henri fayol
...tly condemned this as inefficient and advocated a 'gang plank' arrangement whereby juniors involved in regular interactions with other departments dealt directly with each other, cutting out the hierarchy. Unwittingly, Fayol provided a key to modern organizations which he could not have conceived. As will be seen later, electronic gang planks have become so efficient that networked organizations are possible which no longer have any requirement whatsoever for layers of management. 10. Order. 'A place for everyone and everyone in his place.' For Fayol, this presupposed the resolution of 'the two most difficult managerial activities: good organization and good selection.' He saw the basic problem as the balancing of an organization's requirements with its resources. The larger the business, the more difficult this became: 'when ambition, nepotism, favouritism or merely ignorance, has multiplied positions without good reason or filled them with incompetent employees, much talent and strength of will and more persistence ... are required in order to sweep away abuses and restore order.' 11. Equity. In order to obtain commitment from employees, they must be treated equally and fairly. 12. Stability of tenure of personnel. A matter of proportion, but employees need a period of stability in a job to deliver of their best. 13. Initiative. Being allowed to think through a problem and implement a solution is a rewarding experience which increases motivation. Fayol cautions managers against the personal vanity which prevents them from allowing this opportunity to their subordinates. 14. Esprit de corps. 'Dividing enemy forces to weaken them is clever, but dividing one's own team is a grave sin against the business.' 5. Discuss Henri Fayol's contributions to organizational theory. Henri Fayol has been called the father of management. Henri Fayol was a successful French industrialist. He also created the first school of management. He was responsible for developing the major classical management concepts of planning, organizing, developing, staffing, coordinating, and budgeting (PODSCORB). He also was the first to develop the importance of lateral communications with his gang plank theory of communications in organization. Henri Fayol belongs to the administrative management branch of the classical school. His entire working career was spent with a mining company, Commentary-Fourchambault Company, where he rose from an apprentice to General Manager in 1888 remaining there until his retirement in 1918. He is credited with turning the company around from a threatened bankruptcy into a strong financial position by the time of his retirement at age 77. As a result of his management experience, Fayol strongly believed management theories could be developed and taught to others. His first writing on administration, Administration Industrielle et Generale, was published in 1916 in the Bulletin of the Society of Mineral Industries and later appeared as a book. The book became prominent in the United States after a second English translation appeared in 1949 under the title General and Industrial Management. Henri Fayol's Fourteen Management Principles a. Division of Work. Division of work, specialization, produces more and better work with the same effort. It focuses effort while maximizing employee efforts. It is applicable to all work including technical applications. There are limitations to specialization which are determined by its application. b. Authority and responsibility. Authority is the right to give orders and the power to exact obedience. Distinction must be made between a manager's official authority deriving from office and personal authority created through individual personality, intelligence and experience. Authority creates responsibility. c. Discipline. Obedience and respect between a firm and its employees based on clear and fair agreements is absolutely essential to the functioning of any organization. Good discipline requires managers to apply sanctions whenever violations become apparent. d. Unity of command. An employee should receive orders from only one superior. Employees cannot adapt to dual command. e. Unity of direction. Organizational activities must have one central authority and one plan of action. f. Subordination of Individual Interest to General Interest. The interests of one employee or group of employees are subordinate to the interests and goals of the organization and cannot prevail over it. g. Remuneration of Personnel. Salaries are the price of services rendered by employees. It should be fair and provide satisfaction both to the employee and employer. The rate of remuneration is dependent on the value of the services rendered as determined by the employment market. h. Centralization. The optimum degree of centralization varies according to the dynamics of each organization. The objective of centralization is the best utilization of personnel. i. Scalar chain. A chain of authority exists from the highest organizational authority to the lowest ranks. While needless departure from the chain of command should be discouraged, using the "gang plank" principle of direct communication between employees can be extremely expeditious and increase the effectiveness of organizational communication. j. Order. Organizational order for materials and personnel is essential. The right materials and the right employees are necessary for each organizational function and activity. l. Equity. In organizations equity is a combination of kindliness and justice. The desire for equity and equality of treatment are aspirations to be taken into account in dealing with employees. m. Stability of Tenure of Personnel. In order to attain the maximum productivity of personnel, it is essential to maintain a stable work force. Management insecurity produces undesirable consequences. Generally the managerial personnel of prosperous concerns is stable, that of unsuccessful ones is unstable. n. Initiative. Thinking out a plan and ensuring its success is an extremely strong motivator. At all levels of the organizational ladder zeal and energy on t he part of employees are augmented by initiative. o Esprit de Corps. Teamwork is fundamentally important to an organization. This is encouraged by creating work teams and using extensive face-to-face verbal communication. In addition to dividing management functions into separate categories, Fayol detailed some basic principles for managers. Some will be famili...