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Management Principles Part 1

By Edited Nov 13, 2013 0 0

History of Development of Management Techniques

The development of management techniques has evolved from the times of Henri Fayol & Fredrick Winslow Taylor up to this date. Henri Fayol was a French mining engineer who developed the Fayolism theory. He was one of the most influential contributors to modern concepts of management. Fredrick Winslow Taylor was an American mechanical engineer who wanted to improve the industrial industry; he created the Scientific Management theory.

Henri Fayol who developed Fayolism had a lot of categories within his management system these involved:

  • The Six Types of Operations
  • The Nine Levels
  • The Five Elements of Administration
  • The Fourteen Principles of Administration
  • The Sixteen Management Duties of the Organisation
  • The Seven Qualities

I will now elaborate on the above bullet points about Fayolism:-

The Six Types of Operations

Fayol suggested in his management techniques that any business using this method could divided into 'Six Types of Operations'. See below for the break down of these operations:

  1. Technical Operations – production, manufacturing and transformation
  2. Commercial Operations – purchases, sales and exchanges
  3. Financial Operations – capital and finance management
  4. Security Operations – protection of people and goods
  5. Accounting Operations – balance, profit and loss, cost control and statistics
  6. Administrative Operations – see 'The Five Elements of Administration' for the break down.

The Nine Levels

Fayol suggested that each business that would use his management system should setup there organisation in the following managerial structure:

  • Shareholders
  • Board of Administration
  • General Direction and its General Staff
  • Regional / Local Direction
  • Main Engineers
  • Service Managers
  • Workshop Managers
  • Foremen
  • Workers

The Five Elements of Administration

  1. Planning – foresee / anticipate and make plans
  2. Organisation – to make sure all runs smoothly
  3. Commandment – manage people employed by the company
  4. Co-ordination – make sure all of the actions of the organisation result in its smooth running and the companies success
  5. Control – to verify everything happens in accordance to guidelines & check everything.

The Fourteen Principles of Administration

  1. Division of Work - reduces the span of attention or effort for any one person or group. Spread the workload
  2. Authority - the right to give orders. Should not be considered without reference to responsibility
  3. Discipline – agreement between a company and its employee's
  4. Unity of command – "one man one superior" in the words of Fayol
  5. Unity of direction – direction of the company / plan for a group of activities with the same objective
  6. Subordination of Individual Interests to the Common Interest - The interests of one individual or group should not prevail over the general or common good.
  7. Remuneration of personnel - Pay should be fair to both the worker as well as the organization.
  8. Centralisation - Is always present to a greater or lesser extent, depending on the size of the company and the quality of its managers.
  9. Scalar chain - The line of authority from top to bottom.
  10. Order - A place for everything and everything in its right place.
  11. Equity - A combination of kindness and justice towards employees.
  12. Stability of personnel tenure - Employees need to be given time to settle in to their jobs.
  13. Initiative - Within the limits of authority and discipline, all levels of staff should be encouraged to show initiative.
  14. Esprit de corps (Union is strength) – Teamwork should be encouraged.

The Fourteen Principles of Administration

  1. To aim at giving serious thoughts to activity plans and having them firmly executed.
  2. To aim at having employed people and used equipment being relevant to the goal, the resources and the needs of the organization.
  3. To set up a unique Direction (top management), skilled and vigorous.
  4. To consult others for actions, to coordinate efforts.
  5. To formulate decisions in a clear, clean and precise way.
  6. To aim to an efficient recruitment, each department needing to be led by a skilled and active man, each employee being at the place where he can provide the most services.
  7. To define clearly the attributions (i.e. job description).
  8. To encourage people to take initiatives and responsibilities.
  9. To pay fairly and expertly for the services provided to the Organization to sanction faults and errors.
  10. To enforce discipline.
  11. To aim at having individual interests subordinated to the Organization's interest.
  12. To give a special attention to the Unity of Command.
  13. To supervise the material order and social order (i.e. to keep the place tidy and to avoid strikes).
  14. To verify everything (i.e. to apply quality control on every operation).
  15. To fight against the red tape attitude.

The Seven Qualities

Fayol expected certain qualities from his managers and these were:

  • Health and vigor
  • Cleverness
  • Moral
  • Knowledgeable
  • Be able to manage
  • Awareness of other activities
  • The strongest skills in the function managed

Fredrick Winslow Taylor developed Scientific Management; his main objective was to improve economic efficiency including labour productivity. Taylor had noticed differences in productivity and decided it was because of the differences in talent, intelligence, or motivations of the work force.

Taylor decided to try a different approach to get the most out of the work force, he developed scientific management. Taylor was one of the first people ever to try to apply a scientific method to management. He decided that by understanding why and how these differences existed that he could analyse them and setup a standardisation system, meaning everyone followed the same steps. Taylor believed that decisions based upon tradition should be replaced with a carefully developed procedure to enhance productivity, such as the time and motion method.

Taylor believed that Scientific Management is a management theory that will help increase efficiency, decrease waste and by using knowledge & experience rather than using pre – existing ideas. Time and motion would be used to reduce the number of motions in performing a task in order to increase productivity. The best known experiment involved bricklaying. Through carefully analysing a bricklayer's job, he managed to reduce the number of motions in laying a brick from 18 to about 5. Hence the bricklayer both increased productivity and decreased fatigue.

Taylor also worked with Frank Bunker Gilbreth to help develop his method to make sure it was feasible. Lillian Gilbreth's (Frank's Wife) work focused on inefficiency and waste - not only the waste of time and motion but also the waste of potential human satisfaction and fulfilment. She believed that poorly planned jobs made work tiresome and destroyed the enjoyment of the task. Her theory was that managers and directors should structure authority in the workplace and each employee deserved basic human dignity. In The Psychology of Management, she stated that psychology could and should become part of scientific management. She believed that satisfaction comes from using one's skills, that standardised work could also be skilled work


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