Question

Who was Henri Fayol? How did he divide industrial activities so that principles of management can be properly implemented?

Answer 1

• Henri Fayol was a French engineer and an industrialist. He contributed much in the management thoughts and principles.
• In 1961, he gave 14 principles of management. He presented these principles in his book ‘Industrial and General Management’.
• For better management, ease and clarification of these 14 principles he divided activities of industrial units in 6 parts.

The six parts are:

Industrial activity	Inclusions
(1) Technical activities	These activities include factory machineries and activities related production.
(2) Commercial activities	Activities like purchasing, sales, exchange of units
(3) Financial activities	Activities like procurement of capital, use of capital, fund maintenance, re investment
(4) Safety activities	These include safety of employees, safety of assets, safety of goods (raw materials)
(5) Accounting activities	These include financial statements and performing necessary statistical analysis
(6) Management activities	These include planning, organization, direction, co ordination control activities