Management is the driving force behind the entrepreneurial success and sustained competitive advantage in the market. It is a recognized function in the world of enterprise and marketing. There are four important theories on the subject: Taylor’s Scientific Management, Mayo’s relations movement, Weber’s idealized bureaucracy, and Fayol’s administration, although for this paper, Henri Fayol’s theories will be discussed and elucidated since it is his theories which are considered to be the most influential on the field of studies and business administration.
Thus the primary objective of the paper is to construct overviews on Fayol’s five primary functions and fourteen principles of management and possibly relate them to the contemporary management. Henri Fayol’s theories are concerned mainly with realizing the organization for synchronizing the various tasks particular within a complex division of labour (Marshall 1998).
The translated version of General and Industrial Management, which he wrote in French in 1949 insinuated that Fayol was advocating generally on business management (Marshall 1998), although he said that his ideas are can extend to all formal organizations, as well as political and religious associations (Fayol 1937). Of Fayol’s six broad activities for business undertakings (methodological, trade, monetary, safety, book-keeping, managerial), the most important were the five
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Constructing plan or action that merge unity, stability, flexibility and exactitude given the company’s assets, nature and significance of labor and upcoming developments. This is the hardest among the five functions and requires active participation among the members. It also entails coordination at different company levels and at different time horizons. Organising — supplying capital/investment, human resources and necessary materials for the routine administration of the company, and constructing formation to match the labour.
Organizational structure is dependent on the quantity of employees. An addition to quantity of functions opens out the company horizontally and furthers more layers for supervisors. Commanding optimises proceeds from all workforces in the interest of the whole company. Triumphant supervisors have personal honour, communicate comprehensively and found their decisions on regular inspections. Their meticulous understandings of the employees generate unanimity, vigour, initiative and devotion and remove ineptitude. Coordinating is the
unification and harmonization of activities and labours to preserve the stability amongst the activities of the enterprise. Fayol suggested weekly meetings for managers to resolve problems. Controlling involves identifying flaws and lapses by controlling feedback, and conforming to activities, with procedures, company policy and orders (Wren et al 2000). Gulick and Brit Urwick extended Fayol’s listings to seven supervisory managerial activities condensed by the acronym POSDCORB which includes planning, organizing, staffing, directing, coordinating, reporting, and budgeting.
Staffing includes recruitment, hiring and training workers and maintaining suitable environment for them. Reporting would involve regular informing of the hierarchical managers through reports, records and inspections. Budgeting involves monetary planning, accounting and directing (Wren et al 2000). Fayol express 14 Principles of Administration—division of labour, establishment of authority, establishment of authority, enforcement of discipline, unity of command, unity of direction, subordination of individual interest to the interests of the organisation.
fair remuneration for all, centralisation of control and authority, adoption of a scalar chain, a sense of order and purpose, equity and fairness in dealings between staff and managers, and stability of jobs and positions, stability of jobs and positions, development of individual initiative and esprit de corps (Shreldake 1996). Division of labour by attainment of the maximal effectiveness from work through specialisation of labor in all department aside from those involved in technicalities. Fayol ws more general in his theory and did not provide minuting information (e. g.
breaking individual operation to elements) but otherwise claimed the importance of such principle. Establishment of authority in enterprise can be executed by having the legitimacy or the right to bestow orders. power begins from two causes– bureaucratic and personal. Know-hows, astuteness, honesty and management ability are necessary elements of an administrator’s official right. Administrators should know how to act with proper responsibility and authority since both are intertwined. Instilling discipline is a central activity when managing organisation, but such concept may vary in different types of organization.
Supervisors can dole out workers with admonitions, punishments, downgrading and discharge to carry out discipline (Shreldake 1996). Unity of command dictates that a particular worker should allow an employee to be a recipient of orders of a single boss only. Double command creates apprehension, uncertainty and clashes, and the consequence is watered down accountability and hazy communication. Unity of direction through setting a common aim for the company’s multiple activities is an indispensable clause to gain unity of action, coordination of strength and finally redirection of endeavours.
Subordination of individual interest to the interests of the organisation means to reconcile common interest with the rest of the enterprises or each employee is one of the troubles that the management has to contend with which may extend to the correlation between employees and administrator. More common is that managers tend to have more selfish interest. Fair remuneration for all involves just rewards for work/job rendered by considering both monetary and non-monetary elements. Centralisation of control and authority involves proportionating labour and is similar to the nervous system of humans.
Adoption of a scalar chain which connects the higher to lower command generates employee awareness of their position and obligations with respect to hierarchical command. Horizontal community is advocated by Fayol. Everything has a place or an order and associated purpose. Services must be uncluttered, materials organized and personnel chosen or screened with strict measures and specific work description. This should be supported by an organizational chart (Shreldake 1996) Equity should be instilled using mixture of justice and kindness and supervisors must always strike balance involving equity and regulation.
Stability of jobs and positions is one of the principles and herein, there should be familiarization of employees and managers toward various work, position and activity. Developing or instilling individual initiative among employees or enterprise members can pave path to success and this is conceived through delegated authority. Esprit de Corps involves structuring and preserving both employee morale and unanimity. Divide and rule method is unproductive. Also, it can also help target flaws and roots of conflict within the company.
There is a stress on group dynamics and interactivity s well as personal effort in the last principle (Shreldake 1996). As noted, Fayol’s administrative theories outlines five important enterprise functions and 14 important principles for managing success in the company, shows generalization and indicates utmost importance of hierarchical command in securing company objectives. It is noted that Fayol did not expound much on human resources as well as external relations for ensuring entrepreneurial success. Both of this are highly relevant in the current trend for management.It cannot be neglected though that his works are highly applicable in their generality.
Wren et al. (2002). The Foundations of Fayol’s Administrative Theory. Management Decision 409, 906-918. Shreldake, J. (1996). Management Theory. UK, Thomson. Marshall, G. Administrative Theory. (1998). Dictionary of Sociology. Oxford UP. Fayol, H. (1937). `The Administrative Theory on the State. Papers on the Science of Administration. Institute of Public Administration administrative theory in the state. Translated by S. Greer Gulick, and Urwick. L. New York, NY, pp. 99-114.