Saturday, February 23, 2019

14 Principle of Contributions to Management by Henri Fayol

14 Principle of Contributions to Management by Henri Fayol

Henry Fayol’s Contribution to Management # Introduction to Fayol and His Work :

Henry Fayol (1841 -1925) was a French mining engineer who turned a leading industrialist and a successful manager.

He was a mining engineer in a French mining company and rose to the position of the Chief Managing Director.

His life-long experience, in the field of managing, was reproduced in a monograph titled ‘Administration Industrial and General’. Fayol’s work gained popularity and was made known to scholars and practitioners of management; only when his monograph was published in English in the U.S.A. in 1949.

Henry Fayol Contribution to Management # A Broad Structure of Fayol’s Work :

Following is a brief comment on various facets of Fayol’s work:

(a) Fayol’s classification of business functions:

According to Henry Fayol, all the activities of a business enterprise could be divided into the following six groups:

(i) Technical activities (relating to production)

(ii) Commercial activities (relating to buying, selling or exchange).

(iii) Financial activities (relating to search for and optimum use of capital i.e. finances)

(iv) Security activities (relating to protection of the properties and personnel of the enterprise)

(v) Accounting activities (relating to a systematic recording of business transactions, including statistics also).

(vi) Managerial activities

Point of comment :

In Fayol’s view, the first five groups of activities of a business enterprise were well-known. Hence, he had concentrated his attention only on an analysis of the sixth group of activities viz., managerial.

(b) Fayol’s classification of managerial functions :

Henry Fayol classified managerial functions, as consisting of the following:

1. Planning

2. Organising

3. Commanding

4. Coordinating

5. Controlling

(c) Qualities required in managers:

Fayol mentions the following qualities required in managers; to enable them to become better and more efficient:

1. Physical

2. Mental

3. Moral

4. Education

5. Technical

6. Experience

(d) General principles of management:

By far, the most significant contribution by Fayol is the general principles of management listed by him, in his monograph titled ‘General and Industrial Administration. Based on his long managerial experience, Fayol advocates fourteen general principles of management.

14 Principles of Management of Henri Fayol

14 principles of Management ar statements that ar supported a basic truth. These principles of management function a tenet for decision-making and management actions. They are necessitated by means that of observations and analyses of events that managers encounter in observe. Henri Fayol was ready to synthesize fourteen principles of management once years of study. 14 principles of management by Henri Fayol - ToolsHero

1. Division of Work 
In observe, staff ar specialised totally different|in several|in numerous} areas and that they have different skills. Different levels of experience will be distinguished inside the data areas (from student to specialist). Personal and professional developments support this. According to Henri Fayol specialization promotes potency of the manpower and will increase productivity. In addition, the specialization of the manpower will increase their accuracy and speed. This management principle of the fourteen principles of management is applicable to each technical and social control activities.

2. Authority and Responsibility 
In order to urge things wiped out a company, management has the authority to relinquish orders to the staff. Of course with this authority comes responsibility. According to Henri Fayol, the incidental power or authority offers the management the proper to relinquish orders to the subordinates. The responsibility will be derived back from performance and it's so necessary to form agreements regarding this. In different words, authority and responsibility go along and that they ar 2 sides of identical coin.

3. Discipline 
This third principle of the fourteen principles of management is regarding obedience. It is typically a neighborhood of the core values of a mission and vision within the type of sensible conduct and respectful interactions. This management principle is crucial and is seen because the oil to form the engine of a company run swimmingly. 

4. Unity of Command 
The management principle ‘Unity of command’ implies that a private worker ought to receive orders from one manager which the worker is answerable thereto manager. If tasks and connected responsibilities ar given to the worker by quite one manager, this could result in confusion which can result in potential conflicts for workers. By exploitation this principle, the responsibility for mistakes will be established a lot of simply.

5. Unity of Direction 
This management principle of the fourteen principles of management is all regarding focus and unity. All staff deliver identical activities that may be connected to identical objectives. All activities should be dispensed by one cluster that forms a team. These activities should be represented in an exceedingly set up of action. The manager is ultimately liable for this set up and he monitors the progress of the outlined and planned activities. Focus aras are the efforts created by the staff and coordination.

6. Subordination of Individual Interest 
There ar perpetually all types of interests in a company. In order to possess a company operate well, Henri Fayol indicated that non-public interests ar subordinate to the interests of the organization (ethics). The primary focus is on the structure objectives and not on those of the individual. This applies to all or any levels of the whole organization, together with the managers. 

7. Remuneration 
Motivation and productivity ar about to each other as way because the swish running of a company thinks about. This management principle of the fourteen principles of management argues that the remuneration ought to be sufficient to stay staff impelled and productive. There ar 2 styles of remuneration particularly non-monetary (a compliment, a lot of responsibilities, credits) and financial (compensation, bonus or different money compensation). Ultimately, it is about rewarding the efforts that have been made. 

8. The Degree of Centralization 
Management and authority for decision-making method should be properly balanced in a company. This depends on the quantity and size of a company together with its hierarchy. Centralization implies the concentration of higher cognitive process authority at the highest management (executive board). Sharing of authorities for the decision-making method with lower levels (middle and lower management), is referred to as decentralization by Henri Fayol. Henri Fayol indicated that a company ought to attempt for an honest balance during this. 

9. Scalar Chain 
Hierarchy presents itself in any given organization. This varies from senior management (executive board) to very cheap levels within the organization. Henri Fayol ’s “hierarchy” management principle states that there ought to be a transparent line within the space of authority (from prime to bottom and every one managers in the slightest degree levels). This can be seen as a kind of management structure. Each worker will contact a manager or a superior in associate emergency scenario while not difficult the hierarchy. Especially, once it issues reports regarding calamities to the immediate managers/superiors.

10. Order 
According to this principle of the fourteen principles of management, staff in a company should have the proper resources at their disposal in order that they'll operate properly in a company. In addition to social order (responsibility of the managers) the work atmosphere should be safe, clean and tidy.

11. Equity 
The management principle of equity typically happens within the core values of a company. According to Henri Fayol, employees must be treated kindly and equally. Employees should be within the right place within the organization to try to to things right. Managers ought to supervise and monitor this method and that they ought to treat staff fairly and impartially. 

12. Stability of Tenure of Personnel 
This management principle of the fourteen principles of management represents preparation and managing of personnel and this could be in balance with the service that's provided from the organization. Management strives to attenuate turnover and to possess the proper workers within the right place. Focus areas like frequent modification of position and sufficient development should be managed well.

13. Initiative
Henri Fayol argued that with this management principle staff ought to be allowed to precise new ideas. This encourages interest and involvement and creates supplemental worth for the corporate. Employee initiatives ar a supply of strength for the organization in step with Henri Fayol. This encourages the staff to be concerned and interested.

14. Esprit de Corps
The management principle ‘esprit de corps’ of the 14 principles of management stands for striving for the involvement and unity of the employees. Managers are responsible for the development of morale in the workplace; individually and in the area of communication. Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.

In conclusion on the 14 Principles of management

The 14 principles of management can be used to manage organizations and are useful tools for forecasting, planning, process management, organization management, decision-making, coordination and control.

Although they are obvious, many of these matters are still used based on common sense in current management practices in organizations. It remains a practical list with focus areas that are based on Henri Fayol ’s research which still applies today due to a number of logical principles.