BUS5070A SURVEY OF MANAGEMENT PRACTICES

BUS5070A SURVEY OF MANAGEMENT PRACTICES STUDENT NAME: MWANIKI, ANNE WAIRIMU STUDENT ID: 660460 LECTURER: MWANGI KABACHO SUBMITTED ON 26TH JULY 2019 TASK; HENRI FAYOL Table of Contents Executive Summary .................................................................................................................................... 2 Introduction ................................................................................................................................................. 3 A summary of Henri Fayol’s Biography ............................................................................................... 3 Henri Fayol’s Literature Works’........................................................................................................... 4 Understanding Henri Fayol’s Views on Management (Fayolism) and its Application to current management era .......................................................................................................................................... 5 Why Fayol now? ..................................................................................................................................... 15 Henri Fayol and My Management Experience ...................................................................................... 16 Fayolism Criticized ............................................................................................................................... 18 In conclusion .............................................................................................................................................. 19 References .................................................................................................................................................. 20 1|Henri Fayol Executive Summary Henri Fayol was a french mining engineer and director who developed a general theory of business administration constantly referred to as Fayolism. He was one of the most influential contributors to modern concepts of management. Fayol made an outstanding contribution to management thought. He made a clear distinction between operational activities and managerial activities. He specified the functions of management by a systematic analysis of the management process. This isolation and analysis of management as a separate discipline was his original contribution to the body of management theory. Fayol firmly advocated that management should be formally taught. He also highlighted the universal characteristics of management principles. He was the father of management principles many of which have stood the test of time. He developed a framework for further study and research. One of the greatest contributions of Fayol is that his ideas pave the way for developing the theory of management. However Fayol's works have been criticized on several counts- Firstly, his theory is said to be too formal. Secondly, he did not pay adequate attention to the worker. Thirdly, there is vagueness and superficiality about some of his terms and conditions. Fourthly, he hinted at but did not elaborate that management can and should be taught. Despite these limitations, work has been used to solve quite several managerial problems to date. Fayol is commonly compared to Frederick Winslow Taylor who also made an outstanding contribution to the development of management thought. Fayol wrote as a practical man of business reflecting on his long managerial career and setting drown the principles he had observed. He specified the functions of management by a systematic analysis of the management process. This isolation and analysis of management as a separate discipline was his original contribution to the body of management theory. He was the father of management principles many of which have stood the test of time. Frederick W. Taylor was a pioneer who propounded the principles of Scientific Management. Taylor worked in different capacities in the steel industry saw the urgent necessity for the elimination of wastages rampant in industrial organization. He observed that the only way to retract wastages and achieve efficiency is to apply the method of science to the field of management. They both applied scientific methods to the problems of management. Their work was essentially complementary; different in their approach was merely a reflection of their different careers. If we call Taylor the "Father of Scientific Management", it would be fair to describe Fayol as the “Father of Management.” 2|Henri Fayol Introduction Henri is considered the father of modern management. He began his career as a mining engineer and ended up as a director. He recognized the five major functions of management - forecasting, organizing, commanding, coordinating and controlling. He further focused on the theory of workers’ organization. In 1916 he published his book “Administration Industrielle et générale” (in English “General and Industrial Administration”), which was founded on personal experience with the job of manager. The earliest manager to systematically examine his personal experience and try to draw from it a theory of management was Henri Fayol. A qualified mining engineer, he was made the manager of a coal- mine at the early age of 25. At 31 he became general manager of a group of mines, and at 47 managing director of the whole combine, a post which he held for thirty years. Throughout his career, he showed all the signs of a successful manager. This becomes most obvious when he took over the top job when the company was almost bankrupt. By the time he retired the business was more than twice its original size and one of the successful steel companies in Europe. During the period of the industrial revolution, countries were undergoing massive growth and expansion. During the same period, production shifted from homes to industries. This created the need for efficient management to combine worker productivity and raw materials efficiently to achieve the goals of the various organizations. Scholars, therefore, came up with various theories to advance to address this problem. A summary of Henri Fayol’s Biography Henri Fayol was born in a suburb of Istanbul, Turkey in 1841. His father, an engineer, was appointed building supervisor for the construction of a bridge over the Golden Horn (Galata Bridge). The family returned to France in 1847. He studied mining engineering at the ‘École Nationale Superieure des Mines’ academy in Saint-Étienne. In 1860 at the age of nineteen, he graduated and started working at the mining company named "Compagnie de Commentry-Fourchambault-Decazeville" in Commentry as the mining engineer. He was hired by Stéphane Mony, who had decided to hire the best engineers from the Saint-Étienne Mining School. Fayol joined the firm as an engineer and trainee manager. Mony made Fayol his protege, and Fayol succeeded him as manager of the Commentry Mine and eventually as managing director of Commentry3|Henri Fayol Fourchambault and Decazeville. During his time at the mine, he studied the causes of underground fires, how to prevent them, how to fight them, how to reclaim mining areas that had been burned, and developed a knowledge of the structure of the basin. In 1888 he was promoted to managing director. In his time as director, he made changes to improve the working situations in the mines, such as allowing employees to work in teams, and changing the division of labor. Later, more mines were added to his duties. In 1900 Fayol became a member of the Comité Central des Houillères de France, member of the board of the Comité des forges and administrator of the Société de Commentry, Fourchambault et Decazeville. Eventually, the board decided to abandon its iron and steel business and the coal mines. They chose Henri Fayol to oversee this as the new managing director. Upon receiving the position, Fayol presented the board with a plan to restore the firm. The board accepted the proposal. When he retired in 1918, the company was financially strong and one of the largest industrial combines in Europe. Henri Fayol’s Literature Works’ Based largely on his own management experience, he developed his concept of administration. In 1916 he published these experiences in the book Administration Industrielle et Générale. A few years later, Frederick Taylor published his theory about Scientific Management and Taylorism.  IN 1930, Industrial and General Administration. Translated by J.A. Coubrough, London: Sir Isaac Pitman & Sons.  1949. General and Industrial Management. Translated by C. Storrs, Sir Isaac Pitman & Sons, London. Articles, translated  1900. "Henri Fayol addressed his colleagues in the mineral industry on 23 June 1900." Translated by J.A. Coubrough. In: Fayol (1930) Industrial and General Administration. (Republished in Wren, Bedeian & Breeze, (2002) "The foundations of Henri Fayol's administrative theory")  1909. "L'exposee des principles generaux d'administration". Translated by J.D Breeze. published in: Daniel A. Wren, Arthur G. Bedeian, John D. Breeze, (2002) "The foundations of Henri Fayol's administrative theory". 4|Henri Fayol  1923. "The administrative theory in the state". Translated by S. Greer. In: Gulick, L., and Urwick. L. Eds. (1937) Understanding Henri Fayol’s Views on Management (Fayolism) and its Application to current management era In his writing, General and Industrial Management (1916) Fayol attempted to construct a theory of management that could be used as a basis for formal management education and training. Fayol was the first to distinguish between technical and managerial skills (Wren, 1994). According to Fayol (1949), employees need to be proficient in all the skills at each level, but technical skills would be essential not only at the worker level but in management positions. Of course, managerial skills would become increasingly important as employees assume higher levels of management responsibility in the hierarchy of command Fayol firstly divided all organizational activities into six, he describes management as activities but also noted that it was among other industrial undertakings such as; 1. Technical Activities Henri Fayol notes that technical ability is important for an organization it helps in the overall running of an organization but also insists that this should not just be the main focus but rather a part of the whole picture. Regardless of these abilities importance, they shouldn't overshadow other important factors needed for business prosperity. “ The number, variety, and importance of technical activities the fact that products of every kind (material, intellectual, moral ) originate with technical men, the almost exclusively vocational teaching of our technical schools, the openings available to technical men – all these contribute to making the technical function, and in consequence technical ability, stand out from and overshadow other abilities that are just necessary for, and sometimes more conducive to, the progress and prosperity of businesses. Nevertheless, the technical function is not always the most important. Even in Industrial undertakings, there are circumstances where someone of other functions may exercise a much greater influence over the running of the business than does the technical one. It must not be lost sight of that the six essential functions are closely interdependent- the technical function, for instance, cannot exist without raw materials, sales outlets, capital, security, foresight.” (Fayol, 1949 pp.4) 5|Henri Fayol 2. Commercial Activities According to Fayol the prosperity of an industrial concern often depends as much on the commercial as on the technical function for the product not to sell means ruin. Knowledge of buying and selling is just as important as knowledge of efficient production. Commercial ability includes, together with acumen and decision, a thorough knowledge of the market and the strength of competitors, long term foresight and to an increasing extent in large-scale concerns, the use of contracts. Finally, when the products pass from one section to another within the same concern, the commercial must see to it that prices determined by higher authority do not give rise to dangerous illusions. 3. Financial activities “Nothing is done without this function entering into it.” (Fayol, 1949 pp.5)Capital is required for operations financial management is necessary to obtain capital, to make optimum use of available funds. "An essential condition of success is to keep a constant watch over the financial position of the business.” (Fayol, 1949 pp.5) 4. Security activities The objective of this group is to safeguard property and persons for any disturbances liable to endanger the progress and even the life of the business. 5. Accounting activities IT is the visual organ of the business, it must at any given moment present the position and future trend about the economic position of the business. 6. Management activities Finally, he notes that the previous activities or groups are not necessarily concerned with drawing up the broad plan for business operations through assembling personnel, coordinating and harmonizing effort and activity. Fayol states that foresight, organization, coordination, and control undoubtedly form part of management as it is commonly understood. In analyzing management as an activity he comes up with different functions of management:  Planning; According to Fayol's theory, management must plan and schedule every part of industrial processes. A good plan of action should be flexible, continuous, relevant and accurate, as it unifies the organization by focusing on the nature, priorities, and condition of the business, longer-term predictions for the industry and economy, the intuitions of key thinkers, and strategic sector analyses from specialist staff 6|Henri Fayol groups. For effective planning, managers should be skilled in the art of handling people, have considerable energy and a measure of moral courage, have some continuity of tenure, be competent in the specialized requirements of the business, and have general business experience and the ability to generate creative ideas.  Organizing. Henri Fayol argued that in addition to planning a manufacturing process, management must also make certain all of the necessary resources (raw materials, personnel, etc.) came together at the appropriate time of production. When it comes to organizing he lays out certain duties for managers; ensure the plan is judiciously prepared and strictly carried out, see that human and material structures are consistent with objectives, set up a single guiding authority and establish lines of communication throughout the organization to harmonize activities and coordinate efforts, formulate clear distinct and precise decisions arrange for efficient personnel selection and define duties clearly encourage a liking for initiative and responsibility offer fair and suitable recompense for services rendered, make use of sanctions in cases of fault and error, maintain discipline ensure that individual interests are subordinated to the general interest pay special attention to the authority of command supervise both material and human order have everything under control fight against an excess of regulations, red tape and paperwork.  Commanding; Henri Fayol's management theory states that management must encourage and direct personnel activity. They do this by gaining knowledge of their personnel, assigning employees fairly for he or she has trained for fair compensation and reassignment. Fayol insisted that a manager should lead by example.  Coordinating; According to the management theory of Henri Fayol, management must make certain that personnel works together cooperatively. It involves determining the timing and sequencing of activities so that they mesh properly, allocating the appropriate proportions of resources, times and priority, and adapting means to an end.  Controlling; the final management activity, according to Henri Fayol, is for the manager to evaluate and ensure that personnel follows management's commands. This is done by checking that everything occurs according to the plan adopted, the principles established and the instructions issued taking appropriate corrective action, periodically checking for weaknesses, errors, and deviations from the plan checking that the plan is kept up to date and adapts to change development. 7|Henri Fayol Henri Fayol went ahead to state that "to every group of activities or essential functions there exists a corresponding special ability." He continued to state-specific qualities and knowledge which have in today been interpreted to qualities or attributes that managers should possess:  Physical qualities; they include good health, vigor and the ability to address  Mental qualities; the ability to understand and learn, judgment, mental vigor, and adaptability.  Moral qualities; energy, firmness, willingness to accept responsibility, initiative, loyalty, tact, and dignity.  General Education; general acquaintance with matters not belonging exclusively to the function performed.  Special knowledge; that peculiar to the function performed.  Experience: knowledge arising from the workers' activities Henri Fayol went on forward to elaborate that the importance of each of the elements that make up the abilities is commensurate with the nature and importance of the function. In the one-man business, where all functions are carried out by one person, the span of essential abilities is of necessity, smaller. In the larger firms, where various important activities are carried out, the person must possess numerous abilities of a high order, but as the functions are spread over employees, each employee is generally required to possess a limited total of the abilities. At the time, Fayol gave numerical values to the abilities based on the positions held from workmen to statesmen. As time has evolved one can argue that a manager can lack some qualities and still conduct their activities. But at the same time, it supports that the specific level of management will determine the qualities required. Finally, Fayol advocated for 14 principles of management designed to guide the successful manager Fayol’s 14 principles of management are: division of work; authority; discipline; unity of command; unity of direction; subordination of individual interests to the general interests; remuneration; centralization; scalar chain; order; equity; stability of tenure of personnel; initiative; and esprit de corps (Fayol, 1949). Though he developed 14 principles of management as the foundation of his management theory and cautioned that “principles are flexible and capable of adaptation to every need” (Fayol, 1949, p. 19). 1. Division of work; "the object of the division of work is to produce more and better work with the same effort. The worker always on the same part, the manager concerned always with the same matters, acquire an ability, sureness, and accuracy which increase their output. Each change of work brings in its strain an 8|Henri Fayol adaptation which reduces output. Division of work permits of reduction in the number of objects to which attention and effort must be directed and has been recognized as the best means of making use of individuals and groups of people." (Fayol 1949 pp.20) Division of labor is a concept that requires specialization of labor that enables people to perform work more efficiently. The work is divided into small elements and assigned to workers with specialized skills. Currently, work is divided into departments ranging from different departments such as the finance department where all financial transactions are carried out not all people in the department will carry out the same job, someone can be assigned to carry out bank duties, another prepare vouchers, while others could be in charge of disbursements. It is the job of the Head of Departments to allocate jobs to employees in that department based on specialization. Also in the organizations, they have the administration department of which majority classifies as both admin and Human resource. In this department, they have staff that major in employee welfare, filing of documents allocate jobs as directed by the top management. Among others, all jobs cannot be done together by all staff at the same time, there is a need for division of labor to exercise specialization, the number of jobs executed for a day can be more meaningful when divided amongst staff in various departments than when every staff member is clustered for each of the job elements, one after another. Therefore, permanent duties are assigned to staff and they make daily reports on their performance. 2. Authority and Responsibility; “Authority is the right to give orders and the power to exact obedience. The distinction must be made between a manager's official authority deriving from office and personal authority, compounded of intelligence, experience, moral worth, ability to lead, past services, etc. In the make-up of a good head personal authority is the indispensable complement of official authority. Authority is not to be conceived of apart from the responsibility that is apart from sanction – reward or penalty – which goes with the exercise of power. Responsibility is a corollary of authority, it is its natural consequence and essential counterpart, and whosesoever authority is exercised responsibility arises.” (Fayol – Storrs 1949 pp.21) Authority, this refers to the right to give orders and power to exact obedience. Authority in most organizations is vested in the position held by the incumbent. This authority is referred to as positional power and is defined as the discretion to make decisions without having to obtain permission from any other member of the organization. This power is also referred to as decision making authority. This authority 9|Henri Fayol enables managers to get all activities under their jurisdiction to achieve the objectives of the organization. Fayol suggests that if employees are granted some form of formal authority in their area of specialization then they would feel part and parcel of the organization. This authority produces further responsibility. Responsibility is the obligation to undertake job activities given by the employer and accepted by the employee satisfactorily. Further responsibility results in higher worker efficiency and better performance of the organization as a whole. In the current management era, Heads of departments are responsible for the affairs of their departments and however have the authority to oversee operations in their departments. Each employee has the prerogative to make a decision all depends on the severity of the decision. However, certain decisions must be made by the heads of departments and if the classified information goes beyond the portfolio of the head of the department, then the general manager steps in. 3. Discipline; According to this theory, poor discipline results from poor leadership. On the contrary, it views that good leadership exists where both the managers and employees adhere to all the policies, rules and regulations governing all the activities of the organization. This principle views managers in their capacity as leaders as the moral compass of the organization. The employee in most cases will emulate the behavior of their managers. It, therefore, goes without saying that a trustworthy manager cannot supervise a dishonest group of employees and vice versa. Therefore good discipline in the organization can exist when good leadership is in place. “Obedience, application, energy, behavior, and [...] respect observed following [...] agreements between the firm and its employees [...]" (p. 22). Fayol goes on to say that [...] "the state of the discipline of any group of people depends essentially on the worthiness of its leaders” (p. 22). He notes that both managers and employees should honor their agreements. He also implies that managers can inspire or demand obedience and respect and that inspiration is the better of the two. (Fayol, 1949) Management is responsible for the way discipline is maintained in an organization. Discipline is often a part of the core values of an organization in the form of good conduct, respectful interactions, proper dress code, etc. Currently, there are sanctions and penalties for negative actions portrayed by employees and who are made to appear before a disciplinary committee pending the degree of default and such a committee is 10 | H e n r i F a y o l set up by the Human Resource to investigate the issue and there are strategies to enforce such which include; deduction of salaries, suspension, termination of appointment. 4. Unity of command; According to Fayol, for any action whatsoever, an employee should receive orders from one superior only. Such is the rule of unity of command, arising from general and ever-present necessity and wielding influence on the conduct of affairs. Should it be violated, authority is undermined, discipline is in jeopardy, order disturbed and stability threatened. A peek into predominant situations in most organizations these days where work is done in groups and teams, simply suggests that each group will have a coordinator or supervisor whom orders are gotten from. And, this coordinator is not the sole or overall manager. Studies have argued that this principle is rigid and needs modification, especially in consonance with current realities in many organizations. The feeling is that Fayol did not explicitly show if it means that only one person can give orders or whether two or more persons can give instructions/directives to employees but not at the same time. Currently, small organizations will show a unity of command as compared to larger firms with a greater number of tasks force, for example, an upcoming media house Metropol media may experience the unity of command compared to the Nation Media group. 5. Unity of direction; (Fayol, 1949, p. 25) suggests that there must be “one head and one plan” (i.e. one line of direction) for all of the activities that have the same objectives. "It is the condition essential to the unity of action, co-ordination of strength and focusing of effort." This principle still applies to management to date with no common direction there are no achievement goals every unit should work towards the common goal or objective to ensure organizational success. 6. Subordination of individual interests to the general interest; (Fayol, 1949) requires that the interest of the organization should prevail over the interest of one employee or one group of employees. Fayol (1949) notes that “ignorance, ambition, selfishness, laziness, weakness, and all human passions tend to cause the general interest to be (subjugated) to individual interest and a perpetual struggle has to be waged against them” (p. 26). It is claimed that this is one of the hard ways of pursuing organizational or corporate success. That the principle has run obsolete since employees work better when they are valued and given a reasonable sense 11 | H e n r i F a y o l of belonging. In present startup organizations or small businesses, it is observed that most employees tend to be after their interest over that of the organization and they tend to use it as a stepping stone to a better and bigger organization, it was also observed that besides the fact that they put their interests first they still are productive at their job. 7. The remuneration of personnel; (Fayol, 1949) is the “price of services rendered”(p. 26). The compensation of employees should be fair, based on the value of the employees, and an amount that would be satisfactory to the employees and the organization. He goes on to explain the types of remuneration (time, job, and piece rates; bonuses, profit-sharing, and none-financial incentives). In his book General and Industrial Management 1949, he concludes by noting that every mode of payment is likely to make the person more valuable and improve his/her life, and also inspire keenness on the part of employees at all levels. Remuneration should be deserved and determined on basis of the job role of employee, financial state of the organization, cost of living, etc. as this reduces tension at the workplace, increase productivity, reduce conflict and differences amongst staff and promote a synergized working environment. This has become a very key management issue in that governments have stepped in to protect citizens through unions and other labor laws and enactments. 8. Centralization and decentralization; refer to the extent to which decision making is concentrated at one particular level or is at successively lower levels in the chain of command. Fayol (1949, p. 33) notes that “the question of centralization or decentralization is a simple question of proportion [...] (and there is) an optimum degree for the particular concern”. He also suggests that there are advantages and disadvantages to both centralization and decentralization. Centralization of decision-making authority refers to a situation where authority is retained within the top management in an organization. The opposite is decentralization which is a situation where the same authority is delegated to subordinates. Fayol views that centralization or decentralization of decision-making authority depends on various factors such as the size of the firm and the philosophy of the top-level managers. He also concludes that large firms effectively make use of the centralization of authority in comparison to their smaller counterparts. Most large companies always have several Strategic Business Units which in a way form some sought of decentralization. They chose to utilize a more decentralized management style to ensure efficiency and 12 | H e n r i F a y o l effectiveness. It also reduces tasks that can be sub-divided to other top managers in the different states this can be seen in firms such as Total, KPMG, and G4S. 9. Scalar chain; “is the chain of superiors ranging from the ultimate authority to the lowest ranks, and [...] all communications should start from or go to the ultimate authority” (Fayol, 1949,p. 34). All the positions in the structure of an organization should be linked through the chain of command. Thus Employees should be aware of where they stand in the organization's hierarchy or chain of command. According to Fayol, “Organizations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates”. This has changed due to issues such as open-door policy a hierarchy of command has completely been re-invented to incorporate speed decision making within organizations. This a management tactic that has made managers more approachable and relatable to subordinates who will end up feeling like part of the organization. 10. Order; refers to material order “a place for everything and everything in its place” and human order “a place for everyone and everyone in his place” (Fayol, 1949, p. 36). The principle of order embodies the idea that everything and every person should be at the right time at the right place that and all the activities should be structured. The absence of order is chaos. If an organization maintains a policy of providing in every aspect of the organization everything needed to carry out the job in the right manner, there will be no interruption in the events of their business and it will promote increased productivity and efficiency. Most organizations have come up with guidelines or codes of conduct that help streamline activities and behavior. 11. Equity; “results from the combination of kindliness and justice” (and it involves) equality of treatment without “neglecting any principle or losing sight of the general interest”. (Fayol, 1949, p. 38). All employees must be treated as equals. When it comes to small businesses they have the drive to be successful organizations, so therefore they develop the habit of accommodating staff, making them feel at home, bolster communication links, maintain a more democratic style of management, share staff feelings, and identify with staff personal challenges as compared to large firms, which finds this a challenge due to a larger workforce. Management can tackle this issue by grouping employees into smaller units as Safaricom Kenya has, the workforce is sum 13 | H e n r i F a y o l mountable but all feel part of the organization and are treated fairly. This helps evade partiality, promote an employee when right, motivate and encourage employees who are weak and vulnerable. To further distribute equal and fair treatment amongst staff, train employees and mentor them on how well to go about the job, build an unbiased system and attitude toward employees, reward and punish employees based on their productivity, commitment, attitude toward civic virtue, etc. 12. Stability of personnel tenure; Fayol cautions that it takes time to “get used to new work and succeed in doing it well [...] assuming (the employee) possesses the requisite abilities”. Therefore, employees should be given time to learn their respective jobs and to succeed in the performance of them. (Fayol, 1949, p. 38) In the third world states stability of tenure is not a constant thing. Most human resource management teams will clearly state that they constantly have to recruit. It is the interest of a firm to reduce staff turnover since it cuts down the delivery time and enhances loyalty. Staff generally should be developed on the job, engage them in training sessions, conferences and workshops, mentoring,(constantly done by firms such as Starbucks, Multimedia and Google) and based on development and performance get increase in pay, etc. this will help the organization develop employees faster and by so doing developing the organization which can help keep the employee longer because they feel they are a vital part of the growth of the business and are driven by the purpose of the firm. 13. Initiative; According to Fayol, it refers to thinking out and executing a plan. It requires the power and freedom to propose and execute plans. Organizations encourage and reward the employees who possess the zeal and energy to create innovative ideas and take initiative to implement them. At this age, the staff has essentially become the idea-house and bedrock of organizations. Management should, therefore, encourage employee's initiative. It is practiced in modern-day organizations especially those rendering services, they urge employees to apply their initiatives in rendering quality services to their customers. However, there are always processes, procedures, and policies in place to guide the employees to ensure successful implementation and prevent abuse of the privilege. Take for instance Google, Apple, and Facebook, these are some of the companies that have implemented this principle. At Google, developers and engineers are given their own time and leisure to work out innovative ways that can be developed as products for google itself. The same goes for Facebook and apple as well. As the employees are encouraged to be innovative, the innovation level of these companies is high. 14 | H e n r i F a y o l As suggested by Fayol, a good company should always have an employee suggestion system whereby tangible initiative/ suggestion should be rewarded. 14. Esprit de Corps; is based on the concept that "union is a strength". Esprit de corps is necessary "to maintain high morale and unity among employees” (Fayol, 1949, p. 40). The team spirit between workers prevails coherence and harmony. It was observed startup or small businesses promote this principle very well in their organizations and make it a vital part of their success, they make it a culture to mark birthdays of staffs, and use that as an opportunity to connect with one another, in terms of business operations, they form committees to handle certain parts, involve every member in one decisional role or the other, throw in challenges on weekly bases to task every member of the organization and make them work together. Espirit de Corps promotes staff unity and cooperation. However, it does not eliminate the chances of conflict and disagreement amongst some staff members but it will be at a minimal as it is human to experience disagreements amongst oneself. In this case, strategies must be applied to ensure such conflicts and disagreements amongst staff don't affect the common goals of the organization. According to Fayol (1949), management should promote teamwork, especially in large organizations, if otherwise, it will be difficult to achieve organizational goals. It could also lead to a loss of coordination. He also suggests managers replace „I‟ with „We‟ in conversations with workers to foster team spirit as this gives rise to a spirit of mutual trust and belongingness among team members. Why Fayol now? Facilitates Organizational Structure Fayol talked about a hierarchical structure in which the top levels of management act as forceful leaders. While this was standard procedure in his mining company, the hierarchical structure is still the model for many small businesses today. Although more companies are adopting a flat structure, the top-down model as described by Fayol remains popular as a means of ensuring that decisions are implemented from the senior level to the rank-and-file. Promotes the Team Concept 15 | H e n r i F a y o l One of Fayol's lasting theories was the idea that employees should subordinate their private interest to the general interest of the company. This is a foundational theory of the team concept that has become so prevalent in many small businesses. Rather than having employees work individually on projects, many companies group workers with diverse skills and talents into a team. This helps shore up any weaknesses because employees with opposing talents work together to make up for each other's deficits. For example, a modern team could include an employee with an outgoing personality, an employee that is introverted and analytic, and an employee that can generate dozens of great ideas. Fayol also valued team spirit, which he called "esprit de corps." He believed that business leaders who cultivated a sense of common goals among their employees would find that their workers were more willing to share their knowledge with colleagues. Motivates Employees through Fair Compensation Leaders must compensate employees in a manner that motivates them to perform above standard. Salaries and wages are always a delicate subject, especially as it relates to gender pay equality. Fayol, however, went further than just talking about money, believing that non-monetary compensation was equally important. Today, it’s easy to see examples of that kind of compensation, such as awards handed out to outstanding employees, and company retreats in which management and employees interact as human beings without worrying about their status at the office. Henri Fayol and My Management Experience Henri Fayol's management theory is a simple model of how management interacts with personnel. Fayol's management theory broadly covers concepts. Today the business community considers Fayol's classical management theory as a relevant guide to productively managing staff. Fayol’s work in the early 1900s did not, and could not, encompass the various management theories that exist today. It was simply a beginning that was presented by a management practitioner who established principles and ideas that became the foundation of management theory, so almost any business can apply his theory of management. Management has evolved and with it, new issues positive and negative have come up. Utilizing the above analysis of Fayolism it is clear to see that most issues analyzed by Fayol in his book General and Industrial Management are still the same issues that managers and administrative departments face. A 16 | H e n r i F a y o l keen analysis of the 14 principles of management and we can see that organizations are still ensuring that these principles are applied in their daily running of activities. Fayol is correct in that all jobs cannot be done together by all staff at the same time, there is a need for division of labor to exercise specialization., the number of jobs executed for a day can be more meaningful when divided amongst staff in various departments than when every staff member is clustered for each of the job elements, one after another. Therefore, permanent duties are assigned to staff and they make daily reports on their performance. For example in my experience as a business development manager, I constantly had to divide marketing tasks amongst my team members and constantly monitoring the progress of this task by ensuring that the team directly reported to me on their daily activities. This made consolidation easier at the same time it made work efficient. One of the issues that I could point out that made division of labor tasking was the fact most team members felt that the tasks assigned to them were not included in their job descriptions thus not part of their work as described. Most organizations have dealt with this issue by ensuring that upon the appointment of an employee, the management offers a clear job description as well as clear cut roles to employees. They also solve this issue by provided training to employees this allows them to know what they are signing up for at the same time match the tasks to the remuneration package offered. With the division of labor there is order and at the same time, enables the organization to utilize its resources at its optimum. I can clearly say that Psychological Health Services one of the challenges that not only pulled the managements performance but also the overall company's performance was the lack of clear division of labor, lack of order, lack of equity and lack of unity of command. Although the institution is renowned for its mental health service provision it severely lacks in terms of management. Fayol insisted on the need to remunerate fairly, this is still a management issue that has transcended throughout generations especially in the third world countries. Personally having worked with a Chinese corporation, I can attest to the fact that the treatment of employees was based on racial groupings rather than equity or work done. Team spirit lacked and the organizational culture was that of constant separation between Chinese workers and African workers. This deeply affected communication, especially between line managers and subordinates and this, meant that unity in direction was just but a word passed around in board meetings. 17 | H e n r i F a y o l While undergoing, an internship at the ministry of foreign affairs, I had an opportunity to see some of Fayol's 14 principles at work under the leadership of Amina Mohamed. She quickly moved from centralization to decentralization giving more authority to the middle management to handle issues rather than forwarding all issues to her office for approvals then forwarding back to specific departments. She advocated for equity and involvement of all including interns when it came to departmental issues. For example, embedded in the Great Lakes Region department, I had a very hands-on internship that exposed me to the world of diplomacy. And from it, I drew key achievements in my life. One of the issues that I could probably point out is the fact that the approach to authority and responsibility has evolved since it has been affected by the ever-changing leadership styles. But it is safe to state that Fayolism has stood the test of time and any management team or manager must implement some key functions such as Planning; with no plan there is no direction, Organizing; everything must come together to ensure objectives are met and definitely coordination of every element to ensure efficiency no organization or state can be run without acknowledging the key factors that drove Henri Fayol's theory of management. Fayolism Criticized One of the disadvantages is that Fayol's theory was developed based solely on his own managerial experiences, which means he didn't undertake any further research. As a result, he wasn't able to fully develop a full understanding of Fayolism advantages and disadvantages, believing strongly that his system only produced benefits. Another thing to remember when considering the advantages and disadvantages of administrative management is that some theories are prisoners of the era in which they were developed. For example, in Fayol's day, authority and control over employees were the norms. That isn't the case in modern society, which means you have to revise some of Fayol's theories to make them more applicable to current standards. Management Oriented Theory: The administrative management theory is management-oriented. It does not give much attention to the problems of the workers and the administrative management theory does not give any importance to informal organization or groups. It gives importance only to the formal organization structure. Most critics consider it to be too formal. When it comes to the function of command and control counter views consider that excessive command and control will harm personal satisfaction self-respect. They continue to state that if the managers can 18 | H e n r i F a y o l separate their managerial work from the actual work clearly, they can have the energy to focus on the target of the development of their enterprises and deal with the public relations outside the companies, For example, The branches of Nokia in China adhere to the strict command and control. Under this circumstance, the managers cannot handle the managerial work since they have to help employees to deal with lots of trivial problems. After discussion, they changed the operation strategies and set up the system of "hierarchical transmission of orders", in which the employees in the lower class should report their work to his/her managers. In conclusion Henri Fayol's "14 Principles of Management" have been a significant influence on modern management theory. His practical list of principles helped early 20th century managers learn how to organize and interact with their employees in a productive way. Although the 14 Principles aren't widely used today, they can still offer guidance for today's managers. Many of the principles are now considered to be common sense, but at the time they were revolutionary concepts for organizational management. Fayol's valuable concepts in management can be incorporated usefully in the present-day analysis of management science. His emphases on the unity of direction and command, non-financial incentives, decentralization, coordination have greater relevance even today “Every employee in an undertaking, then, takes a larger or smaller share in the work of administration, and has, therefore, to use and display his administrative faculties. This is why we often see men, who are specially gifted, gradually rise from the lowest to the highest level of the industrial hierarchy, although they have only had an elementary education. But young men, who begin practical work as engineers soon after leaving industrial schools, are in a particularly good position both for learning administration and for showing their ability in this direction, for in administration, as in all other branches of industrial activity, a man’s work is judged by its results.” (Fayol, 1923) "Administration, which calls for the application of wide knowledge and many personal qualities, is above all the art of handling men, and in this art, as in many others, it is a practice that makes perfect." (Fayol, 1923) 19 | H e n r i F a y o l References Archer, E.R. (1990), “Towards a revival of the principles of management”, Industrial Management, Vol. 32 No. 1, pp. 19-22. Armstrong, M. (1990), Management Process and Function, Short Run Press, Exeter. Bakewell, K.G.B. (1993), “Information: the seventh management function”, Information and Security Management Journal, Vol. 1 No. 2, pp. 29-33. Bartol, K., Martin, D., Tein, M. and Matthews, G. 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