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…show more content…
Each profession is allocated his specific type of work by the manager. 2. Authority and Responsibility: formal authority required by the construction manager in order to command and control. Responsibility follows when authority is obtained (Barney, Jay B, Griffin, Ricky W c1992). 3. Discipline: necessary to ensure the “smooth running” of a project. The construction manager must maintain consistency of workers, rules and standards (Jarvis 2004). 4. Unity of Command: The idea that an employee should receive orders from only one superior (Jarvis 2004). 5. Unity of Direction: the idea of having one head/manager for similar activities (Jarvis 2004). 6. Subordination of Individual Interest to the general Interest: One employee/s interests should not dominate those of the organizations (Barney, Jay B, Griffin, Ricky W c1992). Construction Managers and workers must maintain the same values, such as aiming to complete the project on time and on budget. 7. Remuneration of Personnel: Level of compensation should be “fair” and provide satisfaction to all levels of employees. All workers on the project are entitled to fair pay given the works or stages completed (Jarvis 2004). 8. Centralization: Power and control maintained by the upper personnel of an organization (Barney, Jay B, Griffin, Ricky W c1992). Authority needs to be maintained by project/construction managers, particularly in the planning phases of the project. 9. Scalar
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