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Understanding Historical Administrative Theory
© GettyImages Organizations work best when everything is in balance. As your career progresses, you may find you do fewer technical tasks and spend more time guiding a team or planning strategy. While that's often a given today, in the 19th century most companies promoted the best technicians. But Henri Fayol recognized that the skills that made them good at their jobs didn't necessarily make them good managers. Who Was Henri Fayol?Fayol was an engineer who worked his way up to become manager of the Compagnie de Commentry-Fourchambault-Decazeville mining company in France, at the tail end of the industrial revolution. Under his watch, the struggling firm prospered. He wrote, "When I assumed the responsibility for the restoration of Decazeville, I did not rely on my technical superiority... I relied on my ability as an organizer [and my] skill in handling men." [1] Fayol's 14 Principles of Management identified the skills that were needed to manage well. As well as inspiring much of today's management theory, they offer tips that you can still implement in your organization. Fayol also created a list of the five primary Functions of Management, which go hand in hand with the Principles. What Is Administrative Theory?Fayol called managerial skills "administrative functions." In his 1916 book, "Administration Industrielle et Générale," he shared his experiences of managing a workforce. Fayol’s book – and his 14 Principles of Management – helped to form what became known as Administrative Theory. It looks at the organization from the top down, and sets out steps for managers to get the best from employees and to run a business efficiently. Note:Administrative Theory is characterized by people "on the ground" who share personal experiences, improve practices, and help others to run an organization. This contrasts with the Scientific Management school led by Frederick Taylor, which experimented with how individuals work to boost productivity. What Are Fayol's 14 Principles of Management?It was the reality of Fayol's day-to-day managing, seeing what worked and what didn't, that informed his 14 Principles of Management. By focusing on administrative over technical skills, the Principles are some of the earliest examples of treating management as a profession. They are:
Get the Free Newsletter!Learn new career skills every week, plus get a bonus Be a Successful Manager Checklist, free! Read our Privacy Policy What are Fayol's Five Functions of Management?While Fayol's 14 Principles look at the detail of day-to-day management, his Five Functions of Management provide the big picture of how managers should spend their time. They are:
Is Fayolism Still Relevant Today?
But, as Daniel Wren writes, "Without the contributions of these pioneers, such as Fayol, we would probably be teaching industrial engineering, sociology, economics, or perhaps ergonomics to those who aspire to manage. To be doing so would push us back to the 19th century, when technical know-how reigned supreme as a path to managerial responsibility." [5] And if you look closer, you'll discover that many of Fayol's points are fresh and relevant. Such as:
Criticism of Fayol's Principles of ManagementThat's not to say that everyone is a fan of Fayol's Administrative Theory. Some detractors claim that: It's unscientific – Fayol's critics question whether you can ground a theory in the observations of one person. But Fayol stressed that he was laying a foundation for others to build on. This is just what Luther Gulick and Lyndall Urwick did in 1937, when they used Fayol's ideas to form their POSDCORB model for working efficiently. And research shows that more modern critics of Fayol – such as Mintzberg, Kotter and Hales – in fact use many of his ideas. It's too prescriptive – If some of Fayol's Principles look dated, there's a reason for that. Many critics argue that one set of Principles can't govern all managers. In fact, Fayol wrote that his list was "incomplete," and that the Principles were flexible and adaptable. Today, academics have shown how Fayol's work can be updated to complement modern management theorists, such as Porter. [2] It's cold and inhuman – Critics of historical management theories point to an emphasis on efficiency over the social and psychological needs of workers. But managing with kindness, instilling a sense of initiative, and building morale reveal a level of consideration for workers that was enlightened at the time. Key PointsFayol highlighted the differences between managerial and technical skills. What's more, he was one of the first people to recognize that "manager" is a profession – one whose skills need to be researched, taught and developed. Fayol's 14 Principles and Five Functions helped to form Administrative Theory. It was progressed by workers and managers alike – non-academics who shared and learned from their experiences. Which principle of management is being followed by the proper placement of resources in the organisation?The principle of "right place for everything and for every man" should be observed by the management. To observe this principle, there is need for scientific selection of competent personnel, correct assignment of duties to personnel and good organisation.
What are the principles of organizational management?The four main principles of organizational management are planning, organizing, leading, and controlling.
Which management principle states that work should be divided so that each person will perform a specialized portion?Division of Work – This principle of management is based on the theory that if workers are given a specialized task to do, they will become skillful and more efficient in it than if they had a broader range of tasks. Therefore, a process where everyone has a specialized role will be an efficient one.
What are the 5 principles of management?At the most fundamental level, management is a discipline that consists of a set of five general functions: planning, organizing, staffing, leading and controlling. These five functions are part of a body of practices and theories on how to be a successful manager.
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