Professional Documents
Culture Documents
test of time
Michael J. Fells
Henley Management College, St Peter Port, Guernsey
Keywords Management, Model, Planning, Organizing, Co-ordination
345
Abstract Planning, organising, co-ordinating, commanding and controlling ± these are the
elements of management according to Henri Fayol. Less known, but no less important, are
Fayol's principles of management. Fayol was born in 1841 and died in 1925. His Administration
Industrielle et GeÂneÂrale was published in French in 1916 but was not translated into English until
1929. Fayol's work is often quickly rejected either because of its age or because it is believed to
have been superseded by observational findings. However, Fayol's work was based on observation.
This paper considers some contemporary models of management (Hales, Kotter, Mintzberg) and
argues that Fayol's elements of management are not refuted but are rather reinforced by more
recent findings. The paper concludes that Fayol's work stands the test of time. The five elements
of management and 14 principles of management are briefly presented.
Introduction
Henri Fayol was born in 1841 and died in 1925. After 30 years of an eminently
successful career as a practitioner, Fayol devoted the remainder of his life, from
1918 to 1925, to promoting his theory of administration (Fayol, 1949).
Fayol was perhaps the first to note the need for management education
(Brodie, 1967). His Administration Industrielle et GeÂneÂrale was published in
French in 1916. No English translation appeared until 1929.
In the Foreword to the English translation of 1949 (Fayol, 1949) it is noted
that the use of the term ``administration'' in the title of the original English
translation is perhaps unfortunate and would have been better termed
``management''. Fayol's work was clearly about management but, the Foreword
argues, no such word exists in the French language.
Fayol (1949) argued that all industrial undertakings precipitate activities
that can be categorised into six groups: technical, commercial, financial,
security, accounting and management. Fayol's work focused on the latter
category, management.
Frederick Taylor (1856-1915) was a contemporary of Fayol. Although
Taylor's work is sometimes compared with Fayol's, it is important to realise
that the focus of each is quite different. Wren (1994) notes that Fayol's work
was overshadowed by Taylor's, even in France. But Fayol always argued that
the two works were complementary. Wren observes that Fayol viewed
management from the executive perspective while Taylor focused on the other
end. For example, the foundation of Taylor's scientific management was time
study.
Contemporary models
In order to assess better the current validity of Fayol's work, it is necessary to
compare it with more contemporary views. For this purpose, the seminal field
research of Mintzberg (1973) and Kotter (1982) will be considered as well as the
literature review of Hales (1986).
Mintzberg (1973) undertook an extensive study of five executives (including
four CEOs) at work. Based on this research, Mintzberg developed a different
view to Fayol's (Gray, 1984) classical model. He categorises managerial
activities into three groups that are then amplified into ten management roles:
(1) Interpersonal:
. figurehead;
. leader; and
. liaison (inside and outside).
(2) Informational:
. monitor (of internal and external information);
. disseminator (of information); and
. spokesman;
(3) Decisional: Fayol stands the
. entrepreneur (i.e. change agent); test of time
. disturbance handler;
. resource allocator; and
. negotiator. 349
Kotter's observations (1982) led him to agree with Mintzberg that executives'
activities do not fit neatly into Fayol's (Gray, 1984) framework of planning,
organising, etc.
Many others have since seemingly accepted that Fayol's model is
unacceptable, in view of the results of contemporary researchers such as
Mintzberg, and are relatively quick to reject it (e.g. Rolph and Bartram, 1992;
Secretan, 1986).
In The General Managers, Kotter (1982) notes that ``although there is `an
enormous amount of literature' on `management', most concern processes or
tools, not who managers are, what they do, or why some are more effective than
others.''
Kotter's book is based upon his efforts to improve this situation by an
extensive study of 15 general managers.
Kotter identified significant commonality of behaviour in the managers
studied. He describes the following overall job responsibilities:
. Long run ± formulating organisation goals, directions, and priorities
including what businesses to be in and how to acquire key resources.
. Medium run ± effective resource allocation in terms of long-run goals.
. Short run ± efficient allocation of resources along with some profit
responsibility.
Hales (1986) reviewed the literature of Mintzberg and Kotter among others.
Based on this review, Hales identified common themes and threads of what he
terms ``elements of managerial work''. These are:
. acting as a figurehead and leader of the organisational unit;
. liaison: the formation and maintenance of contacts;
. monitoring, filtering and disseminating information;
. allocating resources;
. handling disturbances and maintaining work flows;
. negotiating;
. innovating;
. planning; and
. controlling and directing subordinates.
JMH Where is Fayol's model today?
6,8 Caroll and Gillen (1987) quote Mintzberg (1973, 1989) and Kotter (1982) in
stating that the usefulness of the classical functions has been called into
question. Archer (1990) goes further and urges that the US return to the
principles.
Archer (1990) argues that Fayol's model began to be assaulted by academics
350 in the US in the 1940s. He believes that the assault continued and grew into the
1960s until ``motivational panaceas'' such as needs theory and job enrichment
displaced Fayol's principles.
Could it be that the 1930s cost-cutting aftermath of the great recession
followed by a lack of cost-consciousness during World War II and then the
cost-overrun period of defence after World War II undermined the planning
and control structure of Fayol's principles? If the enabling structure of Fayol's
elements and principles was destroyed then that would surely explain why
Mintzberg and Kotter were unable to find them in their studies.
Wren (1994) observes that the impact of the great recession on management
thought has never been fully examined. However, he does note that, after 1929,
Mayo-ists considered economic problems to be social problems. Despite this,
Wren suggests that the Constance Storrs translation of Fayol's work after
World War II actually led to renewed interest in Fayol.
Yet others believe that Fayol's elements and principles remain valid and in
use today. Luthans et al. (1985) studied 52 managers at varying levels
(Mintzberg observed five senior managers). They found that traditional
management roles were frequently observed, particularly by successful
managers at more senior levels.
Luthans' et al. (1985) acknowledge the support that Mintzberg's work has
received. However, they cite several studies that identify potentially significant
weaknesses with Mintzberg's findings and suggest that the real value of his
study is not the ten roles but rather the use of direct observations which
provide insights into management behaviour. Their study also found
considerable support for Kotter's conclusions but noted that successful
managers at top levels devoted more attention to the traditional roles such as
planning and co-ordinating.
Luthans et al. (1988) studied 457 managers at various levels and from
diverse organisations over a four-year period. They conclude that much of the
manager's time is doing what is described as traditional management.
This researcher believes that all of the management models discussed,
including the classical Fayol model, are legitimate and valid today. Rather than
competing, this researcher sees each as simply representing a different view, as
suggested by Wren (1994).
352
Figure 1.
Management model
comparison: Mintzberg,
Fayol and Kotter
353
Figure 2.
Management model
comparison: Fayol,
Hales and Mintzberg
Elements of management
Fayol categorises management into five major elements:
(1) planning;
(2) organising;
(3) commanding;
(4) co-ordinating; and
(5) controlling.
Fayol devotes relatively more attention to these five elements than to the 14
management principles. The latter were discussed in 24 pages. The five
elements of management are considered in 65 pages. The following attempts to
capture the essence of each element.
Planning (Fayol, 1949, p. 43): ``means both to assess the future and make
provision for it''. Fayol views the ``action plan'' as the most useful output of the
planning process. He notes that this plan must consider the firm's resources,
work-in-progress, and future trends in the eternal environment.
Fayol discusses the features of a good action plan and highlights: unity,
continuity, flexibility and precision.
Organising (Fayol, 1949, p. 53): personnel is the focus of this section. Fayol
enumerates the managerial duties of organisations that must be realised
JMH through personnel. He argues that despite the variety of businesses, every firm
6,8 of similar employee size differs mainly in ``the nature and relative value of
constituent elements''.
Fayol identifies many key objectives of organising including:
. ensuring proper plan preparation and execution;
358 . aligning objectives with resources;
. establishing a single guiding authority;
. harmonising and co-ordinating of activities;
. maximising personnel deployment;
. clear delineation of duties;
. encouraging initiative and responsibility;
. maintaining discipline;
. ensuring the subordination of individual interests to corporate interests;
. supervision of both material and human order; and
. maintaining full control.
Fayol considers the functional components of organisations along with the
constituent personnel, and discusses the ideal conditions required of each in
considerable detail. In so doing, Fayol comments on various organisational
metaphors such as the ``mechanistic'' and ``organic''. He concludes the section
with a review of personnel selection and training. Fayol devotes four pages to a
critique of the work of Taylor (Fayol, 1949, pp. 66-70).
Commanding (Fayol, 1949, p. 98): the responsibility of every manager. The
purpose is achieve the maximum contribution to the interests of the business
from all personnel within the manager's unit. Fayol discusses several maxims:
. Have a thorough knowledge of personnel (e.g. in terms of capabilities).
Fayol notes that in large organisations this knowledge could only
reasonably apply to direct reports as per the manager's span of control.
. Eliminate the incompetent.
. Be well versed in the agreements binding the business and its
employees.
. Set a good example.
. Conduct periodic audits of the organisation and use summarised charts
to further this.
. Bring together chief assistants by means of conferences, at which unity
of direction and focusing of effort are provided for.
. Do not become engrossed in detail. (Fayol suggests delegating all work
that the manager is not strictly required to undertake personally.)
. Aim at making unity, energy, initiative and loyalty prevail among the Fayol stands the
personnel. test of time
Co-ordinating (Fayol, 1949, p. 103): the harmonisation of resources in their
optimum proportions in order to achieve results. Fayol identifies some of the
characteristics of a well co-ordinated organisation:
. Each department works in harmony with the rest and each is clear on its 359
responsibilities and executes them efficiently and effectively.
. Each department is well informed as to its obligations to other
departments and viceversa.
. Department schedules are continually adjusted to circumstances.
Controlling (Fayol, 1949, p. 107): consists of the ongoing, routine verification of
plan implementation, instructions issued, and principles. Controlling applies to
all processes. Its purpose is to identify weaknesses and problems such that they
can be rectified and recurrences prevented.
Fayol notes that, to be effective, control must be timely and be supported by
penalties. He also cautions against the infiltration of control into departmental
operation such that duality of command emerges. Fayol stresses the need for
independent, objective and impartial inspection.
Conclusions
The essence of Fayol's work stands the test of time. This paper has considered
Fayol's elements of management against contemporary management models:
. Mintzberg (1973);
. Kotter (1982); and
. Hales (1986).
All of the models, including that of Fayol, were shown to be interrelated at an
elemental level. Despite the differences in the models in terms of words used
and perspectives taken (e.g. the (very different) categories used by Mintzberg
(1973) compared with those used by Kotter (1982)), each model can be
considered essentially equivalent to, or a subset of, other models.
Fayol's principles of management were also presented. There is no
comparable enumeration in the literature to allow further assessment of these
principles. However, the principles are intuitively appealing. They are based on
observations and experience. Fayol's principles may indeed be relevant today
and should not be ignored until they have been superseded or refuted.
References
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