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Blog by Saul Klein
San Diego, California

A collection of notes and observations by Saul Klein, CEO of Point2 Technologies and InternetCrusade.

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General theory of management

Posted at Saul's Notes by Saul Klein
Aug. 21, 2005
Categorized in: Association Leadership
Tagged with: association leadership

 

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

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