Development of Henri Fayol's Principles of Management on the Implementation of Governance in the Banking Industry in Indonesia

This article aims to explain the development of management theory, especially Henri Fayol's management principles, which became a new phenomenon in 1916. Henri Fayol's management principles led to changes in the company's management system, not only in terms of company management but also contributed to the role of managers in a company so that managers can carry out management functions such as planning, organizing, directing, coordinating and controlling so that company goals are achieved. This principle should still be relevant today, where the development of information technology continues to advance. Of course, Henri Fayol's management principles will improve the quality of company management and corporate governance. This article will discuss the development of management principles by Henri Fayol in implementing control in the banking industry in Indonesia because, as an industry that manages public funds, it is essential to implement good governance and management principles. This research uses descriptive qualitative analysis methods. Henri Fayol's contribution to management science, especially in corporate governance in the Indonesian banking sector, has significantly impacted the understanding and implementation of management principles. Fayol's principles, such as esprit de corps, initiative, unity of direction, authority and responsibility, remuneration, division of work, and discipline, help create a work environment that is harmonious, productive, and oriented towards common goals. Implementing sound corporate governance by combining these principles can increase transparency, accountability, and overall performance in the Indonesian banking sector, maintain stakeholder trust, and ensure business continuity amidst economic dynamics and changes in the business environment—Development principles. This article discusses several literature articles and then concludes whether the development of Henri fayol's management principles has a role in corporate governance applied to the Indonesian banking industry.