Classical Management Theory: Ford, Fayol, Gulick, and Urwick
Henry Ford and Vertical Integration
Henry Ford utilized a system of vertical and horizontal integration, managing the process from initial raw materials to the finished product, supported by a network of company-owned commercial distribution agencies.
Henri Fayol: Administrative Functions
Henri Fayol defined administrative functions as the act of administration, which includes:
- Planning: Visualizing the future and charting programs of action.
- Organizing: Building the material and social structure of the company.
- Commanding: Guiding and orienting personnel.
- Coordinating: Linking, merging, and harmonizing all acts and collective efforts.
- Controlling: Verifying that everything happens according to established rules and orders.