Management

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THE NATURE OF MANAGEMENT

Some people assert that one needs no knowledge of theory to solve problems in the practical world of business.

In this view, management is a matter of common sense, and theory either is not needed at all or is unimportant.

Management is entirely an art and not a science.

Such views proceed from MISTAKEN IDEAS about the nature and role of theory and its relation to action and decision in the real world.

Scientific/Classical theories of management – Fayol and Taylor

A man of considerable influence in the scientific management movement is Fredrick W. Taylor.  

Taylor believed that managers should accept special responsibilities for planning, directing and organising work.  

He deemed it essential, to separate the planning of work from its execution, so that each individual could work at his best efficiency and could be compensated accordingly.  

He thought that management should develop a science of doing work (central authority) and that each kind of work had its own science.

Henri Fayol was a key figure in the turn-of-the-century Classical School of management theory. 

He saw a manager's job as:

  • planning

  • organising

  • commanding

  • coordinating activities

  • controlling performance

These activities are very task-oriented, rather than people-oriented (modern-view).

Henri Fayol realised that organisations were becoming more complex and required their managers to work more professionally.

His motivation was to create a theoretical foundation for an educational program for managers who lacked formal training in those days.

Basing his work on his experience as a successful managing director of a mining company, he developed generic 'Principles of Management' to help organisations achieve optimum performance working toward their goals and company objectives.

Fayol described fourteen Principles of Management

  • Division of labour

    Achieving the maximum efficiency from labour through specialisation across all aspects of organisation (commercial, financial, security, accounting, managerial) rather than just focusing purely on areas of technical activities.

  • Establishment of authority

    Having the legitimate standing to give orders – linked with responsibility.

  • Enforcement of discipline

    Upholding discipline is a core activity when running an organisation, although its form varies across organisations. 

    Management can sanction employees with warnings, penalties, demotions or even dismissals.

  • Unity of command

    An employee should receive orders from one supervisor only

    Dual command generates tension, confusion and conflict, and results diluted responsibility and blurred communication.

  • Unity of direction

    A common objective for a group of activities is an essential condition to obtaining unity of action, coordination of strength and the focusing of effort.

  • Subordination of individual interest to the interests of the organisation

    Reconciling general interest with that of the group or the individual is one of the greatest problems managers face and applies to the relationship between staff and supervisor as well. 

    Too often, managers pursue personal interest rather than the common good.

  • Fair remuneration for all

    Should be fair to both the recipient and the firm

  • Centralisation
     
    Fayol choose the 'living organism' as metaphor for an organisation when considering centralisation versus decentralisation. 

    The level of centralisation is a matter of proportion as is the division of labour.

  • Adoption of a 'scalar chain'

    The chain of supervision that connects the managing director to the lowest ranks. 

    Fayol combined hierarchy that makes employees aware of their place and duties, with an organisation's lines of communication.

  • A sense of order and purpose

    Workers and materials should be in their prescribed place.

  • Equity

    Equity is the combination of justice and kindness. 

    Managers must constantly apply the correct balance between equity and discipline.

  • Stability of jobs and positions/Tenure of personnel

    Both staff and management require suitable induction periods to familiarise themselves with new work habits and situations.

  • Development of individual initiative

    Initiative should be encouraged within the boundaries of authority and discipline.

  • Esprit de Corps

    Building and maintaining staff and management morale and unity. 

    Harmony and teamwork should be encouraged in the organisation.

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