Henri Fayol's Principles of Management Early Management Theory Today's managers have access to an amazing array of resources which they can use to improve their skills. Henry Fayol is a French Mining Engineer, who developed the concept of general theory of administration and given 14 principles of management. On the other hand, F.W. Taylor is an American Mechanical Engineer, who advanced the concept of Scientific Management and given 4 Principles of Management. The theory of management functions aligns well with strategic leadership and management models and theories. Originality/value The paper is the rst to integrate Fayols theories with a strategic leadership model. Keywords Management theory, Management history, Leadership Paper type General review. Henri Fayol revered and reviled 489. Controlling) were developed by Henri Fayol over 90 years ago. The type of organizational structure that he created with his five management elements and his 14 principles of management was “Mechanistic” in Burns & Stalkers terms. Today‟s business environment is much more complex than the one Fayol. Henri Fayol was a French mining executive, mining engineer, director and author of mines who introduced the general theory of business administration called the Fayolism. Fayol’s work was the first comprehensive pronouncement of the general theory of management.
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Fayolism was a theory of management that analyzed and synthesized the role of management in organizations, developed around 1900 by the Frenchmanagement theorist Henri Fayol (1841–1925). It was through Fayol's work as a philosopher of administration that he contributed most widely to the theory and practice of organizational management.
Henri Fayol
Research and Teaching of Management[edit]
Fayol believed by focusing on managerial practices he could minimize misunderstandings and increase efficiency in organizations.[1] He enlightened managers on how to accomplish their managerial duties, and the practices in which they should engage. In his book General and Industrial Management (published in French in 1916, then published in English in 1949), Fayol outlined his theory of general management, which he believed could be applied to the administration of myriad industries. His concern was with the administrative apparatus (or functions of administration), and to that end he presented his administrative theory, that is, principles and elements of management.
His theories and ideas were ideally a result of his environment—a post revolutionized France with an emerging republic bourgeois. A bourgeois himself, he believed in controlling workers to achieve greater productivity over all other managerial considerations. However, through reading General and Industrial Management, it is apparent that Fayol advocated a flexible approach to management, one he believed could be applied to any circumstance whether in the home, the workplace, or within the state. He stressed the importance and the practice of forecasting and planning in order to apply these ideas and techniques, which demonstrated his ability and emphasis in being able to adapt to any sort of situation. In General and Industrial Management he outlines an agenda whereby, under an accepted theory of management, every citizen is exposed and taught some form of management education and allowed to exercise management abilities first at school and later on in the workplace.
Everyone needs some concepts of management; in the home, in affairs of state, the need for managerial ability is in keeping with the importance of the undertaking, and for individual people the need is everywhere in greater accordance with the position occupied.
— excerpt from General and Industrial Management
Fayol vs. Frederick Taylor's Scientific Management[edit]
Fayol has been regarded by many as the father of the modern operational management theory, and his ideas have become a fundamental part of modern management concepts. Fayol is often compared to Frederick Winslow Taylor who developed Scientific Management. Taylor's Scientific Management deals with the efficient organization of production in the context of a competitive enterprise that is concerned with controlling its production costs.[2] Taylor's system of scientific management is the cornerstone of classical theory. Fayol was also a classical theorist, and referred to Taylor in his writing and considered him a visionary and pioneer in the management of organizations.
However, Fayol differed from Taylor in his focus. Taylor's main focus was on the task, whereas Fayol was more concerned with management. Another difference between the two theorists is their treatment of workers. Fayol appears to have slightly more respect for the worker than Taylor had, as evidenced by Fayol's proclamation that workers may indeed be motivated by more than just money. Fayol also argued for equity in the treatment of workers.
According to Claude George (1968), a primary difference between Fayol and Taylor was that Taylor viewed management processes from the bottom up, while Fayol viewed it from the top down. In Fayol's book General and Industrial Management, Fayol wrote that
Taylor's approach differs from the one we have outlined in that he examines the firm from the bottom up. He starts with the most elemental units of activity—the workers' actions—then studies the effects of their actions on productivity, devises new methods for making them more efficient, and applies what he learns at lower levels to the hierarchy..
He suggests that Taylor has staff analysts and advisors working with individuals at lower levels of the organization to identify the ways to improve efficiency. According to Fayol, the approach results in a 'negation of the principle of unity of command'. Fayol criticized Taylor’s functional management in this way.
… the most marked outward characteristics of functional management lies in the fact that each workman, instead of coming in direct contact with the management at one point only, … receives his daily orders and help from eight different bosses…
— Fayol, 1949, p. 68.
Those eight, Fayol said, were
This, he said, was an unworkable situation, and that Taylor must have somehow reconciled the dichotomy in some way not described in Taylor's works.
Fayol's desire for teaching a generalized theory of management stemmed from the belief that each individual of an organization at one point or another takes on duties that involve managerial decisions. Unlike Taylor, however, who believed management activity was the exclusive duty of an organizations dominant class. Fayol's approach was more in sync with his idea of Authority, which stated, '..that the right to give orders should not be considered without the acceptance and understanding of responsibility.'
Noted as one of the early fathers of the Human Relations movements, Fayol expressed ideas and practices different from Taylor, in that they showed flexibility and adaptation, and stressed the importance of interpersonal interaction among employees.
Fayol's Principles of Management[edit]
During the early 20th century, Fayol developed 14 principles of management to help managers manage their affairs more effectively. Organizations in technologically advanced countries interpret these principles quite differently from the way they were interpreted during Fayol's time as well. These differences in interpretation are in part a result of the cultural challenges managers face when implementing this framework. The fourteen principles are:
Fayol's Elements (or functions) of Management[edit]
Within his theory, Fayol outlined five elements of management that depict the kinds of behaviors managers should engage in so that the goals and objectives of an organization are effectively met. The five elements of management are:
Effects of Written Communication[edit]
Fayol believed that animosity and unease within the workplace occurred among employees in different departments.[3] Many of these 'misunderstandings' were thought to be caused by improper communication, mainly through letters (or in present-day emails). Among scholars of organizational communication and psychology, letters were perceived to induce or solidify a hierarchical structure within the organization. Through this type of vertical communication, many individuals gained a false feeling of importance. Furthermore, it gave way to selfish thinking and eventual conflict among employees in the workplace.
This concept was expressed in Fayol's book, General and Industrial Management, by stating,' in some firms.. employees in neighboring departments with numerous points of contact, or even employees within a department, who could quite easily meet, communicate with each other in writing.. there is to be observed a certain amount of animosity prevailing between different departments or different employees within a department. The system of written communication usually brings this result. There is a way of putting an end to this deplorable system .. and that is to forbid all communication in writing which could easily and advantageously be replaced by verbal ones.'
Administrative Theory in the Modern Workplace[edit]
Fayol believed that managerial practices were key to predictability and efficiency in organizations. The Administrative theory views communication as a necessary ingredient to successful management and many of Fayol's practices are still alive in today's workplace.[4] The elements and principles of management can be found in modern organizations in several ways: as accepted practices in some industries, as revamped versions of the original principles or elements, or as remnants of the organization's history to which alternative practices and philosophies are being offered. The U.S. military is a prime example of an organization that has continued to use these principles.
References[edit]
Further reading[edit]
Retrieved from 'https://en.wikipedia.org/w/index.php?title=Fayolism&oldid=907839002'
This article provides an overview on Fayol’s contribution to modern management theory.
Almost simultaneously with Taylor, Henry Fayol (1841 – 1925), a French industrialist and manager, developed his theory of management.
He is regarded as the ‘Father of Modern Management Theory’, for he was the first to suggest the functions of management which are recognised as the essential part of a manager’s work by the modern authorities on management.
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He was a mining engineer of a large coal mining company and subsequently became its managing director. When he joined the company, it was almost bankrupt. When he retired after 30 years, the company was among the most successful enterprises with a long history of handsome profits and dividends.
Henri Fayol Administrative Management The…
During his successful career he searched for sound management principles. In 1916 he published his famous work, ‘General and Industrial Management.’
Fayol’s work is concerned with the higher level of the organisation.
He identified the following six activities which, he believed, had to be accomplished in all industrial undertakings:
(i) Technical (relating to production and manufacturing);
(ii) Commercial (buying, selling and exchange);
(iii) Financial (search for capital and its optimum use);
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(iv) Security (protection of property and persons);
(v) Accounting (record keeping, preparation of balance sheet, costing and statistics);
(vi) Managerial (functions of planning, organising, commanding, coordinating, controlling etc.).
Pointing out that the first five activities are well-known and found in all organisations, Fayol devoted most of his discussion to the analysis of managerial activities.
He divided his approach of studying management into three parts:
(a) Managerial qualities and training,
(b) General principles of management, and
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(c) Elements of management.
(A) Managerial Qualities and Training:
Fayol was the first person to identify the qualities required in a manager.
According to him, there are six types of qualities that a manager requires. These are as follows:
(i) Physical (health, vigour);
(ii) Mental (ability to understand and learn, judgement, mental vigour and adaptability);
(iii) Moral (energy, firmness, initiative, loyalty, tact, and dignity);
(iv) Educational (general acquaintance with the matters not belonging exclusively to the function performed);
(v) Technical (peculiar to the function being performed); and
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Henri Fayol Contribution To Management
(vi) Experience (arising from the work).
Fayol observed that the most important ability for a worker is technical and the relative importance of managerial ability increases as one goes up the scalar chain. He recognised a widespread need for the principles of management and managerial teaching.
He held that managerial ability should be acquired first in school and later in the workshop. In order to acquire managerial knowledge, he developed the principles of management to be taught in academic institutions.
(B) General Principles of Management:
Fayol laid down some basic principles of management. He believed in the flexibility of these principles. According to him, the light of principles, like that of light-houses guides, only those who know the way into port. He listed and described fourteen principles of management.
However, a brief summary of them is given below for quick reference:
(i) Division of Work:
Fayol has advocated it to take the advantages of specialisation. This principle can be applied at all levels of the organisation for higher productivity.
(ii) Authority and Responsibility:
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Responsibility is the corollary of authority and arises from it.
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(iii) Discipline:
Discipline is essential for successful management and, to ensure it, Fayol suggested good supervision at all levels, agreements with the employees as clear and fair as possible, and judicious imposition of penalties.
(iv) Unity of Command:
It means that an employee should get orders from only one superior. Fayol has considered unity of command as an important aspect in managing an organisation. He suggested firmness and goodness on the part of the superiors, fair agreements with the workers and constant supervision by the managers to ensure good management.
(v) Unity of Direction:
Each group of activities having the same objectives must have one head and one plan.
(vi) Subordination of Individual Interest to Group Interest:
This principle reveals that the interest of the group should always prevail over the individual interest.
(vii) Remuneration of Personnel:
Remuneration and methods of payment should be just and fair so that maximum satisfaction can be attained by both the employers and the employees.
(viii) Centralisation:
“Everything which goes to increase the importance of the subordinates’ role is decentralisation, everything which goes to reduce it is centralisation.” The degree of centralisation of authority should vary according to the needs of the situation.
(ix) Scalar Chain:
It is the chain of the superiors from the ultimate authority to the lowest rank. A subordinate should follow the line of authority.
(x) Order:
According to Fayol, order means “a place for everything and everything in its place” and “a place for everyone and everyone in his place”; i.e., the right man in the right job.
(xi) Equity:
Equity is a combination of justice and kindliness. The managers should exercise kindliness arid justice in dealing with the subordinates. This will create loyalty and devotion among the employees.
(xii) Stability of Tenure of Personnel:
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It is a big factor for the success of an organisation. Fayol pointed out that instability in tenure of service is both the cause and effect of bad management.
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(xiii) Initiative:
Managers should permit the subordinates to take some initiative in thinking out and executing plans to keep up their zeal and energy.
(xiv) Esprit de Corps:
This is the principle of ‘Union is Strength’. Team-work and proper communication among the members of the group are important for the success of an organisation. Fayol wanted the managers to encourage cohesiveness and esprit de corps among their subordinates.
(C) Elements of Management:
Fayol opines that management should be viewed as a process consisting of five elements. He has regarded these elements as the functions of management. These are planning, organisation, command, co-ordination and control. According to him, ‘planning is the most important managerial function. Creation of ‘organisation structure’ and execution of commanding function are necessary to implement plans.
Henri Fayol Theory
‘Co-ordination’ is necessary to make sure that everyone is working together, and ‘control’ ensures that everything is proceeding according to the plan. Fayol holds the view that these functions are required at all levels of management and in all types of organisations.
The contribution of Fayol has made the real beginning of the development of management as a separate field of study. Guitar tuner using computer mic. It is true that, as a practical man, Fayol only set down the principles that he had observed and practiced; yet his observations are admirably fit for the currently developing theory of or approach to management.
Fayol was thus the first man to develop a comprehensive theory of management capable of universal application. His concepts and principles are generally accepted even today. He is, therefore, ‘the real founder of modern management’.
Criticism:
The contribution of Henry Fayol in the field of management thought is very important. He was the first person who pointed out the functions of management separately. However, in spite of such importance, his theory of management is not beyond criticism.
Administrative Management Theory Fayol Pdf
The management theory of Henry Fayol is criticised in the following aspects:
1. Higher Level Management:
The most important criticism regarding Fayol’s concept is that he has analysed management mainly from the view point of the top level managers. He considers that the top level managers only plan vital role in making an enterprise successful. But, practically it is not true.
He has not considered the role and significance of the lower level managers of the organisation. It should be remembered that the operative employees work under the supervision and control of the lower level managers who actually get things done through the group activities of their subordinate workers.
2. Less Emphasis on Human Aspect:
Fayol has not given proper emphasis on the utilisation of human resource. In his management theory human relation aspect is neglected.
3. Negligence of Joint Management:
There is no place for joint management in Fayol’s concept of management. Modern age is the age of joint management. At present the workers also participate in management through their trade union leaders.
4. Controversial Universality of Management:
Fayol opines that the elements, principles and methods of management indicated by him are applicable to all types of enterprises—trading or non-trading. But the principle of universality of management is very controversial. Because the principles of management depend on time, place, and situation of application and these are changed accordingly.
Henri Fayol Management Theory Pdf File
5. Ineffective in Culture-bound Management:
Henri Fayol Organizational Theory
In recent times there is a tendency to establish culture-oriented management. Henry Fayol states that his principles can be changed, extended and rectified according to need and situation. If it can be done, the general theory do not have its utility and effectiveness.
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