henri fayol (1841 1925) - ahmad fatayer

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Henri Fayol (1845-1925

Henri Fayol (1841-1925)Administrative Theory of ManagementStudents Ahmad Fatayer & Nathan StorrsUniversity of South Florida, EIN6319 Spring 2017

AgendaIntroduction and BackgroundSocial Environment and His Theory Theory and Contribution5 Functions and 14 Principles of ManagementRelevant Today?Comments by OthersFayol vs. TaylorCriticismConclusionQ & AAppendix PublicationsReferencesTimelineFayol Quotes

Introduction and BackgroundBorn in Istanbul in 1841 of a French FamilyGraduated at age 19 as mining engineer in 1860Worked at French mining and steel company, ComambaultPromoted to Managing Director in 1888. Saved Company from bankruptcyStayed at same company until his retirement in 1918Known as the Father of Modern General Management (Fayolism)Published his first book in 1916 General and Industrial Management His work - Administrative Theory in ManagementHis work was not known in the US until 1949

Social Environment and His Theory

Held Executive position as CEO over 30 yearsDeveloped his theory based on his experience and observationsDuring World War I , post revolutionized FranceFayolism theory of management that analyzed and synthesized the role of management in organizationsBelieved that management theory deserved more focus:Young men, who begin practical work as engineers soon after leaving industrial schools, are in a particularly good position both for learning administration and for showing their ability in this direction . . . (Wren)

Social Environment and His Theory

Examined the organization from top-downRealized that the problem of personnel and its management is the key to industrial successTheories on how management should deal with that problemManagement is a process of 5 functions and its 14 principles as a tool to carry out the process

5 Functions /Elements of Management1) Planning plan and put forth actions to be taken2) Organizing define authority and responsibility3) Coordinating lay out the timing and sequencing of activities 4) Commanding put the plan into action, execute the plan5) Controlling monitor and correct tasks to meet projects goals and deliverablesKnown in todays management as planning, organizing, leading, controlling and forecastingFayol says- to manage is to forecast and plan, to organize, to command, to coordinate and to control. To foresee and plan means examining the future and drawing up the plan of action.

14 Principles of ManagementDivision of WorkAuthority and ResponsibilityDisciplineUnity of CommandUnity of DirectionSubordination of Individuals Interests to the General InterestsRemunerationCentralizationScalar chainOrder EquityStability of Tenure of PersonnelInitiativeEsprit de corps

14 Principles of Management1) Division of work - Known as Division of LaborWork should be divided among the individuals and groups to focus on specific tasksSpecialization promotes efficiency of the workforce and increases productivity Fayol warned too much specialization might bore the employee and long term development might be needed2) Authority and Responsibility Authority is the right to give orders and obtain obedience Responsibility involves being accountable and whoever assumes authority also assumes responsibility

14 Principles cont.3) Discipline Employees must obey and respect the rules that govern the organizationGood discipline is the result of effective leadership Penalties should be applied as necessary4) Unity of command every employee should receive orders from only one managerOtherwise, having multiple managers could lead to confusion and conflicts5) Unity of direction The entire organization should be moving towards a common objective or goal in a common direction

14 Principles cont.6) Subordination of individuals interests to the general interests The interests of any one employee or group of employees should not take priority over the interests of the organization7) Remuneration All workers must be paid a fair wage for their servicesVariables such as cost of living, supply of qualified personnel, and business profits should be consideredRemuneration also can be non-monetary (recognition, time off)

14 Principles cont.8) Centralization / Decentralization Refers to the degree to which subordinates are involved in decision makingEmployees should be given the greatest feasible freedom9) Scalar chain The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain in norm situationsBut during emergencies and if a quick action is necessary, this chain can be broken under Gang Plank

14 Principles cont.10) Order there should be a specific place for every employee in an organization11) Equity managers should be kind and fair to their subordinates. All employees should be treated equally12) Stability of Tenure of Personnel retaining productive employees should always be a high priority of management

14 Principles cont.13) Initiative management should encourage workers to initiate new ideas and new ways to complete tasks14) Esprit de corps promoting team spirit will build harmony and unity within the organization

Relevant Today?These principles are flexible and adaptable to any organizationUniversal use in private, public, education, government..etc.Significant influence in modern management theoryHelped managers - how to organize and interact with their employees in productive wayFayols principles in management are not only the guides for early management, they are also presented in contemporary management theories to describe what todays managers should do to be effective and efficient. (Archer,1990;Fells,200;Hales,1986)

Relevant Today?Variety in org structures makes these considerations even more relevant todayAppropriate structures depend on organizations needs.Use the initiative and creativity of all people at all levels of the organization for competitive advantageUnity of Command Very relevant in todays matrix org structuresTheme of finding the appropriate balance between freedom and control, between creativity and efficiency

Comments by OthersIn the words of Urwick: Isolation and analysis of management as a separate function was his Fayols, unique and original addition to the body of management theory.The concepts and principles of Fayol have stood the test of time and form part of the modern science of management. His contribution to the theory of management is probably the most revolutionary and constructive that has ever been made. (Theo Haimann)Fayol was the first person to attempt to systematize management by accentuating the higher levels of control (Robbins, 1991:37).

Fayol vs. Frederick TaylorFrederick Winslow Taylor (1856-1915), another theorist of the time, studied efficiency techniques in his 1911 book the Principles of Scientific ManagementTaylor worked primarily on the operative level, from the bottom of the industrial hierarchy upwards Fayol concentrated on the managing director and worked downwardsTaylor known as the father of scientific management where Fayol known as the father of administrative theory in management

CriticismFayol did not conduct research or provided empirical data rather his work was from his own experience and observations

ConclusionRemarkable Contribution to the Administrative Theory in Management His work is referred to as FayolismDeveloped 5 functions and 14 principals of managementDevoted his life teaching his administrative theoryHis work contributed to scientific management as Taylor didFirst theorist in modern general managementFayols words The administrative apparatus is further a concept for very wide application. Not only is it useful to those who may have been managing or controlling an industrial undertaking but to my mind its absence is fundamental weakness in our public services, and I cannot imagine better service to our country than to ensure its application by the state

Q & A

AppendixPublicationsReferencesTimelineFayol Quotes

PublicationsPositive administration in industry. Article in La Technique moderne, 1918.The theory of administration in the state. Paper to the Second International Congress of Administrative Science. 1923.Industrial and General Administration by Henri Fayol, translated by J.A. Coubrough. London, Sir Isaac pitman & Sons, 1930.General and Industrial Management by Henri Fayol, translated form the French version edition (Administration industrielle et Gnrale) by Constance Storrs, with foreword by L. Urwick. London, Pitman, 1949.General and Industrial Management by Henri Fayol, revised by Irwin Gray. New York: IEEE, c1984, published under the sponsorship of the IEEE Engineering Management Society.

ReferencesWikipedia, retrieved from the web, January 16, 2017, from https://en.wikipedia.org/wiki/Henri_FayolGeneral and Industrial Management by Henri Fayol, translated form the French version edition (Administration industrielle et Gnrale) by Constance Storrs, with foreword by L. Urwick. London, Pitman, 1949. Page vi.Wikipedia, retrieved from the web, January 16, 2017, from https://en.wikipedia.org/wiki/FayolismDaft, Richard L (1983), Organization Theory and Design, The West series in management., West Pub. Co.General and Industrial Management by Henri Fayol, revised by Irwin Gray. New York: IEEE, c1984 (Published under the sponsorship of the IEEE Engineering Management Society. ISBN: 0879421789, pages 61-82.Retrieved from the web, February 5 ,2017, form http://www.yourarticlelibrary.com/management/henry-fayols/contribution-of-henry-fayol-to-management-thought/74132/Retrieved from the web, January 19,2017, from http://www.yourarticlelibrary.com/management/comparison-between-taylor-and-fayol-theory-of-management-similarities-and-dissimilarities/25625/Retrieved from the web, February 5