Briefly describe the fundamental ideas of Fayol and bring out his principles of organisation.

  FUNDAMENTAL IDEAS OF FAYOL

The understanding of Fayol's Theory of Management requires an understanding of the bases of his thought. Fayol, at the very outset, questioned the distinction of management in a public and a private enterprise. He believed that the very idea that there is a difference in management and public administration is misleading. A misnomer exists and surrounds the word administration. Administrative Science embraces not only the public services but enterprises of alt sizes and purpose. As every organisation requires planning, organisation, command, coordination and control (collectively known by the acronym POCCC in order to function appropriately). We don’t need several administrative sciences, but we need to have onc which can be applied equally to both public and private sectors. He believed in universality with respect to the purpose of activity. His intention was to initiate a theoretical analysis appropriate to the wide range of organisations.

 

Fayal divided his idea of managerial functions into six groups on the bases of industrial activities:

• 1)      Technical Activities: These activities were focused on production, manufacture and adaptation towards goal attainment.
• 2)      Commercial Activities: This involved activities with respect to buying and selling Henri Fayol of products. The efficient production required knowkedge of market to take wise decisions.
• 3)      Financial Activities: This involved optimum use of capital, the method of Production with the purchase of raw material and other activities required optimum use of available finds.
• 4)      Security Activities: The industrial activities and management required safeguarding the interest of its personnel and property.
• 5)      Accounting Activities: In the conduct of industrial activities, it is essential to keep an account ofthe tinancial condition of the organisation.
• 6)      Managerial Activities: He describes this to be the key of the organisation irrespective of who performs these. Planning, Organisation, Command, Co- ordination and Control (POCCC) are the essential elements of managerial activities and management.

 

PRINCIPLES OF ORGANISATION

Fayol specified fourteen principles of administration. These administrative principles he said were to strengthen the humane part of the organisation. These principles are flexible and adaptive to the needs of the organisation

Fayol observed that any organisation would be working in the dark ifit is not based on these principles. However, he also said that this is not an exhaustive list of principles of administration, as more principles can be added and subtracted as per the needs of the organisation. These fowrteen principles of Fayol are explained as below:

 

Division of Work :This refers to division of work according to people’s abilities. An organisation involves people of different types and abilities. This also results in specialisation of function.

Authority and Responsibility : Fayol described authority and responsibility to be interrelated. He described authority to be a corollary to responsibility. Authority is the exercise of power, which goes with sanction and rewards.

Discipline: It is the respect for agreements, which are directed to achieve obedience and implementation at all levels. It is applicable to managers at higher levels and lower levels. It can be judiciously applied with clear and fair agreements at all levels.

Unity of Command : By this, Fayol meant that orders should be given to the subordinates by one supervisor only. As, ifit is violated, it undermines the authority ofthe superior. It is difficult for the subordinate to take multiple orders. This, he outlined emerges, when there is dual command i.e., when authority is divided between two members and the departments are not clearly demarcated.

Unity of Direction : According to this, Fayol meant, ‘one head one plan. ° It is essential to have coordination of strength and focus of effort. Unity of Direction focuses on organisational coordination, where objectives are met. His different from Unity of Command, as Unity of Command is personnel based and Unity of Direction is organisation based. Thus, Unity of Command cannot exist without Unity of Direction.

Subordination of Individual Interest to General Interest : Individual interest should not prevail over the interest of the organisation. Thus, the organisation should work in agreement with its personnel as far as possible.

Remuneration of Personnel :The remuneration paid to the employer should be fair to the employee and the employer. There are various factors, which determine the remuneration such as the cost, business condition, mode of payment and more.

Centralisation : The degree of initiative in an organisation is largely determined by the top managers. Centralisation is present in every organisation though it may be to a lesser or greater extent.

 

Scalar Chain(Hierarchy) : Fayol defined Scalar Chain as the chain of superiors from the highest to the lowest. The line of authority 1s the route followed for communication from top to bottom. This route is slow, lengthy and time consuming. According to him, the path is dictated by the principle of Unity of Command. However, to overcome the delay, Fayol suggested an alternative route of ‘gang plank’.

Order (Placement) : This refers to the process that once the basic job structure has been devised, the personnel need to work towards material and social order. The personnel need to be placed in the right job.

Equity : For the conduct of affairs in the organisation, it is essential that employees be treated with justice and kindness. This is important to build the employee- employer relationship.

 

Stability of Tenure of Personnel : Employees should be given sufficient time to adjust to the work. Fayol stated that instability of tenure leads to inefficiency of the organisation. 65

Classical Thinkers Initiative : Employees should think and work towards new ideas. These ideas work as a powerful motivator for employees and help in establishing respect and discipline.

Esprit de Corps : This means harmony amongst the personnel of the organisation. This helps in strengthening of the organisation.

Subcribe on Youtube - IGNOU SERVICE

For PDF copy of Solved Assignment

WhatsApp Us - 9113311883(Paid)