Henry Fayol
Fayol was a French mining engineer and industrialists. He is regarded as “Father of Modern Management”. Fayol divided activities of industrial enterprise into six groups:
1. Technical (production).
2. Commercial (buying, selling
and exchange).
3.Financial (sources and uses
of funds).
4.Security (protection of
property).
5.Accounting (auditing and
statistics).
6.Managerial (planning,
organizing, directing, coordinating, and controlling).
According Henry Fayol a good manager possesses the
following qualities:
1.Physical (good health and
communication skills).
2.Mental (ability to
understand and learn and having quality of adaptability).
3.Moral (fairness and
integrity in dealing with others).
4.Educational (general
knowledge and familiarity of business related matters and others)
5.Technical (expert in his
field).
6.Experience (dealing with
routine and unexpected situations easily).
7.Business quality
(acquaintance of accounting principles and be able to determine the sources and
uses of funds).
In 1916, Fayol wrote a book entitled “General and Industrial Management” in
French which was translated in English in 1949.In this book he developed the 14
principles of management. These principles are universally accepted and used.
They are following.
Principles of Management
1. Division of work
Work must be divided according
to skills and specialization in any corporation. By division of work employees
become an expert in their field.
2. Authority and responsibility
The authority is the official
right of any manager to manage people and things but he also keep in mind that
responsibility arises whenever authority is exercised.
3. Discipline
According to this principle
subordinate should respect their superiors and obey their order.Fayol emphasized the need of discipline
among personnel for effective management.
4. Unity of command
The workers should receive
orders from only one superior. If they get order from two superiors at same
time then they may get confused that whose order must be implemented.
5. Unity of direction
The entire organization should
be moving towards a common objective in a common direction.This principle
promotes unity of action and coordination in an organization.
6. Subordination
The personal interests of
individuals should not take priority over the interest of the organization. The
primary focus should be given to organizational objectives.
7. Remuneration
The employees must be paid a
fair wage and salary for their performance.The organization should have a good
remuneration policy in order to motivate workers to perform well.
8. Centralization and Decentralization
Under centralization the
decision making authority is concentrated in top levels of management. While under
decentralization the decision making authority is distributed tolower levels of
management. There should be a good balance between centralization and
decentralization.
9. Scalar chain
Scalar chain means line of
authority from highest to lowest rank. Communication (messages, requests,
orders and instructions) should follow this chain.
10. Order
It means a systematic
arrangement of materials and systematic place of people in the organization. There
should be a specific place for every employee and material in an organization.
11. Equity
There should be no
discrimination against anyone. The management must maintain equity among the
employees. Equity is helpful to create and maintain cordial relations between
management and workers.
12. Stability of tenure
Managers should strive to
minimize employee’s turnover to maintain organizational efficiency. Job
security should be provided to the employees to get their maximum of
output.
13. Initiative
Employees should be allowed to
take initiative to carry out plans. New ideas and method of work should be
encouraged. People enjoy working by encouraging their ideas.
14. Esprit de corps
It refers to team spirit and
collective force of employees. Management should promote team work and
coordination in order to build an atmosphere of mutual trust and understanding.
Contribution of FW Taylor in Management
Fredrick Winslow Taylor who is regarded as “Father of scientific
Management”. In 1978, he joined Midvale Steel Company in Philadelphia in USA as
an ordinary worker engaged in metal cutting. During service he continued his
study in the evening and got an engineering degree. Later he became an
operating manager in the same company. He observed that the industrial
resources were not being fully utilized. Business enterprise is being managed
by the rule of thumb. There was no proper division of responsibilities between
management and workers. This state of affairs forced him to improve the
existing practice of management. Taylor
developed his efficiency techniques in his book “The Principles of “Scientific
Management”. His primary concern was to raise productivity through greater
efficiency in production and increased pay for workers by applying the
scientific method.
Scientific Management
Scientific management is the
art of knowing exactly what is to be done and what is the best and cheapest way
of doing it. Under this approach, scientific techniques are applied in the
field of management like recruitment, selection and training of workers.
Principles of Scientific Management
1. Science, not rule of thumb
Taylor emphasized that the rule of thumb be replaced by scientific
methods so that best method for performing each task could be determined.
2. Cooperation, not individualism
According to this principle,
management and workers should friendly cooperate with each other. There should
not be individualism. Management and workers jointly set goals and objectives.
3. Development of each man to his greatest efficiency and prosperity
Workers should be
scientifically selected and trained in accordance with the requirement of jobs,
so that each worker would be given responsibility for the task for which he was
best suited.
4. Division of responsibility between management and workers
Work should be divided between
management and workers. Planning is the responsibility of management and
implementation is the responsibility of workers.
0 comments:
Post a Comment