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INTRODUCTION
The 21st century saw the management theories begin to emerge as organizations became
larger and more complex and the traditional ways of doing things by rule of thumb was no
longer practical. Several people came up with theories that addressed the emerging
complexities of managing complex organizations as the industrial revolution came.
The trend in the beginning of the 21st century was to produce goods in mass production
with little emphasis on the human needs. Interaction between departments was limited to
just production.
When organizations began to grow large, it become necessary to change the way of doing
things to maintain harmony in the organizations. There came about new schools of thought
on how to do things. Theories like scientific management, bureaucracy and administrative
and behavioral theories were formulated.
These were the fathers of modern management theories that are still in use up to today.
One such person was Henri Fayol (1841-1925). He was a French mining Engineer turned
industrialist who came up with the principles of management called bureaucracy or
administrative theory which is still in use today in government, military and even private
companies. He defined management or broke down the functions of management as
follows:
i.
ii.
iii.
iv.
v.
Planning
Organizing
Commanding
Coordinating
Controlling
He also laid down the 14 principles of management that are as relevant now as they were
back then.
These fourteen principles of management are listed below:
1. Division of work: Total work of an organization is divided into small manageable units
and assigned to particular individuals. It helps to increase efficiency. The principle of
division of work can be applied at all levels in the organization.
2. Authority and responsibility: In an organization the Authority and responsibility should
go together. The Manager gives his order directly to the subordinate after that he should
take the responsibility for the work done by them. So the person receiving the authority
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should be ready to bear the responsibility for the same. It is important to delegate
authority, at the same time retain the responsibility with him.
3. Discipline: Discipline should be followed by all the employees. Obedience behavior,
discipline, flexibility and human consideration are together called discipline. The
organization must have discipline, otherwise it cannot run smoothly.
4. Unity of command: Every subordinate should receive orders and be accountable to only
one superior. Dual or multiple command is a perpetual source of conflict. Unity of
command avoids conflicting orders and ensures order and stability in the organization. It is
also helpful in fixing responsibility.
5. Unity of direction: According to this principle, each group of activities having the same
objective must have one head and one plan. The principle of unity of direction seeks to
ensure unity of action. Unity of direction should not be confused with the unity of
command.
6. Subordination of individual interest to general interest: Every employee should forget
their individual interest and they should work for common purpose. When there is conflict
between the two, interests of the organization should prevail over individual interest.
7. Remuneration: The amount of remuneration and the methods of payment should be just
and fair and should provide maximum possible satisfaction to both employees and
employers.
8. Centralization: According to Fayol, The question of centralization and decentralization
is a matter of finding optimum degree for the particular concern. The degree of
concentration of authority should be based upon optimum utilization of all faculties of the
personnel. It should be determined on the basis of individual circumstances in each case.
9. Scalar chain: It refers to the chain of superiors ranging from the highest authority to the
lowest level in the organization. There should be a clear line of authority ranging from top
to bottom of the organization. All upward and downward communications should flow
through each position of authority along the scalar chain.
10. Order: This principle is concerned with the arrangement of things and the placement of
people. In material order, there should be a place for everything and everything should be
in its proper place. Similarly in social order, there should be an appropriate place for
everyone and everyone should be in his or her appointed place.
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11. Equity: Equity implies that employees should be treated with justice and kindness.
Managers should be fair and impartial in their dealings with subordinates. Equity helps to
create cordial relations between management and workers which are essential for
successful functioning or every enterprise.
12. Stability of tenure of personnel: Employees cannot work efficiently unless job security
is assured to them. An employee cannot render worthwhile service if he is removed from
the job before he gets accustomed to it.
13. Initiative: Employees at all levels should be given the opportunity to take initiative and
exercise judgment in the formulation and execution of plans. Initiative refers to the
freedom to think for oneself and use direction in doing work. It develops the interest of
employees in their jobs and provide job satisfaction to them.
14. Espirit de corps: This refers to harmony and mutual understanding among the members
of an organization. Union is strength and unity in the staff is the foundation of success in
any organization. Management should not follow the policy of Divide and rule. Unity
among personnel can be developed through proper communication and coordination.
In this presentation, we will be focusing on the last two functions of management as
defined by Henri Fayol.
COORDINATING
Definition:
Coordinating can be defined as follows: The synchronization and integration of activities,
responsibilities, and command and control structures to ensure that the resources of an
organization are used most efficiently in pursuit of the specified objectives according to
Business Dictionery.com
Coordination is the process of linking the various activities of an organization to bring
about the common goal of the enterprise.
Coordinating means to harmonize all the activities of an organization to facilitate its
working and success. In a well-coordinated organization each department works in
harmony with the other departments and is fully informed of its role in the organization,
according to Henri Fayol.
Coordination cam still be defined as the orderly arrangement of group effort to provide
unity of action in pursuit of a common goal.
COORDINATING & CONTROLLING
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i.
ii.
this.
Coordination aims at attaining the common goal. This
means that even though the various departments work
separately, the goal of the organization is one and every
iii.
iv.
suppliers, internally.
Coordination does not arise spontaneously. This means it
has to be consciously planned and executed. It requires the
v.
vi.
activities.
Coordination is also an ongoing process, just like planning is
a continuous process. This is because the activities in an
organization are a work in progress and as long as there is
planning and development, coordination will have to there.
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ii.
iii.
iv.
common goal.
Cooperation enhances efficiency in an organization, by
v.
vi.
misunderstandings.
Cooperation reconciles personal goals with the
organizations main goals. Coordination ensures that there is
no conflict of interest.
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ii.
iii.
iv.
those of others.
Lack of co-operative spirit Co-operation among the staff
provides the very basis for coordination. In an organization
where there is lack of co-operative spirit among the
employees, securing co-ordination is sure to pose problem.
Uncontrollable factors will affect coordination, like lack of
vi.
External coordination
Internal
Horizontal
Vertical
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ii.
communication.
Principle of early beginning In the planning stage itself
suitable provision for co-ordination may be made. Setting
of targets and preparation of plans must be done in
consultation with the subordinate staff. Once this is done,
iii.
iv.
Techniques of Co-ordination:
According to Louis Allen, the following techniques of co-ordination
are,
(i) Balancing
(ii) Timing and
(iii) Integrating
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(i) Balancing
Balancing means ensuring sufficiency of an aspect to support or
counterbalance the other. For example, if a business has
tremendous potentials for production and marketing and is
starved of funds, steps must be taken to augment its financial
resources.
(ii) Timing
Timing refers to the task of matching the time schedules of
different activities so that they support and reinforce one another.
For example, production schedule must be prepared in
accordance with the sales order to be executed date-wise.
(iii) Integrating
Integrating refers to the task of unifying diverse interests in order
to achieve the common goal. Every individual has self-interest in
his mind while working. The success of co-ordination depends on
the extent to which the self-interests of individuals are
synchronized with the organizational interests.
CONTROLLING;
Control can be defined as Control is the continuing process of
measuring the actual results of the operations of an organization
in relation to the results which were planned
Control by Henri Fayol, control consists in verifying, whether
everything occurs in conformity with the plans adopted, the
instructions issued and principles established. It points out
weaknesses and errors in order to rectify them and prevent
recurrence
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It is Backward looking
Controlling involves comparing the actual performance with
the targets. This requires checking of events after these
have taken place. Control is, thus, a backward looking
activity
ii.
It is a pervasive function
v.
It is forward looking
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It is a continuous process
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4. Degree of change
Any system of control can only cope with changes of a certain
magnitude. For example, to cope with power failure, a power
generator can be installed in the factory. But if the power
generator itself fails, the factory manager will be helpless.
5. Problem in setting qualitative standards
Standards may be either quantitative or qualitative.
Quantitative standards (in numerical term) may be set easily
for production, sales, etc. It is not possible to lay down
quantitative standards for job satisfaction, level of motivation
of employees and such other similar qualitative variables.
6. Delay in taking corrective action
Any delay in taking corrective action will, instead of solving the
problem, aggravate it. The delay may be caused due to
procedural or other reasons. A stitch in time saves nine.
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