The Contribution of Henri Fayol to Strategy


 
Principles of Management - Fayol > Best Practices Log in

The Contribution of Henri Fayol to Strategy
Alan Kennedy
The biggest contribution Fayol made to the discipline of management or administration is not his 14 principles or the 5 functions of a manager.
In my opinion, it was to identify that there is a framework of strategies common to all organizations. On page one of chapter one of the first book ever written on the new subject of managing strategy, Fayol states that there are six activities that all executives must manage. These "activities" are in fact strategies and represent 6 of the eight strategies common to all organizations, whether they are for-profit, not-for-profit, or public sector in nature.
Fayol identified: risk, finances, organization, production (also known as manufacturing or service delivery depending on what the organization does), marketing and sales, and R&D/technology.
Peter Drucker identified the other two, business definition (known as mandate for public sector and not-for-profit organizations) in his book, The Practice of Management, published in 1954.
These eight strategies are what constitutes "the strategic plan" and all subsequent strategy implementation planning is driven by the expectations created by each of the eight.
Because none of the subsequent points Fayol makes, such as the 5 functions of a manager or 14 principles, have any relevance without being founded in strategy, I am always surprised at how so many readers missed what is contained on page one of chapter one.
I consider Fayol to the the true father of Strategic Management for this contribution. The reality is, we are only beginning to understand what he wrote. We are still hung up in a complex and confusing construct which uses synonyms for strategy (e.g. vision, mission, objectives, goals, tactics) rather than doing what Fayol recommended, which was to focus on the activities (i.e. risk, finances, production, etc.).
 

 
Contribution of Henri Fayol to Strategy
NGO Chantal, Congo, Member
Hello, Alan Kennedy, It is a pleasure to read to your contribution about the writings of Henri Fayol. I thank you very much because you completed some...Sign up
 

 
Fayol's 5 Functions of a Manager
Alan Kennedy
Fayol lists planning, organizing, commanding, coordinating and controlling as the five functions or
 

 















 


Special Interest Group Leader

Principles of Management - Fayol
Summary
Forum

Best Practices
Expert Tips

Resources



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V15.0 - Last updated: 13-12-2018. All names of their owners.