MANAGEMENT PRINCIPLES AND ELEMENTS

Henry Fayol, a Frenchman, was first to issue a complete statement

on a theory of general management. Born of relatively well-to-do parents,
Fayol was graduated as a mining engineer and started in 1860 as a junior
executive of a coal mining and iron foundry company. ln 1888, when the
company was near bankruptcy, Fayol took over as Managing Director and
rapidly transformed the company into a financially sound organization. After
his retirement in 1918, Fayol spent his remaining years lecturing and
popularizing his theory of administration. He became especially interested in
the application of administrative theory to government. Although he
published earlier papers outlining his general thinking, Fayol’s major
contribution, Administration lndustrielle et Generale, was published in
1916. Unfortunately, this work was not translated into English until 1930 and
then in only a very limited number of copies. The book was not readily
available in English until 1949.

Possibly the most significant of Fayol’s work was his discussion of manage-
ment principles and elements. Fayol stated the following 14 "principles of manage-
ment," stressing that manager should be flexible in the application of these prin-
ciples and that allowances should be made for different and changing circum-
stances: (1) Division of work, (2) Authority, (3) Discipline (4) Unity of command (5)
Unity of direction (6) Subordination of individual interests to the general interests,
(7) Remuneration, (8) Centralization, (9) Scalar chain (line of authority), (10) Or-
der, (11) Equity, (12) Stability of tenure personnel, (13) initiative, and (14) Esprit de
corps.
Fayol developed his list of principles from those practices which he had used
most often in his work. He used them as broad and general guidelines for effective
management. The real contribution made by Fayol was not the 14 principles them-
selves, for many of these were the products of the early factory system, but rather
his formal recognition and synthesis of these principles.
 ln presenting his "elements of management," Fayol was probably the first to
outline what today are called the functions of management. Fayol listed planning,
organizing, commanding, coordination, and control as elements of management.
He placed the greatest emphasis on planning and organizing because he viewed
these elements as primary and essential to the other functions.
The works of Taylor and Fayol are essentially complementary. Both believed
that proper management of personnel and other resources were the key to indus-
trial success. Both used a scientific approach to management. The major differ-
ence in their approaches centered around their orientations. Taylor came up through
the ranks and concentrated on the operative level. Fayol spent most of his time in
executive positions and had more of a top management perspective.

GLOSSARY
well-to-do (adj) : mampu, berada, kaya
foundry (n) : pengecoran logam
remuneration (n) : pemberian upah, gaji
equity (n) : hak menurut keadilan, kewajaran,
Tenure (n) : masa jabatan, kedudukan tetap
esprit de corps (n) : rasa persatuan dalam kalangan tertentu, semangat korp
synthesis (n) : perpaduan

A. COMPREHENSION QUESTIONS
Answer the following questions briefly.
1. What does the first paragraph mainly discuss?
2. What is the writer’s main point in the second paragraph?
3. What information do you get from the third paragraph?
4. What is the main idea of the fourth paragraph?
5. What information do you get from the last paragraph?
6. According to the text, what do you know about Henry Fayol?
7. What does the word ‘equity’ in line 23 mean?
8. lt is not implied in the text that
a. Fayol is the first person who states the theory of general management.
b. There are 14 principles of management.
c. The elements of management are also called the functions of management.
d. Fayol and Taylor have the same idea management.

Say whether these statements are true (T) or false (F), and if they are
false make them correct.
1. The key to the industrial success is placed on the proper management of
personnel only.
2. The elements of management covers planning, organizing, commanding,
coordination, and control.
3. Planning and organizing are more essential elements of management.
4. The functions of management are different from elements of management.
5. Manager should not be flexible in the application of the principles of
management.
6. The elements of management are also called the functions of management.
7. Initiative is the last principles of management.

Make a composition about "management Principles and Elements"

at least 40 words.

B. VOCABULARY BUILDING
1. ‘The statement" (paragraph 1 line 1) means:
a. debate b. discussion c. opinion d. principle
2. ‘The transformed ‘(paragraph 1 line 5) means:
a. distributed b. changed c. sent d. supplied
3. ‘Available’ (paragraph 1 line 12) means:
a. provided b. existed c. appeared d. come
4. ‘Called’ (in paragraph 4 line 2) means:
a. named b. informed c. described d. shown
5. ‘Placed" (in paragraph 4 line 4) means:
a. pointed b. emphasized c. stressed d. stated

C. STRUCTURAL REVIEW: Question Forms (Part 2)

Notice the functions of the interrogatives with Who, What, Where, Which,
Whose, and How.
1. Who asks about the identity of one person or several people.
(+) An entrepreneur starts his business.
(’?) Who start his businesses?
Short answer: An entrepreneur does.

2. What asks about identity, choice or selection among a large or unlimited

number of persons or things.
(+) An entrepreneur starts his business.
(?) What does an entrepreneur start?
Short answer: His business.

3. Where asks about the location of something.

(+) They put their goods in the warehouse.
(?) Where do they put their goods?
Short answer : ln the warehouse.

4. When asks about the time of some event.

(+) She comes to the meeting in the morning.
(?) When does she come to the meeting?
Short answer: ln the morning

5. Why asks about the purpose or reason for an action.

(+) She starts a business because she has a business opportunity.
(?) Why does she start a business?
Short answer: Because she finds a business opportunity

6. Which asks about identity, choice, or selection among a small or limited

number of persons or things.
(+) The first business grows faster than the second business.
(?) Which grows faster than the second business?
Short answer: The first business.

7. Whose asks about ownership or relationship.

(+) His business goes bankrupt.
(?) Whose business goes bankrupt?
Short answer: His.

8. How asks about: 1) the manner of accomplishment; 2) the state or condition

of something or somebody; 3) degree of quality; how old, how far, how tall,
how big, how small, how far (geographical distance), how long (time or
length), how much, how many etc.

(+) He starts his business by learning from mistakes.

(’?) How does he start his business?
Short answer: He learns from his mistakes.

Ask a question about the underlined part of each sentence.

1. She does her business very well.
2. He pays the annual tax.
3. Their businesses go bankrupt because the sale is weak.
4. The company releases the new product immediately.
5. The shareholders have a meeting in the hall.
6. Some partners want to dissolve their partnership.
7. Their company gets credit from a local bank.
8. The customers are not satisfied with the product because they are poisonous.
9. Australian workers do monotonous job every day.
10. Asian central banks agree to reforms.