CLASSICAL-SCHOOL-MANAGEMENT-THEORY-OF-HENRY-FAYOL_122346.pptx

CLASSICAL-SCHOOL-MANAGEMENT-THEORY-OF-HENRY-FAYOL_122346.pptx

1. CLASSICAL SCHOOL MANAGEMENT THEORY OF HENRY FAYOL Reported by: ABREGAR, J. , ALBURO, J. & ASCANO F.

2. Learning Objectives Introduction and Background Social Environment and His Theory Theory and Contribution 5 Functions and 14 Principles of Management Relevant Today? Comments by Others Fayol VS Taylor Criticism Conclusion

3. Introduction and Background

4. 1.Introduction Introduction & Background: Graduated at age 19 as mining engineer in 1860 Born in Istanbul in 1841 of a French Family 1 2 3 4 Worked at French mining and steel company Promoted to Managing Director in 1888, saved company from bankruptcy

5. 1.Introduction Introduction & Background: Known as Father of Modern General Management ( Fayolism ) Stayed at same company until his retirement in 1918 5 6 7 8 Published his first book in 1916 “General and Industrial Management” His work- Administrative Theory in Management

6. Social Environment and His Theory Developed his theory based on his experience and observations Fayolism - theory of management that analyzed and synthesized the role of management in organizations

7. Social Environment and His Theory Believed that management theory deserved more focus: “Young men, who begin practical work as engineers soon after leaving industrial schools, are in a particularly good position both for learning administration and for showing their ability in this direction …” (Wren)

8. Social Environment and His Theory Realized that the problem of personnel and its management is the key to industrial success Management is a process of 5 functions and its 14c principles as a tool to carry out the process

9. 5 FUNCTIONS/ ELEMENTS OF MANAGEMENT PLANNING - plan and out forth actions to be taken ORGANIZING - define authority and responsibility COORDINATING - lay out the timing and sequencing of activities

10. 5 FUNCTIONS/ ELEMENTS OF MANAGEMENT 4. COMMANDING - put the plan into action, execute the plan 5. CONTROLLING - monitor and correct tasks to meet project’s goals and deliverables

11. 5 FUNCTIONS/ ELEMENTS OF MANAGEMENT Known in today’s management as- planning, organizing, leading, controlling and forecasting Fayol say’s “To manage is to forecast and plan, to organize, to command, to coordinate and to control. To foresee and plan means examining the future and drawing up the plan of action.”

12. O1 Division of Work 14 PRINCIPLES OF MANAGEMENT O2 Authority and Responsibility O3 Discipline O4 Unity of Command O5 Unity of Direction O6 Subordination of Individual’s Interest to the General Interest O7 Remuneration O8 Centralization O9 Scalar Chain 10 Order 11 Equity 12 Stability of Tenure of Personnel 13 Initiative 11 Espirit de corps

13. O1 Division of Work 14 PRINCIPLES OF MANAGEMENT Known as Division of Labor Work should be divided among the individuals and groups to focus on specific tasks Specialization promotes efficiency of the work force and increases productivity Fayol warned too much specialization might bore the employee and long term development might be needed O2 Authority and Responsibility Authority is the right to give orders and obtain obedience Responsibility involves being accountable and whoever assumes authority also assumes responsibility

14. O3 Discipline 14 PRINCIPLES OF MANAGEMENT Employees must obey and respect the rules that govern the organization Good discipline is the result of effective leadership Penalties should be applied as necessary O4 Unity of Command Every employee should receive orders from only one manager Otherwise, having multiple managers could lead to confusion and conflicts

15. O5 Unity of Direction 14 PRINCIPLES OF MANAGEMENT The entire organization should be moving towards a common objective or goal in a common direction O6 Subordination of individual’s interest to the general interest The interest of any one employee or group of employees should not take priority over the interest of the organization

16. O7 Remuneration 14 PRINCIPLES OF MANAGEMENT All workers must be paid a fair wage for their services Variables such as cost of living, supply of qualified personnel, and business profits should be considered Remuneration also can be non-monetary (recognition, time off) O8 Centralization/ Decentralization Refers to the degree to which subordinates are involved in decision making Employees should be given the greatest feasible freedom

17. O9 Scalar Chain 14 PRINCIPLES OF MANAGEMENT The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain in norm situations But during emergencies and if a quick action is necessary, this chain can be broken under “ Gang Plank” 10 Order there should be a specific place for every employee in an organization

18. 11 Equity 14 PRINCIPLES OF MANAGEMENT Managers should be kind and fair to their subordinates. All employees should be treated equally. 12 Stability of Tenure of Personnel retaining productive employees should always be a high priority of management

19. 13 Initiative 14 PRINCIPLES OF MANAGEMENT Management should encourage workers to initiate new ideas and new ways to complete tasks 14 Esprit de corps promoting team spirit will build harmony and unity within the organization

20. Relevant Today? These principles are flexible and adaptable to any organization Universal use in private , public, education, government, etc. Significant influence in modern management theory Helped managers- how to organiza and interact with their employees in productive way

21. Relevant Today? Fayol’s Principles in management are not only the guides for early management, they are also presented in contemporary management theories to describe what today’s managers should do to be effective and efficient. Variety in org. structures makes these considerations even more relevant today

22. Relevant Today? Appropriate structures depend on organization’s needs. Use the initiative and creativity of all people at all levels of the organization for competitive advantage Unity of command-very relevant in today’s matrix org structures

23. Relevant Today? Theme of finding the appropriate balance between freedom and control, between creativity and efficiency

24. In the words of Urwick : “ Isolation and analysis of management as a separate function was his Fayol’s, unique and original addition to the body of management theory .” The concepts and principles of Fayol have stood the test of time and form part of the modern science of management. “His contribution to theory of management is probably the most revolutionary and constructive that has ever been made.”- (Theo Haimann ) Fayol was the first person to attempt to systematize management by accentuating the higher levels of control (Robbins, 1991) COMMENTS BY OTHERS

25. Frederick Winslow Taylor (1856-1915)- another theorist of the time, studied efficiency techniques in his 1911 book the Principles of Scientific Management. Taylor worked primarily on the operation level, from the bottom of the industrial hierarchy upwards. Fayol concentrated on the managing director and worked downwards. Taylor known as the Father of scientific management where Fayol known as the father of administrative theory in management. COMMENTS BY OTHERS

26. CRITICISM Fayol did not conduct a research or provided empirical data rather his work was from his own experience and observations

27. CONCLUSION Remarkable contribution to the Administrative Theory in Management His work is referred to as Fayolism Developed 5 Functions and 14 Principles of Management Devoted his life teaching his administrative theory

28. CONCLUSION His work contributed to scientific management as Taylor did First theorist in modern general management Fayol’s Words “The administrative apparatus is further a concept for very wide application. Not only is it useful to those who may have been managing or controlling an industrial undertaking but to my mind its absence is fundamental weakness in our public services, and I cannot imagine better service to our country than to ensure its application by the state”

29. THANK YOU