What Did Henri Fayol Mean When He Argued That "The

question 103

Essay

What did Henri Fayol mean when he argued that "the success of an enterprise generally depends much more on the administrative ability of its leaders than on their technical ability"?

---

Definitions:

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; it measures a company’s production efficiency.

Sales Revenue

The income received by a company from its sales of goods or the provision of services.

Product Costs

The total costs directly tied to the creation of a product, including raw materials, labor, and overhead expenses.

Periodic Inventory System

An inventory accounting system that records the inventory levels and cost of goods sold (COGS) at the end of an accounting period, not tracking each sale or purchase individually.