Question

Which of Fayol’s administrative activities encompasses stock-taking, balance sheets, costs, and statistics?

• A. Technical activities
• B. Financial activities
• C. Commercial activities
• D. Accounting activities

Answer 1

Answer:

D. Accounting activities

Henri Fayol's Principles of Administration

Henri Fayol, a renowned French mining engineer and director of mines, is credited with developing one of the earliest comprehensive theories of management. His work, 'General and Industrial Management', published in 1916, outlined 14 principles of management and 5 functions of management. These principles and functions are fundamental to understanding administrative activities in organizations.

Fayol's Functions of Management

Fayol identified five core functions that managers perform:

1. Planning: Envisioning the future and determining the best course of action.
2. Organizing: Assembling resources (human, material, financial) to implement plans.
3. Commanding: Directing and motivating employees to perform tasks.
4. Coordinating: Harmonizing all activities and efforts.
5. Controlling: Monitoring performance and ensuring it aligns with plans.

Accounting Activities in Fayol's Framework

Within Fayol's broader administrative activities, Accounting activities specifically deal with the financial health and performance of an organization. This includes:

• Stock-taking: Assessing the inventory of goods or materials.
• Balance Sheets: Preparing financial statements that summarize assets, liabilities, and equity at a specific point in time.
• Costs: Analyzing and managing the expenses incurred in operations.
• Statistics: Gathering, analyzing, and interpreting numerical data to inform decision-making.

These elements are crucial for financial control and provide essential data for planning and decision-making, falling under the purview of administrative oversight.

Relevance for Competitive Exams

• Understanding Fayol's functions and principles is a common topic in management and administration-related competitive exams.
• Questions often test the ability to categorize specific managerial tasks under the correct function or principle.
• Familiarity with terms like stock-taking, balance sheets, and statistics in the context of management functions is important.