30 terms

Henri Fayol

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Administration Industrielle et Générale
Fayol's published work that first identified his theory of management
Fayolism
Henri Fayol's theory of management that analyzed and synthesized the role of management in organizations
Constance Storrs
Responsible for publishing a translation of Fayol's 1916 work about Fayolism
Henri Fayol
One of the founders of the principles of modern management
Henri Fayol
The Father of Modern Operational Management Theory
Top-down
- Henri's approach to management wherein a perspective progresses from a single, large basic unit to multiple, smaller subunits.
- Focuses on educating mangement on improving processes first and then moving to workers
- Focuses on managerial practices to increase efficiency
Planning
- A fxn of management
- Looking ahead
- Participation of the entire organization
- Linked and coordinated on different levels
- Consider available resources and flexibility
Organizing
- A fxn of management
- Sufficient CSR (capital, staff, raw materials)
- Organization structure with a good division of functions and tasks
- Number of functions increase, organization expand horizontally and vertically
- Requires a different type of leadership
Commanding
- A fxn of management
- Giving orders and clear working instructions
- Concrete instruction with the respect to activities
- Successful managers
* Have integrity, communicate clearly, and base their decisions on regular audits
* Capable of motivating a team
* Capable of encouraging employees to take initiative
Cooperating
- A fxn of management
- All activities are harmonized
- Positive influencing of employees behavior
- Stimulating motivation and discipline within group dynamics
- Requires clear communication and good leadership
Controlling
- A fxn of management
- Conformity of activities with the plan Four steps
* Establish performance standards
* Measure and report actual performance
* Compare results with performance & standards
* Take corrective or preventive measures
- Each step is about creative problem solving
- Starts with creating an environmental analysis
- Ends with evaluating the results implemented solutions
Division of work
- In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas (from generalist to specialist). Personal and professional developments support this.
- When employees are specialized, output can increase because they become increasingly skilled and efficient.
Authority and responsibility
- Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.
Discipline
- Obedience
- It is often a part of the core values of amission and visionin the form of good conduct and respectful interactions.
- The oil to make the engine of an organization run smoothly.
Unity of command
- Employees should have only one direct supervisor. : Workers should receive orders from only one manager.
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.
- Focus and unity
- The manager is ultimately responsible for this plan and he monitors the progress of the defined and planned activities. Focus areas are the efforts made by the employees and coordination.
Subordination of individual interest to the general interest
- The interests of one person should not take priority over the interests of the organization as a whole.
- The primary focus is on the organizational objectives and not on those of the individual. This applies to all levels of the entire organization, including the managers.
Remuneration
- This includes financial and non-financial compensation.
- Motivation and productivity are close to one another as far as the smooth running of an organization is concerned.
- Ultimately, it is about rewarding the efforts that have been made.
The degree of centralization
- This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance
Centralization
- Lowers the importance of the subordinate role
- Implies the concentration of decision making authority at the top management (executive board)
Decentralization
- Increases the importance of the subordinate role
- Sharing of authorities for the decision-making process with lower levels (middle and lower management)
Scalar chain
- Employees should be aware of where they stand in the organization's hierarchy, or chain of command.
- The President possesses the most authority; the first line supervisor the least
Order
- Employees in an organization must have the right resources at their disposal so that they can function properly in an organization. In addition to social order (responsibility of the managers) the work environment must be safe, clean and tidy.
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.
- Retaining productive employees should always be a high priority of management
Recruitment and Selection cost, Increased product-reject rates
Usually associated with hiring new workers.
Initiative
- Employees should be allowed to express new ideas. This encourages interest and involvement and creates added value for the company.
- This encourages the employees to be involved and interested.
Employee initiatives
Source of strength for the organization according to Henri Fayol.
Esprit de corps
- Organizations should strive to promote team spirit and unity.
- Encourage harmony and general good feelings among employees
Managers
Responsible for development of morale in the workplace
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