Henri_Fayol

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Management ProcessSchool

Thinker: Henri Fayol


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| Introduction to Management Process School| Principles of Management - Henri Fayol

| Roles of Employees, Manager, Organization


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Henri Fayol (1841-1925)

o French Management Thinker

o Began his career as mining engineer &was the director of mines

o Then moved to research in geology

o Fayol then joined administrative role inthe company .

oTurned around Comambault fromimmense financial troubles.

o On retirement he published his work oncomprehensive theory of administration

o His work was popular in France but wasunknown outside till 1940s.


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Modern Thought -> Functions of Manager

Planning

Organizing

Leading

Controlling


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Functions of Management (Henri Fayol)

Planning

Organizing

CommandCoordination

Control


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Functions of Management (George Terry)

Planning

Organizing

Actuating

Controlling


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Fayols Qualities of Effective Plans

|UNITYAt any one time anorganization should haveonly one guidingorganizational goal

| CONTINUITYPlanning is an ongoingprocess and previous

plans should be modifiedto fit together in the

corporate framework

|ACCUR

ACY

Managers should collectand utilize all availableinformation to make aplan as accurate as

possible

| FLEXIBILITYA manager should not bestuck with a static plan,but be able to changeand alter as situationsdo.


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Time Spent on Managerial Functions

| Managers at different levels inthe hierarchical setup of theorganization spend differenttime to different activities. Organizing

LowerManagement

MiddleManagement

TopManagement

Planning

Controlling


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Henri Fayols 14 Principles


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ASSUMPTIONS Contd

Managing is an Art, which can be improved byreliance on and understanding of principles.

Principles in Management are nonetheless trueeven if a prescribed treatment or design by apractitioner in a given case situation chooses toignore the principle or cost involved.

Theory of management does not need toencompass the field of knowledge in order for it toserve as a scientific or theoretical foundation.


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Fayols Principles of Management

Division of Work or Specialisation :Specializing encourages continuous improvementin skills and the development of improvements inmethods. Each change of work brings in its trainan adaptation which reduces output..

Authority and Responsibility: A managershould never be given authority withoutresponsibility--and also should never be givenresponsibility without the associated authority toget the work done.


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Discipline: No slacking, bending of rules.The workers should be obedient andrespectful to the organization. For this goodleadership, explicit agreements and a systemof punishment is necessary.

U

nity ofC

ommand: Each employee shouldreceive order only from one superior. Thisprinciple of Fayol ran counter to Taylorsrecommendation.


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Fayol i i l of anagement

Unity of Di ection: A single mind generatesa single plan and all play their part in thatplan. Unity of Command cannot exist withoutUnity of Direction.

Gangplanks: Fayol suggested that a

gangplank should be used to prevent thescalar chain from bogging action down, andwithout weakening the chain of command.


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Subordination ofIndividual Interests toGeneral Interest: According to Fayol ,oneemployee's interests or those of one group

should not prevail over the organization as awhole . Employees should be fair, and thereshould be constant vigilance andsupervision.

Remuneration: Employees should receivefair wages for services, not what thecompany can get away with.


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Centralisation: Fayol regarded Centralisationas the natural order .According to him,Centralisation and decentralisation werequestions of proportion.

Order: Fayol said that there should be place

for everything and everyone and also RightMan in the Right Place . Bigger the Business ,more is the difficulty in keeping this Balance.


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Equity:In running a business acombination of kindliness and justiceis needed , organization equity brings

loyalty.

Stability of Tenure of Personnel: No

employee should be sacked within ashort time, workers perform well ifthere is job security.


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Initiative:Initiatives from employee sideshould be encouraged, workers will exhibithigh level of efforts, should be done withinlimits of discipline and authority.

Esprit de Corps: french word, managersshould encourage cohesiveness among his

subordinates. Fayol was against writtencommunication, the process should be as faras possible direct and oral


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Abilities of personnel

Physical Qualities: health, physicalfeatures, vigor

Mental Qualities: ability to understandand learn, judgment, adaptibility


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Moral Qualities: dignity, willingness to

accept, loyalty, honesty etc

General Education: general acquaintancewith matters not belonging exclusively to

the function performed, knowledge of whatis happening around him, in his factory etc


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Special Knowledge: particular to thefunction performed, be it technical,

commercial, financial, managerial etc

Experience: recollection of lessonswhich one has oneself derived fromthings


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Elements of Management

To forecast and plan: Examining thefuture and drawing up a plan of action

To Organize: Building up the structure,material and human of theundertaking.


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To ommand:maintainacti it amongr onnel, lead t eemployees

Toco-ordinate: nifyingand armoni ingall acti ityandeffort

Tocontrol:seeing t eeveryt ingoccurs inorder it t edefinedplan, ordersgiven


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Criticism of Management Process School

Universal Approach does not holds true intodays complex environment. Eg:Manufacturing and service industry

No significant contribution after Henri Fayol,rest of the thinkers repeated the same thing indifferent words.

It more or less disregards the human element,this view is countered by Behaviour School ofthought


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Not applicable under the conditions of high

unemployment

The process approach is too static, but the

organization functions under dynamicconditions

Does not take into account the relevant

economic, technological, psychological &social aspects though it accepts that thesefactors have an important role.


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Thank You !!!

Henri_Fayol

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