Question: Study an organization/business applying Fayol’s management principles.
Organisation Selected: Nestle.
Henri Fayol’s 5 Management Functions: An Introduction.
Henri Fayol is said to be the ‘father of the school of Systematic Management’ since he is renowned for forming a theoretical foundation for a managerial educational program which resulted from his experience as a successful managing director at a mining company. At that time, there was no formal training for managers, and Fayol believed that with the increasing complexity of organizations, more professional management is needed.
Fayol's legacy lies in his five Principles of Management which focused on the vital relationships between personnel and its management.
The Five Functions are:
The first function of management involves drawing up plans of actions that combine unity, efficiency, continuity, flexibility and precision with respect to the firm’s resources, type and significance of work and future trends and goals which the firm envisions to achieve. Creating a plan of action is the most difficult of the five tasks and requires the active participation of the entire organization. Planning must be integrated at all levels and with different time horizons.
The second management function revolves around the provision of capital, personnel and raw materials for everyday running of the business, and building a structure to match the tasks of the firm. The number of employees in an organization will determine the organizational structure for that firm. An increase in the number of functions expands the organization horizontally and promotes additional layers of supervision.
The third management function involves optimizing work from all the employees for effective results benefitting the whole organization. Successful managers have personal integrity, communicate clearly and base their judgments on regular audits. Their thorough knowledge of personnel creates unity, energy, incentive and loyalty and eliminates incompetence.
The fourth management function is based on integrating, unifying and harmonizing activities and efforts of different departments in an organization. Fayol recommended weekly conferences for department heads to solve problems of common interest.
The last management function involves identifying weaknesses and mistakes through controlling feedback, and linking activities with plans, policies and instructions efficiently and effectively through co-ordination and control methods.
Nestle: An Introduction.
Nestlé is the world's leading Nutrition, Health and Wellness company, committed to increasing the nutritional value of their products while improving the taste. Nestle achieves this through its various food brands and with initiatives like the Nutritional Compass and 60/40+. Since Henri Nestlé developed the first milk food for infants in 1867 and saved the life of a neighbor’s child, the Nestlé Company has aimed to build a business based on sound human values and principles. While Nestlé Corporate Business Principles will continue to evolve and adapt to a changing world, its basic foundation is unchanged from the time of the origins of the Company, and reflects the basic ideas of fairness, honesty, and a general concern for people. Nutrition, Health and Wellness is Nestlé’s strategic direction By bringing together all of its global R&D resources, Nestlé is able to provide high quality, safe food solutions for consumers worldwide – whether this is in terms of nutrition, health, wellness, taste, texture or convenience. Above all, Nestlé brings to consumers products that are of the highest quality and the organization believes that safety is non-negotiable. Nestlé is a human Company providing a response to individual human needs throughout the world with specific concern for the well-being of both its consumers and...
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