Contemporary Application of Henri Fayol’s Principles of

Management in Modern Organizational Structures and

Governance: A Cross-Industry Analysis

Abdus Sami*1, Mosammat Lufrat Jahan*2, Joyeeta Rani Joyee*3, Mehedi Hasan Khan*4
Hasibul Islam*5
*1PML, Bangladesh Maritime University | [email protected]
2
PML, Bangladesh Maritime University | [email protected]
3
PML, Bangladesh Maritime University | [email protected]
4
PML, Bangladesh Maritime University | [email protected]
1 Department of Port and Shipping Management, Faculty of Shipping Administration, Bangladesh Maritime University, Plot# 14/06-14/23, Pallabi, Mirpur-12, Dhaka 1216 | Hasibul Islam*5 | 2
Department of Management, Maritime University, Bangladesh Maritime University, Plot# 14/06-14/23, Pallabi, Mirpur-12, Dhaka-1216
[email protected]

ABSTRACT

This research paper discusses the relevance and modern applicability of Henri Fayol's 14 principles of management
in a wide range of industries. Based on recent empirical research in startups, banking, construction, and public
administration, the paper discusses how Fayol's classical principles are applied, reinterpreted, and adjusted amidst
technological change, cultural pressures, and regulatory requirements. The results show that although Fayol's theory
is still pioneering, its application has changed to meet the demands of contemporary organizational realities. The
research points out that Fayol's contribution, instead of being outdated, still influences managerial conduct if applied
in a flexible, not a rigid, manner.

Keywords: Henri Fayol, principles of management, organizational structure, governance, startups, banking,
construction, public administration.

I. INTRODUCTION forth by Fayol are the subjects of this research paper,

with analysis of their historical context, significance,
Henri Fayol, a French mining engineer and management and relevance to contemporary management practices.
theorist, became famous for his contribution to the field
of management. His 14 Principles of Management,
already identified in "Administration industrielle et II. Literature Review
générale", published in 1916, laid the foundation of
modern management practices. Still, this tenet provides Scholars and practitioners studied and in-depth analyzed
a body of universal rules for efficient management, Fayol's 14 principles of management. The principles
namely, planning, organizing, leading, and controlling in included the division of work, authority/responsibility,
an organization. The 14 Principles of Management put discipline, unity of command, unity of direction, and the
like, which became the basis of study on management 2018)
itself. 2. Development of Fayol's principles in Indonesian
banking governance (Setyawan & Nugroho, 2020)
3. The organizational structure as an instrument of
Historical context and development: In the time of
authority flow (Abdullahi & Ibrahim, 2017)
industrialization, Fayol's principles emerged as a means 4. Application of the principles of management to
to meet the managerial challenges of large and complex construction projects (Olawale & Adegoke, 2019)
organizations in the age of industrialization, taking their 5. Rooting administrative efficiencies in the public
place in the literature surrounding classical management sector management (Eze, 2018)
theory (Wren, 2001; Pindur, Rogers, & Kim, 1995). 6. Survey on basic principles of management (Ajayi &
Oyetunde, 2017)
Theoretical foundations and key concepts: Scholars have
examined the correspondence between Fayol's principles
and modern functions of management-warmly planning, IV. RESULTS AND DISCUSSION ]
organizing, leading and controlling (Wren, 2001; Parker
& Ritson, 2005). Research by Brindle & Stearns (2001)
associates Fayol's principles with other classical 1) Thematic coding was applied to elicit patterns of
management theories. Contemporary application in a application, modification, and contextual adaptation of
changing world of business: Fayol's principles remain the principles, enabling comparison across sectors,
relevant in today's business world, which enables converging on some aspects while diverging on others
difficult tasks in positive management practice that are sector-specific. The analysis reveals broad
(Rodrigues, 2001; Lamond, 2004). For example, findings as highlighted below:
division of work encourages specialization, while 1. Startups: Flexibility prevails. Formal authority is
authority and responsibility provide for clear discounted in view of initiative and esprit de corps.
communications and decisions. Criticism and 2. Banking: Discipline and order prevail, but the
Limitations: A number of scholars argue that among technology adds newfound meanings in governance.
other things, Fayol's principles may be too rigid and 3. Construction: Unity of direction and order are
prescriptive for the various contexts in which they are to essential, though modern-day processes augment these
be applied (Hales, 1986). Others doubt the applicability classical tools with risk management measures.
of certain principles-for instance, Centralization-in 4. Public Administration: Fayol's traditional hierarchy
modern organizations which lay more emphasis on flourishes but becomes less rigid when citizen
decentralization and employee empowerment engagement enters the picture. This discussion showed
(Mintzberg, 1973). that Fayol's principles are neither entirely obsolete nor
ever applied all too rigorously in their original form.
In summary, it can be believed that Henri Fayol's 14 Rather, they are flexible guiding principles that must be
Principles of Management are firmly grounded in the applied with due regard to technology, cultural
principles of management, enabling it to become what it expectations, and regulatory demands.
is. Mario and Adair recognize that these principles have
been questioned and have subsequently evolved; V. CONCLUSION
however, they still serve as a guide to understanding and
implementing efficient management practices.
Fayol's principles are relevant provided they exhibit
III. Research Methodology some flexibility. In varied industries, managers would
reinterpret the principles to fit the specific operational
and cultural needs of the situation. Fayol's strongholds
In all, six studies were selected for the said purpose. lie in the adaptability of his framework; a base that
1. Fayol's principles in startup organizations (Adebayo,
provides a platform for innovations and yet provides
structures.

VI. Recommendations

• Startups: emphasize initiative and team spirit now with

flexible authority
• Banking: discipline with digital governance
• Construction: traditional order supplemented by risk
management
• Public Administration: hierarchy with citizen-centric
flexibility
• Education: teach Fayol in a perspective of flexibility.
• Future Research: understand how AI might help
change classical principles.

VII.REFERENCES

[1] Adebayo, O. (2018). Application of the Henri Fayol principles

of management in startup organizations. Journal of Business
Studies, 12(3), 45-56.

[2] Abdullahi, M., & Ibrahim, S. (2017). Organizational structure as

a logical tool for determining the flow of responsibility and
authority. Journal of Organizational Dynamics, 9(4), 33-47.

[3] Eze, J. (2018). Administration and management: A determinant

to organizational efficiency and progress. African Journal of
Administrative Studies, 5(1), 78-92.

[4] Olawale, T., & Adegoke, K. (2019). Principles of management

application in building construction projects: Perspectives of
project managers. Construction Management Review, 6(2), 112-
125.

[5] Setyawan, B., & Nugroho, D. (2020). Development of Henri

Fayol's Principles of Management on the Implementation of
Governance in the Banking Industry in Indonesia. International
Journal of Business Governance, 7(1), 89-102.

[6] Ajayi, T., & Oyetunde, B. (2017). An Overview of the Basic

Principles of Management and Managerial Functions.
Management Today, 11(2), 22-36.

[7] Paterson, B. L., Thorne, S., Canam, C., & Jillings, C. (2001).
Meta-study of qualitative health research: A practical guide to
meta-analysis and meta-synthesis. SAGE Publications.