Management Process

School
Thinker: Henri Fayol
 Introduction to Management Process School
 Principles of Management - Henri Fayol
 Roles of Employees, Manager, Organization
 Management Process School

 Proposed by French management thinker Henri Fayol.

 Functions & Principles of management were treated as Universal.

 All types of management
 All types of conditions

 Does not take into account the relevant economic, technological,

psychological & social aspects though it accepts that these factors
have an important role.

 Viewed management as a social process.

 Manager is required to solve different complex problems

simultaneously.
Contributors:

 Henri Fayol
 William H. Newman
 Luther Gulick
 George Terry
 Lyndall Urwick
 Harold Koontz
 Henri Fayol (1841-1925)
o French Management Thinker

o Began his career as mining engineer &

was the director of mines

o Then moved to research in geology

o Fayol then joined administrative role in

the company .

oTurned around Comambault from

immense financial troubles.

o On retirement he published his work on

comprehensive theory of administration

o His work was popular in France but was

unknown outside till 1940’s.
Modern Thought -> Functions of Manager

Plannin
g
Control
ling

Organi
zing

Leadin
g
Functions of Management (Henri Fayol)

Planni
ng
Contro
l

Organi
zing

Coordi
nation

Comm
and
Functions of Management (George Terry)

Planni
ng
Control
ling

Organi
zing

Actuati
ng
Fayol’s Qualities of Effective Plans

 UNITY  CONTINUITY
At any one time an Planning is an ongoing
process and previous
organization should have
plans should be modified
only one guiding
to fit together in the
organizational goal
corporate framework

 ACCURACY  FLEXIBILITY
Managers should collect A manager should not be
and utilize all available stuck with a static plan,
information to make a but be able to change
plan as accurate as and alter as situations
possible do.
 Time Spent on Managerial Functions

Lower Middle Top

Management Management Management

Planning
 Managers at different levels in
the hierarchical setup of the
organization spend different
time to different activities. Organizing

Controlling
Henri Fayol’s 14 Principles
 ASSUMPTIONS
Management Theory is based on certain assumptions,
given by Prof. Harold Koontz

 Managing is a process and can be best understood by

analysing the functions of the manager.

 Long experience with management in a variety of

enterprise situations can be the basis for certain
fundamental truths or generalizations.

 These fundamental truths can become focal points for

useful research to ascertain validity and improve
applicability in practise.
 ASSUMPTIONS Contd…

• Managing is an Art, which can be improved by

reliance on and understanding of principles.

• Principles in Management are nonetheless true

even if a prescribed treatment or design by a
practitioner in a given case situation chooses to
ignore the principle or cost involved.

• Theory of management does not need to

encompass the field of knowledge in order for it to
serve as a scientific or theoretical foundation.
 Fayol’s Principles of Management

 Division of Work or Specialisation :

Specializing encourages continuous improvement
in skills and the development of improvements in
methods. Each change of work brings in its train
an adaptation which reduces output..

 Authority and Responsibility: A manager

should never be given authority without
responsibility--and also should never be given
responsibility without the associated authority to
get the work done.
Fayol’s Principles of Management

 Discipline: No slacking, bending of rules. The

workers should be obedient and respectful to
the organization. For this good leadership,
explicit agreements and a system of
punishment is necessary.

 Unity of Command: Each employee should

receive order only from one superior. This
principle of Fayol ran counter to Taylor’s
recommendation.
 Fayol’s Principles of Management

 Unity of Direction: A single mind

generates a single plan and all play their
part in that plan. Unity of Command cannot
exist without Unity of Direction.

 Gangplanks: Fayol suggested that a

gangplank should be used to prevent the
scalar chain from bogging action down, and
without weakening the chain of command.
Fayol’s Principles of Management

 Subordination of Individual Interests to

General Interest: According to Fayol ,“one
employee's interests or those of one group
should not prevail over the organization as a
whole”. Employees should be fair, and there
should be constant vigilance and supervision.

 Remuneration: Employees should receive

fair wages for services, not what the company
can get away with.
 Fayol’s Principles of Management

 Centralisation: Fayol regarded Centralisation

as the natural order .According to him,
Centralisation and decentralisation were
questions of proportion.

 Order: Fayol said that there should be place

for everything and everyone and also “Right
Man in the Right Place”. Bigger the Business ,
more is the difficulty in keeping this Balance.
 Fayol’s Principles of
Management

 Equity: In running a business a

‘combination of kindliness and justice’
is needed , organization equity brings
loyalty.

 Stability of Tenure of Personnel: No

employee should be sacked within a
short time, workers perform well if
there is job security.
 Fayol’s Principles of Management

 Initiative: Initiatives from employee side

should be encouraged, workers will exhibit
high level of efforts, should be done within
limits of discipline and authority.

 Esprit de Corps: french word, managers

should encourage cohesiveness among his
subordinates. Fayol was against written
communication, the process should be as far
as possible direct and oral
 Abilities of personnel

 Physical Qualities: health, physical

features, vigor

 Mental Qualities: ability to understand

and learn, judgment, adaptibility

 Moral Qualities: dignity, willingness to

accept, loyalty, honesty etc
 General Education: general acquaintance
with matters not belonging exclusively to
the function performed

 Special Knowledge: particular to the

function performed, be it technical,
commercial, financial, managerial etc

 Experience: recollection of lessons which

one has oneself derived from things
 Elements of Management

 To forecast and plan: Examining the

future and drawing up a plan of action

 To Organize: Building up the structure,

material and human of the
undertaking.

 To Command: maintain activity among

personnel, lead the employees
 To co-ordinate: unifying and
harmonizing all activity and effort

 To control: seeing the everything

occurs in order with the defined plan,
orders given
 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: balance sheets, cost statistics
 Managerial: planning, organizing,
commanding, coordinating, controlling
Criticism of Management Process School

 Universal Approach does not holds true in

today’s complex environment
 No significant contribution after Henri Fayol
 It more or less disregards the human element,
this view is countered by Behaviour School of
thought
 Not applicable under the conditions of high
unemployment
 The process approach is too static, but the
organization functions under dynamic
conditions
ANY QUESTIONS?
Thank You !!!

Compiled By-
Amanpreet Singh
Gunpreet Singh
Prateek Singh