Teaching Plan


Evolution of Modern Management


 

OUTLINE

 

III. Henri Fayol, - Theory of Administration 

 

A.  American early focus is worker productivity; in France, the focus is organization and its administration by engineer Henri Fayol, director of Comambault, the French mining company.

 

B. 1918,  Industrial and General Administration - translated into English in 1930's to impact US management  in organization theory

 

C. Fourteen principles” of organization identified general rules that successful organizations ought to follow:

 

  1. Division of work – work and tasks should be perform by people specialized in the work and similar tasks should be organized as a unit or department.

  2. Authority – delegated persons ought to have the right to give orders and expect that they be followed.

  3. Discipline – workers should be obedient and respectful of the organization

  4. Unity of command – employees should receive orders from only one person with authority

  5. Unity of direction – the organization and employees are dedicated to one plan of action or set of objectives.

  6. Subordination of individual interests to the general interest – organizational conflict should be limited by the dominance of one objective.

  7. Remuneration – although Fayol provides no guidance on pay, the organization must recognize the economic value of employees and that their economic interests are important.

  8. Centralization – whether an organization should be centralized or decentralized depends upon such factors as communications and the importance of who should make the decision.

  9. Scalar chain – authority in an organization moves in a continuous chain of command from top to bottom.

  10. Order – everything, people and resources, has a place that it belongs.

  11. Equity – fairness is important in management-employee relations

  12. Stability of tenure of personnel – turnover is disruptive; shared experience is important

  13.  Initiative – Workers are exhorted to be productive and motivated.

  14. Esprit de corps – there is a need for harmony and unity within the organization

 

 


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