stromerzpoint

                                                                            source from google

                        Background And History of FAYOL

Henry Fayol's was born in France in 1841. he joined as a junior engineer in a mining company in 1860 and rose to the position of managing Director in 1888.the company was in the situation of bankruptcy when he took its charge.He used his managerial techniques to bring out the company from a worst situation and made it is a most successful company. when he retired after 30 years, the company was leading coal-steel company with strong financial background.

His principles of management came to the notice of the public when he published them in a book in 1916.

                                      Fayol's Principles of Management

 Henry Fayol suggested 14 principles of management for running the business efficiently. These principles are studied as follow:

(1).Principle of division of work (Specialization):-Division of work implies division of the total task in order to lighten the total burden and promote specialization in such a way that one person does only one thing rather than doing everything himself. This helps to avoid the waste of time and efforts caused by changes from one work to another.

Fayol's has opined that this principles of division of work and specialization should be applied to all kinds of work- technical as well as managerial.

For e.g:- When one person repeats the same work again and again he will be specialist in that work and his efficiency also improved, instead of one person undertaking up all the stages of the work.

(2).Principle of Parity between Authority:-The Principles states that authority and responsibility should go side by side.A person should be accountable for certain activities only if has been given authority for getting the work done. Authority without responsibility leads to irresponsible behaviour while responsibility without authority makes a person ineffective
For e.g:-if a foreman is given target to produce 500 units in a week,he should be given authority to employ person as per needs and procure material required for the target object. The responsibility given for production should be associated with the authority to arrange requisite inputs.

(3).Principle of Discipline:-Discipline means obedience, respect of authority and observance of the established rules. Discipline is essential for the smooth running of business and without it  no business can prosper. According to Fayol,goods supervision at all levels, clarity of rules and built in system of reward and punishment help to maintain discipline.
For e,g:-The employees should meet their commitments towards the organisation and help it in achieving the objectives. The superiors should also take care of employees and meet their demands of fair wages,increments,incentives,promotions etc.

(4).Principle of unity of command:-The principles states that one should not receive orders from only one superior,in other words,one person should be accountable to only one boss. if one person is under more than one boss then there can be contradictory orders and the subordinates fails to understand whose order to be followed.
For e.g:-When more than one person gives orders to a subordinate then there is a possibility of given contradictory orders. if boss A ask his subordinates to complete a particular work to day and boss B gives another assignment to the same subordinate will not be able to decide to whom to follow.It will create a problem of lack of direction among subordinates.

(5).Principle of unity of direction:-The principles of unity of direction means that there should be one head and one plan for a group of activities having the same objectives. Each group of activities with same objectives must have one plan to active and must be under the control of one superior. The principles will lead to co-ordination among different activities.
For e.g:-if a textile unit is dealing with ginning,weaving and spinning activities,all the three activities should have common goals and be directed to achieve the objectives. In order to have unity of direction among three segment of the business, there should be separate supervision looking after and co-ordinating their own activities.

(6).Principle of subordination of individual interest to general interest:-It is an essential function of management to make people realise the objectives of the group and direct their efforts towards the achievement of these objectives. The interest of the group must always prevail over individual interest.This Principles implies harmony of personal interest and common interest. Fayol was of the opinion that the interest of one employee or a group of employees should not prevail over the interest of the enterprise as whole. When the individual interest and the common interest differ, it is the duty of the management to reconcile them. In order to achieve this, managers must set a good examples and must be firm but reasonable in dealing with subordinates. Fair agreement with subordinates and constant supervision are essential to prevent promotion of individual interest at the cost of general interest.
For e.g:-The organisation may be improving the quality of product for better image and workers may be interested to produce more and more product for earning more wages,sacrificing quality standards for increasing their output. In this case the objects of the organisation for improving quality will prevail and not the workers objectives for rushing through production for producing more products.

(7).Principle of fair remuneration to workers:-Fayol was of the view that the remuneration paid to the workers should always be just and fair and should afford maximum satisfaction to both employees and employers.The management must ensure fair reward for the work and decide the most equitable method of calculating wages. The rate of wages depend upon a number of factor such as the cost of living,the demand for labour, general economics condition, the current state of business and the value of employees.It should provide sufficient incentives to the well-directed efforts but over payment beyond reasonable limits is undersirable
For e.g:-If the organisation earns higher profits then it should distribute some of it to the workers  in the shape of production bonus,it will motivate workers to further improve their work.

(8).Principle of effective centralisation and decentralisation:-Centralisation means concentration of authority in the hand of few, i.e. top management. Everything which goes to increase the importance of subordinate's role is decentralisation and everything  which goes to reduce it is centralisation. Fayol as the opinion that centralisation and decentralisation is a simple question of proportion and this proportion of finding the optimum degree should be decided keeping in view the circumstances of particular case, the degree of centralisation may be different in different cases, but a balance must be maintained between centralisation and decentralisation of authority to attain the best possible result.
A small company may have more centralised system but in a large company decentralisation will be necessary to carry out the activities properly. So fayol advised not to have complete centralisation nor decentralisation but a combination of both.
For e.g:-There  may be centralisation for deciding plans,policies and major decisions but decentralisation may be allowed for day to day activities and routine activities such as fixing of targets for workers etc.

(9).Principle of scalar chain:-Scalar chain refers to the chain of superiors ranging form the ultimate authority to the lowest ranks. Fayol felt that a hierarchic called the scalar chain  necessary to ensue the unity of command and effective communication. communication should follow through the established chain of command. However ,a'gang plank' may be created by passing the established line of authority of faciliate quick communication. Fayol llustrates this point with the help of following examples;
 Suppose, the scalar chain in an organisation is represented by double ladder.Any communication from F to P will flow upwards to A through E,D,C and B; and then downwards through L,M,N and O. It will obviously take a long time. Hence, in order to minimise the delay involved in communication,  a gang plank between F and P may be created as shown by a dotted line.   

(10).Principle of order:-Principle of order does not mean command but it refers to orderly arrangement of men and material, there is fixed place for every thing and everyone in the organisation. Fayol was of the opinion that there must be a fixed place to keep every material and other things used in the organisation.

                                             

1. Microsoft of U.S.A  became a famous IT company in the world market for mobile sets .
2. Steve jobs promoted and managed Infosys and made it most successful IT company.
3. Due to managerial efficiency of Azeem Premji, WIPRO has name his computer industry.
4. The reliance industries,Suzuki,Tata etc. have grown because of efficient management of these companies.

Managers perform a series of activities for managing the organisations properly.Management is a universal phenomenon and is not restricted to business organisations only. It is equally performed in profit-making businesses or Non-profit organisations such as educational institutes,hospital,clubs etc.

Management is defined differently by different authors.In order to understand its concept we must understand its meaning. For a proper understandings we will study the traditional and modern concepts of management.

Traditional concept of Management
➧ "Management is the art of getting things done through others.''   -----------( Mary Parker Follett )
➧ "Management is the art of getting things done through and with the help of people in formally organised group."                                                                               ------------( Harold koonz )

Modern Concept of Management
Management is an activity which is necessary wherever there is a group of people working is an organisation. Though people is an organisation have diverse function but their aim to achieve same goals.

Definitions by Different Authors
➧  "To manage is to forecast and plain,to organise, to command, to co-ordinate and to control."
                                                                                                                                     ( Henry Fayol )

➧"Management is the art of knowing exactly what you want your men to do and their seeing that they do it in the best and cheapest way."                                                 -------( James L. Lundury )

➧ "Management is the co-ordination of all resources through the process of plannng,organising,directing and controlling n order to attain started objectives."---( F.W. Taylor )

➧ "Management is the process by which a co-operative group directs action of others towards common goals."                                                                                    -------( Marrie and Douglas )

Characterstics or Features of Management
Following are the characterstics or features of management

1. Management is goal oriented process:- The aim of  the management is to achieve organisational objectives. All the efforts to the manager will be directed to reach the goals. The function and activities undertaken by employees will help in achieving organisational objectives. For examples, if the goal is to produce 20,000 unit of a product in a month ,then the manager will be motivate the employees and will organise the resources in such a way that the target of production is reached in time. 
2. Management is pervasive:- Management is a universal phenomenon. The use of management is not restricted to firms only, it is applicable to profit-making, non profit-making, non business organisations as well, such as schools, universities,hospital,clubs, etc. The concept of management is used in all countries of the world, whether it is India,U.K.,or U.S.A.
3. Management is a continuous process:- Management is a continuous or never ending function. All function of management are performed continuously. The function of planning,organising,staffing,directing and controlling are carried out by all the managers all the time. Sometimes it may be planning, then it be staffing or directing and so on. So management activity is taken up continuously in an organisation.
4. Management is a Group Activity:-  Management refers to a group of person involved in managerial activities.Different individual are assigned different activities and they performed their roles. The combined effort of various person  help an organisation to reach its goals. Even the result of management effects every individual and every department. So management is a group acting involving person in the organisation. 
5. Management is a Dynamics Function:- Management has to change as per the requirements of the environment, both internal as well as external. There may be need to change goals, objectives, policies and other activities according to the changes in environment. The external factors such as social, economics, political, technical has great influence on the management. As the change take place in the environment these will have to be implemented in the organisation for sharing in the competitive world.
6. Management is intangible:-  Management can be felt but not seen. If the things are going as per plan then it will be a case of good management. On the other hand, it there is a confusion about carrying out of different activities then it may be due to lack of coordination and is a case of mismanagement. For example, the production department is not able to produce goods as per the orders and sales department is complaining of orders not meeting in time.It is a clear case of lack of co-ordination among department and is example of bad management.
7. Management is Composite Process:-  Management is a composite process of number of function. The function are interdependent and inter-linked to each other and will performed is a sequences. The managerial function may be described as planning, organising, staffing,directing and controlling, the organising function cannot be performed before planning and directing function cannot be executed without staffing and planning.So management is a composite process of various managerial function.
8. Balancing Effectiveness and efficiency:- Management is the act of balancing effectiveness and efficiency for better results. Effectiveness means achieving targets on time and efficiency refers to the optimum utilisation of resources. Neither effectiveness alone nor efficiency alone will give good result, a balance between the two will help on achieving the targets.

Objectives of Management

Objectives are the goals towards the achievement of which every component of the company works. The objective also became the yardstick for the measurement of efficiency of the organaisation.

The managerial goals may be classified into following categories

1. Organisational Objectives
2. Individual objectives
3. Social objectives

1. Organisational Objectives:-  Organisational objectives aim at the growth and prosperity of the business. It is generally said that profit maximisation is the only objectives of a business but this is not correct. Every management aims to achieve a number of objectives which help it in reducing cost,increasing efficiency and bringing profitability and prosperity to the organsisation.

The Organisational objectives may be described as Follows: 

• Survival:- Every organisation will first aim to survive in the market in the face of competitions. It should try to cover cost and earn reasonable profit for survival.
• Growth:- Every organisation tries to grow and expand its activities. The growth may be measured by increase in number of employees,increase in profit,etc
• Profitability:- The profit is the reward for risk bearing by a businessman. Profit is also essential for survival,growth and expansion. Profit maximisation should not be at the cost of consumers exploitation.Reasonable profits should always be aimed by an organisation.

2. Social Objectives:-  Social objectives deal with the commitment of a business towards society. A business uses resources of the society and earns profits out of it. It is the duty of a business to contribute for the welfare of the society.

The main social objectives are:

1. Supply of quality goods at reasonable prices. 
2. Generation of economics wealth.
3. Creating employment opportunities for people.
4. Financial support to community.
5. Contribution towards civil amenities.
6. Organising educational,health and vocational training programmes for people.
7. Using environment friendly methods of production.
8. Participating in social welfare of production.

3. Personal Objectives/Individual Objectives/Human Objectives:- Individual or personal objectives are related to the employees are the most important resources of every company. Motivated and Satisfied employees will always perform better and contribute maximum for the organisation.

1. Competitive salaries.
2. Avenues for personal development (promotion,incentives,training, etc)
3. personal recognition (self-respect and recognition by management)
4. social recognition.
5. better and healthy working condition.

workers will take more interest in work if their personal objectives are taken care of by the management.Management should integrate the personal/Individual Objectives of the employees with organisational objectives.

•  Importance of Management

Management is necessary to run every organisation successfully. Management is important for the following reason.

1. Help in Achieving Business Goals:- Management helps individuals in the organisation to achieve business goals by directing their energies in that direction. It brings human and material resources and mobilises them to help in achieving goals.
2. Management improves Efficiency:-Management plans to use various resources in such a way that wastages are minimised and productivity is improved. The efficiency and Effectiveness is achieved through various managerial function.
3. Management creates a Dynamics Organisation:-Every organisation operates in the changing business environment.It is essential to make adjustment as per the requirement of changes. Employees generally resist change. Management motivates the employees in such a way that they are willing to adopt changes as per the requirement of the time. Management will convince employees that changes as per the requirement of the time. Management will convince employees that changes is not only beneficial for the organisational but will also benefit them.
4. Management help in Achieving Individual Objectives:-,Management will help in integrating the personal goals of employees with that of organisational objectives.The individual and organisational goals are generally in same direction and management has to adjust them in a such a way that both employees and organisations benefits. For Examples, The employees want to earn more. If the productivity in the organisation will benefit from it.
5. Management Brings Harmony in work:-The employees in the organisation come from different sections of society, with varied social backgrounds and different styles of work. If every employees works in his own way then there will be a chaos in the organisation.A good management will guide employees properly and co-ordinate their activities in such a way that there is a harmony in the organisation. 

Function of management 
Every management, irrespective of the nature, type and size of the organisation, has to perform the following managerial function.

1. Planning:Planing is a basic managerial function. It is a decision in advance, what to do, when to do,how to do and who will to do a particular task. Planing is a process which involves 'thinking before doing'.It is concerned with the mental state of a manager. He think before undertaking a work. Other function of management are undertaken after planing. Planing involves selection of organisational objectives and developing policies,procedure,programmes,budgets and strategies.
2. Organising: Every business enterprise needs the services of a number of person to look after its different aspects. The function of organisation is to arrange, guide,co-ordination,direct and control the activities of various person working to achieve organisational goals.Organisational provides the necessary framework within which people associate for attainment of business objectives.
3. Staffing:It involves managing the position created by organisational process. Staffing is related to recruiting, selecting,appointing,the employees and assigning them duties.It also maintains cordial relations among employees,fixing their remuneration, evaluating their performance, etc. also from part of duties of staffing function.
4. Directing:Once the employees are appointed, there is a need to direct their activities for undertaking organisational work. Directing is concerned with carrying out the desired plans. It initiates organised and planned action and ensures effectives performance by subordinates towards the accomplishment of group activities. Directing is also concerned with giving instructions to employees, motivating them to improve their performance, supervising various activities, and communicating with them. A manager also provides leadership to the subordinates for co-ordinating their activities.
5. Controlling:Planing of various activities does not ensure automatic implementation of policies. control is the process which enables management to get its policies implemented and take correctives actions if performance is not according to predetermined standards.control is executed at various level of management.The main purpose of control is to see that desired result are achieved. A control system must conform to the nature of activity,report deviations promptly, assure corrective action and be economical.