Henri Fayol's management theory is a simple model of how management interacts with personnel. Fayol's management theory covers concepts in a broad way, so almost any business can apply his theory of management. Today the business community considers Fayol's classical management theory as a relevant guide to productively managing staff.
The management theory of Henri Fayol includes 14 principles of management. From these principles, Fayol concluded that management should interact with personnel in five basic ways in order to control and plan production.
1. Planning. According to Fayol's theory, management must plan and schedule every part of industrial processes.
2. Organizing. Henri Fayol argued that in addition to planning a manufacturing process, management must also make certain all of the necessary resources (raw materials, personnel, etc.) came together at the appropriate time of production.
3. Commanding. Henri Fayol's management theory states that management must encourage and direct personnel activity.
4. Coordinating. According to the management theory of Henri Fayol, management must make certain that personnel works together in a cooperative fashion.
5. Controlling. The final management activity, according to Henri Fayol, is for the manager to evaluate and ensure that personnel follow management's commands.