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" "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.
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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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.
The technical and commercial functions of a business are clearly defined, but the same cannot be said of the administrative function. Not many people are familiar with its constitution and powers; our senses cannot follow its workings - we do not see it build or forge, sell or buy - and yet we all know that, if it does not work properly, the undertaking is in danger of failure.