This assignment is focused on the management thinker Henri Fayol. Fayol was one of the very most influential contributors to modern ideas of management. Fayol has been described as the father of modern functional management theory.
Henri Fayol (1841-1925)
Fayol graduated from the mining academy of St. Etienne. Fayol suggested that it is important to have unity of command: an idea that suggests there should be only 1 supervisor for each person in an business. Like Socrates, Fayol advised that management is a general individuals activity that applies similarly well to the family as it can to the corporation. The principal functions of management are (1) planning, (2) organizing, (3) commanding, (4) coordinating, and (5) controlling. Fayol's career started as a mining engineer. Then changed into research geology and in 1888 became a member of, Comambault as Director. Comambault was in difficulty but Fayol switched the operation circular. On pension he shared his work - a thorough theory of administration - detailed and grouped administrative management jobs and processes then became recognized and referenced by others in the growing discourse about management. He's frequently regarded as a key, early on contributor to a classical or administrative management approach. His theorising about administration was built on personal observation and experience of what proved helpful well in terms of business. His aspiration for an "administrative science" sought a consistent group of principles that organizations must apply in order to run properly. F. W. Taylor publicized "The Ideas of Scientific Management" in the USA in 1911, and Fayol in 1916 evaluated the type of management and administration based on his French mining firm experiences. His drive was to make a theoretical foundation for an educational program for professionals who lacked formal training in those days. Basing his work on his experience as a successful managing director of a mining company, he developed universal 'Principles of Management' to help organisations achieve most effective performance working toward their goals
Fayol's five functions remain relevant to debate today about management roles and action.
- to forecast and plan - prevoyance examine the future and draft plans of action
- to organise build-up the structure, materials and human being of the executing
- to command maintain activity among the personnel
- to co-ordinate bind along, unify and harmonise activity and work
- to control note that everything occurs in conformity with insurance plan and practice
Principles of Henri Fayol
Fayol introduced 14 key points of management. Fayol thought that his guidelines would be useful to all types of professionals. He truly advocated the idea that if a manager wants to be successful, he only requires a certain group of management key points.
specialisation/division of labour
Achieving the utmost efficiency from labour through specialisation across all areas of organisation (commercial, financial, security, accounting, managerial) rather than just specialized activities. Fayol did not provide the degree of depth that Taylor's contending Scientific Management University approved. Scientific Management broke specific operational jobs into its basic elements. Fayol stated that division of labour is limited as an instrument to achieve most effective performance.
Establishment of authority having the authentic standing to give orders. Authority comes from two resources: standard and personal. Experience, cleverness, integrity and command capacity are indispensable matches of your manager's official power. Managers need to act knowing that expert and responsibility are favorably correlated.
Enforcement of discipline upholding self-discipline is a main activity when working an company, although its form can vary across organisations. Management can sanction employees with warnings, penalties, demotions or even dismissals.
Unity of command an employee should receive orders from one supervisor only. Dual command word generates tension, distress and turmoil, and results diluted responsibility and blurred communication. Unity of direction a common aim for several activities can be an essential condition to obtaining unity of action, coordination of strength and the focusing of effort. Subordination of specific interest to the pursuits of the organisation reconciling basic interest your of the group or the average person is one of the greatest problems professionals face and applies to the partnership between staff and supervisor as well. All too often, managers pursue personal interest as opposed to the common good.
Fair remuneration for many Fayol determined reimbursement for services by considering both financial and non-financial factors and held that staff satisfaction would depend on the composition of this mix. Centralisation of control and authority Fayol choose the 'living organism' as metaphor for an organisation when contemplating centralisation versus decentralisation. The amount of centralisation is a subject of percentage as is the section of labour. Adoption of any 'scalar chain' the string of supervision that links the managing director to the cheapest ranks. Fayol merged hierarchy which makes employees aware of their place and obligations, with an organization's lines of communication. When swift action is necessary, Fayol's understanding of the restrictions of the formal company made him propose a system of delegated specialist that facilitates horizontal communication.
A sense of order and purpose a place for everything and everything in its place. Facilities must be tidy, materials orderly stored and staff selected according to strict procedures and clear job descriptions. Fayol advocated the creation of specific organisational charts to aid this Principle. Equity and fairness in dealings between personnel and managers equity is the combination of justice and kindness. Professionals must constantly apply the right balance between equity and discipline. Stability of careers and positions Fayol viewed personnel planning, management development and turnover as one activity. Both staff and management require suited induction times to familiarise themselves with new work practices and situations. Development of individual initiative Initiative is the energy to conceive an idea and ensure its success. Although Fayol regarded management as the first in charge level, he clarified that the Rule extended to all or any employees through delegated power. Esprit de Corps building and maintaining personnel and management morale and unity. Fayol considered the management design of 'split and rule' counter-top productive.
Importance of Managerial Principles
A principle identifies a affirmation which reflects the essential real truth about some phenomenon. It is a simple statement that provides understanding and guidelines to thinking and action. These key points explain marriage between several sets of variables under a given situation. It establishes cause and impact relationship and provides as a guide to thought and action. The management guidelines are derives on the bases of observation and evaluation of occurrences which professionals have to face in genuine practice. For example, it was detected that efficiency can be increased by dividing work into certain well described jobs. This led to the formulation of the basic principle of division of labour. A part from direct observation, another method of deriving rules is conducting experimental studies.
Without principles some may be in darkness and chaos; interest, experience and proportion are still very handicapped, despite having the best principles. The basic principle is the lighthouse correcting the bearings but it can only just provide those who already know just how into dock. Without theory no teaching is possible. The perfect manager would be one who, possessed of most essential knowledge for settling managerial, specialized, commercial, financial and other questions before him, also liked sufficient physical and mental vigor and capacity for work to have the ability to meet all the weight of business associates, order and control incumbent after management. There is no man alive whose knowledge embraces every question tossed up in the working of as large matter, and certainly nothing possessed of the power and disposing of enough time required by the manifold obligations of large-scale management. Hence the necessity to fall back on the personnel. The management tactics and techniques are based on well defines ideas. Proper understanding of these guidelines makes the professionals more practical in their career.
The need for management key points are mentioned below:
- Helps in establishing objectives
Management ideas help a business in establishing their objectives. Thus, in turn contribution to goal setting techniques process. When goals and aims are appropriately established, it would add towards efficiency in success if results.
- Optimum utilization of resources
Optimum utilization of resources can be done through proper monitoring of the performance of employees. The ideas of management obviously spell the best way of doin the work and attaining effectives in action. It points out how money, time, money, materials and real human efforts can be utilized economically to improve productivity. This simple truth is clearly observed in the guidelines of department of work, delegation of specialist, reasonable remuneration etc.
- Scientific decisions
By following rule of decentralization of specialist, managers may take decisions scientifically as the situation demands. Taking appropriate decisions at the right time is essential for the simple running of company.
- Change in technology
Managers must face the challenges of the competitive world. They retains a close watch on changing technology being used in various domains. By following principle of section of labor, professionals are able to identify where and then for what activity the technology are modified.
- Effective administration
By pursuing certain ideas like unity of command line, unity of path etc professionals can deal with their respective areas effectively. This takes away misunderstanding in the intellects of the employees.
- Social obligation
A company is an integral area of the society. It derives its inputs from the culture and provides its result to the society. It must supply quality products at reasonable price to the employees. The rule of fairness, collateral and justice help in protecting the interests of all interested in the existing growth and development of the organization
- Research and development
Just as management concepts evolved through medical observations, current management techniques too should be based on rational judgment. There should be continuous procedure for research in all the functional portion of management. Marketing research helps in discovering the demand for something and promoting it, research in fund helps in assessing the financial feasibility of jobs and so forth. Management principles emphasise on such research.
Nature of principles
The characteristics of principles is as follows:
- Empirical in nature
Management principles progressed out of organized research undertaken by certain renounced management thinkers. The brand new results lead to development of new guidelines.
- Aimed at influencing real human behavior
Human behaviour is unpredictable. It is situational with other times motivated by inner feelings and thoughts. The complex human behavior needs assistance and directions. Management principles attempt to such assistance in human action. These guidelines guide action in confirmed context and situation changes, program of such rules would require change. This rule remains same but the application is different. Team are a principle is good for attainment of organizational goals.
Management concepts are comparative in nature and not absolute. They have to be employed keeping in view the prevailing situation and organizational requirements.
Management ideas never stay static. They are really applied according to improve in situation after considering the condition prevailing there and circumstances which necessitated the application form. Course of control can vary greatly for similar organizations when characteristics in the superiors and subordinates fluctuate. The guidelines of management can be employed with deviation under different condition in different ways.
- Universal application
Management rules have universal application I all sorts of organization in every types of organization and in all places. Thus principle of management fin application in the police force, religious group, business organization, or sport membership. They find program with a multinational company as well as small exclusive trading firm. It really is true that such rules are applied with versatility. Thus decentralization has its relevance everywhere you go.
Management principles are the life blood of the organization with which the organizational objective may be accomplished. Henri fayol is one of quite management thinkers whose ideas, importance and principles are reviewed above.
Dessler G (2001) management, leading people and organization in the 21st century, prentice hall, smith KG & Hitt MA 2005, Oxford University or college Press
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Business studies (SCERT)