Henri Fayol: principles of management. BUT

12.10.2019

“To manage means to lead an enterprise towards its goal, extracting the maximum of opportunities and available resources.”

Biography:

Henri Fayol (fr. Henri Fayol, July 29, 1841 - November 19, 1925) - (84 years old) French mining engineer and management practitioner, founder of the administrative (classical) school of management.

Henri Fayol was born on July 29, 1841 in Constantinople, where his father supervised the construction of a bridge across the Golden Horn. In 1847 his family returned home to France. A. Fayol studied at the Lyceum of Lyon, and then at the National Higher School of Mining in the city of Saint-Etienne, which he graduated in 1860, after which he got a job in the mining company Compagnie de Commentry - Fourchambeau - Decazeville, in which from 1888 to 1918 served as the head. In 1916, just a few years after Taylor published his theory of the scientific organization of labor, Fayol published General and Industrial Management.

Personality of Henri Fayol:

Like the American F.Taylor, A.Fayol was socially and a manager of interests and personal qualities. Like G. Emerson, Fayol was an extraordinary, creative person, with diverse interests and broad erudition. Henri Fayol (1841-1925) was a mining engineer by training. Being a Frenchman by origin, he worked all his life in the French mining and metallurgical syndicate of the Comambo company, first as an engineer, and then in the head office. From 1886 to 1918 he was the managing director of the syndicate (32 years). At the time of his appointment as general manager, the company was on the verge of bankruptcy. By the time Fayol retired (1918), the concern had become one of the largest, efficiently operating enterprises, which contributed to the defense of France during the First World War. While in retirement, Fayol created and headed the Center for Administrative Research, which was engaged in the execution of orders for research in various areas of economic activity (tobacco industry, postal and telegraph department). Fayol was awarded the Order of the Legion of Honor and other state awards, and had high scientific ranks. Fayol is considered the founder of the classical school. In his research, he proceeded not from American, but from European, in particular French, experience in organizing and managing production. He focused primarily on the management process itself, which he viewed as an administrative function designed to assist administrative personnel in achieving the goals of the organization. Fayol's main work is his General and Industrial Administration, written in 1916. In this book, he summarized managerial experience and created a logically coherent systematic theory of management. Fayol's concept was based on the position that in any enterprise there are two organisms: material and social. The first includes labor itself, means of labor and objects of labor in their totality, under the second he meant the relationship of people in the labor process. These relationships became the subject of Fayol's research, i.e. he deliberately limited the scope of his research. Henri Fayol spent most of his adult life working for a French coal and iron ore company, first as an engineer and then in headquarters. Fayol associated the success of the company he led with the consistent and systematic application of a number of simple but important principles in management. Fayol was the first to propose that management activity itself be considered as an independent object of study. He singled out 5 main elements, of which, in his opinion, the functions of the administration are formed: forecasting, planning, organization, coordination and control. Fayol was the first to abandon the view of management as the "exclusive privilege" of top management. He argued that administrative functions exist at any level of the organization and are performed to a certain extent even by workers. Therefore, the higher the level of the organizational hierarchy, the higher the administrative responsibility, and vice versa. Functions are mandatory elements of the management process. The loss of one of these elements leads to a violation of the entire control technology. While the principles embody the subjective experience of the leader, therefore, they can be replaced and supplemented.

Principles of management and work of A. Fayol:

Fayol achieved fame for his ideas, which, however, were accepted too late. Only in 1916 was Fayol's work "The main features of industrial administration - foresight, organization, management, coordination, control" published. This work is Fayol's main contribution to the science of management. It was Henri Fayol who combined the ideas of Taylor's functional administration and the old principle of unity of command, as a result of which he received a new management scheme, which then formed the basis of modern organization theory. Fayol is called the father of modern management theory because he was the first to rise above the level of the factory floor, to generalize the principles and art of managing administration in general. According to American management historians, Fayol is the most significant figure in management science in the first half of the 20th century. The emergence of the classical (administrative) school is associated with his name.

Six main areas of management activity:

1) technical (production, manufacturing, processing);

2) commercial (purchase, sale, exchange);

3) financial (attraction of capital and effective management of it);

4) protective (protection of property and individuals);

5) accounting (inventory, balance sheets, production costs, statistics);

6) administrative (foresight, organization, command, coordination and control).

Fayol considered management as a special kind of activity, which no one had done before him. He believed that management activity itself should become a special object of study. Fayol determined that management activities include 5 mandatory general functions: foresight (planning); organization; management; coordination and control.

Fayol formulated the widely accepted 14 principles of management:

1) the division of labor (reassignment of certain tasks to employees and, as a result, an increase in labor productivity, due to the fact that the staff gets the opportunity to focus their attention);

2) authority and responsibility (the right to give orders must be balanced with responsibility for their consequences);

3) discipline (the need to comply with the rules established within the organization. To maintain discipline, it is necessary to have managers at all levels who are able to apply adequate sanctions to violators of the order);

4) unity of command (each employee reports to only one leader and only receives orders from him);

5) unity of action (a group of workers should work only according to a single plan aimed at achieving one goal);

6) subordination of interests (the interests of an employee or a group of employees should not be placed above the interests of the organization);

7) remuneration (availability of fair methods of stimulating employees);

8) centralization (natural order in an organization that has a control center. The degree of centralization depends on each specific case);

9) hierarchy (organizational hierarchy, which should not be violated, but which, as far as possible, must be reduced in order to avoid harm);

10) order ( workplace for each employee, as well as each employee in his place);

11) justice (respect and fairness of the administration to subordinates, a combination of kindness and justice);

12) staff stability (staff turnover weakens the organization and is a consequence of poor management);

13) initiative (providing the opportunity for employees to show personal initiative);

14) corporate spirit (cohesion of workers, unity of strength).

A. Fayol's contribution to the development of management science:

Considered management as a universal process consisting of interrelated operations;

Created a system of universal management principles;

Formulated general management functions;

Formulated a systematic theory of management of the entire organization.

Conclusion:

Henri Fayol was a key figure in the history of management. The unique nature of his work cannot be overestimated. Fayol for the first time subjected to serious scientific analysis not the work of others, but his own duties and responsibilities. He reviewed his administrative duties with an impartiality as valuable as rare.

Fayol developed Taylor's idea that management and administration should be studied from scientific positions. He showed that the improvement of management is not limited to increasing labor productivity or planning the activities of subordinate organizational units - it should be the subject of closer consideration and practical administrative development by the people at the head of the organization. The classification of management principles proposed by Fayol contributed to the streamlining of the management process. Fayol emphasized the universality of the principles of management, not limiting their application only to the sphere of production. Fayol's concept left a noticeable mark on the development of management. The theory of administration developed by him, management functions and some principles of behavior are still actively used in practice.

Introduction

The classical or, as it is also called, the administrative school in management takes a period of time from 1920 to 1950. The founder of this school is Henri Fayol, a French mining engineer, an outstanding practical manager, one of the founders of management theory.

Unlike the school of scientific management, which dealt mainly with the issues of rational organization of the labor of an individual worker, representatives of the classical school began to develop approaches to improving the management of the organization as a whole. This approach is to a certain extent explained by the fact that Taylor and F. Gilbert started their activities as simple workers, while Fayol and his followers had experience as leaders top management management in big business. So Fayol, whose name is associated with the emergence of this school and who is called the father of management, for thirty years (1888-1918) was the manager of the large French mining and metallurgical concern Comambo.

Fayol was the first to abandon the view of management as an "exclusive privilege" of top management. He argued that administrative functions exist at any level of the organization and are performed to a certain extent even by workers. Therefore, the higher the level of the organizational hierarchy, the higher the administrative responsibility, and vice versa.

Fayol achieved fame for his ideas, which, however, were accepted too late. Only in 1916 was Fayol's work "The Main Features of Industrial Administration - Foresight, Organization, Disposition, Coordination, Control" published. This work is Fayol's main contribution to the science of management.

It was Henri Fayol who combined the ideas of Taylor's functional administration and the old principle of unity of command, as a result of which he received a new management scheme, which then formed the basis of modern organization theory.

Fayol is called the father of modern management theory because he was the first to rise above the level of the factory floor, to generalize the principles and art of managing administration in general. According to American management historians, Fayol is the most significant figure in management science in the first half of the 20th century. The emergence of the classical (administrative) school is mainly associated with his name.

“To manage means to lead an organization towards its goal, extracting the maximum opportunities

of all available

resources."

A. Fayol

1. Personality of Henri Fayol

Henri Fayol (1841-1925) was born in a suburb of Istanbul in Turkey, where his father supervised the construction of a bridge across the Golden Horn. In 1847 his family returned home to France. Fayol studied at the Lycée de Lyon and then at the National Higher School of Mining in Saint-Étienne, from which he graduated in 1860 at the age of only 19. After that, he joined the mining company Commenry, Fourchambault and Decazeville, with which he turned out to be associated with the next 65 years of his life.

Henri Fayol was a mining engineer by training. Being a Frenchman by origin, he worked all his life in the French mining and metallurgical syndicate of the Comambo company, first as an engineer, and then in the head office. From 1886 to 1918 he was the managing director of the syndicate. At the time of his appointment to the post of general manager, the company was on the verge of bankruptcy. By the time Fayol retired (1918), the concern had become one of the largest, efficiently operating enterprises, which contributed to the defense of France during the First World War.

While in retirement, Fayol created and headed the Center for Administrative Research, which was engaged in the execution of orders for research in various areas of economic activity (tobacco industry, postal and telegraph department). Fayol was awarded the Order of the Legion of Honor and other state awards, and had high scientific ranks.

Fayol is considered the founder of the classical school. In his research, he proceeded not from American, but from European, in particular French, experience in organizing and managing production. He focused primarily on the management process itself, which he viewed as an administrative function designed to assist administrative personnel in achieving the goals of the organization.

Fayol's main work is his work "General and Industrial Management", written in 1916. In this book, he summarized managerial experience and created a logically coherent systematic theory of management.

Fayol's concept was based on the position that in any enterprise there are two organisms: material and social. The first includes labor itself, means of labor and objects of labor in their totality, under the second he meant the relationship of people in the labor process. These relationships became the subject of Fayol's research, i.e. he deliberately limited the scope of his research.

Fayol tried to substantiate the necessity and possibility of creating a special science of people management as part of the general doctrine of enterprise management.

2. Management according to A. Fayol

To manage, Fayol argued, means to lead an enterprise towards its goal, extracting opportunities from all available resources.

Fayol often used the term "administration" instead of the term "management". The point is not only that “management” is a specifically American term, and the word “administration” is more familiar to the French. Although this contains a certain amount of truth. Management is generated by a developed market economy, it arose in the field of private enterprise, and not state or non-profit management. Its appearance in the 20th century symbolized the weakening of the role of the state in regulating the economy.

On the contrary, for France, which was more backward at that time, a country where the administrative institutions of feudalism were strong for a long time, where the capitalist economy was nurtured by the state itself, management inevitably had a different connotation. The term "administration" in European languages came from Latin, which was spoken by the ancient Romans, who were famous for the rigid centralization of government. Therefore, it means the activities of state bodies exercising management functions. The term "administration" refers to the highest part of the managerial hierarchy, the management personnel of the institution. It has little of business and commerce, but a lot of bureaucracy and command.

Administration, according to Fayol, includes six main groups of management operations:

technical and technological (production, manufacturing, processing);

 commercial (purchase, sale, exchange);

financial (attraction of capital and effective management of it);

 security (protection of property and individuals);

 accounting (inventory, balance sheets, production costs, statistics);

administrative (foresight, organization, command, coordination and control).

Fayol called the management of these operations general management. However, not all six groups of operations became the subject of his close study. He paid the main attention to administrative operations, the content of which lies in the ability to manage personnel. “The organ and instrument of the administrative function is only the formation of a social order. While other functions operate on materials and machines, the administrative function affects personnel.

Fayol is interested in technical, commercial, financial and other operations only because they are the object of the administrative function. He does not consider them on his own.

To a large extent, the success of management depends, according to Fayol, on the experience of the manager, his abilities and talent. Fayol believed that the management process is not amenable to strict regulation. However, the management process should be based on certain principles and rules.

3. Control functions

Fayol's merit lies in the fact that he divided all management functions into general, related to any field of activity, and specific, related directly to the management of an industrial enterprise.

Fayol considered management as a special kind of activity, which no one had done before him. He believed that management activity itself should become a special object of study. Fayol defined that management activity includes five mandatory general functions: foresight (planning), organization, command, coordination and control.

Fayol understood that management activities may differ depending on the size of the enterprise (organization), level in the management hierarchy, etc. However, despite this, it must necessarily include all five of the above functions. For each function, Fayol formulated the rules and techniques for their implementation.

Foresight (planning). It is expressed in the development of an enterprise action program for technical, financial, commercial and other operations for the future (for example, five, ten years) and for the current period (year, month, week, day).

Fayol paid special attention to foresight. In his opinion, foresight is the most essential part of management. “To foresee - ... means to calculate the future and prepare it; to foresee is almost to act.

The main place in foresight is given to the development of a program of action, by which he understood "the ultimate goal, the guiding line of conduct, the stages of the path ahead and the means that will be put into action." The picture of the future cannot always be clearly presented, but the coming events can be worked out in sufficient detail.

Knowledge of:

Enterprise resources (cash capital, real estate, equipment, materials and raw materials, labor resources, production capacity, market conditions, etc.);

Leading directions of enterprise development;

Possible changes in external conditions, the timing of which cannot be determined in advance.

Drawing up the necessary program, according to Fayol, requires management personnel:

The art of managing people;

Known moral courage;

Great activity;

Sufficient stability;

Known competence in the manufacturing area;

Sufficient business experience.

Organization. Under the organization of the work of the enterprise, Fayol understood the provision of everything necessary for its work. Fayol distinguished between material and social organization. Material organization includes providing the enterprise with the necessary materials, capital, equipment. Social organization includes providing the enterprise with people. The social organism must be able to perform all the operations necessary for the implementation of the production process in the enterprise.

Managing people (social organism) includes the following responsibilities:

Establishing a program of action; determination of the tasks, goals and needs of the enterprise and the establishment of correspondence between them and material and social organisms;

Monitoring the implementation of the program;

Management of the enterprise by a competent and energetic leader;

Correct selection of the administrative apparatus;

Precise definition of functions;

Coordination of efforts to carry out the intended work;

Clear, distinct and precise formulation of decisions;

Encouragement of responsibility and initiative;

Fair remuneration for work;

Prevention of errors and misunderstandings;

Mandatory observance of discipline;

Subordination of personal interests to the interests of the enterprise;

Unity of management;

Universal control;

Fighting abuses in regulation, bureaucratic formalism, paperwork, etc.

All of these obligations are fair, and for the present.

The constructed social organism needs to be put into action. This task is performed using the manager function.

Disposition. The purpose of management is to extract the greatest benefit and benefit from employees subordinate to the head in the interests of the enterprise as a whole.

According to Fayol, the head, who performs the function of management, must adhere to the following rules:

To know perfectly the employees subordinate to him;

Dismiss incapable workers;

It is good to know the conditions connecting the enterprise and employees;

Set a positive example;

Perform periodic inspections of the social organism of the enterprise;

Conduct meetings with leading employees of the enterprise in order to agree on the unity of directions and efforts;

Strive to ensure that activity and devotion dominate among the personnel of the enterprise;

Do not pay much attention to the little things at the expense of solving the most important issues.

Coordination. Its main goal is to achieve compliance and consistency between the various parts of the enterprise by establishing rational ties in production. These connections are of the most diverse nature: in terms of content, they can be technical, economic, organizational; on a hierarchical basis - links between different levels of the managed object. In addition, this includes the links between production itself, on the one hand, and distribution, exchange, and the consumer, on the other.

Enterprise management through the function of coordination is designed to rationally organize all these connections on the basis of their study and improvement.

The control. The task of control is to check the execution in accordance with the adopted program. Control should be carried out by a controller who meets the following requirements: competence, sense of duty, independent position in relation to the controlled object, prudence and tact. He is obliged to refrain from interfering in the administration and execution of affairs. Control should be carried out on time and have specific consequences.

Thus, Fayol's main contribution to management theory was that he considered management as a universal process consisting of five management functions (foresight, organization, management, coordination and control).

Fayol noted that there are no objections to the inclusion in the field of management of such functions as foresight, organization, coordination and control. However, this does not apply to the function of "management", which can be studied separately. He explained the inclusion of management in the list of the main functions of management by the following reasons:

The formation of the personnel of the enterprise and the apparatus of its management is directly connected with the management.

The identity of the principles of management and the principles of disposition. Management and administration are closely interconnected.

Based on the allocation of the main functions in 1923, Fayol defined the concept of "management". To manage means to foresee, organize, dispose, coordinate and control; to foresee - to take into account the future and develop a program of action; to organize - to build a double material and social organism of the enterprise; to dispose - to force the staff to work properly; coordinate - connect, unite, harmonize all actions and all efforts; control - to make sure that everything is done according to the established; rules and orders.

Fayol singled out another sixth - the administrative function, which differs from the five other management functions. The administrative function has an impact only on the personnel of the enterprise. At the same time, Fayol warned against the possibility of mixing the administrative function with the concept of "government". Under the board, he understood the movement of the enterprise to its goals on the basis of best use all its resources. The Board assumes the use of all six formulated functions.

Fayol considered management as the sixth function, the operation of which should be ensured by the board. At the same time, he did not put an equal sign between the administrative function and the board.

Fayol saw the enterprise as closed system management. He paid the main attention to the internal possibilities (conditions) for increasing the efficiency of the enterprise by improving the management process. Fayol formulated principles (laws, rules) that, in his opinion, are applicable to any administrative activity. At the same time, Fayol noted that principles do not always require strict implementation. They are flexible and mobile, and their application depends on changing circumstances, on the composition of workers, etc.

4. Classification of management principles according to A. Fayol

Fayol formulated 14 principles of management:

1. Division of labor. The purpose of the division of labor is to perform work that is larger in volume and better in quality, with the same amount of effort. The division of labor is directly related to specialization.

This principle, perhaps, is applicable both to the sphere of production and managerial labor. The division of labor is effective up to a certain extent, at which it does not bring the desired results.

2. Authority and responsibility. Authority is the right to manage the resources of an enterprise (organization), as well as the right to direct the efforts of employees to perform assigned tasks. Responsibility is the obligation to perform tasks and ensure their satisfactory completion.

Authority is an instrument of power. Power was understood as the right to give orders. Power is directly related to responsibility. Distinguish official (official) power and personal power arising from the individual qualities of the worker.

In modern conditions, this principle sounds like this: powers (rights) must correspond to responsibilities.

3. Discipline. Discipline involves achieving the fulfillment of agreements concluded between the enterprise and its employees, including obedience. In case of violation of discipline, sanctions may be applied to employees.

Fayol considered obligatory observance of discipline, both for leaders of all ranks and for workers. He pointed out that discipline is what the leader is.

4.Unity of command (unity of command). The worker must receive orders and instructions from his immediate supervisor. In addition, he must respect the authority of the leader.

Having formulated this principle, Fayol entered into contradiction with the recommendations of Taylor, who believed that workers can report to different functional leaders.

5. Unity of direction (directorate). Each group operating within the same goal must have a plan and one leader. If there are several groups, a single plan approved by higher management is necessary to coordinate their activities. Fayol emphasized: "One leader and a single plan for a set of operations with a common goal."

6. Subordination of personal (individual) interests to general interests. The interests of one employee or group of employees should be directed to the interests of the entire enterprise and should not prevail over them. In the event of conflicts in interests, the task of the leader is to reconcile them.

7. Personnel remuneration, i.e. the price of the services provided. Workers should receive fair wages for their work. This applies equally to workers and managers.

8. Centralization. The enterprise must achieve a certain correspondence between centralization and decentralization, which depends on its size and specific operating conditions.

Small enterprises have a high degree of centralization, while large enterprises have a lesser degree. Choosing the right balance between centralization and decentralization allows you to achieve the best results.

9. Scalar chain (hierarchy). A scalar chain is a series of senior workers located at different levels of the hierarchy (from top managers to lower-level managers). The scalar chain determines the subordination of workers. A hierarchical management system is necessary, but if it harms the interests of the enterprise, then it must be improved.

The rational structure of management of the organization requires the presence along with the hierarchy of horizontal links.

10. Order. Fayol divided order into "material" and "social". Each employee must have his own workplace, provided with everything necessary. To do this, the leader must know his subordinates and their needs well. Briefly, this principle can be formulated as follows: "there is a place for everything and everything in its place."

11. Justice. Justice is a combination of kindness and justice. An employee who feels fair to himself feels loyalty to the firm and tries to work with full dedication.

12. Stability of the workplace of the staff day. For the enterprise, the most preferable are employees who hold on to their place. High fluidity personnel characterizes the poor work of managerial personnel, reduces the efficiency of the enterprise. In addition, this principle says that the employee needs a certain amount of time to master the required skills at the proper professional level. In a prosperous company, the management staff is stable.

13. Initiative. The manifestation of entrepreneurship and initiative not only by managers, but also by all employees of the enterprise. Implementation this principle often requires the administration to "give up personal vanity."

14.Corporate spirit. The strength of the enterprise is in harmony (“unity”) of all employees of the enterprise, Fayol pointed out the inadmissibility of using the “divide and rule” principle in management. On the contrary, he believed, leaders should encourage collectivism in all its forms and manifestations.

The classification of management principles proposed by Fayol contributed to the streamlining of the management process. Fayol emphasized the universality of the principles of management, not limiting their application only to the sphere of production. Fayol believed that the system of principles he proposed could not be definitively formulated. It should remain open to additions and changes based on new experience, its analysis and generalization. Fayol noted that the application of principles in practice is "a difficult art that requires thoughtfulness, experience, determination and a sense of proportion." Many of the above signs have not lost their relevance at the present time, despite the changes that have occurred over the past decades.

Fayol considered the theory of management (in his terminology - administration) as a set of rules, techniques, principles aimed at the implementation of entrepreneurial activity most efficiently, using the resources and capabilities of the enterprise optimally.

Fayol singled out the most important principles: the unity of command and leadership. According to Fayol, in order to achieve a certain goal, there must be an appropriate program and a single leader. Violation of this principle leads to an incorrect delimitation of functions within the organization. Unlike Taylor, Fayol denies the need to empower functional workers with administrative rights and for the first time points out the need to create staffs that should not have the right to lead, but only prepare for the future, identify possible ways to improve the organization.

Fayol paid special attention to the preparation of a forecast and plan. He pointed out the need for short-term and long-term planning in each organization, as well as the need for planning on a national scale, based on the needs of society as a whole and in particular production.

Fayol's merit is the assertion that each member of society needs, to a greater or lesser extent, knowledge of the principles of administrative activity.

These are the main provisions of Fayol's administrative school. Fayol considered the method of analysis and dismemberment of the administrative process itself to be the main one in it. He paid special attention to the issue of training management personnel, strongly opposing the existing system based on engineering disciplines. Fayol considered the achievement of technical mastery by workers as the main one. The skill of managerial workers can be achieved as they move up the career ladder.

Fayol set the task of teaching industrial administrators such management of workers employed at the enterprise, which would ensure the greatest individual and collective labor productivity by concentrating their "will" in one, strictly defined direction, indicated by the entrepreneur. The latter requires the creation of a science of managing people, based on "careful study and scientific experimentation."

Knowledge of all the most important functions and activities of the enterprise;

Genuine competence in the activities of a specific enterprise.

5. A. Fayol's advice to young managers

Fayol's advice to young managers deserves special attention. The most interesting among them are the following:

1. Supplement your technical knowledge with "the ability to dispose, anticipate, organize and control." “You will be judged not by your knowledge, but by your actions”;

2. receive "necessary valuable additions to your education" by communicating with leaders;

3. when communicating with workers, carefully weigh your words and do not make undeserved remarks. Comprehensively study the behavior, character, dexterity and even the personal life of workers;

4. with favorable relations with leaders, do not abuse their trust;

determine in your environment and see the problems being solved in their relationship with others, and, therefore, find a "starting point" to start work and clarify problems;

 evaluate the feasibility of their actions;

 Clarify what resources are lacking for effective solution problems.

All this will help to find new ways and ways of solving the problems of the organization.

The classical division of management functions in an enterprise, developed by A. Fayol, has passed the test of time (since 1923). All the newfangled management theories concerning this issue could not offer anything better. In practice, it is the classification of managerial functions according to Fayol that remains basically unchanged.

Many management principles still have practical value.

In the future, many researchers were engaged in the study and theoretical description of the principles of managerial activity, but all of them were only followers of Fayol, who developed, supplemented and concretized his teaching.

Conclusion

I think that Henri Fayol was a key figure in the history of management. His works are unique and difficult to overestimate. Fayol subjected to serious scientific analysis not the work of others, but his own duties and responsibilities. Beginning his career as senior executives in big business, he reviewed his administrative duties with an impartiality as valuable as it is rare.

Bibliography

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Referat

On the topic: " BUT. Fayol in management development"

Yekaterinburg 2012

Introduction

1. Personality of Henri Fayol

2. Control functions

Conclusion

List of used literature

Introduction

What is management?

Management is the management, management and organization of production; a set of principles, methods, tools and forms of management developed and applied in order to increase production efficiency and increase profits.

Management - translated from English means management. This is an academic discipline that studies management at different levels.

Management is the management of someone or something. In this case, the management is carried out by the manager-manager.

Consider this concept in the works of Henri Fayol.

1. PersonalityHenri Fayol

Henri Fayol French mining engineer, management theorist and practitioner, founder of the administrative (classical) school of management - was born in 1841 in a suburb of Istanbul in Turkey, where his father led the construction of a bridge across the Golden Horn Bay. After graduating from the Mining School in 1860, he got a job in the mining company Compagnie de Commentry-Fourchambeau-Decazeville, in which from 1888 to 1918 he held the post of leader.

Just a few years after Taylor published his theory of the scientific organization of labor, in 1916, Fayol published General and Industrial Management, where he summarized the management schemes he had developed, creating a logically coherent systematic theory of management. It was Henri Fayol who combined the ideas of Taylor's functional administration and the old principle of unity of command (existing "since the time of King Peas"), as a result of which he received a new management scheme, which then formed the basis of modern organization theory.

Fayol is called the father of modern management theory because he was the first to rise above the level of the factory floor, generalizing the principles and art of managing administration in general. In addition, he is considered the most prominent European who contributed to the founding of the "classical" school of management.

The emergence and development of management is associated with the need to achieve certain goals that cannot be achieved as a result of individual work. Even in the prehistoric era, large tribes arose who were collectively engaged in agriculture, grazing cattle, and hunting. Already in those days, there was a division of labor: some people were directly engaged in labor activities, others managed them. Between these two groups of people, certain managerial relations gradually developed. Separate signs of management appear already in the most ancient societies, where the transformation of the highest caste of priests into religious functionaries, in fact, into managers, takes place.

Gradually appears new type business people. In addition to observing ritual honors, they were in charge of tax collection, managed the state treasury, were in charge of property affairs, kept business documentation, accounting calculations, carried out supply, control, planning and other functions that currently determine the content of managerial work.

Thus, at the very beginning, management was formed as an instrument of commercial and religious activities, turning over time into social institution and professional occupation.

2. Pack functionsppressure

Fayol's theory of administration has two parts. The first one is connected with the understanding of management functions, the second one - with the understanding of its principles. For Fayol, the function determines the scope of activity, responsibility and competence of the manager. It answers the question of what a leader does. On the contrary, the principle answers the question of how the manager does it.

Fayol identifies five functions of administration: foresight, organization, distribution, coordination and control. Historically, they marked an important step forward. More recently, Adam Smith, emphasizing the importance of management, did not differentiate managerial functions in any way. The sole function of the entrepreneur remained the investment of capital in the acquisition of labor and equipment. Taylor moved on and led the planning function. He appointed a special planning bureau. As independent action he called the manager control and organization, but did not put them in the number of foresight and coordination as independent activities, but he never spoke of management, and even more so in such a systematized form as in Fayol.

Fayol did not just list the main functions, he laid the foundations for a special direction in management - a structural functional approach. It must be considered functional because management functions are the supporting element of the entire management framework, the initial cell of the organizational hierarchy. Fayol's structural approach is because the functions determine the structure of the organization, and do not act as a kind of appendage to it. Taylor has one function (planning) - one structural subdivision(planning office). Fayol has 5 functions and a whole system of functional services that make up the company's brain headquarters. The new building was called the linear-headquarters structure. It still dominates management today.

The modern definition of control includes all the Fayolian functions. The management process is considered to be a conscious, planned, directed, coordinated and organized process.

The conceptual model of functions developed by Fayol turned out to be so fruitful that it gave birth to many modern schools and trends. In particular, the school of management processes borrowed from Fayol the functions of planning and organization, developing them further. After. During the Second World War, an approach based on the idea of separation of management functions became widespread. It is called delegation of authority.

Packppressure as an administratorpovation

Fayol intentionally uses the term "administration" instead of "management". The point is not only that "management" is a specifically American term, and the word "administration" is more familiar to the French. Although this contains a certain amount of truth.

Management is generated by a developed market economy; it arose in the sphere of private entrepreneurship, and not state or non-profit management. Its appearance in the 20th century symbolized the weakening of the role of the state in regulating the economy. On the contrary, for France, which was more backward at that time, a country where the administrative institutions of feudalism were strong for a long time, where the capitalist economy was nurtured by the state itself, management inevitably had a different connotation. Fayol management management

The term "administration" in European languages came from Latin, which was spoken by the ancient Romans, who were famous for their rigid centralization of government. Therefore, it means the activities of state bodies exercising management functions. The term "administration" refers to the highest part of the managerial hierarchy, the leading personnel of the institution. It has little of business and commerce, but a lot of bureaucracy and command.

Another reason lies in the fact that administrative activity was only part of Fayol's management. Management itself was a much broader area. To manage, Fayol argued, means to lead an enterprise towards its goal, extracting opportunities from all the resources at its disposal. But to lead to the goal means to maneuver in the sales market for products, monitor the market and advertising, increase technical capacity and control the flow of capital.

Administration, according to Fayol, includes six main groups of management activities that are present in all industrial enterprises:

Technical and technological (production, manufacturing, processing);

Commercial (purchase, sale, exchange);

Financial (attraction of capitals and effective management of them);

Security (protection of property and individuals);

Accounting (inventory, balance sheets, production costs, statistics);

Administrative (foresight, organization, management, coordination and control).

Fayol called the management of the listed operations general management. However, not all six groups of operations became the subject of his close study. Of the six types of activity, Fayol considered in detail only managerial, since the other types were understood quite well. Technical, commercial, financial and other operations are of interest to Fayol only because they are the object of influence of the administrative function. He does not consider them on his own.

To a large extent, the success of management depends, according to Fayol, on the experience of the leader, his abilities and talent.

In presenting the competencies needed by managers, he emphasized the idea that each manager would need "special knowledge" that is specific to any function, be it technical, financial, or any other. In general, each manager needed the following qualities and abilities:

1. Physical qualities: health, energy, dexterity.

2. Mental qualities: the ability to understand and learn, judgment, mental energy and the ability to adapt.

3. Moral qualities Key words: energy, fortitude, willingness to take responsibility, initiative, loyalty, tact, dignity.

4. General education: general familiarity with matters that do not belong exclusively to the function performed.

5. Special knowledge: specific to the function, be it technical, commercial, financial, organizational, etc.

6. Experience: knowledge that is the result of proper work. This is the realization of the lessons that everyone has learned independently from things. Fayol believed that the management process is not amenable to strict regulation. At the same time, the management process should be based on certain principles and rules.

Management principles

Fayol formulated the concept of the continuity of the management process, in which the following interrelated functions are implemented: planning, organization, leadership (administration), coordination and control. Until now, all management textbooks and, to a large extent, practical consultants, proceed from this classical scheme in the analysis and design of modern organizations.

These functions represent the most general directions, each of which is relatively independent, but, at the same time, correlates with other directions within the control process. These are the functions:

1) Planning - the manager must develop certain pictures of the future for his organization.

2) Organization - the manager must create such a structure that will meet the developed goals and objectives to the maximum extent.

3) Motivation - the manager should also think about the personnel, namely, create such conditions for the employees, like himself, to strive to achieve the goals and objectives set for the organization.

4) Control - finally, the manager must constantly monitor the activities of the organization and make adjustments to plans, organizational structure or work in the field of motivation, if, as practice shows, they do not satisfy the current situation.

5) Coordination - one of the main conditions for the successful operation of an organization - the coordination of actions of the managers of this organization. Not only should they not contradict each other, on the contrary, it is necessary that they complement each other and lead to one goal - the goal of the company, expressed in long-term and operational plans.

Fayol owns another impressive list. This list is nothing more than the rules effective management. They are still in use today and are known as the "fourteen principles of government".

Some of the rules existed before Fayol, others were generalized, others were formulated for the first time. Formulating these rules, Fayol focused on the main task of the administrative school, namely, the development universal recipe successful management, which, according to the representatives of this school, must certainly exist.

ATot these npAvila:

1) Division of labor. This is a natural phenomenon. Its goal is to increase the quantity and quality of production with the same effort. This is achieved by reducing the number of goals to which attention and action must be directed. Moreover, the division of labor is applicable not only to technical work. Its result is the specialization of functions and the division of power.

2) Power (plenipotentiary) and responsibility. Authority is the right to give an order, and responsibility is the sanctions - rewards or punishments - that accompany its actions. Where there is authority, there is responsibility.

3) Discipline is essentially obedience, diligence, activity, demeanor, movement. Discipline involves the implementation and respect for the agreements reached between the organization and its employees.

4) Unity of management, or unity of command. Only one boss can give two orders to an employee regarding any action.

5) Unity of leadership, direction. One leader and one program for a set of operations pursuing the same goal. Each group operating within the framework of one goal should be united by a single plan and have one leader.

6) Submission of private, personal interests to the general. The interests of one employee or group of employees should not prevail over the interests of a larger organization up to the interests of the state as a whole.

7) Personnel remuneration is payment for the work performed. It should be fair and, if possible, satisfy both the staff and the organization, both the employer and the employee.

8) Centralization. Like the division of labor, centralization is a natural phenomenon. However, the appropriate degree of centralization varies depending on specific conditions. The problem of centralization and decentralization is solved by finding a measure that gives the best overall performance.

9) Hierarchy, or scalar chain. A hierarchy, or scalar chain, is a series of leadership positions, starting with the highest and ending with the lowest. It is a mistake to evade the hierarchy unnecessarily, but a far greater mistake is to keep it when it might be detrimental to the organization.

10) Order. The formula of the material order is a certain place for every thing in its place. The formula of social order is a certain place for each person in his place. Graphic tables, diagrams greatly facilitate the establishment and control of both social and material order.

11) Justice. Justice is the result of a combination of benevolence with justice.

12) The constancy of the staff. High staff turnover is both a cause and a consequence of the poor state of affairs. A mediocre manager who values his position is certainly preferable to an outstanding, talented manager who leaves quickly and does not hold on to his position.

13) Initiative. Initiative is the development of a plan and its successful implementation. The freedom to propose and implement also falls under the category of initiative.

14) Unity of staff, or corporate spirit. Harmony, unity of staff is a great strength in the organization.

Thus, Fayol was a supporter of a combination of school, practical training, as well as natural talents and inclinations. Fayol insisted that a successful leader must have a high integrity and morality, which in the modern world of moral relativism seems at first glance to be something overly pretentious and old-fashioned. However, a closer examination of this provision shows that Fayol is talking here about the moral basis of business activity, the need for which has recently become more and more obvious.

Perhaps the best description of Faiol's contribution to the development of management theory was Lindell Urwick: "The unique nature of Faiol's work cannot be overestimated. an impartiality as valuable as it is rare. In the first quarter of a century, when the scientific study of business management began, he was the only figure in Europe comparable to F. W. Taylor. Taylor belongs to the laurels of the pioneer. He first came to the idea that that management and administration should be studied from a scientific position.Fayol showed that the improvement of management is not limited to increasing labor productivity or planning the activities of subordinate organizational units - it should become the subject of closer consideration and practical administrative development by people standing who are at the head of the organization; Taylor himself approved of this point of view, but his imitators never singled out this moment in particular.

Conclusion

The main contribution of A. Fayol, the "father" of management, to management theory was that he views management as a universal process consisting of interrelated functions: planning, organization, motivation, control and coordination.

Of the qualities required for a manager, Fayol attached the greatest importance to competence and knowledge. He believed that even the most educated manager cannot be competent in all matters related to the management of a large enterprise; the amount of knowledge increases with experience. Fayol's undoubted merit in raising the question of the need to single out the actual management activity (management) as a separate object of study.

He carried out experiments that obtained practical results from them and made correct conclusions from them, which became classics in modern management science, along with the works of Taylor, Maslow, Mayo and others.

Fayol can be called the father of modern management theory because he was the first to rise above the level of the factory floor and generalized the principles of management administration in general.

Fayol's concept left a noticeable mark on the development of management, and not only European. The theory of administration developed by him, management functions and some principles of behavior are still actively used in practice. Whether there are universal rules of governance and how they relate to the above Fayol's rules is a debatable question and is unlikely to be solved at all. However, the fact that simple rules, formulated almost a hundred years ago, and today are able to greatly facilitate the life of a manager, is indisputable, as is the role of Henri Fayol in the development of management as such.

List of used literature

1. Gerchikova, I.N. Personnel management / I.N. Gerchikova - M.: UNITI, 2000.

2. Kravchenko, A.I. History of management: Proc. allowance for university students / A.I. Kravchenko. - M.: Academic Project, 2000.

3. Management of the organization: Textbook / Ed. V.E. Lankin. - Taganrog: TRTU, 2006.

4. Management: textbook / ed. prof. IN AND. Korleva. - M.: Economist, 2005

5. http://besonus.narod.ru/Fayol.htm

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Henri Fayol and his concept of management

Management is a set of principles, forms and rules used in commercial and non-commercial organizations with the aim of the most rational management of the participants of an organization.

Approaches to management began to develop along with how people began to unite in communities. However, as a science, management was developed when the principles of management began to be singled out as a separate type of activity in organizations. Views on management have changed under the influence of demographic factors, political, social, technological, therefore, in different countries at different times, a variety of forms of management were used.

The founder of scientific management - Frederick Taylor laid the foundations of management as a science, using the example of one enterprise, he formulated the principles of stimulating workers, the principles of work and rest in order to increase productivity.

The School of Human Relations considered the organization as a social structure and formulated principles based on the postulate of informal relations between participants.

The behavioral school put a particular employee at the center of the study in order to reveal his potential as an employee of the organization with an increase in his labor productivity.

Representatives of the quantitative school paid special attention to the collection of information, the creation of mathematical and statistical models, while striving to increase the manager's awareness of the affairs of the enterprise.

Let us dwell in more detail on the classical school of management. The purpose of the activity of its representatives was to formulate general principles of management at all levels of the organization. The founder of the classical school of management, also called the administrative school of management, is the French engineer Henri Fayol. The popularity of the principles of management, which Henri Fayol outlined in his work “General and Industrial Management”, was due to good results in practice. Fayol headed the Comambo industrial concern for thirty years, which during the Fayol period prospered and provided France with a high defense during the First World War.

The general principle of Fayol's management is to lead the enterprise to the goal, extracting one hundred percent return from all possible resources.

In a broader sense, its principles can be divided into 6 groups:

- technical (production management);
- commercial (management of purchases, sales);
- financial (effective capital management);
- security;
- administrative (monitoring the implementation of instructions).

Fayol does not consider the first four groups in detail, because these areas are the object to which the administrative functions of managers apply.

Fayol paid special attention to the personality of the leader. According to his vision of the management process, the manager must clearly see the purpose of the organization, have knowledge in the subject areas of production, production technology, know the principles of rational logistics, rationally determine the composition labor resources, monitor the current state in the sales markets, analyze the activities of competitors, and also have a talent for foresight. His quote is known: “To foresee is almost to act.”

But the main principles of management, which must be strictly observed by a successful leader, are the following:

1) Division of labor
2) Authority and responsibility
3) Discipline
4) Unity of command
5) Unity of Direction
6) Subordination of personal interests to common ones
7) Reward
8) Centralization
9) Hierarchy
10) Order
11) Justice
12) Composition consistency
13) Initiative
14) Corporate spirit.

Let's take a closer look at all fourteen principles. The principle of the division of labor is based on the desire to obtain the greatest effect from the labor of workers at the expense of constant efforts.

The second principle "Authority and Responsibility" carries the idea that a successful enterprise can only exist when responsibility and authority are interconnected. Violation of the balance of these two components leads to the decline of the company as a single organism. Without empowerment, management in principle and the observance of responsibility are unthinkable; without responsibility, any authority is meaningless.

Fayol discipline is a manifestation of signs of respect by employees of the enterprise at all levels, they can be manifested in compliance with contractual obligations both between colleagues and between employees of the organization and external market participants. In case of violation of discipline, sanctions may be applied to employees. Fayol considered obligatory observance of discipline both by top managers and ordinary workers.

The principle of unity of command consists in the presence and one employee of only one direct manager. The employee must receive tasks and instructions, and also report on the results of their implementation only to his direct supervisor. This principle is contrary to the recommendations of the Taylor school of scientific management. They argued that one employee can have several functional managers.

The principle of unity of direction is the organization of working groups so that they are united by one specific goal, the group reports to one leader, the members of the group are responsible for the work of the group.

One of the most difficult tasks facing the manager, according to Fayol, is to strike a balance between the private interests of each employee and common interests companies. Until now, this principle is considered one of the most difficult to manage.

Remuneration of personnel should be fair and satisfy both sides of the production process as much as possible.

The centralization of management is present to varying degrees in any enterprise. The question of the degree of centralization or decentralization is decided in the company based on its size, activities and other factors. According to the teachings of the classical school, the degree of centralization should provide the best results for the company. The head is obliged to choose the optimal ratio between the centralization of management and decentralization.

Compliance with the principle of hierarchy ensures, in turn, the observance of the principle of unity of management. The meaning of the hierarchy is to build a chain of subordinate employees of the organization.

About the principle of order, Fayol wrote the following: "a place is for everything and everything in its place." The employee must be provided with everything necessary for work, so the immediate supervisor must know the workflow of his subordinates well and ensure that they are provided with everything necessary. However, this principle also applies to the social component of the organization. Each place should be occupied by a certain person, and each person in his place.

Fayol also invested in the principle of justice the desire of the manager to motivate the employee to work, and also, by combining a favorable attitude towards the employee with justice, to encourage the staff.

With regard to the turnover of workers and employees in their places, Fayol was committed to the desire to preserve as much as possible the permanent composition of the company. Of course, the composition of the company cannot but change all the time: people retire, maternity leave, may be fired own will may not want to take on a more responsible job. But the principle of constancy implies avoiding the so-called "churn", as it is a direct indicator of the poor state of the company due to various circumstances.

Initiative is a manifestation of the leadership qualities of an employee in order to solve a common task for the group and the company.

Fayol considered it right to encourage collectivism in all its manifestations, so the leader should direct the team in the direction of unification, and not vice versa.

Summing up, it is necessary to clarify that the application of the principles formulated by Fayol is not necessary only in production, they are universal and suitable for absolutely any organization. Fayol wrote that in addition to the implementation and observance of these principles, it is also necessary to build short-term and long-term strategies for the enterprise, taking into account all social, political and other factors. Also, the founder of the classical administrative school of management believed that, regardless of the goals of the enterprise, the manager should apply the method of analyzing all the processes taking place in his enterprise in order to structure them to ensure the best functioning of the company.

Henri Fayol (July 29, 1841, a suburb of Istanbul, Turkey - November 19, 1925) - French mining engineer, management theorist and practitioner, founder of the administrative (classical) school of management. He was awarded the rank of officer of the Order of the Legion of Honor, other state awards and scientific titles.

Henri Fayol was born in a suburb of Istanbul, Turkey. At this time, his father supervised the construction of a bridge across the Golden Horn Bay. In 1847 his family returned to France. After graduating in 1860 from the Saint-Étienne School of Mines, he took a job with the mining company Compagnie de Commentry-Fourchambeau-Decazeville. First as an engineer, and then (since 1871) - in the main department. From 1886 to 1918 he was the managing director of the syndicate. Having accepted the company in an extremely unfavorable economic state, in fact, on the verge of bankruptcy, Fayol by 1918 brought the company to the ranks of the most successful national enterprises.

Fayol achieved fame thanks to his ideas, which, however, were accepted rather late. Summarizing his long-term observations, Fayol created the "theory of administration". His first article on this topic was published in 1900. In 1916, Fayol's work "The main features of industrial administration are foresight, organization, command, coordination, control" was published in the Bulletin of the Mining Industry Society. This work is Fayol's main contribution to the science of management, he is often reprinted as a separate book, and his other works are little known.

An English translation of this book appeared under the title General and Industrial Management. It was completed by Countstauce Storrs and first published in 1949. A real debate broke out over the extended interpretation of the title of the work, in particular, over the interpretation of the French word "administration", replaced by the term "management".

AT last years During his life he studied the problems of the state sphere of public services, and also lectured at the Higher School of the Military Ministry.

Fayol's works have stood the test of time and today are a worthy example of an approach to managing organizations. Many modern textbooks on management theory include Henri Fayol's management principles slightly modified.

A. Faiol's book "General and Industrial Management" was translated into Russian in 1923, the translator B.V. Babin Root.

Works by A. Fayol in Russian:

Fayol A. "General and industrial management". M., 1923 (1916).
Fayol A. "Positive Management". M., 1924.
Fayol A. "The doctrine of management. Report at the Second International Congress on Management". Ryazan, 1924.

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