Industry 4.0 and Fayol’s 14 Principles of Functional Management: Relevances, Emerging Practices and Consequences

Md. Masud Rana *

Department of Management Studies, Begum Rokeya University, Rangpur, Bangladesh.

*Author to whom correspondence should be addressed.


Abstract

Aim: This study aims to examine and evaluate the relevance and importance of Henri Fayol's principles of management and its emerging practices in the context of Industry 4.0.

Approach: The study employs a literature review approach to analyze and synthesize existing research and literature related to Fayol's principles of management and their applicability in the age of Industry 4.0.

Findings: The analysis shows that several of Fayol's principles, including division of labor, authority and responsibility, discipline, order, equity, and stability of tenure of personnel, remain remarkably relevant in the digital age. But, some principles, such as unity of command and unity of direction, may need to be adapted in decentralized decision-making and cross-functional collaboration. The study also identifies new management practices and methodologies, such as agile methodologies, design thinking, and data-driven decision-making, that are emerging to meet the demands of Industry 4.0. By adapting and applying Fayol's principles in new and innovative ways, businesses can leverage the opportunities of Industry 4.0 while ensuring a positive work environment and employee satisfaction.

Originality/Value: This study provides valuable insights for businesses and management practitioners on the continued relevance and applicability of Fayol's principles of management in the age of Industry 4.0. The study also highlights the need for businesses to invest in employee learning and development, utilize data and analytics, and explore new tactics and practices better suited to the digital age.

Keywords: Henri Fayol, principles of management, industry 4.0, digital transformation, management practices


How to Cite

Rana, Md. Masud. 2024. “Industry 4.0 and Fayol’s 14 Principles of Functional Management: Relevances, Emerging Practices and Consequences”. Asian Journal of Economics, Business and Accounting 24 (7):82-96. https://doi.org/10.9734/ajeba/2024/v24i71393.

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