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8/6/2019 Henri Fayol Sample
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Without THE NERVOUS SYTEM,the human body would become
an inert mass, and every organ
would rapidly decay.An industrial concern also has
its reflex actions, which are
effected without the direct
intervention of the higher authority.
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Which calls for the application of wide knowledge
and many personal qualities, is above all the art of
handling men, and in this art, as in many others,
it is practice that makes perfect.
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It has to foresee and make preparations to meetthe financial, commercial, and technical conditions
under which the concern must be started and run.
It deals with the organization, selection, andmanagement of the staff. It is the means by which
the various parts of the undertaking communicatewith the outside world.
8/6/2019 Henri Fayol Sample
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Born in ISTANBUL , Turkey inJuly 29, 1841Died in ParisNovember 19,1925
Studied in mining school inSaint-Étienne
Started as an engineer at amining company at the age of 19
In 1916 he published the book
´Administration Industrielle etGénéraleµ
a French industrialist
the father of the administrativemanagement theory
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His emphasis on the difference between technicaland administrative skills became the foundation of AIG,that doing work and managing others at work requiresa re-tooling of a person·s abilities.
Joined Comambault (a mining company) and becamethe top executive officer in 1888.
In 1900, reveals that it was not his engineering skills,but rather other skills that he had used in managing the firmduring that time.
Comambault had been restored to financial solvency
after facing bankruptcy when ayol took over.
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Administrative Management Theory
Principles of Management
Viewed management as profession that can be trainedand developed
Emphasized the broad policy aspects of top level managers( top down approach)
Offered universal managerial positions
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basically focuses on how a business should beorganized and the practices an effective manager
should follow.
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Defining goals,establishingstrategy, anddeveloping plans
to coordinateactivities
Determiningwhat needs tobe done, how itwill be done, and
who is to do it
Motivating,leading, andany otheractions involved
in dealing people.
MonitoringActivities toEnsure that theyAre accomplished
As planned
Achieving theorganization·s
stated purpose
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Skill
Acquiring Power
Active listening
Budgeting
Choosing an effective leading style
Coaching
Creating effective teams
Delegating (empowerment)
Designing motivating jobsDeveloping trust
Disciplining
Interviewing
Managing conflict
Managing resistance to change
Mentoring
NegotiatingProviding Feedback
Reading an organization¶s culture
Running productive meetings
Scanning the environment
Setting goals
Solving problems creatively
Valuing diversity
FUNCTIONS
LeadingOrganizingPlanning Controlling
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Work should be divided among individuals and groups to
ensure that effort and attention are focused on special
portions of the task.
This is because a division of work leads to specialization, andspecialisation increases efficiency, and efficiency improves the
productivity and profitability of the organization.
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AUTHORITY is the power derived from the rights that come
with a position and represents the legitimate exercise of
power.
RESPONSIBILITY is accountability
for attainment of objectives, the use of
resources, and the adherence to theorganization policy.
Once responsibility is accepted, performing assigned work becomes an obligation.
Lines of authority link the variousorganizational components. Unclear lines
of authority can create major confusion andconflict within an organization.
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A group of unspoken rules or of written
rules intended to ensure good order and
regularity in a company or an
assembly.
It also means a respect for the rules and
regulation of the organization. Discipline may
be Self-discipline, or it may be Enforced
discipline. Self-discipline is the best discipline.
However, if there is no self-discipline,
then discipline should be enforced through
penalties, fines, etc. No organization can survive without discipline.
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This states that an employee should have one, and only one,
immediate manager.
The problem arises w hen 2 managerstell t he same employee to do different
job at t he same time.
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All activities which have the same
objective must be directed by one
manager, and he must use one plan.
, all marketing activities
such as advertising, sales promotion,
pricing policy, etc., must be directed
by only one manager. He must use
only one plan for all the marketing
activities.
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In an organization, there are two typesof interest, viz., the individual interest
of the employees, and the generalinterest of the organization.
The individual interest should be given
less importance, while the generalinterest should be given most
importance. If not, the organization will
collapse.
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Many variables, such as cost of living,
supply of qualified personnel, general business
conditions, and success of the business, should
be considered in determining a worker¶s rate
of pay.
Remuneration is the price for
services received. If an organization
wants efficient employees andbest performance, then it should
have a good remuneration policy.
This policy should give maximum
satisfaction to both employer and
employees. It should includeboth financial and non-financial incentives.
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CENTR ALIZ ATION define as lowering
the importance of the subordinate role.
DECENTR ALIZ ATION is increasing theimportance.
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Board of Directors
President
Vice President
General Manager
Superintendent
Employee
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States that authority in the organization flows through the chain
of managers one link at a time, ranging from highest to lowest.
Each manager, from the first line supervisor to the president,
possess certain amounts of authority. The President possesses
the most authority; the first line supervisor the least.
Lower level managers should always
keep upper level managers informed
of their work activities. The existence
of a scalar chain and adherence to
it are necessary if the organization
is to be successful.
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Suppose Jerry goes directly above his immediate boss,
Ellen, to Charlie for permission to take his lunch break 30
minutes earlier. Charlie, believing the request is reasonable,approves it, only to find out that the other two people
in Jerry¶s department had also rescheduled their lunch breaks.
Thus, the department would be
vacant from 12 to 1 o¶clock.
Ellen, the bypassed manager,
would have known about the other rescheduled lunch breaks.
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``a place for everything and
everything in its place.¶¶
It is order in deeds and with things: it is the means of
avoiding waste of material and time and for avoiding conflicts.
Fayol advocated the creation of detailedorganizational charts to support thisPrinciple.
Facilities must be tidy, materialsorderly stored and staff selectedaccording to strict procedures and
clear job descriptions.
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Equity creates loyalty anddevotion in the employees.
The managers should use the
equity while dealing with the
employees.
Equity is a combination of
kindness and justice.
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Limited turnover of personnel.
Lifetime employment for good workers.
An employee needs time to learn his
job and to become efficient.
Therefore, he should be given time
to become efficient. When he becomesefficient, he should be made permanent.
In other words, the employees should
have job security.
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Thinking out a plan and do what it takes to make it happen.
Management should encourage initiative.
That is, they should encourage theemployees to make their own plans
and to execute these plans.
This is because an initiative gives
satisfaction to the employees and
brings success to the organization.
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Esprit de Corps means "Team Spirit".
Therefore, the management should
create unity, co-operation andteam-spirit among the employees.
They should avoid the divide
and rule policy.
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Stressed a ´ one best wayµ way of organizingand managing
theory based on intuition and observation rather thanempirical/experimental investigation
today·s environment are more turbulent
and unpredictable too general for today·s highly complex organization.
Gulick and Urwick continued Fayol's work by providing empirical evidence.
Gulick showed that a maximum span of control of seven employees per
manager in US schools was most effective.
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