Five Functions of Management

Controlling a complex organization so as to achieve desired goals resulted in the

evolution of the concept management. Management include all those people who
are concerned with managing an organization. It is a sum of organized activities by
a group of people. Management involves decision making at various levels of
organization for getting things done by others. It is both science and as well as an
art, because the fundamentals of management are the same everywhere but the
practices differ.

Definition of Management
"To manage is to forecast and plan, to organize, to command, to co-ordinate and to
control."
- Henry Fayol
"Management is a distinct process consisting of planning, organizing, activating
and controlling to determine and accomplish the objectives by the use of people
and resources."
- G.R. Terry
"Management is the development of people and not the direction of things.
Management is the personnel administration."
- Lawrence A. Apply
"Management is the art of getting things done through and with the people in
formally organized groups."
- Horold Kanontz
"Management is simply the process of decision making and control over the action
of human beings for the express purpose of attaining pre-determined goals."
- Stanley Vance

Functions of Management
George and Jerry explained four fundamental functions of management. According
to them functions of management are planning, organizing, actuating and
controlling.
POSDCORB is the key word used by Luther Gullick to explain the functions of
management In POSDCORB; P stands for planning, O for organizing, S for
staffing, D for directing, Co for co-ordination, R for reporting and B for budgeting.
Newman and Summer gave the managerial functions which include organizing,
planning, reading and measuring and controlling.
Koontz and ODonnel explained five functions of management. They have become
widely accepted functions of management everywhere. They are planning,
organizing, staffing, directing and controlling.

Planning
Deciding in advance what to do, how to do, why to do, where to do and who will
be responsible for doing is planning. Determination of the objectives of business,
splitting of objectives into goals for each department of the organization and
formulating policies, programs, procedures rules and regulations and budget are
the important steps involved in planning.

Planning in Management
Planning is deciding in advance what to do and how to do.It is one of the basic
managerial functions. Before doing something, the manager must formulate an
idea of how to work on a particular task. Thus, planning in management is closely

connected with creativity and innovation. It involves setting objectives and

developing appropriate courses of action to achieve these objectives.

Planning Definition
"Planning bridges the gap from where we are to where we want to go. It makes it
possible for things to occur which would not otherwise happen"
- Koontz and O'Donnel.
Importance of Planning

Planning provides directions

Planning reduces the risks of uncertainty

Planning reduces overlapping and wasteful activities

Planning promotes innovative ideas

Planning facilitates decision making

Planning establishes standards for controlling.

Planning is a process which involves the determination of future course of action,

i.e. why an action, how to take an action, and when to take action are main subjects
of planning. Check under the Importance of planning in the words of McFarland.
"Planning may be broadly defined as a concept of executive action that embodies
the skill of anticipating, influencing, and controlling the nature and direction of
change".
- McFarland
Plan your work & work your plan

1.

Planning increases the organization's ability to adapt to future

eventualities: The future is generally uncertain and things are likely to change
with the passage of time. The uncertainty is augmented with an increase in the

time dimension. With such a rise in uncertainty there is generally a

corresponding increase in the alternative courses of action from which a
selection must be made. The planning activity provides a systematic approach
to the consideration of such future uncertainties and eventualities and the
planning of activities in terms of what is likely to happen.
2.

Planning helps crystallize objectives: The first step in planning is to fix

objectives which will give direction to the activities to be performed. This step
focuses attention on the results desired. A proper definition and integration of
overall and departmental objectives would result in more co-ordinate interdepartmental activities and a greater chance of attaining the overall objectives.

3.

Planning ensures relatedness among decisions: A crystallization of

objectives as mentioned above would lead to a relatedness among the
decisions which would otherwise have been random. Decisions of the
managers are related to each other and ultimately towards the goals or
objectives of the enterprise. Creativity and innovation of individuals is thus
harnessed towards a more effective management of the company.

4.

Planning helps the company to remain more competitive in its

industry:Planning may suggest the addition of a new line of products, changes
in the methods of operation, a better identification of customer needs and
segmentation and timely expansion of plant capacity all of which render the
company better fitted to meet the inroads of competition.

5.

Adequate planning reduces unnecessary pressures of immediacy: If activities

are not properly planned in anticipation of what is likely to happen, pressures
will be exerted to achieve certain results immediately or a in a hurry. Thus
adequate planning supplies orderliness and avoids unnecessary pressures.

6.

Planning reduces mistakes and oversights: Although mistakes cannot be

entirely obviated, they can certainly be reduced through proper planning.

7.

Planning ensures a more productive use of the organization's resources: By

avoiding wasted effort in terms of men, money and machinery, adequate
planning results in greater productivity through a better utilization of the
resources available to the organization.

8.

Planning makes control easier: The crystallization of objectives and goals

simplify and highlight the controls required.

9.

Planning enables the identification of future problems and makes it possible

to provide for such contingencies.

10.

Planning can help the organization secure a better position or standing:

Adequate planning would stimulate improvements in terms of the
opportunities available.

11.

Planning enables the organization to progress in the manner considered

most suitable by its management: Management, for example, may be
interested in stability and moderate profits rather than huge profits and risk of
instability. In terms of its objectives, the plan would ensure the actions are
taken to achieve such objectives.

12.

Planning increases the effectiveness of a manager: As his goals are made

clearer, adequate planning would help the manager in deciding upon the most
appropriate act.

Features of planning

Planning focuses on achieving objectives

Planning is a primary function of management

Planning is pervasive

Planning is continuous

Planning is futuristic

Planning involves decision making

Planning is a mental exercise

Planning Process
Setting objectives: Objectives may be set for the entire organization and each
department or unit within the organization.

Developing premises: Planning is concerned with the future which is uncertain and
every planner is using conjecture about what might happen in future.
Identifying alternative courses of action: Once objectives are set, assumptions are
made. Then the next step would be to act upon them.
Evaluating alternative courses: The next step is to weigh the pros and cons of each
alternative.
Selecting an alternative: This is the real point of decision making. The best plan
has to be adopted and implemented.
Implement the plan: This is concerned with putting the plan into action.
Follow-up action: Monitoring the plans are equally important to ensure that
objectives are achieved.

ORGANIZING
Division of work into functions and sub-functions, grouping of activities that
closely related in their nature, assigning of duties and responsibilities to
employees and finally delegation of authority and power to each employee or
group to discharge their duties accordingly are the processes come under
function of management organizing.

are
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Organizing can be effective only if managers follow some guiding principles in

order to make important decisions and act upon them. To organize efficiently, a
manager can utilize the following principles:
Principle of Specialization: According to the principle, the entire work of an
enterprise must be shared among the subordinates based on their qualifications,
abilities and skills. Hence, effective organization can be achieved through
specialization of sharing or dividing work.
Principle of Functional Definition:The principle states that all the work in an
enterprise must be fully and clearly described to the managers and subordinates.
For instance, the initial work of production, marketing and finance, the authority of
managers and the responsibilities of the workers and their relationships towards
each other must be clearly described to all the people working in a department.

Hence, clarification in the authority and responsibility helps in the growth of an

organization.
Principles of Supervision or Span of Control: The principle states that the span of
control shows the number of employees that a single manager can handle and
control efficiently. Hence, a manager must be able to decide the number of
employees that he can handle and this decision can be chosen from either a wide or
narrow span of employees. There are two types of span of control and they are as
follows:

Wide span of control: According to this principle, a manager can easily

supervise and effectively handle a big group of subordinates independently.

Narrow span of control: According to this principle, a manager does not

have to supervise and control a large group of people as the work and authority
is shared among many subordinates. Hence, he needs to supervise only a
selected number of employees at one time.

Principle of Scalar Chain: It is that chain of command or authorization in which

there is minimum wastage of resources, communication is unaffected, overlapping
of work is prevented, and also facilitates effective organization. The flow of
authorization from the top level to the bottom level enables the managers to
understand their positions of authority and this helps in an effective organization.
Principle of Unity of Command: According to this principle, one subordinate is
accountable to only one superior at one time. This helps in preventing lack of
communication and feedback and also brings about quick response. Hence, the
principle of unity of command leads to effectively combine both physical and
financial resources which in turn aids in effective coordination and organization.
3. STAFFING
The process of making out, assessing, appointing, evaluating and developing the
employees at work in an organization is staffing. In here the characteristics of a job
are determined primarily. It is followed by ensuring of the right number of and
kind of employees are placed at the right places and at the right time when
organization is in need of them. Staffing function of management begins with
notifying the vacancies in the organization and selecting the best individuals as
employees.
Importance of Staffing Management

Effective staff management is essential to ensuring your workplace runs smoothly

and efficiently, and that the right employees are in the right positions. Employees
who are well-managed and receive continuing training and evaluation are better
prepared to do their jobs and to serve your customers. This can lead to better
profits, more satisfied clients and an increase in repeat business. On the other hand,
poor staffing can result in a chaotic, unorganized work environment, which has the
potential to make your company lose valuable business.
Good Employees = Good Service
Efficient staffing management begins by hiring the right people for open positions.
When you conduct in-person interviews and ask potential employees pertinent
questions as they relate to your industry, you get a better feel for who will best
represent your company. Hiring efficient, knowledgeable employees will help your
business attain a reputation for quality products and service. Hiring undependable
or unknowledgeable employees can turn off customers and make you lose
business.
Short Lines Benefit Customers
Hiring enough people to efficiently run your business will make customers feel like
you respect their time and are committed to giving them efficient, timely service.
Even the best employees wont perform to their full potential if they are
overworked or are trying to do the job of several people, which can lead to
irritability and impatience with both employees and customers. Evaluating your
staffing needs and making sure you have enough trained professionals in place to
cover regular shifts will help you deliver smooth, customer-friendly service.
Trained Employees Perform Better
When you train employees on all aspects of their job and give them insight into
other positions in your business, you develop well-rounded individuals who have a
working knowledge of their positions and those of their colleagues.
Knowledgeable employees are better able to answer customer questions, handle
problems and deliver better quality service. Untrained employees who have to find
a manager or send people away without help or information can create frustrated
customers.
Smart Scheduling Streamlines Service
Selecting the right people to work together can create an effective team dynamic
that leads to more efficient delivery of products and services. Scheduling all new

employees together can create havoc and scheduling all veteran employees
together can create a struggle for leadership. Creating a schedule with a
complementary mix of personality types will set a balance for harmonious work
flow and result in a more efficiently operated shift.
Poor Staffing Leads to Business Decline
Untrained and unsupervised staffers can wreak havoc on your business. An
employee unfamiliar with your products can sell customers items they don't want
or need, creating animosity and resentment; an employee without basic safety
knowledge can cause an accident resulting in liability for your company; and too
few employees staffing a shift can create long waits for customers who then decide
to take their business elsewhere. Effective staffing management can eliminate
many of these issues and improve the overall quality of business operations.
Staffing process of management assists in obtaining the right talent and also
nurturing it. Staffing principles which are universally accepted are not
present. Nonetheless, identifying valuable principles for effectively grasping
and performing staffing function was done by Heinz Weihrich and Harold
Koontz, which were here under.
Principle of the purpose of Staffing: Qualified personnel who are able and
keen to carry on organizational roles is the main purpose of managerial
staffing. It is proved that lack of the said qualities leads to failure.
Principle of Staffing: High managerial quality depends on clarity of defining
organizational roles and human needs, good methods of managerial
assessment and the training given to employees. Organizations without
recognized job descriptions, efficient appraisals or any methods for training
and development have to depend on outside resources to fill the managerial
positions. Alternatively, organizations using individuals potentials
effectively in the enterprise are doing so by utilizing the systems
methodology of staffing and human resource management.
Principle of job definition: Precise identification of the managerial results is
needed to define the magnitude of their positions. Organizational roles of
people have different features such as pay, status, power, direction and the
likelihood of achievement that makes managers to function well.
Principles of Managerial Appraisal: Identification of the managerial
activities and clarity of various objectives are needed for precise managerial
appraisal against these criteria. The principle implies that the performance of

managers is determined by the measurement of verifiable goals against the

standards of managerial performance. Managerial appraisal takes into
account the main managerial jobs such as planning, organizing, staffing,
directing and controlling.
Principle of Open Competition: Encouragement of open competition
amongst candidates for management positions depends entirely on the full
commitment of an enterprise on quality management. Many firms have
chosen managers with insufficient abilities because of breach of these
principles. Good candidates who can be chosen from outside must be
preferred rather than promoting candidates within the enterprise because of
social pressures. Simultaneously, by using this principle, the enterprise is
obliged to correctly evaluate its people by providing them with chances for
growth.
Principle of Management Training and Development: For achieving
effective development programs and activities, it is important to integrate
more managerial training and development with the management methods
and objectives. According to the systems approach, the managerial
functions, goals of the enterprise and the managers professional
requirements are correlated with the training and growth efforts.
Principle of Training Objectives: The training objectives must be stated
correctly in order to achieve them. To aid the effectiveness of training
efforts, it is necessary for analyzing training needs as the foundation for
giving direction to development. This principle focuses on the importance of
training for the needs of the enterprise and individual development.
Principles of Ongoing Development: Managers must practice selfdevelopment as an ongoing process for fulfilling the commitment of an
enterprise towards managerial excellence. This principle states that
managers must continuously learn in the present day competitive
environment. Managerial knowledge and approaches must be continuously
updated and reexamined and their skills must be enhanced in order to get
positive results in an enterprise.

4. Directing

Communication, leadership and supervision and last but not the least motivation
are the elements come under the function of management, directing. Directing is
nothing but guiding and leading the people in an organization. It is not just giving
instructions by a superior to the sub-ordinates but also is a process of supervising,
guiding and motivating the latter to achieve the organizational goals. It is a
complex function of management that ensures the employees work effectively and
efficiently.
Important principles of directing:
(1) Principle of Maximum Individual Contribution:
According to this principle, management should adopt that directing policy through
which the employees get motivated and give their maximum individual
contribution for the achievement of organizational objective.
(2) Principle of Harmony of Objectives:
According to this principle, there must be full coordination between organizational
and individual objectives. Employees work in an organization with an objective to
get better remuneration, promotion, etc. On the other hand, organizational goal can
be to earn more profits and to increase market share.
Sometimes it is seen that there is a conflict between the objectives of both the
parties, e.g., organization wants that it should get a major share of profit whereas
employees perceives that as they work directly on the job, so more profit must be
shared among them in the form of bonus.
Management here must establish coordination between the objectives of both the
parties/factors by adopting suitable method of direction.
(3) Principle of Unity of Command:

According to this principle, a subordinate should get directions from one officer at
a time. If the subordinate gets directions from more than one officer, the
subordinate will be unable to priorities his work.
As a result, situation of confusion, conflict and disarrangement is created. By
following this principle, effective direction takes place.
(4) Principle of Appropriateness of Direction Technique:
According to this principle, appropriate direction techniques should be used, e.g.,
to supervise effectively, to provide able leadership, to adopt free communication
and to motivate through right medium.
(5) Principle of Managerial Communication:
According to this principle, it should be monitored by the management that the
subordinate get the same meaning for what has been said. This simplifies the job of
the subordinates and they need not go to the managers repeatedly for enquiring.
(6) Principle of Use of Informal Organization:
According to this principle, there must be a free flow of information between the
seniors and the subordinates. The success of direction depends upon effective
exchange of information to a great extent.
Information should be given both through formal and informal mediums. Special
attention should be given to the informal organization. This strengthens the formal
organization.

(7) Principle of Leadership:

According to this principle, while giving directions to the subordinates a good
leadership must be provided by the managers. By this, subordinates get influenced

by the managers. In this situation, subordinates act according to the wish of the
managers.
(8) Principle of Follow Through:
According to this principle, it must be monitored by management as to what extent
the policies framed and issued directions have been enforced. Thus, it must be seen
whether the employees are following the management or not.
If yes, then to what extent. As per this principle, the job of managers is not to sit
idle after framing policies or issuing directions but to continuously take feedback.
The advantage of this will be that if there is any problem in implementing a policy
or a direction it can be removed then and there.

5. CONTROLLING
It is the process that ensures whether the resources are obtained and used
efficiently in achieving the organizational objectives. Controlling function of
management is closely linked with the planning function because, it includes
checking the performance of employees to see whether the planned performance is
being achieved by them or not. Budgetary control, Inventory control, quality
control, profit and loss control, Management audit, cost accounting and cost
control, production control, financial control, break-even analysis and internal
audit control are the important control devices of controlling techniques.

Principles of the Controlling

1. Goals
a. The establishment of the measurable goals acts as a prerequisite to the
controlling.
b. For the implementation of the program, it is very necessary to have a
conceptual document and this document is referred to as the planning.
c. From here, the process of the planning goes through the conceptual to the
measurable objectives.

d. At times these can also be qualitative in the nature and in such cases it
becomes very necessary to convert these into the measurable terms.
2. Establishment of the standards
a. The measurable goals that are created have to be converted into the
standards.
b. In case of the measurable goals, the measure of weighing the results is
fixed.
c. But in case of the standard, one expects for a minimum performance
depending on the given efforts and the time.
d. During this step, the measures of the efforts, the time, and the cost are
fixed in the nature.
e. The performance can be judged by setting the minimum standards.
3. Nature of the controls
a. The controls must be economical in the nature not only in the
implementation but also in correcting the deviation by getting a signal on
time.
b. The control costs in terms of the implementation.
c. The evaluation of the control in a tangible as well as the intangible form,
depends greatly on the judgment of the management.
4. Selection criteria of the critical points
a. It is very necessary to keep the costs of the control down, so hence it is
not at all possible to have a control over each stage in the process.
b. For this purpose, it is very important to select certain control points.
c. The selection largely depends on the individual testing skills, group
output, its criticality to the operation in the total activity etc.
d. The raw materials that cannot be reworked and returned must be selected
as the critical point for the control.
e. The selected critical points can be changed on a rotational basis and also
by changing after the feedback that is obtained from the results of the
process.

5. Feedback system
a. The feedback should be very efficient and meaningful in the nature.
b. It is very essential that the control points are very well supported by the
control systems as these points at any stage can be feed forward as well as
backward.
c. With the help of the Feedback system, one can make a decision over the
fact that whether the cost of the continuity in the operations in the similar
manner would be good in the customers interest or not.
d. This system helps in the determination of the fact that whether any type of
the rework or correction is required or not.
6. Discipline and Flexibility
a. Both the Discipline and the Flexibility are very much required in the
process of the controlling and for this, the presence of the control system is
very essential.
b. Discipline can be achieved, if it is assured that the same process will be
carried on during the existence.
c. In case of any type of the changes or the deviations in the design of the
product etc, then it is not at all possible to continue with the same set of the
control points.
d. Discipline can be maintained only if the various activities involved remain
totally unchanged.
e. But sometimes such circumstances, like the results that are obtained at a
particular point do not meet the requirements expected of such a control,
arise and then it becomes very necessary for the control system to possess
the flexibility.
f. One very important point to be kept in mind here is that the changes that
are brought in the control systems should be brought in, depending on the
demands of the business.
g. As the environment present around the organization and that present
within the organization keep on changing continuously, so it is very
important that the control systems possess the flexibility.
7. Development of the controls
a. The controls should be tailored in such a way that the whole organization
should be able to read the feedback reports.

b. The results of the control should be communicable and also actionable in

the nature.
c. Any type of the difference in the output should be brought out by the
various controls as with this, the deviations can be easily pointed out without
doing much work.
8. Corrections
a. With the help of the controls, one can find out the deviations in the
planned performance.
b. If the control is ideally placed, its organization and the management can
act in the self interest of the business.
c. It is very necessary to direct the controls towards the corrections and then
suitable corrective actions should be taken.

The Importance of Controlling in management

(1) Reduces Risk:
Control eliminates the risk of non-conformity of actual performance with the main
goals of the organization. Control is the function which regulates the operation to
ensure the attainment of the set objectives.
Regular measurement of work in progress with proper adjustments in operations
puts the performance on the right track and helps in the achievement of goals.
(2) Basis for future action:
Control provides the information and facts to the management for planning and
organizing when the work is completed and the result is evaluated. In fact,
evaluation of results helps the management replant for non-repetitive operations
and rewarding, punishing and discipline the workers.
It would be better to say that future long term planning is not possible unless and
until control information is available in time to the managers for the operation of
work.
(3) Size of the business:

In large scale business in the modem times it is quite impossible to work without
proper policies, procedures and quality of different varieties of goods. That is why
in a large scale organization there is always the need of a scientific system of
control to solve the day to day problems.
(4) Indicator for managerial weakness:
In the organization there will be certain unforeseen and unknown problems which
cannot be traced out by mere planning, organizing and staffing efforts. It is the
control process that can trace these out. That is why it is known as an indicator of
the managerial weakness. Control not only finds out the weakness of managers but
also provides solutions and remedial action to solve the problems.
(5) Facility of coordination:
Management and coordination of the business activities and workers is a very
important role. It binds all the workers and their activities and motivates them to
move towards the common objectives through coordination.
Control will play the role of a middleman between the workers and management to
provide the required information in time to the workers.
(6) Simplifies supervision:
A systematic system of control helps in finding out the deviation existing in the
organization which also simplifies the task of the supervisor in managing his
subordinates. So through control it becomes simpler for the supervisor to supervise
and guide the workers to follow the right track and fulfill the required goals.
(7) Extension of decentralization:
Control system helps the top management to extend the frontiers of
decentralization without the loss of control. When proper procedures, policies,
targets, etc, are clearly communicated to the subordinates, they develop selfconfidence and need not always refer to their supervisors with the problems.

SCIENTIFIC MANAGEMENT THEORY

How did current management theories develop?

People have been managing work for hundreds of years, and we can trace formal
management ideas to the 1700s. But the most significant developments in
management theory emerged in the 20th century. We owe much of our
understanding of managerial practices to the many theorists of this period, who
tried to understand how best to conduct business.

Historical Perspective
One of the earliest of these theorists was Frederick Winslow Taylor. He started the
Scientific Management movement, and he and his associates were the first people
to study the work process scientifically. They studied how work was performed,
and they looked at how this affected worker productivity. Taylor's philosophy
focused on the belief that making people work as hard as they could was not as
efficient as optimizing the way the work was done.
In 1909, Taylor published "The Principles of Scientific Management." In this, he
proposed that by optimizing and simplifying jobs, productivity would increase. He
also advanced the idea that workers and managers needed to cooperate with one
another. This was very different from the way work was typically done in
businesses beforehand. A factory manager at that time had very little contact with
the workers, and he left them on their own to produce the necessary product. There
was no standardization, and a worker's main motivation was often continued
employment, so there was no incentive to work as quickly or as efficiently as
possible.
Taylor believed that all workers were motivated by money, so he promoted the idea
of "a fair day's pay for a fair day's work." In other words, if a worker didn't achieve
enough in a day, he didn't deserve to be paid as much as another worker who was
highly productive.

With a background in mechanical engineering, Taylor was very interested in

efficiency. While advancing his career at a U.S. steel manufacturer, he designed
workplace experiments to determine optimal performance levels. In one, he
experimented with shovel design until he had a design that would allow workers to
shovel for several hours straight. With bricklayers, he experimented with the
various motions required and developed an efficient way to lay bricks. And he
applied the scientific method to study the optimal way to do any type of workplace
task. As such, he found that by calculating the time needed for the various elements
of a task, he could develop the "best" way to complete that task.
These "time and motion" studies also led Taylor to conclude that certain people
could work more efficiently than others. These were the people whom managers
should seek to hire where possible. Therefore, selecting the right people for the job
was another important part of workplace efficiency. Taking what he learned from
these workplace experiments, Taylor developed four principles of scientific
management. These principles are also known simply as "Taylorism".

Four Principles of Scientific Management

Taylor's four principles are as follows:
1.
Replace working by "rule of thumb," or simple habit and common sense,
and instead use the scientific method to study work and determine the most
efficient way to perform specific tasks.
2.
Rather than simply assign workers to just any job, match workers to their
jobs based on capability and motivation, and train them to work at maximum
efficiency.
3.
Monitor worker performance, and provide instructions and supervision to
ensure that they're using the most efficient ways of working.
4.
Allocate the work between managers and workers so that the managers
spend their time planning and training, allowing the workers to perform their tasks
efficiently.

Critiques of Taylorism
Taylor's Scientific Management Theory promotes the idea that there is "one right
way" to do something. As such, it is at odds with current approaches such as MBO
(Management By Objectives), Continuous Improvement initiatives, BPR
(Business Process Reengineering), and other tools like them. These promote
individual responsibility, and seek to push decision making through all levels of the
organization.
The idea here is that workers are given as much autonomy as practically possible,
so that they can use the most appropriate approaches for the situation at hand.
(Reflect here on your own experience are you happier and more motivated when
you're following tightly controlled procedures, or when you're working using your
own judgment?) What's more, front line workers need to show this sort of
flexibility in a rapidly-changing environment. Rigid, rules-driven organizations
really struggle to adapt in these situations.
Teamwork is another area where pure Taylorism is in opposition to current
practice. Essentially, Taylorism breaks tasks down into tiny steps, and focuses on
how each person can do his or her specific series of steps best. Modern
methodologies prefer to examine work systems more holistically in order to
evaluate efficiency and maximize productivity. The extreme specialization that
Taylorism promotes is contrary to modern ideals of how to provide a motivating
and satisfying workplace.
Where Taylorism separates manual from mental work, modern productivity
enhancement practices seek to incorporate worker's ideas, experience and
knowledge into best practice. Scientific management in its pure form focuses too
much on the mechanics, and fails to value the people side of work, whereby
motivation and workplace satisfaction are key elements in an efficient and
productive organization.

Key Points
The Principles of Taylor's Scientific Management Theory became widely practiced,
and the resulting cooperation between workers and managers eventually developed

into the teamwork we enjoy today. While Taylorism in a pure sense isn't practiced
much today, scientific management did provide many significant contributions to
the advancement of management practice. It introduced systematic selection and
training procedures, it provided a way to study workplace efficiency, and it
encouraged the idea of systematic organizational design.

FAYOL THEORY OF ADMINISTRATIVE MANAGEMENT

Fayol was a qualified engineer and also held a high position industry: managing
director of a large French company. A year after the death of Taylor, he published
his most famous book entitled: General and Industrial Management.
Fayol attempted to develop a science of administration for management. In
contrast to a later management expert, Peter Drucker, he believed that there was a
universal science of management applicable to commerce, industry, politics,
religion, war or philanthropy. He was not a theoretician and was one of the first
practicing managers to draw up a list of management principles
Fayol thought that his principles would be useful to all types of managers. He truly
advocated the notion that if a manager wants to be successful, he only needs a
certain set of management principles. If a manager climbed the corporate ladder
and reached higher positions, this manager would depend less on technical
knowledge and more knowledge of administration. When Fayol worked on his
principles in France, Taylors scientific management was developing
independently in the USA. Although he was trained as an engineer, he brilliantly
realized that management of an enterprise required skills other than those he had
studied.
He emphasized the role of administrative management and concluded that all
activities that occur in business organizations could be divided into six main
groups.

1.
2.
3.
4.
5.
6.

Technical (production, manufacturing);

Commercial (buying, selling, exchange);
Financial (obtaining and using capital);
Security (protection of property and persons);
Accounting (balance sheet, stocktaking, statistics, costing);
Managerial (planning, organizing, commanding, coordinating, controlling).
Fayols 14 principles of management
1.

Division of labor: work must be subdivided to facilitate specialization;

2.

Authority: authority and responsibility should go hand in hand;

3.
Discipline; discipline is important to develop obedience, diligence, energy
and respect;
4.

Unity of command: subordinates must report to one superior;

5.
Unity of direction: all operations with the same objective must have one
manager and one plan;
6.
Subordination of individual interest to general interest: the interest of
one individual or group should not dominate the interest of the enterprise as a
whole;
7.
Remuneration: remuneration and all other methods of payment should be
fair;
8.
Centralization: managers always hold final responsibility but should
delegate certain authority to subordinates;
9.
Scalar chain: a clear line of authority or chain of command should extend
from the highest to the lowest level of an enterprise. This helps to ensure an orderly
flow of information and complements the principle of unity of command;
10. Order: there is a place for everything and everything in its place. Proper
scheduling of work and timetables to complete work is important. This can
facilitate the channeling of materials to the right place at the right time;
11.

Equity: employees should be treated with kindness and justice;

12. Stability of tenure of personnel: management should work towards

obtaining long-term commitments from staff and avoid unnecessary turnover of
staff which is costly and works against overall goal accomplishment;
13. Initiative: workers should feel like an active part of the organization
through conceiving and executing plans in order to develop their capacity to the
fullest;
14. Esprit de corps: harmony and union help to build the strength of an
enterprise. It is an extension of the principle of unity of command, emphasizing the
need for teamwork and the importance of communication .
Some of these ideas may seem self-evident today, but can be seen as being
revolutionary in Fayols time. Until today, his principles remain important as they
continue to have a significant impact on current managerial thinking. Fayols main
contribution was the idea that management was not a talent related to genetic
hereditary, but a skill that could be taught. He created a system of ideas that could
be applied to many areas of management and laid down basic rules for managing
large organizations