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 & Universal. Principles of management were treated as

| 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.

Cont ib tors:

| 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

Planning

Controlling

Organizing

Leading

Functions of Management (Henri Fayol)

Planning

Control

Organizing

Coordination

Command

Functions of Management (George Terry)

Planning

Controlling

Organizing

Actuating

Fayol¶s Qualities of Effective Plans

| UNITY
At any one time an organization should have only one guiding organizational goal

| CONTINUITY

Planning is an ongoing process and previous plans should be modified to fit together in the corporate framework

| ACCURACY

| FLEXIBILITY
A manager should not be stuck with a static plan, but be able to change and alter as situations do.

Managers should collect and utilize all available information to make a plan as accurate as possible

Time Spent on Managerial Functions

Lower Management

Middle Management

Top Management

| Managers at different levels in the hierarchical setup of the organization spend different time to different activities.

Planning

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 Responsi ility: 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 

Su ordination of Individual Interests to General Interest: According to Fayol ,³one 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 ³Right 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 µcombination 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 ByAmanpreet Singh Gunpreet Singh Prateek Singh

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