Henri and founder of modern management theory (Parker and

 

Henri Fayol is broadly recognized as the soonest pioneer and founder of modern management theory (Parker and Ritson, 2005). Fayol’s management theories were first proposed in a book called General
and Industrial Management during the early 1900s.
 Fayol’s principles
of Management consist of 14 principles of Management.  The 14 principles of Management have guided the early
20th-century managers to efficiently organize and interact with employees. Fayol also proposed that management is a universal human
activity that can be applied to different parts of our life. For example, from
family as well as to organisation. However, some people criticized Fayol’s
principle is not designed to cope with to modern world, especially the rapid
change condition in the 21st century.  Despite of many criticism, Fayol’s work still shaped the management
practices and theories in 21st century. In this essay, there
will be three main parts beginning with the analysis of Fayol’s work, based on
some academic research.  The relevance of
Fayol’s principle of Management to modern ideas of Management will then be
discussed.  A conclusion will be made at
last.

 

According to Fayol
(1940), an organization consists of a social body and a
material organism. The 14 principles of management consist of division of work,
authority and responsibilities, discipline, unity of command, unity of direction,
subordination of individual interest to general interest, Remuneration, Centralization
or Decentralization, Scalar Chain, Order, Equity, Stability of Tenure of Personnel,
initiative and Esprit de Crops.

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One of the most famous principle would probably
be the division of work. Different from “division
of labour”, called by Adam Smith in 1776, Fayol (1940) states that the object
of division of work is to produce more and better work with the same effort.  In the article of “Fayol-standing the test
of time”, McLean (2011) stated the division of work guarantees
the exertion and attention will be focused around exceptional segments of the
work. Output will be enhanced when workers are well specialized. As the workers
will gain more and more experience on their own working field. According to
Peter F. Drucker(XXXX), after practicing the division of work, the 20th
century has seen a rate of productivity increment every year. The productivity
has risen 50 fold since the time of Frederick Taylor, who went about as an
impetus in the advancement of division of work. There is an example which can
show the fact, namely the Ford motor company. The Ford motor company applied
the division of work and made the process of work standardization and
functional specialization. While one worker is assembling the wheels, another
worker can assemble the dashboard. It reduced a lot of production time and
leads the Ford company to success. 
However, some people argue that division of work may lead to a decline
in productivity when it was practiced for a long time. Since workers may feel
bored about consistently repeating the same work.  After the workers feel bored, their working
incentive may eventually decrease. As a result, it causes a reduction in
productivity.

 

Apart from division of work, Fayol (1940) also
considered that discipline is the main point to ensure the business is running
smooth. Fayol said “Without discipline, no
enterprise could prosper”.  However,
Fayol thinks that the discipline from the employees should depend essentially
on the worthiness of their leaders. 
Which means that employees can reject to obey ineptitude leaders.

 

As
Fayol (1940) introduced, Unity of Command requires that an “employee should receive orders from one superior only”.  It can completely avoid the conflict in
different command given by different superior. This practice addressed the
clear issue of leadership.  In Alfred
Slaon(XXXX), Alfred Sloan, the long-time President, chairman and CEO of General
Motors Corporation, stated he applied the Unity of Command in the General
Motors Corporation. He said that it is important to command and the determine
power from the chief executive.  With his
lead on General Motors Corporation by using Unity of Command, the Corporation
has become one of the most successful enterprise in the world.

 

Fayol (1940)
suggested to management to “inspire
and maintain everyone’s initiative”. With higher initiative workers, the
company will become stronger and more productive. It may also reduce the
workload of the mangers. Therefore, right strategies to increase employee’s
initiative is vital.  Apart from the
above, Esprit de Crops (Team Spirit), which is the last of the 14
principles.  States that organizations should
always attempt to promote team spirit and unity. Management should inspire
harmony and general good feelings among the workers.  Fayol (1940)
suggested that mangers should encouraging employees to work to the best of
their abilities, as well as sharing what they have learned with others.

 

Although, there
is continued debate on the relevance of
Fayol’s principle of Management to post-capitalist ideas
of Management.  But it is a fact that Fayol’s principle has provided
a vital base for the development of the modern Management.

 

From the Discipline,
according to (Achinivu Godwin), it was observed that there
are punishments for negative activities depicted by workers and they are made
to show up before a disciplinary board of trustees pending the level of default
and such council is set up by the Human Resource and look into the issue and
there are techniques to uphold such which incorporate; derivation of
compensations, suspension, end of appointment. Therefore, this principle is still
providing a clearly-defined rule in order to achieve good employees’ obedience and
discipline.

 

The Unity of Command also contributed to the modern
companies like Google Inc. At the first glance, people may think that Google
Inc. is violating the Unity of Command of Fayol’s principles. Since Google is
was run by three CEOs which is Sergey, Larry and Eric. However, when we look
deeply into the job descriptions of them, Larry, Eric and Sergey act different
characters in Google. Larry act as the main strategist, Eric is the one who
manages the sales and Sergey is responsible for the primary technologist. Most
of the time, they can just make decision on their own part and without consent
from the other two partners. It reflects that