HR assignment essay on: Henry Fayol’s management theory
French industrialist Henry Fayol is considered to be the most significant contributor to contemporary concepts of management. Fayol is called the father of classical school of management.According to his observation over the organization, administrative management theory came into existence. Management theory given by Fayol ismore task oriented rather than people oriented (Bizcovering, 2007). Henry Fayol’s management theory depicts the following perspectives.First frame an objective, planning of strategy, prepare an efficient structure, provide training, set guidelines and finally bring them together to meet those objectives.Each area of current modern workplace is influenced by the effective contributions by Henry Fayol. Management theory given by Fayol is applicable in today’s modern organization to make them competitive for growing complexities. These principles are applicable universally in today’s business management as they reflect the theme of modern management. In contrast, sometimes Fayol’s principles are not applicable in modern organizations and have no relevance today. In this essay, a discussion has been carried out over Fayol’s principles relevance today from both the aspects positive and negative as well.
Going forward to Fayol’s management theory and its relevance today, he presented fourteen management principles for contemporary management concepts. His principle of Specialization of work, authority and responsibility, unity of command, unity of direction and scalar chain are being used to implement the cost management strategy (CMS).Basically CMS helps to identify and evaluate cost drivers to reduce the costs and maximize overall value (Yoo & Lemak, 2006). While thinking of noticedFayol’s principle of division of labor was more important in this respect to implement CMS.Specialization of worker avoids loss of time from changing activities and helps in mechanization of operations. It encourages the minimum cost and maximum output which is the main objective of this strategy. However, towards this mission (CMS) of modern organizations, remaining principles also come along in directing and controlling the cost.Most of the time, this same principle is not applicable for an organization using a differentiation strategy (Breeze, 1995).
Fayol had observed that “division of work has some limitations which may not beexceeded. A differentiation strategy involves organizational learning and a move away from structural inflexibility. Thus it can be concluded that the organizations applying division of labor to implement a cost leadership strategy will outperform those that are implementing differentiation strategy.
Furthermore, thorough control of worker is a generally required skill for effective implementation of cost leadership strategy today. Here in this context, Fayol’s principle of authority and responsibility comes forward inthe light and is well applicable because it is the most critical factor to assist organizational control. In other words, firm pattern of authority and different areas of allotted responsibility is beneficial to an organization. It creates value and effectiveness to the work by specialized works of the distinct tasks. In contrast, harsh application of this principle can impact the job performance and affect employee participation and ability to perform well.
Similarly, other three principles of initiative, stability of tenure of personnel and esprit de corps are applied in organizations today to implement differentiation strategy (Yoo & Lemak, 2006). As previously noted, a differentiation strategy relies on creative product variations, and new product development. Therefore Fayol’s principle of initiative seems most applicable to execute this strategy in modernly managed organizations. It provides employees with a sense of rights and have power over their jobs. Taking Initiative allows and maximizes creativity which is the demand of modern business world. On the other hand when it comes to link the same principle with minimization of cost, it does not seem that the principle gets successful here. To maximize the value and to minimize the cost, organizationswould focus on tight procedures and cost control systems rather than supporting employees to take initiative and connectto innovative thinking (Yoo & Lemak, 2006).
Additionally, in modern phrase – time is required for an employee to get used to new work and achieve it well. Fayol’s principle of stability of tenure of personnel articulates the requirement to have a safe and secure workplace and a strong business culture. Thus this principle should be needed to create and promote a culture of creativity overall for today’s professionals. However, this principle seems less relevant to the organizations having crucial cost management strategy. In such kind of organizations hiring new employees is cheaper despites the turnover costs. Fast food industries can be an example of such organizations, where most jobs are of least wage.
Moreover, Fayol’s principles of subordinate interests to the general interest, order and equity are exercised to implement both the strategies. Precisely, it can be said that Fayol’s principles presents the strategic leadership model. Due to this theory’s rough and controlled approach, Henry Fayol’s management principles are now applicable in today Business practices more than the former modern principles (Mclean & Jacqueline, 2011).
In sum, a transformation in working of organizations in the twenty-first century has been observed. Today, superiors have the remarkable and definite selection of resources, which they use to enhance their skills and knowledge. It is due to early theorist Henry Fayol’s contribution to the management, that superiors/subordinates started to get gears for effective and efficient management. To explain this contribution broadly, Smith and Boyns (2005) examined the recorded data provided by some British engineering colleges. They inspected the impact of Fayol’s theory on British management thoughts and practices, whichwas respected by the British thinkers and practitioners. Smithalso illustrated Fayol’s early contributions’ relevance to today’s professionalsand concluded that the influence of Fayol’s management theory has been standing the test of time, but his impact on practice is greatly limited. His management theory is helpful and relevant for today’s organizational leaders because he recognized theories that worked for him and for his partners as well (Smith, 2005).
Moving forward,the more relevance can be seen in today’s modern business world with Fayol’s management theory. Today organizations follow a top to bottom chain of communication as an essential ingredient to effective management. Fayol had listed scalar chain as his core principle among the principles listed. This is commonly into practice today to eliminate malfunctioning of organization. Organizations are interconnected today and effective communication maintains these connections(Brunsson & Holmblad, 2008).
After elaborating Fayol’s theory’s relevance from both the perspectives, adiscussion on how Fayol’s theory is being shaped and structured in today’s business world comes out.Principles presented in the eighteenth century are unable to develop performance in changed situation and changed technology as well. In that case, principles like unity of direction, scalar chain, specialization and unity of command result into the construction of mechanistic structure of the organization. These are insensitive to social and psychological needs of the employees. This will contribute negative performance and ineffectiveness to the organization. Fayol’s theory sought the organization as a close system whereas the modern organization operates in an ever changing (open system) environment (Gross, 2009). In these organizations changes are frequently accepted to suit the changes with the changing situations. Most of today’s organizations do not work in a close system as such the managers of modern organizations cannot be put into harsh jackets to take a specific action to solve a specific problem. Accordingly the modern organizations provide maximum independent to take actions, to think, innovate and bring about valuable changes. Here in this context, Fayol’s theory failsto relate with today’s modern organization system. Moreover, principles like authority/responsibility, division of work and centralization are also not needed in modern business world because modern organizations believe in decentralization so that the desirable decisions can be made (Lamond, 2005).
For more than a century Fayol’s management theory has been providing a general structure for practicing managers. By the study of his observation, we have tried to show how his old age ideas are applicable and relevant at present. This study provides a new opportunity to see Fayol’s observation in different perspective and re-examines its relevance to today’s management practices.His advocacy of work division, senior’s responsibility, Individual’s importance and involvement; place him among the leading management theory practitioners and thinkers today. From Fayol, existing professionals have much more to think. The administrative theory was not only successful in the past but also continues to be effective in present. However, his theory did not always achieve pleasing results in the situations arising in twentieth century.Changes are taking place in these fields that gives birth to new perspective on management.
To conclude, it can be said that the administrative theorist Fayol basically emphasized to make organizations effective and efficient in terms of producing profit. However today’s modern organizations follow the fact that there are various other motivations to perform besides earning profit. Therefore modern organizations have to incorporate several aspects of socio-economic factor related to efficiency and human satisfaction. A great sense of practical utility has been found by a huge body of research in the work of Henry Fayol. Who defined a series of management principles by an organization can be managed effectively. Through the overall study and the pointed noted out, it can be implied that the professionals need to recognize the significance of organizational management for implementing a competitive strategy effectively.
By melding of past and future, use of Fayol’s principles in today’s context sets the foundation to implement effective strategies and the future development of organizations.
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