Management Organisation Behaviour Fayols fourteen principles

Henry Fayols principles

1. MOB-Mod-1 Management & Organizational Behaviour-22MBA11 Introduction to Fayol’s fourteen principles of Management Recent Trends in Management

2. MOB-Mod-1 Management -Introduction, Meaning, Nature, Objectives, Importance, Difference between Administration and Management, Levels of Management, Types of Managers, Managerial Skills, Managerial Competencies, Scope of Management, Functions of Management, Evolution of Management Thought, Fayol’s fourteen principles of Management, Recent Trends in Management.

3. Characteristics of ManageMenT The following are the salient characteristics of management. Management aims at reaping rich results in economic terms : Management also implies skill and experience in getting things done through people Management is a process : Management is a universal activity Management is a science as well as an art : Management is a profession :

4. Characteristics of ManageMenT Management is an endeavor to achieve pre-determined objectives Management is a group activity : Management is a system of authority : Management involves decision-making : Management implies good leadership Management is dynamic and not static: Management draws ideas and concepts from various disciplines :

5. Characteristics of ManageMenT Management is goal-oriented : Different levels of management : Need of organization : Management need not be owners : Management is intangible :

6. How to classify managers in organizations? Traditional Pyramid Form of Management Level Top Managers Middle Managers First-Line Managers Non-Managerial Employees Functional Areas R&D Marketing Finance Production HR

7. Managerial Skills Conceptual Skills The ability to analyze and diagnose a situation and distinguish between cause and effect. Human Skills The ability to understand, alter, lead, and control the behavior of other individuals and groups. Technical Skills The specific knowledge and techniques required to perform an organizational role.

8. Management Skills Technical Skills: job-specific knowledge and techniques needed to proficiently perform work tasks Human Skills: ability to work well with other people both individually and in group Conceptual Skills: ability to see the organization as a whole, understand the relationships among various subunits, visualize how the organization fits into its external environment

9. Mintzberg’s Managerial Roles

10. Division of work Authority and responsibility Discipline Unity of command Unity of direction Subordination of individual interests to general interest Remuneration of personnel Centralization Scalar Chain Order Equity Stability of personnel Initiative Esprit de corps Henri Fayol 14 Principles of Management

11. 1. Division of work : Work is divided into small tasks/ jobs. A trained specialist who is competent is required to perform each job. Thus , division of work leads to specialisation . According to Fayol , “The intent of division of work is to produce more and better work for the same effort. Specialisation is the most efficient way to use human effort.” In business work can be performed more efficiently if it is divided into specialised tasks; each performed by a specialist or trained employee.

12. 2. Authority : Authority is the right to take decisions. It is necessary to get the things done appropriately from subordinates. Authority always comes with the responsibility. If the manager is given the authority to complete a task within a given time, he should be held responsible if he does not complete the work in given time. Manager should have proper authorities to take managerial decision on his own in respect to the goal.

13. 2. Responsibility : if there is authority, the same weightage of responsibility automatically comes with it. There is nobody with only authority and no responsibility.

14. 3. Discipline : Discipline is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation . According to Fayol , discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties. Suppose management and labour union have entered into an agreement whereby workers have agreed to put in extra hours without any additional payment to revive the company out of loss. In return the management has promised to increase wages of the workers when this mission is accomplished.

15. 4. Unity of command: According to Fayol there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. The principle of unity of command states that each participant in a formal organisation should receive orders from and be responsible to only one superior. Fayol gave a lot of importance to this principle. The principle resembles military organisation . Dual subordination should be avoided. This is to prevent confusion regarding tasks to be done.

16. 5.Unity of Direction All the units of an organisation should be moving towards the same objectives through coordinated and focussed efforts. Each group of activities having the same objective must have one head and one plan. This ensures unity of action and coordination.

17. 6. Subordination of Individual Interest to General Interest The interests of an organisation should take priority over the interests of any one individual employee according to Fayol . Every worker has some individual interest for working in a company. The company has got its own objectives.

18. 7. Remuneration : people must be satisfied by paying them satisfactorily. Many people work for better remuneration. Few work for mental, psychological, and work-related satisfaction. But it is the need that all of them must be paid as per their inputs. Qualification , designation, responsibility, dedication, experience should be counted while giving remuneration.

19. 8. Centralization : When many functions are controlled by a central authority, it is called as centralization. Unity in the organization, importance of discipline, status in the external market, brand development, etc are the advantages in centralization function.

20. centralisation The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation . According to Fayol , “There is a need to balance subordinate involvement through decentra lisation with managers’ retention of final authority through centralisation .” The degree of centralisation will depend upon the circumstances in which the company is working. In general large organisations have more decentralisation than small organisations .

21. 8. Decentralization : Control from the different position is called as decentralization. So instead of one, there are many centers of power. This increases the effectiveness of work. Every subsystem cannot run properly all the time with common rules. There should be different treatment or control as per requirements.

22. 9. Scalar chain : Scalar chain means the hierarchy of authority from the top level to the lower level for the purpose of communication. This helps to ensure the orderly flow of information and communication . Traditionally , organizations used to frame large scalar chain which is time consuming.

23. 10.Order Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.

24. 11. Equity : (no discrimination) Management should not forget equity and humanity. Partialism , variation in treatments among the employees of the same organization creates disintegration and segmentation in them . Now-a-days , many organizations have maintained an equity in canteen facilities, uniform dress codes, pickup facilities, medical facilities, etc. for all the employees without any differentiation .

25. 12. Stability of tenure of personnel : Management must provide stability of tenure to employees. This creates secure feelings among them which allows them to work with more concentration .. Subordination of individual interest to general interest: Interest of group is more important than that of an individual person. If there is a conflict concerning interest, the team’s interest is given priority .

26. 13. Initiative : To start with enthusiasm is called as ‘initiative’. Difficult things are not possible if there is no initiative from anybody. For  getting success in difficult or complicated work, someone should start at the initial level . A good manager is always enthusiastic to initiate things whenever there is a difficult situation in front of the organization.

27. 14. Esprit de corps : It is related to teamwork. Also, importance is given to communication in teamwork.

28. 9. Teamwork: Good teamwork is always better than the best individual performance. Organization is busy in many kinds of work. Completion of these works in time, with quality and with minimum wastages is the expectations from the employees. A single individual has limitations on many fronts. But if many individuals with different skills come together, co-ordinate each other effectively, then great achievements are possible through this teamwork.

29. Levels of Management Figure 1.3

30. Relative Amount of Time That Managers Spend on the Four Managerial Functions Figure 1.4

31. IT and Managerial Roles and Skills Information Technology (IT) is increasingly used to help managers adopt a cross-departmental view of their organization. Managerial Role The set of specific tasks that a person is expected to perform because of the position he or she holds in the organization. Roles are defined into three role categories (as identified by Mintzberg): Interpersonal  Informational  Decisional

32. Decisional Roles Roles associated with methods managers use in planning strategy and utilizing resources: Entrepreneur — deciding which new projects or programs to initiate and to invest resources in. Disturbance handler —managing an unexpected event or crisis. Resource allocator —assigning resources between functions and divisions, setting the budgets of lower managers. Negotiator —reaching agreements between other managers, unions, customers, or shareholders.

33. Informational Roles Roles associated with the tasks needed to obtain and transmit information in the process of managing the organization: Monitor — analyzing information from both the internal and external environment. Disseminator —transmitting information to influence the attitudes and behavior of employees. Spokesperson —using information to positively influence the way people in and out of the organization respond to it.

34. Interpersonal Roles Roles that managers assume to provide direction and supervision to both employees and the organization as a whole: Figurehead — symbolizing the organization’s mission and what it is seeking to achieve. Leader —training, counseling, and mentoring high employee performance. Liaison —linking and coordinating the activities of people and groups both inside and outside the organization/department.

35. Functions of Management Understanding the functions will help managers focus efforts on activities that gain results. Summarizing the five functions of great management (ICPM Management Content ):

36. Functions of Management Planning : When you think of planning in a management role, think about it as the process of choosing appropriate goals and actions to pursue and then determining what strategies to use, what actions to take, and deciding what resources are needed to achieve the goals .

37. Functions of Management Organizing : This process of establishing worker relationships allows workers to work together to achieve their organizational goals. Leading: This function involves articulating a vision, energizing employees, inspiring and motivating people using vision, influence, persuasion, and effective communication skills .

38. Functions of Management Staffing : Recruiting and selecting employees for positions within the company (within teams and departments). Controlling: Evaluate how well you are achieving your goals, improving performance, taking actions. Put processes in place to help you establish standards, so you can measure, compare, and make decisions .

39. Being a Manager Brevity High Variety Fragmentation Managerial Problems Compensation to be a manager

40. Managerial Skills Conceptual Skills The ability to analyze and diagnose a situation and distinguish between cause and effect. Human Skills The ability to understand, alter, lead, and control the behavior of other individuals and groups. Technical Skills The specific knowledge and techniques required to perform an organizational role. What should be the right thing? How can we do better?

41. Skill Types Needed by Managerial Level

42. The Category of the Evolution of Management Evolution of Management Thought can be classed into different parts like: Pre-Scientific Management Period, before 1880 Classical Management Period (1880-1930) Neo-Classical Management Period (1930-1950) Modern Management Period (1950-onwards ) https://www.mastertutorials.org/evolution-of-management-thought/

43. Functions of Management

44. https://courses.lumenlearning.com/principlesmanagement/chapter/6-6-integrating-goals-and-objectives-with-corporate-social-responsibility/

45. There are basically five primary functions of management. These are: 1.  Planning 2.  Organizing 3.  Staffing 4.  Directing 5.  Controlling

46. The controlling function comprises coordination, reporting, and budgeting, and hence the controlling function can be broken into these three separate functions. Based upon these seven functions, Luther Gulick coined the word  POSDCORB , which generally represents the initials of these seven functions i.e . P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting.

47. 1. Planning Planning is future-oriented and determines an organization’s direction. It is a rational and systematic way of making decisions today that will affect the future of the company. It is a kind of organized foresight as well as corrective hindsight. It involves predicting of the future as well as attempting to control the events. It involves the ability to foresee the effects of current actions in the long run in the future.

48. Peter Drucker has defined planning as follows: “Planning is the continuous process of making present entrepreneurial decisions systematically and with best possible knowledge of their futurity, organizing systematically the efforts needed to carry out these decisions and measuring the results of these decisions against the expectations through organized and systematic feedback”.

49. An  effective planning  program incorporates the effect of both external as well as internal factors. The external factors are shortages of resources; both capital and material, general economic trend as far as interest rates and inflation are concerned, dynamic technological advancements, increased governmental regulation regarding community interests, unstable international political environments, etc .

50. The internal  factors that affect planning  are limited growth opportunities due to saturation requiring diversification, changing patterns of the workforce, more complex organizational structures, decentralization, etc

51. 2. Organizing Organizing requires a formal structure of authority and the direction and flow of such authority through which work subdivisions are defined, arranged and coordinated so that each part relates to the other part in a united and coherent manner so as to attain the prescribed objectives. According to  Henry Fayol ,  “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”.

52. It follows, therefore, that the function of organizing is concerned with: Identifying the tasks that must be performed and grouping them whenever necessary Assigning these tasks to the personnel while defining their  authority and responsibility . Delegating this authority  to these employees Establishing a relationship between authority and responsibility Coordinating these activities

53. 3. Staffing Staffing is the function of hiring and retaining a suitable work-force for the enterprise both at managerial as well as non-managerial levels. It involves the  process of recruiting , training, developing, compensating and evaluating employees and maintaining this workforce with proper incentives and motivations. Since the human element is the most vital factor in the  process of management , it is important to recruit the right personnel .

54. 4. Directing The directing function is concerned with  leadership ,  communication ,  motivation , and supervision so that the employees perform their activities in the most efficient manner possible, in order to achieve the desired goals. The  leadership  element involves issuing of instructions and guiding the subordinates about procedures and methods .

55. The   communication  must be open both ways so that the information can be passed on to the subordinates and the feedback received from them. Motivation  is very important since highly motivated people show excellent performance with less direction from superiors. Supervising  subordinates would lead to continuous progress reports as well as assure the superiors that the directions are being properly carried out.

56. 5. Controlling The   function of control  consists of those activities that are undertaken to ensure that the events do not deviate from the pre-arranged plans. The activities consist of establishing standards for work performance, measuring performance and comparing it to these set standards and taking corrective actions as and when needed, to correct any deviations .

57. The controlling function involves : Establishment of standard performance. Measurement of actual performance. Measuring actual performance with the pre-determined standard and finding out the deviations. Taking corrective action.

58. According to Koontz & O’Donnell,  “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”.

59. According to Kootz & O’Donnell,   “Managerial function of staffing involves manning the  organization structure  through the proper and effective selection, appraisal & development of personnel to fill the roles designed in the structure”.

60. Evolution Classical Management Scientific Management Modern Management 3 Hawthorne Studies Principles -7 Fayols-14

61. Sl. No Principles of Scientific Management 1 Functional Foremanship 2 Standardization and Simplification of Work 3 Method Study 4 Motion Study 5 Time Study 6 Fatigue Study 7 Differential Wage System

62. Sl. No Principles of Scientific Management Keywords 1 Functional Foremanship Planning and Execution are Separated 2 Standardization and Simplification Of Work Cost Reduction and Value Addition 3 Method Study The Best Way to Maximize Productivity 4 Motion Study Inefficient Movements Eliminated 5 Time Study Ideal Time and Incentives Required 6 Fatigue Study Need For Frequent Interviews To Avoid an Accident 7 Differential Wage System More Than The Standard Output Reward

63. Recent Trends in Management