Introduction:Henri Fayol was born in Istanbul in 1841. When he
was 19, he began working as an engineer at a large mining company
in France. He eventually became the director, at a time when the
mining company employed more than 1,000 people.Through the years,
Fayol began to develop what he considered to be the 14 most
important principles of management. Essentially, these explained
how managers should organize and interact with staff.In 1916, two
years before he stepped down as director, he published his "14
Principles of Management" in the book "Administration Industrielle
et Gnrale." Fayol also created a list of the six primary functions
of management, which go hand in hand with the Principles.Fayol's
"14 Principles" was one of the earliest theories of management to
be created, and remains one of the most comprehensive. He's
considered to be among the most influential contributors to the
modern concept of management, even though people don't refer to
"The 14 Principles" often today.Considering title of assignment we
have select an organization of Caritas Bangladesh. In our
assignment we present management practice in Caritas Bangladesh in
the light of Fayol's "14 Principles.About Caritas Bangladesh (CB):
Caritas was founded in 1967 as the eastern branch of Caritas
Pakistan. Following the cyclone of November 1970 it was
re-organized and became known as CORR (Christian Organization for
Relief and Rehabilitation) and took on the character of a national
organization on January 13, 1971. The name Caritas was
re-introduced in 1976.Caritas Bangladesh has its Central Office in
Dhaka. There are eight Regional (or Diocesan) Offices in Barisal,
Chittagong, Dhaka, Dinajpur, Khulna, Mymensingh,Rajshahi and
Sylhet. In all these places Caritas is operational in Integrated
Development, Disaster Management and Human Resource Development,
under a central management. Caritas restricts itself at present to
208 upazilas (sub-districts) for integrated human development work.
During emergencies, such as natural disasters, Caritas is
operational in any part of the country. Caritas Bangladesh is a
member of the Caritas Internationalism, a confederation of 165
Caritas Member Organizations over 200 countries and
territories.Caritas Bangladesh (CB) is a national organization of
the Catholic Bishops' Conference of Bangladesh (CBCB) to carry out
the activities of the social welfare and human development. The
CBCB approves the mandate for Caritas Bangladesh and guide the
General Body to take all major decision of Caritas.Vision:
In the light of the Social Teachings of the Church, Caritas
Bangladesh envisions a society which embraces the values of
freedom, justice, peace and forgiveness allowing all to live as a
communion and community of mutual love and respect.
Mission:
Caritas Bangladesh tries to function in partnership with people
especially the poor and marginalized, with equal respect for all to
attain integral development, to live a truly human life in dignity
and to serve others responsibly and with love.
GENERAL BODY: The General body is the highest policy making body
of Caritas Bangladesh consisting of 31 members representing the
CBCB, Diocese and Regions drawn from cross section of people,
professional and social workers. The GB makes organizational
policies, approves annual budget and audit, appoints auditors and
elects the executive Board. The President of Caritas Bangladesh is
the Most Rev. Theotonius Gomes, CSC. Executive Board (EB) is the
decision making body consisting of 11 members elected by the GB. EB
approves and reviews the projects and activities as well as budget
and audit reports to the GB. The Chairperson of EB is Dr. Benedict
Alo D'Rozario, Executive Director of Caritas Bangladesh.Executive
office: Executive office consist of the Executive Director,
Administrative Director, the Development Director, the Director,
Disaster & Management and Director, Caritas Development
Institute who are appointed by the General body at its AGM as
recommended by the CBCB. Executive office is the implementation and
decision making body for the project management as well as the
organizational management.
Organogram of Caritas Bangladesh:Implication Henry Fayol's
Principle in Caritas Bangladesh: Today's managers have access to an
amazing array of resources which they can use to improve their
skills. But what about those managers who were leading the way
forward 100 years ago?Managers in the early 1900s had very few
external resources to draw upon to guide and develop their
management practice. But thanks to early theorists like Henri Fayol
(1841-1925), managers began to get the tools they needed to lead
and manage more effectively. Fayol, and others like him, are
responsible for building the foundations of modern management
theory.
1. Division of Work:
When employees are specialized, output can increase because they
become increasingly skilled and efficient.According to Henry Fayol
under division of work, "The worker always on the same post, the
manager always concerned with the same matters, acquire an ability,
sureness and accuracy which increases their output. In other words,
division of work means specialization. According to this principle,
a person is not capable of doing all types of work. Each job and
work should be assigned to the specialist of his job. Division of
work promotes efficiency because it permits an organizational
member to work in a limited area reducing the scope of his
responsibility. Fayol wanted the division of work not only at
factory but at management levels also.
Caritas Bangladeshs Practice: Caritas Bangladesh recruits staffs
in following areas:
Department of DMD Department of Development Department of
Administration and HR Every department has separate Director to
implements designed activities separately. Departmental directors
recruits staff complying Administrative and HR policy through HR
department based on requirement.
2. Authority and Responsibility:
Managers must have the authority to give orders, but they must
also keep in mind that authority comes from responsibility.
Authority and responsibility go together or co-existing. Both
authority and responsibility are the two sides of a coin. In this
way, if anybody is made responsible for any job, he should also
have the concerned authority. Fayol's principle of management in
this regard is that an efficient manager makes best possible use of
his authority and does not escape from the responsibility. In other
words when the authority is exercised the responsibility is
automatically generated.
Caritas Bangladeshs Practice:
For instance - An employee of a Caritas Bangladesh is entrusted
with confidential/insider information. He shall not use or
proliferate information that is not available to the investing
public. By doing this, the company provides authority to its
employees of holding such information. At the same time,
responsibility is exacted by the employees that this information
will remain confidential throughout their term with the company.
Such insider information might include - raising of finances,
restructuring plans, Asset revaluations, financial information such
as profits, earnings and dividends etc.
3. Discipline:
Discipline must be upheld in organizations, but methods for
doing so can vary.According to Henry Fayol discipline means
sincerity about the work and enterprise, carrying out orders and
instructions of superiors and to have faith in the policies and
programs of the business enterprise, in other sense, discipline in
terms of obedience, application, energy and respect to superior.
However, Fayol does not advocate warming, fines, suspension and
dismissals of worker for maintaining discipline. These punishments
are rarely awarded. A well-disciplined working force is essential
for improving the quality and quantity of the production.
Caritas Bangladeshs Practice:
Caritas Bangladesh has developed its own Code of Conduct to
guide the behavior of its employees. Highlights of this Code of
Conduct:-
Every employee of a Caritas Bangladesh, including full-time
directors and the executive Director, shall exhibit culturally
appropriate department in the countries they operate in, and deal
on behalf of the company with professionalism, honesty and
integrity, while conforming to high moral and ethical standards.
Every employee of Caritas Bangladesh shall preserve the human
rights of every individual and the community, and shall strive to
honor commitments. Every employee shall be responsible for the
implementation of and compliance with the Code in his / her
environment. Failure to adhere to the Code could attract severe
consequences, including termination of employment.
4. Unity of Command:
Employees should have only one direct supervisor. A subordinate
should take order from only one boss and he should be responsible
and accountable to him. Further he claimed that if the unit of
command is violated, authority is undermined, disciplined in
danger, order disturbed and stability threatened. The violation of
this principle will face some serious consequences. In this way,
the principle of unity of command provides the enterprise
disciplined stable and orderly existence. It creates harmonious
relationship between officers and subordinates, congenial
atmosphere of work. It is one of the Fayol's important essential
principles of management.
Caritas Bangladeshs Practice:
The Management team for each department within Caritas
Bangladesh has been clearly defined. Each employee under his/her
respective department should receive orders from the managers,
coordinators of the respective department.
5. Unity of direction: Teams with the same objective should be
working under the direction of one manager, using one plan. This
will ensure that action is properly coordinated.Fayol advocates
"One head and one plan" which means that group efforts on a
particular plan be led and directed by a single person. This
enables effective co-ordination of individual efforts and energy.
This fulfills the principles of unity of command and brings
uniformity in the work of same nature. In this way the principle of
direction create dedication to purpose and loyalty. It emphasizes
the attainment of common goal under one head.
Caritas Bangladeshs Practice:
Caritas Bangladesh cooperates with Regional Offices and Caritas
trust by sharing knowledge and physical, human and management
resources, to achieve common goals and objectives. The entire
organization seems as a family has a single direction. Also, as
mentioned in the code of conduct, Caritas Bangladesh shall
recommend to its board of directors the adoption of policies and
guidelines periodically formulated.This provides an example of how
a policy framework laid down by the superior body guides and
directs the companies to a common objective.
6. Subordination of individual interests to general interests:
The interests of one employee should not be allowed to become more
important than those of the group. This includes managers.
The interest of the organization ought to come before the
interests of the praise individual workers. In other words,
principle of management states that employees should surrender
their personnel interest before the general interest of the
organization. Sometimes the employees due to this ignorance,
selfishness, laziness, carelessness and emotional pleasure overlook
the interest of the organization. This attitude proves to be very
harmful to the organization.
Caritas Bangladeshs Practice:
The Code of Conduct of Caritas Bangladesh clearly states that an
employee or director of the organization shall always act in the
interest of the organization.
He/she should ensure that any business or personal association
which he / she may have does not involve a conflict of interest
with the operations of the organization and his / her role therein.
The Code of Conduct cites 3 areas of actual or potential conflict
of interests. One of the highlights warns employees that the
interest of the organization or group cannot be compromised. Any
personal interest that may potentially influence organization
interest should be disclosed. Failure to do so can lead to suitable
disciplinary action.
7. Fair Remuneration to employees:
Employee satisfaction depends on fair remuneration for everyone.
This includes financial and non-financial compensationAccording to
Fayol wage-rates and method of their payment should be fair, proper
and satisfactory. Both employees and ex-employers should agree to
it. Logical and appropriate wage-rate and methods of their payment
reduces tension and differences between workers and management,
create harmonious relationship and a pleasing atmosphere of work.
Further Fayol recommends that residential facilities be provided
including arrangement of electricity, water and facilities.
Caritas Bangladeshs Practice:
Caritas Bangladesh follows this principle. Every three years
later every Employee of Caritas Bangladesh provided by COLA- Cost
of living adjustment. Besides this employee gets long survives
which contain a sum of compensation with a certificate who continue
his job up to 10 years, 15 years, 20 years and 25 years with
Caritas Bangladesh.
8. Centralization and Decentralization: This principle refers to
how close employees are to the decision-making process. It is
important to aim for an appropriate balance.There should be one
central point in the organization which exercises overall direction
and control of all the parts. But the degree of centralization of
authority should vary according to the needs of situation.
According to Fayol there should be centralization in small units
and proper decentralization in big organization. Further, Fayol
does not favor centralization or decentralization of authorities
but suggests that these should be proper and effective adjustment
between centralization and decentralization in order to achieve
maximum objectives of the business. The choice between
centralization and decentralization is made after taking into
consideration the nature of work and the efficiency, experience and
decision-making capacity of the executives.
Caritas Bangladeshs Practice:
Caritas Bangladesh has its National Office in Dhaka. There are
Eight Regional (or Diocesan) Offices in Barisal, Chittagong, Dhaka,
Dinajpur, Khulna, Mymensingh, Rajshahi and Sylhet. In all these
places Caritas is operational in Integrated Development, Disaster
Management and Human Resource Development, under a central
management. Eight Regional has separate administration to implement
the works.
9. Scalar chain:
Employees should be aware of where they stand in the
organization's hierarchy, or chain of command.The scalar chain is a
chain of supervisors from the highest to the lowest rank. It should
be short-circuited. An employee should feel the necessity to
contact his superior through the scalar chain. The authority and
responsibility is communicated through this scalar chain. Fayol
defines scalar chain as "the chain of superiors ranging from the
ultimate authority to the lowest rank." The flow of information
between management and workers is a must. Business opportunities
must be immediately avoided of. So we must make direct contact with
the concerned employee. Business problems need immediate solution,
so we cannot always depend on the established scalar chain. It
requires that direct contact should be established.Caritas
Bangladeshs Practice: According to the Caritas Bangladesh Code of
Conduct Every employee of a Caritas Bangladesh shall promptly
report to the management.Employees shall be encouraged to notify
their leaders/managers/supervisors if the principles of the code
are violated. If no action is taken, violations of the code should
be communicated to the higher authority of the organization. If
violations of the code, and particularly the principle related to
rejection of corruption, can be proven and verified, the employee
and/or other concerned person (s) to this code should consider
making the information publicly known. Employees reporting such
violations, shall be protected against any reprisals by the organ
that is signatory to the code.
10. Order:
The workplace facilities must be clean, tidy and safe for
employees. Everything should have its place.According to Fayol
there should be proper, systematic and orderly arrangement of
physical and social factors, such as land, raw materials, tools and
equipments and employees respectively. As per view, there should be
safe, appropriate and specific place for every article and every
place to be used effectively for a particular activity and
commodity. In other words, principles that every piece of land and
every article should be used properly, economically and in the best
possible way. Selection and appointment of the most suitable person
to every job. There should be specific place for everyone and
everyone should have specific place. This principle also stresses
scientific selection and appointment of employees on every job.
Caritas Bangladeshs Practice:
According to the Code of Conduct, Caritas Bangladesh shall
maintain its Financial reports in an orderly manner. Internal
accounting and audit procedures shall reflect, fairly and
accurately, all of the organizations business transactions and
disposition of assets. All required information shall be accessible
to organizations auditors and other authorized parties and
government agencies. No employee shall make, authorise, abet or
collude in an improper payment, unlawful commission or bribing.
11. Equity:
Managers should be fair to staff at all times, both maintaining
discipline as necessary and acting with kindness where
appropriate.The principle of equality should be followed and
applicable at every level of management. There should not be any
discrimination as regards caste, sex and religion. An effective
management always accords sympathetic and human treatment. The
management should be kind, honest and impartial with the employees.
In other words, kindness and justice should be exercised by
management in dealing with their subordinates. This will create
loyalty and devotion among the employees. Thus, workers should be
treated at par at every level.
Caritas Bangladeshs Practice:
Caritas Bangladesh promises to provide equal opportunities to
all its employees. According to the Code of Conduct, Human resource
policies shall promote diversity and equality in the workplace, as
well as compliance with labour laws, while encouraging the adoption
of international best practices. Everyone has the right to be heard
and equal opportunity is provided to those eligible and decisions
are based on merit.
12. Stability of use of personnel: Managers should strive to
minimize employee turnover. Personnel planning should be a
priority.
Principle of stability is linked with long tenure of personnel
in the organization. This means production being a team work, an
efficient management always builds a team of good workers. If the
members of the team go on changing the entire process of production
will be disturbed. It is always in the interest of the enterprise
that its trusted, experienced and trained employees do not leave
the organization. Stability of job creates a sense of belongingness
among workers who with this feeling are encouraged to improve the
quality and quantity of work.
Caritas Bangladeshs Practice:
Caritas Bangladesh believes in Concurrent Employment.
Accordingly, the company bar its employees to accept any other form
of employment or a position of responsibility, paid or unpaid,
unless an official permission has been furnished by the company
itself. This keeps the Employees associated with the organization
on a long term basis and helps the organization extract long term
service. This saves the organization the cost of recruiting and
training fresh employees.
13. Initiative: Employees should be given the necessary level of
freedom to create and carry out plans.
Under this principle, the successful management provides an
opportunity to its employees to suggest their new ideas,
experiences and more convenient methods of work. The employees, who
has been working on the specific job since long discover now,
better alternative approach and technique of work. It will be more
useful, if initiative to do so is provided to employees. In simple,
to ensure success, plans should be well formulated before they are
implemented.
Caritas Bangladeshs Practice:Caritas Bangladesh always give
freedom to department wise work independently with own initiative.
Caritas Bangladesh arrange family day every year. In that day
provide award to best implementer.
14. Spirit of Co-operation (Spirit de crops):
Organizations should strive to promote team spirit and unity.In
order to achieve the best possible results, individual and group
efforts are to be effectively integrated and coordinated.
Production is a team work for which the whole-hearted support and
co-operation of the members at all levels is required. Everyone
should sacrifice his personal interest and contribute his best
energies to achieve the best results. It refers to the spirit of
loyalty, faithfulness on the part of the members of the group which
can be achieved by strong motivating recognition and importance of
the members for their valuable contribution, effective
coordination, informal mutual social relationship between members
of the group and positive and constructive approach of the
management towards workers' welfare.
Caritas Bangladeshs Practice:
Caritas Bangladesh offers its employees the following to
encourage and promote team spirit.
A work culture which stimulates innovation, team work &
freedom to excel. Reward & Growth that is performance-driven.
Most contemporary perks & other amenities. Continuous training
and development opportunities at all levels.Conclusion: Caritas
Bangladesh is working only by its funding from donor organization
for that reason no permanent scope for continuing the job. Majority
positions are project basis. If project fund available then job
continuing up to service age 30. Caritas Bangladesh should ensure
self-financing sources so that without donor fund Caritas can
continue their activities. In this regard Caritas can take special
fund raising approach internally through utilization of resources.
When dependency on donor fund diminish then Fayol's "14 Principles"
would be implement smoothly. 12 | Page