General and Industrial Management is the English title of the seminal work, Administration Industrielle et Générale, published in 1916 by French mining engineer and management theorist, Henri Fayol. It is a foundational text in organizational management, laying out a comprehensive theory of administration (often called Fayolism) that is applicable to all types of organizations, not just industrial ones.
Fayol’s work contrasts with Frederick Winslow Taylor’s “scientific management” by focusing on a top-down strategic framework for the entire organization, rather than just operational efficiency at the lower levels. It emphasizes that management is a distinct skill separate from technical knowledge.
Key Components of Fayol’s Theory
Fayol’s theory is built around the fundamental activities of an enterprise, the key functions of a manager, and a set of administrative principles.
The Six Activities of an Industrial Enterprise
Fayol proposed that all activities within an industrial enterprise could be grouped into six categories:
- Technical: Production, manufacturing, and adaptation.
- Commercial: Buying, selling, and exchange.
- Financial: Finding and making optimum use of capital.
- Security: Protecting property and persons.
- Accounting: Stocktaking, balance sheets, costs, and statistics.
- Managerial (Administrative): The core subject of his theory, encompassing the five functions of management.
The Five Functions of Management
Fayol identified five primary functions that all managers perform:
- Planning (Prévoyance): Forecasting the future and drawing up plans of action.
- Organizing (Organiser): Building up the structure (human and material) of the enterprise.
- Commanding (Commander): Directing and leading the personnel to perform their duties.
- Coordinating (Coordonner): Harmonizing all the activities and efforts of the organization.
- Controlling (Contrôler): Verifying that everything occurs in conformity with the plan, instructions, and principles.
The 14 Principles of Management
Fayol’s most enduring contribution is his formulation of 14 Principles of Management which he believed were essential for effective administration. These principles are:
| Principle | Description |
| 1. Division of Work | Specialization of the workforce increases efficiency and productivity. |
| 2. Authority & Responsibility | Managers must have the right to give orders, and this authority must be balanced by the accountability for the results (responsibility). |
| 3. Discipline | Respect for the rules and agreements that govern the organization. It requires good leadership, clear agreements, and the judicious application of penalties. |
| 4. Unity of Command | An employee should receive orders from only one superior to avoid conflicting instructions and confusion. |
| 5. Unity of Direction | All activities with the same objective should be directed by one manager using one plan. |
| 6. Subordination of Individual Interest to General Interest | The interests of the organization must take precedence over the interests of any individual or group. |
| 7. Remuneration | Compensation for work should be fair and satisfactory to both employees and the organization. |
| 8. Centralization | The degree to which authority is concentrated (centralized) or dispersed (decentralized) should be balanced based on the circumstances of the organization. |
| 9. Scalar Chain | The formal line of authority and communication that runs from the top to the bottom of the organization. Fayol suggested a “gang plank” to bypass this chain for quicker communication between peers when necessary. |
| 10. Order | Ensuring a place for everything and everyone (“a place for everyone and everyone in his or her place”) to maximize efficiency and minimize lost time. |
| 11. Equity | Managers should treat employees kindly and justly (equity) to elicit loyalty and devotion. |
| 12. Stability of Tenure of Personnel | High employee turnover is inefficient. Management should provide orderly personnel planning and ensure job security. |
| 13. Initiative | Encouraging employees to think for themselves and carry out their own plans, which boosts effort and innovation. |
| 14. Esprit de Corps | Promoting team spirit, unity, and harmony among personnel (“Union is strength”). |
General and Industrial Management: A Recap
The book, General and Industrial Management (Administration Industrielle et Générale), by Henri Fayol, is a foundational text in management theory. It proposes a top-down administrative framework for any organization.
The two most essential contributions are The Five Functions of Management (POC3) and The 14 Principles of Management. Fayol’s work provided the first clear, systematic view of management as a universal discipline, earning him the title, “Father of Modern Management Theory.”