1. It distinguishes between the concepts of operation and management, and points out the basic activities of business and the five basic
functions of management.
Fayol pointed out that there are six basic activities in any enterprise, which are:
Technical activities i.e., activities such as production, manufacturing, processing, and their related technologies. ②Commercial activities i.e. buying.
Sales and other activities. ③Financial activities, i.e., activities related to the movement of funds. ④Safety activities, i.e., equipment maintenance
, repair, industrial hygiene, employee safety, labor insurance and other activities. ⑤accounting activities, i.e., statistics, accounting
activities. (6) Management activities, i.e., planning, organizing, directing, coordinating and controlling five functional activities. And
and pointed out that among the above six basic activities, management is one of the activities of business operation. And that
management activities are not only one of the business activities, but also management activities are at the center. None of the other five
activities requires management activities.
The relationship between the above activities can be simply expressed in the following diagram (Figure 1-3):
After distinguishing between the concepts of operation and management, Fayol pointed out that management is a comprehensive work of planning, organizing, directing, coordinating and controlling the operation activities. And the five functions of management
activities are also defined:
Planning: it is to study the future carefully and then make arrangements for future activities and their results.
Organizing: is to establish the physical and personnel structure of the enterprise, to organize the human, material and financial resources of the enterprise
, to divide the work of each member of the organization, and to define their tasks, powers and responsibilities.
Command: is to guide the subordinates to complete the work effectively to ensure the realization of the goal.
Coordination: is to unify and link all the work, so that the activities are coordinated.
Control: is to try to make all the work according to the plan and has been ordered to do.