate as a unit 5. To Control: to see everything happens in accordance with the original plan. ('Five Functions of Management ', 2005).

Figure [ 2 ] Fayol's 5 primary functions of management, ('Five Functions of Management ', 2005) Figure [ 2 ] Fayol's 5 primary functions of management, ('Five Functions of Management ', 2005) The...
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