Explain And Analyze Henri Fayol's Principles Of Management
Jovi Gan, 19107358, MGW 1010
In the today business environment, organizations are changing and the role of managers within the organizations is going to be different than what it was a couple of decades ago. One cannot help but wonder whether the elements and principles of management identified by the father of management theory, Henri Fayol is still applicable after all this while.
Henri Fayol was born in 1841 and he graduated as a mining engineer in 1860 from the National School of Mines at St. Etienne. Following that, he took up a position as an engineer in Commantry-Fourchambault, a company in the mining industry. Fayol eventually rose to the position of managing director in 1888 and at that time, the firm was on the verge of bankruptcy. However when he retired thirty years later, the company has expanded into as one of the leading mining companies with a long record of profits and dividends (Koontz and O'Donnell, 1955, p23). Fayol wrote as a practical man of business reflecting on his long managerial career and setting down the principles which he had most frequently applied into the fourteen principles of management (Fayol, 1949, p52). One must note that the principles of management are like guidelines to refer to rather than rules which must be enforced. He also identifies five elements of management that all managers perform (Koontz and O'Donnell, 1955, p24). We shall first examine the relevance of Fayol's elements of management in modern day business environment.
Fayol regarded the elements of management as functions planning, organizing, commanding, coordinating and controlling. However, these functions have been condensed down to only four basic but very important ones: planning, organizing, leading and controlling (Robbins et al, 2003, p9).
Jovi Gan, 19107358, MGW 1010
Fayol placed considerable emphasis on the importance of planning (prevoyance in French). He held that management must be able to "assess the future and make provision for it" and he views the "action plan" as the most useful output of the planning
process (Koontz and O'Donnell, 1955, p26). In the past, it was believed that planning varied by organizational level. That is, top management planned in the longest time horizon and engaged in more strategic planning with middle managers spending less time in planning and are more engaged in operational planning rather than strategic ones. Today, managers at all levels are being asked to participate in strategic planning and all of them are responsible for taking a long term view of the organization as a whole (Buhler, 1998, p17).
Under the organizing function, the task of management is to build up an organization that will allow the basic activities to be carried out efficiently and...
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HENRI FAYOL’S 14 Principles of Management Thursday, Dec 4 2008
All sectors and Education and For Entrepreneurs and For Large Corporates and Government & Not for Profit and SME Sector and UncategorizedHENRI FAYOL, management principlesmanagementinnovations10:00 am
- DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.
- AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.
- DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.
- UNITY OF COMMAND: Workers should receive orders from only one manager.
- UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction.
- SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole.
- REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay.
- CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.
- SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.
- ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.
- EQUITY: All employees should be treated as equally as possible.
- STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.
- INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.
- ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.
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