General theory of management |
Henri Fayol, a French industrialist and one of the earliest proponents of
a general theory of management, has been described as the father of
management theory.
Fayol defined administration in terms of five primary elements: Planning,
Organizing, Command, Coordination and Control. He developed a
comprehensive list of principles to provide guidelines for managers. In
introducing these guidelines he stated: "...there is nothing rigid or
absolute in management affairs, it is all a question of
proportion....allowance must be made for different changing
circumstances.
Fayol's Fourteen Principles:
1. Division of Work. The Principle of specialization of labor in
order
to concentrate activities for more efficiency.
2. Authority and Responsibility. Authority is the right to give
orders and the power to exact obedience.
3. Discipline. Discipline is absolutely essential for the smooth
running of business, and without discipline no enterprise could prosper.
4. Unity of Command. An employee should receive orders from one
superior only.
5. Unity of Direction. One head and one plan for a group of
activities
having the same objectives.
6. Subordination of individual interests to general interests. The
interest of one employee or a group should not prevail over that of the
organization.
7. Remuneration of Personnel. Compensation should be fair and, as
far
as possible, afford satisfaction both to personnel and the firm.
8. Centralization. Centralization is essential to the organization
and
is a natural consequence of organizing.
9. Scalar Chain. The scalar chain is the chain of superiors ranging
from the ultimate authority to the lowest rank.
10. Order. The organization should provide an orderly place for
every
individual. A place for everyone and everyone in their place.
11. Equity. Equity and a sense of justice pervades the organization.
12. Stability of Tenure of Personnel. Time is needed for the
employee
to adapt to his work and to perform it effectively.
13. Initiative. At all levels of the organizational ladder zeal and
energy are augmented by initiative.
14. Esprit de corps. This principle emphasized the need for teamwork
and the maintenance of interpersonal relationships.
What is Management?
-
Management involves the coordination of human and material resources
toward objective accomplishment.
Management is a process of planning, organizing, and controlling
activities.
Management is the primary force within organizations which coordinates
the activities and uses of the resources and relates them to the internal
and external environment of the organization.
Saul
Saul Klein
CEO, InternetCrusade
