Henry fayol

1. 1 Classical Management Theory Classical Management Theory A theory that focused on finding the “one best way” to perform and manage tasks and included Classical Scientific management Classical Administrative Management Classical Bureaucratic management

2. 2 Classical Management Theory Classical Scientific School Focused on the manufacturing environment and individual’s work productivity and efficiency Classical Administrative School Emphasized the flow of information and how organizations should operate Classical Bureaucratic School Emphasized the flow of information and how organizations should operate/functions of management Identified Organization as a system and management as a study of this system

3. Relationship Between Three Classical Theories Of Management Focuses on the individual worker’s productivity Focuses on the functions of management Focuses on the overall organizational system

4. 4 Lessons from Classical Scientific Thinkers Analyze everything Teach effective methods to others Plan responsibly Constantly monitor workers Control the work and the workers

5. HENRI FAYOL Father of Administrative management

6. Thoughts and Profile of Henri Fayol 6 Henri F ayol was born in 1841 at Istanbul Turkey. He was a French management theorist. Fayol was one of the most influential contributors to modern concepts of management. Fayol has been described as the father of modern operational management theory The nineteen-year old engineer started at the mining company ultimately acting as its managing director Based largely on his own management experience, Fayol developed his concept of administration.

7. Difference between views of Taylor and Fayol Although his ideas have become a universal part of the modern management concepts, some writers continue to associate him with Taylor!! A primary difference between Fayol and Taylor was that Taylor viewed management processes from the bottom up, while Fayol viewed it from the top down. In the classic General and Industrial Management Fayol wrote that " Taylor's approach differs from the one we have outlined in that he examines the firm from the "bottom up Fayol suggested that it is important to have unity of command : a concept that suggests there should be only one supervisor for each person in an organization….. Fayol criticized Taylor’s functional management in this way.’’

8. The most marked outward characteristics of functional management lies in the fact that each workman, instead of coming in direct contact with the management at one point only, receives his daily orders and help from eight different bosses. Fayol said, those eight, were (1) route clerks, (2) instruction card men, (3) cost and time clerks, (4) gang bosses, (5) speed bosses, (6) inspectors, (7) repair bosses, and the (8) shop disciplinarian . This was an unworkable situation, and that Taylor must have somehow reconciled

9. Major Contributions of Henri Fayol 9 First recognized that successful managers had to understand the basic managerial functions and believed specific management skills could be learned and taught He mentioned Six activities of an enterprise : Technical (production, manufacture, adaptation) Commercial (buying, selling, exchange) Financial (search for an optimum use of capital) Security (protection of property and persons) Accounting (Stock taking, balance sheets, cost statistics) Managerial: Fayol’s universal management functions: 1.Planning 2.Organizing 3.Commanding 4.Coordinating 5.Controlling Developed a set of 14 general principles of management. Provided 16 managerial duties that a manager has to perform

10. . Fayol’s General Principles of Management Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interest to the common good Remuneration of personnel Centralization Scalar chain Order Equity Stability Initiative Esprit de corps Source: Based on Henri Fayol, General and Industrial Management , trans. Constana Storrs (London: Pittman & Sons, 1949).

11. Division of work: Specializing encourages continuous improvement in skills and the development of improvements in methods. Authority : The right to give orders and the power to exact obedience . Discipline : No slacking, bending of rules. The workers should be obedient and respectful of the organization. Unity of command : Each employee has one and only one boss. Unity of direction : A single mind generates a single plan and all play their part in that plan. Subordination of Individual Interests : When at work, only work things should be pursued or thought about.

12. Remuneration : Employees receive fair payment for services, not what the company can get away with. Centralization : Consolidation of management functions. Decisions are made from the top. Scaler Chain (line of authority) : Formal chain of command running from top to bottom of the organization, like military A B1 C1 D1 B2 C2 D2 E1 E2

13. Order : All materials and personnel have a prescribed place, and they must remain there. Equity : Equality of treatment (but not necessarily identical treatment) Personnel Tenure : Limited turnover of personnel. Lifetime employment for good workers. Initiative : Thinking out a plan and do what it takes to make it happen. Esprit de corps : Harmony, cohesion among personnel. It's a great source of strength in the organization. Fayol stated that for promoting esprit de corps , the principle of unity of command should be observed and the dangers of divide and rule and the abuse of written communication should be avoided.

14. Bureaucratic Management Focuses on the overall organizational system. Bureaucratic management is based upon: Firm rules Policies and procedures A fixed hierarchy A clear division of labor

15. Bureaucratic Management: Weber Max Weber (1864 – 1920) A German sociologist and historian who envisioned a system of management that would be based upon impersonal and rational behavior — the approach to management now referred to as “bureaucracy.” Division of labor Hierarchy of authority Rules and procedures Impersonality Employee selection and promotion

16. . Weber’s Forms of Authority Traditional authority Subordinate obedience based upon custom or tradition (e.g., kings, queens, chiefs). Charismatic authority Subordinates voluntarily comply with a leader because of his or her special personal qualities or abilities (e.g., Martin Luther King, Gandhi). Rational-legal authority Subordinate obedience based upon the position held by superiors within the organization (e.g., police officers, executives, supervisors).

17. Table 2. 2 Weber’s Three Types of Authority Type Description Traditional Subordinate obedience based upon custom or tradition Charismatic Subordinate obedience based upon special personal qualities associated with certain social reformers, political leaders, religious leaders, or organizational leaders Rational–legal Subordinate obedience based upon the position held by superiors within the organization

18. . Bureaucratic Hierarchical Power Structure