Henri Fayol's Principles of Management Fayol's "14 principles"
were first published in 1914, but are still relevant to today's
managers. Today's managers have access to an amazing array of
resources which they can use to improve their skills. But what
about those managers who were leading the way forward 100 years
ago? Managers in the early 1900s had very few external resources to
draw upon to guide and develop their management practice. But
thanks to early theorists like Henri Fayol (1841-1925), managers
began to get the tools they needed to lead and manage more
effectively. Fayol, and others like him, are responsible for
building the foundations of modern management theory. Background
Henri Fayol was born in Istanbul in 1841. When he was 19, he began
working as an engineer at a large mining company in France. He
eventually became the director, at a time when the mining company
employed more than 1,000 people. Through the years, Fayol began to
develop what he considered to be the 14 most important principles
of management. Essentially, these explained how managers should
organize and interact with staff. In 1916, two years before he
stepped down as director, he published his "14 Principles of
Management" in the book "Administration Industrielle et Generale."
Fayol also created a list of the six primary functions of
management, which go hand in hand with the Principles. Fayol's "14
Principles" was one of the earliest theories of management to be
created, and remains one of the most comprehensive. He's considered
to be among the most influential contributors to the modern concept
of management, even though people don't refer to "The 14
Principles" often today. The theory falls under the Administrative
Management school of thought (as opposed to the Scientific
Management school, led by Fredrick Taylor).
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Fayol's 14 Principles of Management Fayol's principles are
listed below: Division of Work When employees are specialized,
output can increase because they become increasingly skilled and
efficient. Authority Managers must have the authority to give
orders, but they must also keep in mind that with authority comes
responsibility. Discipline Discipline must be upheld in
organizations, but methods for doing so can vary. Unity of Command
Employees should have only one direct supervisor. Unity of
Direction Teams with the same objective should be working under the
direction of one manager, using one plan. This will ensure that
action is properly coordinated. Subordination of Individual
Interests to the General Interest The interests of one employee
should not be allowed to become more important than those of the
group. This includes managers. Remuneration Employee satisfaction
depends on fair remuneration for everyone. This includes financial
and non-financial compensation. Centralization This principle
refers to how close employees are to the decision-making process.
It is important to aim for an appropriate balance. Scalar Chain
Employees should be aware of where they stand in the organization's
hierarchy, or chain of command.
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Order The workplace facilities must be clean, tidy and safe for
employees. Everything should have its place. Equity Managers should
be fair to staff at all times, both maintaining discipline as
necessary and acting with kindness where appropriate. Stability of
Tenure of Personnel Managers should strive to minimize employee
turnover. Personnel planning should be a priority. Initiative
Employees should be given the necessary level of freedom to create
and carry out plans. Esprit de Corps Organizations should strive to
promote team spirit and unity. Fayol's Six Functions of Management
Fayol's six primary functions of management, which go hand in hand
with the Principles, are as follows: Forecasting. Planning.
Organizing. Commanding. Coordinating. Controlling. Key Points Henri
Fayol's "14 Principles of Management" have been a significant
influence on modern management theory. His practical list of
principles helped early 20th century managers learn how to organize
and interact with their employees in a productive way. Although the
14 Principles aren't widely used today, they can still offer
guidance for today's managers. Many of the principles are now
considered to be common sense, but at the time they were
revolutionary concepts for organizational management.
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Peter Druckers Management By Objectives
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SMART Method Specific Measurable Achievable Realistic
Time-related Management by Objectives also introduced the SMART
method for checking the validity of the objectives Management by
Objectives also introduced the SMART method for checking the
validity of the objectives.
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Traditional Meaning of Management Management is the art of
getting things done through people - Mary Parker Follett Management
consists of getting things done through others.A manager is one who
accomplishes organisational objectives by directing the efforts of
others. - C. S. George Limitations May give a wrong impression of
manipulation Need and aspirations of workers ignored Employees are
merely treated as means for getting results.
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Modern Definition Effective Utilisation of Resources Management
is the creation and maintenance of an internal environment in an
enterprise where individuals, working in groups, can perform
efficiently and effectively towards the attainment of
organisational goals. - Koontz and Weihrich Management entails the
utilisation of human efforts and material resources towards the
achievement of organisational objectives - B. M. Richman Elements
Process Primary Functions or activities that management performs to
get things done i.e. Planning, Organising, Staffing, Directing
& Controlling Effectiveness Finishing the assigned task
Efficiency Optimum utilisation of the deployed resources
Organisational Objectives Synergied efforts of all towards the Org.
Objectives.
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Management as a Process Management refers to a series of
inter-related functions or elements to achieve the stated
objectives through the effective utilisation of human and other
resources. Management Process Planning To take decisions and to
prepare plans, policies, procedures, rules, etc. Organising
Division on work and authority responsibility Staffing Deployment
of workforce Directing Instructing, motivating, leading the
subordinates Controlling Actual vis--vis standards and taking
corrective measures.
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Functions of Management Management Functions According to the
functions approach managers perform certain activities to
efficiently and effectively coordinate the work of others. They can
be classified as 1) Planning involves defining goals, establishing
strategies for achieving those goals, and developing plans to
integrate and coordinate activities. 2) Organizing involves
arranging and structuring work to accomplish the organizations
goals. 3) Leading involves working with and through people to
accomplish organizational goals. 4) Controlling involves
monitoring, comparing, and correcting work performance. Since these
four management functions are integrated into the activities of
managers throughout the workday, they should be viewed as an
ongoing process and they need not the done in the above
sequence.
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Levels of Management Managers can be classified by their level
in the organization, particularly in traditionally structured
organizationsthose shaped like a pyramid 1) First-line managers
(often called supervisors) are located on the lowest level of
management. 2) Middle managers include all levels of management
between the first-line level and the top level of the organization.
3) Top managers include managers at or near the top of the
organization who are responsible for making organization-wide
decisions and establishing plans and goals that affect the entire
organization. The changing nature of organizations and work often
requires employees in formerly nonmanagerial jobs to perform
managerial activities. Non managerial jobs are those where one
works directly on a job and had no one reporting to him. Mary
Parker Follet defines management as, The art of getting things done
through people
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PROJECT MANAGEMENT: Project management is the discipline of
planning, organizing, securing and managing resources to bring
about the successful completion of specific project goals and
objectives. It is sometimes conflicted with program management,
however technically that is actually a higher level construction: a
group of related and somehow interdependent engineering projects. A
project is a temporary endeavor, having a defined beginning and end
(usually constrained by date, but can be by funding or
deliverables), undertaken to meet unique goals and objectives
usually to bring about beneficial change or added value. The
temporary nature of projects stands in contrast to business as
usual (or operations) which are repetitive, permanent or
semi-permanent functional work to produce products or services. In
practice, the management of these two systems is often found to be
quite different, and as such requires the development of distinct
technical skills and the adoption of separate management. The
primary challenge of project management is to achieve all of the
engineering project goals and objectives while honoring the
preconceived project constraints. Typical constraints are scope,
time, and budget the secondaryand more ambitiouschallenge is to
optimize the allocation and integration of inputs necessary to meet
pre-defined objectives.