Henri during the early 1900s. Fayol’s principles

 Henri Fayol is broadly recognized as the soonest pioneer and founder of modern management theory (Parker, 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 showed the early
20th-century managers how to interact and efficiently organize 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.  In addition to many criticism,
Fayol’s work provided a fundamental support to the development of the modern
ideas of Management. In this essay, it will begin 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
(2013), 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 (Smith and Dankert, 1963), Fayol (2013)
states that the object of division of work is to produce more and better work
with the same effort.  In the article
that Fells (2000) 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 Drucker (2011),
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 (2013) 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 (2013) 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 Sloan (1963),
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. However, in recent
decades, Olum (2004) pointed Fayol’s principle of Unity of Command are
continuously violated in “matrix management”, which is a kind for new
management method introduced in the 1970s. In this structure, people will be
pooled for working according to skills and the employees will have more than
one manager. 

 

Fayol (2013)
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 ought to dependably endeavor to advance
camaraderie and solidarity. Managers ought to rouse agreement and general
positive sentiments among the employees. 
Fayol (2013) 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 Godwin (2017), 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. Imagine a company or a factory without discipline,
employees or workers will be late for working, people will refuse to work hard
and it will also cause the collapse of the power of the manager. As a result,
they will not be able to produce and productivity declines. Rules for
discipline is the most vital part to back the company.

 

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 the Unity of Command is still
exist in the modern management world and even in a large company like Google Inc.

 

According to the survey conducted on 2017 Employee
Satisfaction, companies that value the team spirit were in the overall rating’s
top position. For example, Apple and Google. These two companies can build up a
great environment for their teams and bond the teams together. They provided a
psychological safety environment for their workers. Teammates can depend on
each other and they understand each other’s role clearly. Which shows that
Fayol’s emphasize on Esprit de Corps (team spirits) are the key for companies
to increase employee satisfaction. This confirmed Fayol’s principle is still
existing and making impact among the new ages.

 

From the above, it
shows that it is not a hard work to adapt Fayol’s 14 principles of
Management into the post-capitalism ideas of management. Many organisations and
administrators are still practicing the principles. As stated in Olum (2004), Fayol
clearly believed personal effort and team dynamics were part of an “ideal”
organization. That’s why his concept is so widely and well practiced. All in
all, though Fayol’s principle of management is debatable, but we just cannot
forget his great relevance to post-capitalist ideas of Management.