Ans. The Management Process School has laid emphasis on the major
functions of management and also developed principles for the working of such
functions. Henri Fayol (1841-1925) is called the father of modern management
theory. In management process the notable contribution of Henri Fayol is his
famous book, 'The General and Industrial Management', which was the outcome of
his long experience. He, for the first time, studied the functions and
principles of management in a systematic manner. There is another side of
classical approach. It is called the 'administrative management' or 'management
process.'
Contribution of Fayol. Fayol's chief contributions are:
• analysis of major activities involved in business;
• exposition of the activities of administration in terms of six
essential functions or elements;
• formulation of number of important principles.
Industrial activities. Fayol divided the activities of an industrial
undertaking into six groups, namely:
(i) Technical (production, manufacture etc.)
(ii) Commercial (buying, selling and exchange)
(iii) Financial (optimum use of Capital)
(iv) Security (protection of property and person)
(v) Accounting (those leading to the determination of financial
position)
(vi) Managerial (planning, organisation, commanding, co-ordinating and
control).
He pointed out that these activities exist in every organisation. He
observed that first five activities are well known to a manager.
Fayol has divided his approach of
studying management in three groups:
(A) Managerial qualities and
training;
(B) General principles .of management and
(C) Elements of management.
A. Managerial qualities and training. Fayol was the first man to identify
certain qualities of a manager for smooth functioning of activities and at the
same time recommended for proper training of employees so that with the
increase of efficiency they can solve any complex problem. According to him,
these qualities are:
(i) physical (health, vigour and appearance);
(ii) mental (ability to understand and learn, judgement and
adaptability);
(iii) moral (energy, firmness, initiative, loyalty, tact and dignity);
(iv) educational (acquaintance with matters relating to general
functioning);
(v) technical (acquaintance with the function being performed) and
(VI) experience (arising from the work).
B. General principles of management. Fayol gave the following general
principles of management:
(1) Division of work. Division of work means to divide the work among
thetin workers according to their capacity and quality on scientific basis.
This helps them to do more and better work with the same effort.
(ii) Authority and responsibility. Authority is the right to give orders
and power to extract obedience while responsibility is a corollary of
authority. Authority and responsibility go hand in hand.
(iii) Discipline. Discipline, in simple terms, means obedience to the
rules of the organisation, on the part of both managers and subordinates. It(xo
includes outward marks of respect shown by the subordinates towards their
superiors. Discipline is necessary in an organisation, if the organisation is
to function properly and prosper and grow.
(iv) Unity of command. According to this principle, a subordinate must
get orders and instructions, only from one superior at a time. If two superiors
exercise their authority over the same person or department, it may cause
uneasiness and disorder.
(v) Unity of direction. Unity of direction means one head and one plan
for a group of activities having the same objective. It is essential to have
unity of direction for unity of action, co-ordination of strength and focussing
of efforts. The unity of direction is different from unity of command in the
sense that the former relates to grouping of activities while the latter with functioning
of personnel at all levels.
(vi) Subordination of individual interests to general interest. Efforts
should be made to reconcile individual interests with common interest.
When(xiv) there is conflict between the two, the interests of the organisation
should prevail over the individual interests.
(vii) Remuneration of personnel. Remuneration of personnel is the price
off services rendered by them. It should be fair and provide maximum possible
satisfaction to both employees and employers series of
(viii) Centralisation. 'Centralisation' refers to a reservation of
decision-making at all lev authority at the top level of management.
'Decentralisation' on the other hand, means a dispersal of authority from the
central (top-level) point to manage middle and specially lower levels of
management. Management must strike out a balance between centralisation and
decentralisation; a rightful compromise between the two, which will lead to
most efficient and smooth functioning of the enterprise.
(ix) Scalar chain. The scalar chain is the chain
of superiors from the top executive
(iii) to the lowest level employees in an organisation. It is through
this chain that orders are issued
to the lower levels.
(iv) Communication also follows the scalar chain. Fayol suggested a
horizontal communication in case of urgent matters known as 'gang plank'. It is
shown by
Gang Plank
Scalar Chain the dotted line joining F and N. It permits F to
communicate directly with N on urgent matters without following the chain of
command. The subordinates must inform their respective superiors about
the
(x) Order. This is a principle relating to the arrangement of things and
people. In case of things, the formula is 'a place for everything and
everything in its place.' It is the same case for human order, 'a place
for everyone and everyone in his place' that is the right man in the
right job.
(xo Equity. The concept of 'equity' implies a sense of 'fairness and
justice' to all working in an enterprise. All the employees of the organisation
are treated equally by the managers. Observance of equity alone would make personnel
loyal and devoted to the organisation.
(xii) Stability of tenure. In the interest of the efficiency of
organisation and management, it is imperative that personnel must stay in the
organisation for as long a period as possible. This might be called the
principle of stability of tenure. Unnecessary labour turnover (movement of
people into and out of an enterprise) is both the cause and effect of bad
management.
(xiii) Initiative. Initiative in the managerial context refers to the
freedom to think out a plan and its execution. It is, infact , one of the keenest desires of, at
least, an intelligent employee, to be allowed to take initiative in matters
relating to his work. Management should secure as much initiative as possible
from the subordinates.
(xiv) Esprit de corps (Union is strength), As a principle of management,
esprit de corps (Union is strength) indicates a lesson to management to take
steps for promoting team-spirit among the groups; as it will greatly facilitate
the most effective attainment of common objectives.
C. Elements of management. Fayol analysed the managerial job in terms of
a series of functions which are performed by managers in all types of
organisations at all levels. Fayol said, "to manage is to forecast and
plan, to organise, to command, to co-ordinate and to control." Thus, the
elements of functions, which constitute the management process are: -
(i) Planning. Planning is the most important and difficult managerial
responsibility. The success of an undertaking depends largely on a good
plan.
(it) Organising. To organise means building up the dual structure
i.e., material and human, of the concern.
(iii) Command. To command means maintaining activity among the
personnel. Creation of organisational structure and commanding function are
necessary to execute plans.
(iv) Co-ordinating. To co-ordinate means binding together; unification
and harmonisation of an activity and effort. So, co-ordination is necessary
to make sure that everyone is working together.
(v) Control. To control means seeing that everything occurs in
conformity with established rule and expressed command.
principles are flexible, but they can be applicable regardless of
changing and special conditions. Inspite of new experience, researches and
observations during A caref the last five or six decades principles of
management still hold good.
Critical evaluation. The work of Fayol stands out as a landmark in the
but comp development of management thought. He was the first person to think in
terms There of the necessity for and the possibility of teaching management. He
made a clear distinction between operative and managerial activities of
business. He provided a conceptual framework for analysing the managerial job.
Fayol's functions of management are still used with slight modification for
studying and (it) understanding management. Fayol's observations and work are
of comprehensive nature as these deal not only with management functions and
principles but also with the basic business functions and management qualities.
Fayol's theory has, however, been criticised on the following grounds:
(i)Some aspects of management, much valid and useful in the present
day as they have been in the past seem to have been overlooked by Fayol.
For example, technology, external environment factors etc.
(ii) Some principles of management are too vague to comprehend and
implement. For example, principle of centralisation does not recommend any
guidelines for arriving at an optimum compromise between centralisation and
decentralisation.
.
(iii) Some of the principles as given by Fayol are of a contradictory
nature e.g. the principle of division of work (leading to specialisation) and
the principle of the unity of command.
(iv) Fayol's theory is said to be very formal.
Concluding observation. Despite these limitations, Fayol made a unique
and outstanding contribution to management. Due to his outstanding contribution
management, he is known as 'Father of modern management theory'.
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