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Organizational Development Theories
Organizational Development Theories
Jules Henri Fayol, a French manager-engineer, was the first to formalize management
elements and principles. He viewed management as involving all activities associated
with producing and distributing products. Fayol believed that management required
special study and could be taught in schools and universities. Managerial ability,
according to Fayol, depended on physical, mental, moral qualities, general education,
special knowledge, and experience. He believed that the relative importance of
technical and managerial abilities varied with an employee's level of authority and the
size of the firm. Technical ability was most important at the worker level, while
managerial ability became more important as individuals moved up the hierarchy. In
larger firms, managerial ability was more important than technical ability, especially at
higher levels of authority.
D- Division of work
A- Authority and responsibilities
D- Discipline
U- Unity of command
U- Unity of direction
2. ELEMENTS OF MANAGEMENT
Fayol is known for identifying and describing the elements or functions that make up a
manager's job. He identified five elements of management: planning, organizing,
command, coordination, and control. Planning involves defining a firm's objectives,
which sets the stage for the other elements of management. Organizing means
providing a firm with everything it needs to achieve its objectives, including land, labor,
and materials. Command is the mission of getting the optimum return from all
employees, and it requires certain personal qualities and principles of management.
Coordination involves harmonizing all the activities of a concern to facilitate its working
and success. Control consists of verifying whether everything occurs in conformity with
the plan adopted, instructions issued, and principles established, and correcting errors
to prevent their recurrence. Fayol believed that control had an integrative effect on the
other elements of management because it could stimulate better planning, simplify and
strengthen a firm's organization structure, enhance the directing of employees, and
facilitate coordination.