Professional Documents
Culture Documents
Fayol's commitment to the executives can be examined under the accompanying heads:
He brought up that these exercises exist in each endeavor. He further said that the
initial five exercises are notable to a director and thus committed the greater part of his
book to investigate administrative exercises.
5. Qualities of an Effective Manager: Henry Fayol was the primary individual to
perceive the various characteristics for chief. As indicated by him these characteristics
are:
(I) Physical (wellbeing, force, and address);
(ii) Mental (capacity to comprehend and learn, judgment, mental force, and versatility) ;
(iii) Moral (vitality, solidness, readiness to acknowledge obligation, activity, dedication,
class and nobility);(iv) Educational (colleague with issues identified with general
working) ;
(v) Technical (impossible to miss to the capacities being performed); and
(vi)Experience (emerging from the work).
6. Functions of Management: Fayol ordered the components of the executives into
five and every such component were considered by him as the elements of the
executives. As per him following are the elements of the executives:
(I) Planning:
Choosing ahead of time what must be finished. It includes thought and choice
identifying with a future strategy.
(ii) Organizing:
Giving everything that is valuable to a business undertaking for its activity i.e., men,
materials, machines and cash and so forth.
(iii) Commanding:
Keeping up action among work force (lead the staff in a superior way).
(iv) Co-ordinating:
The channelization of collective endeavors toward accomplishing the ideal goal of the
undertaking (restricting together-bringing together and blending all action).
(v) Controlling:
Seeing that everything is being done by the arrangement which has been embraced, the
requests which have been given, and the standards which have been set down. Its item
is to bring up botches all together that they might be redressed and kept from
happening once more.
Fayol saw that these standards apply not exclusively to business endeavor, yet in
addition to political, strict, generous or different endeavors.
7. Principles of Management:
Henry Fayol developed 14 rules that can be applied in all administration circumstances
independent of the kinds of association. He named Division of work (Specialization),
Parity among Authority and Responsibility, Discipline, Unity of Command, Unity of
Direction, Subordination of Individual Interest to General Interest, Fair Remuneration to
laborers.
Successful Centralisation, Scalar Chain, Order, Equity, Stability in the residency of staff,
Initiative and Esprit de Corps (Union is Strength) standards which he himself utilized on
most events. Fayol made qualification between the executives standards and the
executives components.
The administration guideline is a key truth and sets up cause-impact relationship while
the executives component gives the capacities performed by a director. (These have just
been clarified in a different part The Management Process). These standards impacted
as well as commanded the board suspected.
Fayol's standards are recorded beneath:
8. Division of Work
By and by, representatives are had practical experience in various territories and they
have various abilities. Various degrees of skill can be recognized inside the information
zones (from generalist to authority). Individual and expert advancements bolster this. As
indicated by Henry Fayol specialization advances proficiency of the workforce and builds
efficiency. What's more, the specialization of the workforce expands their exactness and
speed. This administration rule of the 14 standards of the board is material to both
specialized and administrative exercises.
9. Authority and Responsibility
So as to complete things in an association, the executives has the power to provide
requests to the workers. Obviously with this power comes obligation. As per Henry
Fayol, the going with force or authority gives the administration the option to provide
requests to the subordinates. The obligation can be followed back from execution and it
is in this manner important to settle on understandings about this. As such, authority
and obligation go together and they are two of a kind.
10. Discipline
This third rule of the 14 standards of the executives is about dutifulness. It is frequently
a piece of the basic beliefs of a statement of purpose and vision as great lead and aware
collaborations. This administration standard is fundamental and is viewed as the oil to
make the motor of an association run easily.
11. Unity of Command
The administration standard 'Solidarity of order' implies that an individual worker ought
to get orders from one director and that the representative is liable to that chief. On the
off chance that undertakings and related obligations are given to the worker by more
than one chief, this may prompt disarray which may prompt potential clashes for
representatives. By utilizing this guideline, the duty regarding slip-ups can be built up
more without any problem.
12. Unity of Direction
This administration standard of the 14 standards of the executives is about
concentration and solidarity. All representatives convey similar exercises that can be
connected to similar goals. All exercises must be completed by one gathering that
frames a group. These exercises must be depicted in a game plan. The administrator is
eventually answerable for this arrangement and he screens the advancement of the
characterized and arranged exercises. Center territories are the endeavors made by the
representatives and coordination.
13. Subordination of Individual Interest
There are in every case a wide range of interests in an association. So as to have an
association work well, Henry Fayol showed that individual interests are subordinate to
the interests of the association (morals). The essential spotlight is on the authoritative
goals and not on those of the person. This applies to all degrees of the whole
association, including the directors.
14. Remuneration
Inspiration and profitability are near each other to the extent the smooth running of an
association is concerned. This administration standard of the 14 standards of the
executives contends that the compensation ought to be adequate to keep
representatives roused and beneficial. There are two sorts of compensation to be
specific non-fiscal (a commendation, more obligations, credits) and money related
(remuneration, reward or other budgetary pay). Eventually, it is tied in with
remunerating the endeavors that have been made.
17. Order
As per this rule of the 14 standards of the executives, workers in an association must
have the correct assets available to them with the goal that they can work appropriately
in an association. Notwithstanding social request (duty of the directors) the workplace
must be sheltered, spotless and clean.
18. Equity
The administration guideline of value frequently happens in the fundamental beliefs of
an association. As indicated by Henry Fayol, workers must be dealt with sympathetic
and similarly. Workers must be in the opportune spot in the association to do things
right. Chiefs ought to manage and screen this procedure and they should treat workers
decently and fair-mindedly.
19. Stability of Tenure of Personnel
This administration guideline of the 14 standards of the board speaks to sending and
overseeing of work force and this ought to be in offset with the administration that is
given from the association. The executives endeavors to limit worker turnover and to
have the correct staff in the ideal spot. Center regions, for example, visit change of
position and adequate advancement must be overseen well.
20. Initiative
Henry Fayol contended that with this administration standard workers ought to be
permitted to communicate new thoughts. This empowers intrigue and contribution and
makes included an incentive for the organization. Representative activities are a
wellspring of solidarity for the association as indicated by Henry Fayol. This urges the
workers to be included and intrigued.
21. Esprit de Corps
The administration standard 'esprit de corps' of the 14 standards of the executives
represents making progress toward the contribution and solidarity of the workers.
Chiefs are answerable for the improvement of resolve in the working environment;
exclusively and in the region of correspondence. Esprit de corps adds to the
advancement of the way of life and makes an environment of shared trust and
comprehension.
Pertinence of Fayol's hypothesis in Present Context:
22. The 14 standards of the board can be utilized to oversee associations and are
helpful devices for guaging, arranging, process the board, association the executives,
dynamic, coordination and control. The business universe of today involves numerous
components that directors need to consider before venturing capable of running a
division, or an association has an entirety. These elements control how well an
association runs and works, and after some time supervisors create aptitudes and
information dependent on crafted by scholars, for example, Max Weber and Abraham
Maslow who were sparks and pioneers of the executives standards in the nineteenth
century. Among these scholars you will likewise discover Henry Fayol, a specialist who
was liable for the corporate turnaround and who established the six elements of the
board and 14 principals of the board. He was instrumental in exhibiting new ways for
troughs to direct their representatives towards being increasingly proficient in
accomplishing objectives. These hypotheses are as yet utilized today in contemporary
administration all around the globe. Despite the fact that throughout the years changes
have been made to the speculations thus today we see unique six elements of the board
have been altered to turn into the five elements of the executives. The great
speculations have been adjusted to suit the new class of laborers and their needs in the
working environment. The investigations of the board dependent on Henry Fayol's
hypotheses are as yet significant in the present society, and are apparent in pretty much
every association. In pretty much every occupation there is a business who agents
undertakings and a worker to finish them. Fayol's standards are applicable to the
manner by which these assignments are finished and the specialized techniques used to
designate them. In present time, supervisors have gotten less definitive and are moving
towards a more up to date style of the executives that depends on progressively two-
way, collective impart to representatives. As of late workers are permitted to make a
greater commitment to how undertakings are finished and are even permitted to settle
on choices for the administration. This move is an aftereffect of adaption and change of
the executives styles over the long haul. In spite of the fact that changes have
happened, Fayol's lessons despite everything have huge pertinence in the work place
today.
23. Frederick Taylor and Scientific Management
Aside from Fayol, Frederick Taylor's logical administration hypothesis can be seen in
about all cutting edge fabricating firms and numerous different sorts of organizations.
His engraving can be found underway arranging, creation control, process plan, quality
control, cost bookkeeping, and even ergonomics. In the event that you comprehend the
standards of logical administration, you will have the option to see how makers produce
their merchandise and deal with their representatives. You will likewise comprehend
the significance of quantitative investigation, or the examination of information and
numbers to improve creation viability and productivity.
24. In expansive terms, logical administration hypothesis is the utilization of
mechanical building standards to make a framework where waste is stayed away from,
the procedure and technique for creation is improved, and merchandise are genuinely
circulated. These enhancements serve the interests of bosses, representatives, and
society when all is said in done. Taylor's hypothesis can be separated into four general
standards for the executives:
1. Actively assembling, breaking down, and changing over data to laws, governs, or
even numerical equations for finishing undertakings.
2. Utilizing a logical methodology in the choice and preparing of laborers.
3. Bringing together the science and the laborer so the laborers apply the
deductively evolved strategies for the undertaking.
4. Applying the work similarly among laborers and supervisors where the executives
apply logical methods to arranging and the laborers play out the errands in accordance
with the plans.
Standards of Scientific Management
25. Science, Not a Rule of Thumb:
So as to increment authoritative effectiveness, the 'Dependable guideline' technique
ought to be subbed by the strategies created through logical examination of work.
General guideline implies choices taken by chief according to their own decisions. As per
Taylor, even a little creation movement like stacking iron sheets into freight cars can be
experimentally arranged. This will help in sparing time just as human vitality. Choices
ought to be founded on logical enquiry with circumstances and logical results
connections. This rule is worried about choosing the most ideal method of playing out a
vocation through the utilization of logical investigation and not by instinct or hit and
preliminary strategies.
The work appointed to any representative ought to be watched and examined as for
every component or part thereof and the time included in that to choose the most ideal
method of playing out that the work and to decide the standard yield for same.
Strength
Think from an internal point of view and from the point of view of your customers, as well as the strong
points of the people in your industry. Looking at the power of your business, think of your opponents. For
example, if all your adversaries are providing top quality products and services, then the best
manufacturing process is not the strength but the urgency.
Weaknesses
Again, think about the inner and outer base:, which you cannot see, are other people understanding these
weak points? Do your opponents outperform you? For this the best is to be practical now, and face any
hard facts as soon as possible.
Opportunities
Looking at business opportunities, a powerful strategy is to look at your specialty and think for yourself
where the possibilities are. On the other hand, identify your weak points and find possibilities to
overcome these deficiencies.
Threat
What are your competitors doing?
What obstacles are you facing?
Do you have a debt or cash problem?
With the advancement of technology do you expect your situation to deteriorate?
When you look at opportunities and apprehensions, previous information can help you ensure that you do
not ignore external aspects, such as new government regulations, or technological changes in the market.
The purpose of SWOT is to conduct an internal assessment of the organization in relation to its assets,
resources, people, culture, systems, suppliers. Management can assess the strength and weakness of the
organization.
S- means- Strength - It shows the things on which the organization is really smooth. The power may
actually be the same in such cases as high quality products, market leaders, customer satisfaction, etc., or
highly skilled workers, credit, superior leadership, etc.
W-means- Weakness - Weakness includes all the things that hinder the organization and work on all the
activities that the organization can improve itself. This activity is done internally and can be controlled by
management.
Examples: Weaknesses include obsolete technical hurdles, poor leadership, lack of skilled workers.
O- means - Opportunities - There is an inherent development of potential areas of the organization. It may
have opportunities due to new policies / acts formulated by the government. There is always a possibility
of doing something new or doing something new by bringing a new wave to an organization, because it
has always seen growth in the near future, and deciding some type of PF (provident fund) will make the
organization better future. Can be beneficial for.
T-means - Threat - Apprehension means challenges that organizations may face in the near future. The
reasons for this change from external causes of the organization. Such as changes in consumer
preferences, changes in government regulations, media coverage, etc.
It is important for management to identify the apprehension and take the necessary actions to make
improvements at the appropriate time.
SWOT analysis is two components of the organizational environment: the strengths and weaknesses of
the organization. A SWOT analysis (analyzing the strengths and weaknesses of the organization and the
opportunities and threats in the environment), is therefore the first step in the strategic management
process.
The SWOT analysis framework is a simple and powerful tool for strategy development. Fully market
research and accurate information systems are essential for SWOT analysis to identify critical issues in
the environment.
SWOT is specifically used to describe specific strengths, weaknesses, opportunities, and threats, which
are strategic factors for a specific company. A SWOT analysis should not only identify a firm's core
competencies, but also identify opportunities that the firm is currently not able to take advantage of due to
lack of appropriate resources. To perform this analysis we need to follow certain steps.
• What are the things happening externally and internally that will affect our company?
• What do we do best?
• What are our company's resources - assets, intellectual property, and people?
• What are the customer problems and complaints with existing products and services in the industry?
Step 4: Opportunities This is an area of "need" in which a company can perform profitably.
Step-5: Identify the threats that arise from an unfavorable trend or growth challenge that will lead to a
decline in profits / sales (in the absence of a defensive marketing action). An evaluation needs to be
completed, drawing conclusions about how opportunities and threats can impact the firm.
Step 6: Internal Analysis Competitive Analysis: Here we have explored the options as well as the actual
competitors.
• Assess rivals' objectives, strategies, strengths and weaknesses and response patterns
Internal analysis of strengths and weaknesses focuses on internal factors that can give an organization
some advantages and disadvantages in meeting the needs of its target market. Strengths refer to core
competencies that give the firm an advantage in meeting the needs of its target market. Any analysis of a
company's strengths should be market-oriented / customer-centric because strengths are only meaningful
while helping the firm meet the needs of customers. Weaknesses refer to any limitation of a company to
develop or implement a strategy Are weaknesses
It should also be investigated from a customer's perspective as customers often experience weaknesses
that the company cannot see. Being focused on the market while analyzing strengths and weaknesses does
not mean that non-market oriented strengths and weaknesses should be forgotten. Rather, it suggests that
all firms should tie their strengths and weaknesses to customer requirements. Only those strengths
satisfying customer needs should be considered true core competencies.
The following field analysis is used to look at all internal factors affecting the company:
• Resources: Profitability, Sales, Product Quality Brand Associations, Existing Composite Brands,
Relative Costs of this New Product, Employee Efficiency, Product Portfolio Analysis
• Capabilities: Goals: To identify internal strategic strengths, weaknesses, problems, obstacles and
uncertainties
Step 7: External Analysis External analysis examines the opportunities and threats present in the
environment. Both opportunities and threats exist independently of the firm. The way to distinguish
between strength or weakness from an opportunity or threat is to ask: Does this problem exist if the
company does not exist? If the answer is yes, then it should be considered external to the firm.
Opportunities refer to environmentally friendly conditions that can provide rewards for the organization if
worked properly. Conditions of opportunity exist, but must be dealt with if the firm is to take advantage
of them. Threats refer to conditions or constraints that may prevent firms from reaching their objectives.
Ques 3
ORGANIZATION STRUCTURE MEANING
There are actually two types of structural variables - basic structure and operating mechanism.
The design of the basic structure includes such important topics as how the work of the
organization will be divided among different positions, classes, departments, branches, etc., and
necessary coordination will be brought to achieve the organizational objectives. But on the other
hand, the functional system includes components of the information system, control procedures,
rules and regulations, rewards and punishments, etc. Two dimensions are described by the design
of organization structure - the tasks to be done and the nature of the structure. The first dimension
requires the determination of the activities that the organization needs for the division of
activities, given the degree of specialization. The second dimension, from the structure, requires
extensive study and application of organizational principles and practices. Organizational
structure establishes formal relationships between different positions in the enterprise.
Formal relationships can be classified into the following categories:
(1) Relationships between the Senior and Subordinates and Vice Versa;
(2) Relationship between the Specialist Positions and the Line Positions;
The main objective of the organization structure is to inculcate the spirit of cooperation and cooperation
among the employees so that the work of the managers can run smoothly. Organization structure has a
special importance in large organizations as compared to small organizations because in small
organizations everyone knows what they have to work for, who is their senior officer and who they are
responsible for their work, but large organizations Work cannot run without a well-planned organization
structure. Although it does not have special significance in small organizations, yet some form of
organization has to be fixed for the smooth functioning of the work. In Breech’s words - "If a systematic
path is to be adopted to build the organization structure then some accepted principles should be kept in
mind."
Organization structure has special importance in business for the following reasons:
1. In the organization structure, the rights of all employees and officers are fixed, so that the
employees of the organization have a clear knowledge of who their officers are, to whom they are
responsible for their work and what their own rights are and Who are the people responsible to
them for their work, that is, who they are entitled to.
2. In a well-organized organization structure, there is a clear explanation of the responsibility of all
departments and the employees working in them, so that no employee has any kind of confusion
about his responsibility.
3. The division of work in organization structure is done in such a way that the responsibility of the
employees related to it is fixed at every point of work and no person who is related to a particular
task can escape his responsibility.
4. In the organization structure, the responsibilities and functions of all departments and employees
working in them are fixed, so that they get to know what their own and their department is in the
organization.
5. In the organization structure, each employee's work is fixed and his / her work is clearly
explained. Special qualified persons are appointed at all work points and thus the benefits of
specialization can be availed by the institution.
6. In the organization structure, various stages of a task and their order are clearly mentioned and a
clear explanation is given as to which person will observe the work at which stage so that all
actions are easily coordinated.
7. In a well-organized organization structure, tasks are interpreted in such a way that there is no
possibility of doubling of work and diversity of order. Not only this, the organization structure
also has the complete facility of effective communication and control, so that all daily work is
carried out methodically and systematically.
Creating the structure of any organization is not an easy task as many elements have an influence on the
organization structure. These elements can be mainly divided into four parts - environment, size,
technology and person.