A Level Business Studies: Administrative Management by Henry Fayol
- Administrative Management Theory was developed by Henry Fayol, a French engineer and management theorist in the early 20th century.
- Fayol believed that management was a universal process that could be applied to any organization, regardless of its size or industry.
- Fayol’s theory is based on the following principles or 14 points:
- Division of work: Work should be divided among employees to ensure specialization and efficiency.
- Authority and responsibility: Managers have the authority to give orders and make decisions, and they are also responsible for the outcomes of those decisions.
- Discipline: Employees should respect rules and regulations, and discipline should be enforced when necessary.
- Unity of command: Each employee should receive orders from only one superior to avoid confusion and conflict.
- Unity of direction: The organization should have a single, unified direction to achieve its goals.
- Subordination of individual interests to the general interest: The interests of the organization should take precedence over the interests of individual employees.
- Remuneration: Employees should be paid fairly for their work.
- Centralization: Decision-making should be centralized to ensure consistency and efficiency.
- Scalar chain: There should be a clear chain of command from the highest level of management to the lowest level of employees.
- Order: The organization should have a clear and orderly structure.
- Equity: Employees should be treated fairly and equally.
- Stability of tenure of personnel: Employees should be given job security to reduce turnover and improve morale.
- Initiative: Employees should be encouraged to take initiative and contribute to the organization.
- Esprit de corps: A sense of unity and camaraderie should be fostered among employees to improve morale and productivity.
The Strengths of Henry Fayol’s Theory
- Fayol’s principles are still relevant today and are widely used in modern management practices.
- The theory provides a comprehensive and systematic approach to management.
- The theory emphasizes the importance of a clear organizational structure and the need for authority and responsibility to be properly assigned.
- The theory recognizes the importance of employee motivation and job satisfaction.
The Weaknes of Henry Fayol’s Theory
- Fayol’s theory is criticized for being too rigid and inflexible, and for not allowing for the unique needs of individual organizations.
- The theory may not be suitable for modern organizations that require more flexibility and adaptability.
- The theory does not take into account the importance of informal communication and social factors in the workplace.
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