Every employee in an undertaking — workman, foreman, shop manager, head of division, head of department, manager, and if it is a state enterprise the series extends to the minister or head of a state department — takes a larger or smaller share in the work of administration, and has, therefore, to use and display his administrative faculties. By administrative knowledge we mean planning, organization, command, coordination, and control: it can be elementary for the workman, but must be very wide in the case of employees of high rank, especially managers of big concerns. Everyone has some need of administrative knowledge.
French mining engineer and executive, developer a general theory of business administration Fayolism (1841-1925)
Henri Fayol (29 July 1841, Istanbul – 19 November 1925, Paris) was a French mining engineer and director of mines who developed a general theory of business administration.
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Would you like to know, for instance, to what extent higher mathematics is used in our two great industries? Well, it is never used at all. Having found this to be the case in my own experience, after quite a long career, I wondered whether I was not an exception; so I made enquiries, and I found that it was a general rule that neither engineers nor managers used higher mathematics in carrying out their duties. We must, of course, learn mathematics that goes without saying but the question is how much must we learn? Up to the present this point has nearly always been decided simply by professors, but it seems to me to be a question in which professors do not count very much, and in which they count less as they become more learned and more devoted to their work. They would like to pass on all their scientific knowledge and they find that their pupils always leave them too soon.
The control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order that they may be rectified and prevented from recurring.
The administrative function has many duties. It has to foresee and make preparations to meet the financial, commercial, and technical conditions under which the concern must be started and run. It deals with the organization, selection, and management of the staff. It is the means by which the various parts of the undertaking communicate with the outside world, etc. Although this list is incomplete, it gives us an idea of the importance of the administrative function. The sole fact that it is in charge of the staff makes it in most cases the predominant function, for we all know that, even if a firm has perfect machinery and manufacturing processes, it is doomed to failure if it is run by an inefficient staff.
An examination of the characteristics required by the employees and heads of undertakings of every kind leads to the same conclusions as the foregoing study, which was confined largely to industrial concerns. In the home and in affairs of State, the need for administrative ability is proportional to the importance of the undertaking. Like every other undertaking, the home requires administration, that is to say planning, organization, command, coordination and control. Nothing but a theory of administration, which can be taught and then discussed by everybody, can put an end to the general uncertainty as to proper methods, which exists in the isolation of our households. There is therefore a universal need for a knowledge of administration.
The. manager must never be lacking in knowledge of the special profession which is characteristic of the undertaking: the technical profession in industry, commercial in commerce, political in the State, military in the Army, religious in the Church, medical in the hospital, teaching in the school, etc. The technical function has long been given the degree of importance which is its due, and of which we must not deprive it, but the technical function by itself cannot endure the successful running of a business; it needs the help of the other essential functions and particularly of that of administration. This fact is so important from the point of view of the organization and management of a business that I do not mind how often I repeat it in order that it may be fully realized.