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Copy of Henry Fayol Concepts

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Tulika Agarwal

on 9 August 2013

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Transcript of Copy of Henry Fayol Concepts

Henri Fayol's Management

1. Division of work
Fayol's Principles of Management
Henri Fayol developed 14 principles of management to help managers through their affairs more effectively:
Managers in charge of allotting the work should divide it amongst the individuals and groups depending on their skills so that attention is focused to special parts of the task.
Those employees who have specialized in a particular field should preferably be allotted work in that area.
Fayol suggested that work specialization is the best way to use the human resources of the organization.
Henri Fayol was basically concerned with the humanity of employees and focused on training management to improve worker efficiency.
His works have had a significant influence on the modern management theories.
His theories helped managers to organize and interact with their employees in a productive way.
Although the 14 Principles aren't widely used today, they still offer guidance for today's managers.
Many of the principles are now considered to be common sense, but at the time they were revolutionary concepts for organizational management.
Fayol is known today as a classical management theorist who focused on efficiency through management training and behavioral characteristics.
Fayolism refers to following practices that minimize misunderstandings thus helping managers accomplish their managerial duties with efficiency.
Fayol's theories are known to consider more human and behavioural factors.
Division of work
Delegation of Authority
Unity of Command
Unity of Direction
Subordination of the Individual Interests to the General Interests
Scalar chains
Job Guarantee
Team-Spirit or Esprit de Corps
3. Discipline
4. Unity of Command
Workers should receive orders from only one manager.
If workers receive multiple commands, there are chances of miscommunication between workers which can disrupt the workflow.
2. Authority
5. Unity of Direction
The entire organization should be moving towards a common objective in a common direction.
All the guidelines and plans that are formulated by the management should lead the organization to success.
All the work that is done under the guidelines of the management should be aimed at achieving the common objective of the organization.
6. Subordination of Individual Interests to the General Interests
7. Remuneration
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Job Guarantee
14. Esprit de Corps
Authority and responsibility are closely related concepts.
Authority was defined by Fayol as the right to give orders and the power to exact obedience.
Responsibility involves being accountable, and is therefore naturally associated with authority.
Whoever assumes authority also assumes responsibility.
A manager thus needs to be responsible and accountable at the same time.
Discipline is defined as 'controlled behaviour as a result of constant training.'
It refers to consistent hard work in an organized manner to achieve the goals of the organization.
A successful organization requires the common and dedicated effort of workers.
Penalties should be applied judiciously and incentives should be given generously to encourage this common effort.
It is important to make sure that the interests of one employee do not become a priority over the interests of the group or organization as a whole.
Only then will there be complete job satisfaction amongst all employees which will in turn lead to efficient outputs.
All individual interests need to be worried about only after the interests of the organization are being satisfied.
Remuneration is defined as the total compensation that an employee receives for the services he/she performed for the employer.
The salary received by an employee is decided based on many factors like the success of the business, qualification of the individual, position appointed, supply of qualified personnel, cost of living, general business conditions etc.
Employee satisfaction depends on fair remuneration for everyone. It includes financial and non-financial compensation.
Fayol defined centralization as lowering the importance of the subordinate role whereas decentralization as increasing the importance of lower level employees.
This principle is related to how close the lower level employees are to the decision making process.
It is important to have a balance between centralization and decentralization to ensure that nor are the employees given too much autonomy and neither are they kept in the dark.
The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.
The scalar chain of command is defined as a system by which authority passes down from the top through a series of executive positions in which each is accountable to the one directly superior.
All Managers are part of this chain of command and lower level managers should always keep upper level managers informed of their activities.
The existence of a scalar chain and adherence to it is necessary for the organization to be successful.
All employees should be aware of where they stand in this hierarchy and how much authority they have.
For efficiency and coordination in the workplace, all materials and people should be treated equally respected.
The premises should be clean, tidy and safe for all employees to give them a comfortable atmosphere to work in.
Everything should have its place and things should be returned to their place after use to prevent unnecessary confusion.
Equity is defined as giving someone or something the status of an equal.
It is mandatory for managers to be fair to all the staff at all times, both maintaining discipline as necessary and acting with kindness when appropriate.
All employees should be treated as equally as possible.
The management is responsible for retaining all the productive employees.
Recruitment and selection costs as well as increased project- reject rates are usually associated with hiring new workers.
Managers should strive to minimize employee turnover.
13. Initiative
Employees should be given the necessary level of freedom to formulate and carry out plans.
They should know that they have the right and means to take an initiative.
Management should encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.
The organization should work towards generating team spirit and unity amongst all the workers.
Management should encourage harmony and general good feelings among employees.
The more the workers feel comfortable in their workspace, the more output they will give.
Fayol also developed 6 functions of management which go hand in hand with his principles:
Functions of management
Henri Fayol was born in 1841 in Istanbul.
He grew up to become a mining engineer and director of mines in France.
He developed a general theory of business administration, independent of scientific management but roughly around the same time.
He was one of the most influential contributors to modern concepts of management.
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