Is Fayolism relevant in modern business world?

Henri Fayol was a French mining engineer, mining executive, and director of mines who developed a general theory of business administration that is often called Fayolism. Like his contemporary Fredric Winslow Taylor (the first management consultant. He was widely known for his methods to improve industrial efficiency), see is widely acknowledged as a founder of modern management methods.

You might be wondering "Why he is mentioning Henri Fayol and his theory".

The reason for mentioning Henri Fayol is, few days back when I met few entrepreneurs in an informal roundtable discussion that focused on business environment and administration. During the discussion one of the participant said, "I think Henri Fayol's management theories don't apply in modern day organisations. They are getting old". 

When he said this few agreed to his points and few didn't. After listening to their discussion (which turned into a debate) I understood one thing, "They are ambitious but they lacked the understanding of basics (a lot of basics) which are not only foundations of any organisation but also could make them unstoppable if they understood and applied".

In fact, not only them, few modern scholars and practitioners often debate whether Henri Fayol's ideas and therapies can be applicable to modern day organisations. 

I agree there are limitations in Henri Fayol's theories, but if you observe you will find these theories still continue to shape many modern businesses and also never stop influencing managers. And, if it was old and not useful why would it still be taught in our colleges.

And moreover, I must say, many people have a very simplified view of Henri Fayol's theories, they forget that his ideas have more implications than it may seem at first glance. 

Let us see what is Henri Fayol's Management Functions and Principles and then see how it is relevant.

Henri Fayol developed six functions of management that work in conjunction with 14 Management Principles. 

The functions are:

1. Forecasting
2. Planning
3. Organising
4. Commanding
5. Coordinating
6. Controlling

Some combine Forecasting and Planning into one function simplifying the theory down to five functions. The functions are straightforward, with Fayol saying managers need to plan for the future, organise necessary resources, direct employees, work collaboratively, and control employees to make sure everyone follows necessary commands.

14 Principles of Management:

1. Division of worry
2. Authority
3. Discipline
4. Unit of Command
5. Unity of Direction 
6. Subordination of Individual Interest
7. Remuneration
8. Centralisation
9. Scalar Chain
10. Orde
11. Equity
12. Stability of tenure of personal
13. Initiative
14. Esprit de corps

Now coming to relevance.

There are quality aspects of these principles. If you observe, in almost every job there is an employer who delegates tasks and an employee to complete them. And, Fayol’s principles are relevant to the way in which these tasks are completed, and the communication methods used to delegate them. 

As per reports, even today, amidst the challenges (COVID Pandemic), many leaders and managers said they learned to cope with the 14 Management principles and claims that good governance is anchored on the efficient adoption of these principles with an able leader to lead the group. This proves the studies of management based on Henri Fayol’s theories are still relevant in today’s society and are evident in almost every organisation. But, in present time, managers have become less authoritative and are moving towards a newer style of management that is based on more two-way, collaborative communicate to employees. And, in recent times employees are allowed to make a bigger contribution to how tasks are completed and are even allowed to make decisions on behalf of the management. This move is a result of adaption and modification of management styles over time. Although changes have occurred, Fayol’s teachings still have significant relevance in the workplace today. Moreover, his ideas will be relevant to modern companies and can be best illustrated by practical applications such as just-in0time-production or quality circles.

So, what do you think, is Henri Fayol's theories still relevant in modern business.