Management is the process of reaching
organizational goals by working with and through
people and other organizational resources.
Management has the following 3 characteristics:
1. It is a process or series of continuing and
related activities.
2. It involves and concentrates on reaching
organizational goals.
3. It reaches these goals by working with and
people and other organizational
resources.
MANAGEMENT FUNCTIONS:
The 4 basic management functions that make up
the management process are described in the
following sections:
1. PLANNING
2. ORGANIZING
3. INFLUENCING
4. CONTROLLING. PLANNING : Planning involves choosing tasks that
must be performed to attain organizational goals,
outlining how the tasks must be performed, and
indicating when they should be performed.
Planning activity focuses on attaining goals.
Managers outline exactly what organizations
should do to be successful. Planning is concerned
with the success of the organization in the short
term as well as in the long term.
ORGANIZING:
Organizing can be thought of as assigning the
tasks developed in the planning stages, to various
individuals or groups within the organization.
Organizing is to create a mechanism to put plans
into action.
People within the organization are given work
assignments that contribute to the company’s
goals. Tasks are organized so that the output of
each individual contributes to the success of
departments, which, in turn, contributes to the
success of divisions, which ultimately contributes
to the success of the organization.
INFLUENCING :
Influencing is also referred to as motivating,leading
or directing.Influencing can be defined as guiding
the activities of organization members in he
direction that helps the organization move towards
the fulfillment of the goals.
The purpose of influencing is to increase
productivity. Human-oriented work situations
usually generate higher levels of production over
the long term than do task oriented work situations
because people find the latter type distasteful.
CONTROLLING:
Controlling is the following roles played by the
manager:
1. Gather information that measures
performance
2. Compare present performance to pre
established performance norms.
3. Determine the next action plan and
modifications for meeting the desired
performance parameter
PRINCIPLES OF MANAGEMENT?
DESCRIPTION
The 14 Management Principles from Henri Fayol
(1841-1925) are:
1. Division of Work . Specialization allows the
individual to build up experience, and to
continuously improve his skills. Thereby he can be
more productive.
2. Authority. The right to issue commands, along with
which must go the balanced responsibility for its
function.
3. Discipline . Employees must obey, but this is two-
sided: employees will only obey orders if
management play their part by providing good
leadership.
4. Unity of Command . Each worker should have only
one boss with no other conflicting lines of
command.
5. Unity of Direction . People engaged in the same
kind of activities must have the same objectives in
a single plan. This is essential to ensure unity and
coordination in the enterprise. Unity of command
does not exist without unity of direction but does
not necessarily flows from it.
6. Subordination of individual interest (to the general
interest). Management must see that the goals of
the firms are always paramount.
7. Remuneration. Payment is an important motivator
although by analyzing a number of possibilities,
Fayol points out that there is no such thing as a
perfect system.
8. Centralization (or Decentralization). This is a
matter of degree depending on the condition of the
business and the quality of its personnel.
9. Scalar chain (Line of Authority). A hierarchy is
necessary for unity of direction. But lateral
communication is also fundamental, as long as
superiors know that such communication is taking
place. Scalar chain refers to the number of levels
in the hierarchy from the ultimate authority to the
lowest level in the organization. It should not be
over-stretched and consist of too-many levels.
0. Order. Both material order and social order are
necessary. The former minimizes lost time and
useless handling of materials. The latter is
achieved through organization and selection.
1. Equity . In running a business a ‘combination of
kindliness and justice’ is needed. Treating
employees well is important to achieve equity.
2. Stability of Tenure of Personnel . Employees work
better if job security and career progress are
assured to them. An insecure tenure and a high
rate of employee turnover will affect the
organization adversely.
3. Initiative . Allowing all personnel to show their
initiative in some way is a source of strength for
the organization. Even though it may well involve a
sacrifice of ‘personal vanity’ on the part of many
managers.
4. Team Spirit (Esprit de Corps) . Management must
foster the morale of its employees. He further
suggests that: “real talent is needed to coordinate
effort, encourage keenness, use each person’s
abilities, and reward each one’s merit without
arousing possible jealousies and disturbing
harmonious relations.”
WHAT IS MANAGEMENT? FIVE ELEMENTS
Fayol's definition of management roles and actions
distinguishes between Five Elements:
1. Prevoyance . (Forecast & Plan). Examining the
future and drawing up a plan of action. The
elements of strategy.
2. To organize. Build up the structure, both material
and human, of the undertaking.
3. To command . Maintain the activity among the
personnel.
4. To coordinate . Binding together, unifying and
harmonizing all activity and effort.
5. To control. Seeing that everything occurs in
conformity with established rule and expressed
command.
ORIGIN OF THE 14 PRINCIPLES OF MANAGEMENT.
HISTORY
Henri Fayol (1841-1925) was a French
management theorist whose theories in
management and organization of labor were widely
influential in the beginning of 20th century. He was
a mining engineer who worked for a French mining
company Commentry-Fourchamboult-Decazeville,
first as an engineer. Then he moved into general
management and became Managing Director from
1888 to 1918. During his tenure as Managing
Director he wrote various articles on
'administration' and in 1916 the Bulletin de la
Société de l’ Industrie Minérale, printed his
"Administration, Industrielle et Générale –
Prévoyance, Organisation, Commandement,
Coordination, Contrôle". In 1949 the first English
translation appeared: ‘General and Industrial
Management’ by Constance Storrs.
USAGE OF THE 14 MANAGEMENT PRINCIPLES.
APPLICATIONS
Change and Organization.
Decision-making.
Skills. Can be used to improve the basic
effectiveness of a manager.
Understand that management can be seen as a
variety of activities, which can be listed and
grouped.
Book: Henri Fayol - General and Industrial
Management -
Principles of Management - Fayol Forum (40
topics) Help
Management Mantras
What is the present management mantra practiced
in your organisation? A paradigm shift in
management may lead to innovations which may
lead to new applications.
Or are the old management theories still being
practiced in your organization?...
Books by Henri Fayol on Management
Has he written any books? I can only find articles
about his management style, but no books. Please
help....
Exactly Where are the 14 Principles of Fayol
Located?
I am writing an essay which encompasses Fayol's
theory and applying it to a modern business. I
have a copy of General and Industrial Management
to hand but I'm having difficulty to find a reference
to the 14 principles in the book.
Are these pri...
The Contribution of Henri Fayol to Strategy
The biggest contribution Fayol made to the
discipline of management or administration is not
his 14 principles or the 5 functions of a manager.
In my opinion, it was to identify that there is a
framework of strategies common to all
organizations...
Current Research on Fayol / 14 Principles?
Although they are now almost 100 years old, we
seem to agree that Fayol's principles continue to
be relevant today.
Do you know of any research teams who are
currently working on ...
Are Fayol's Principles of Management also
applicable to non-profit organizations?
Fayol's principles of management were written
having industrial (mining) firms in mind. Obviously
these are for profit companies.
Are the 14 principles also applicable to non-profit
organizations? Which principles would have to be
changed should...
On the 4th Principle: Unity of Command
According to Fayol's 4th Principle, Unity of
Command, I should receive instruction from one
boss who is my immediate manager.
However I have been instructed by other managers
from other department too. And even by my
colleagues. These instructio...
Difference between Adminstration and
Management
Should't Fayol's principles be called the 14
principles of Administration? Why was
'administration' (in the French language) translated
into English in 1949 as 'management'? What
differences are there between the area of studying
administratio...
All of These Principles are Obvious Features
In every organization, we can see all of them but
we can't classify the companies with them. For
example: classify to efficient or non efficient
organization, competitive or primitive, dynamic or
static, etc.
These principles just tell us how an...
Manager in Conflict with Top Management...
Conflicts occur regularly in almost all
organisations. Managers having a conflict with top
management normally have to accept the decision
and command of top management.
But quite often, the manager might be right as he
is the one who is convers...
(Why) Do we Need Managers?
Why do we need managers? They are a layer of
cost and add no real value, so why do we have
them? Most specialists left their field to be
managers and usually hate it and perform at lower
levels than in their previous roles.
What if we reduced ma...
Managers versus Leaders
Not all managers are good leaders and not all
leaders are good managers. We need to develop
both managers and leaders to realize the vision
and mission of the company....
On #9: Scalar Chain has to be Modified for
Current Times
Had Fayol been alive today, he would have
modified scalar structure as the hierarchy is
different and structures are much more flat today.
People are working in different countries on a
single project and individual responsibility is
bigger combined ...
Fayol's Management Roles
Fayol mentioned 5 roles (or actions):
1. Prevoyance.
2. To organize.
3. To command.
4. To coordinate.
5. To control.
Apart from these 5 managerial functions or roles in
my view:
6.
Fayols Principles are the Basis of Many Later
Management Concepts
Many recent management principle are extension
of these 14 concepts. The only difference is often
that they are confined to a set of more practical
concepts to survive in the highly competitive
global market....
Some Items May Be Missing, But...
Dear all, we can now identify what is missing in
the 14 principles. But when there were no
principles, could we imagine the missings?
The 14 Principles of Fayol are the fundamental
thoughts of management and now others items
can be added in mana...
Add #15 Principle: Conformity to the Basic
Origin
Aristotle noticed that well-being everywhere
depends on two things: a choice of the correct
goal , and a choice of a correct way of its
achievement. In other words, to do the right things
in the right way.
The 14 principles of Fayo...
Need for Employees' Welfare in the Principles
It is obvious that in this 14 principles something is
missing: the inclusion of "staff welfare". Because
after all proper measures has been put in place,
and the end-result is achieved, what becomes of
this team that achieved this goal, apart from be...
School Based Management
For school based management, behavioural
aspects of management will be predominant while
for higher levels the nitty-gritty of business will be
more important....
What is Prevoyance? Explanation
Prevoyance is the function of management which
says one must examine the future and draw a
plan. How hard is it to forecast what needs to be
done in the future? I need
The Principles of Management
Management principles are guidelines for the
decisions and actions of managers. They were
derived through observation and analysis of
events faced in actual practice.
The Principles of Management are the essential,
underlying factors that form the foundations of
successful management. According to [ Henri
Fayol ] (1841-1925) in his book General and
Industrial Management (1916), there are
fourteen 'principles of management'. These can
be used to initiate and aid the processes of
change, organization, decision making, skill
management and the overall view of the
management function.
Division of Work
The specialization of the workforce according to
the skills of a person , creating specific
personal and professional development within
the labour force and therefore increasing
productivity; leads to specialization which
increases the efficiency of labour. By separating
a small part of work, the workers speed and
accuracy in its performance increases. This
principle is applicable to both technical as well
as managerial work. this can be made useful in
case of project works too.
Authority and Responsibility
The issue of commands followed by
responsibility for their consequences. Authority
means the right of a superior to give enhance
order to his subordinates; responsibility means
obligation for performance. This principle
suggests that there must be parity between
authority and responsibility. They are co-
existent and go together, and are two sides of
the same coin.
Discipline
Discipline refers to obedience, proper conduct
in relation to others, respect of authority, etc. It
is essential for the smooth functioning of all
organizations.
Unity of Command
This principle states that every subordinate
should receive orders and be accountable to
one and only one superior. If an employee
receives orders from more than one superior, it
is likely to create confusion and conflict.Unity
of Command also makes it easier to fix
responsibility for mistakes.
Unity of Direction
All those working in the same line of activity
must understand and pursue the same
objectives. All related activities should be put
under one group, there should be one plan of
action for them, and they should be under the
control of one manager.
It seeks to ensure unity of action, focusing of
efforts and coordination of strength.
Subordination of Individual Interest
The management must put aside personal
considerations and put company objectives first.
Therefore the interests of goals of the
organization must prevail over the personal
interests of individuals.
Remuneration
Workers must be paid sufficiently as this is a
chief motivation of employees and therefore
greatly influences productivity. The quantum
and methods of remuneration payable should be
fair, reasonable and rewarding of effort.
The Degree of Centralization
The amount of power wielded with the central
management depends on company size.
Centralization implies the concentration of
decision making authority at the top
management. Sharing of authority with lower
levels is called decentralization. The
organization should strive to achieve a proper
balance.
Scalar Chain
Scalar Chain refers to the chain of superiors
ranging from top management to the lowest
rank. The principle suggests that there should
be a clear line of authority from top to bottom
linking all managers at all levels. It is
considered a chain of command. It involves a
concept called a "gang plank" using which a
subordinate may contact a superior or his
superior in case of an emergency,defying the
hierarchy of control.However the immediate
superiors must be informed about the matter
Order
Social order ensures the fluid operation of a
company through authoritative procedure.
Material order ensures safety and efficiency in
the workplace. Order should be acceptable and
under the rules of the company
Equity
Employees must be treated kindly, and justice
must be enacted to ensure a just workplace.
Managers should be fair and impartial when
dealing with employees.
Stability of Tenure of Personnel
The period of service should not be too short
and employees should not be moved from
positions frequently. An employee cannot render
useful service if he is removed before he
becomes accustomed to the work assigned to
him.
Initiative
Using the initiative of employees can add
strength and new ideas to an organization.
Initiative on the part of employees is a source of
strength for organization because it provides
new and better ideas. Employees are likely to
take greater interest in the functioning of the
organization.
Esprit de Corps
This refers to the need of managers to ensure
and develop morale in the workplace;
individually and communally. Team spirit helps
develop an atmosphere of mutual trust and
understanding.
Key Roles
Fayol also divided the management function
into five key roles: [1]
To organise
To plan and forecast (Prevoyance)
To command
To control
To coordinate
