Henri Fayol, Theory of Administration
A. American early focus is worker productivity; in France, the focus is organization and its administration by engineer Henri Fayol, director of Comambault, the French mining company.
B. 1918, Industrial and General Administration - translated into English in 1930's to impact US management in organization theory
C. "Fourteen principles” of organization identified general rules that successful organizations ought to follow:
1. Division of work – work and tasks should be perform by people specialized in the work and similar tasks should be organized as a unit or department.
2. Authority – delegated persons ought to have the right to give orders and expect that they be followed.
3. Discipline – workers should be obedient and respectful of the organization
4. Unity of command – employees should receive orders from only one person with authority
5. Unity of direction – the organization and employees are dedicated to one plan of action or set of objectives.
6. Subordination of individual interests to the general interest – organizational conflict should be limited by the dominance of one objective.
7. Remuneration – although Fayol provides no guidance on pay, the organization must recognize the economic value of employees and that their economic interests are important.
8. Centralization – whether an organization should be centralized or decentralized depends upon such factors as communications and the importance of who should make the decision.
9. Scalar chain – authority in an organization moves in a continuous chain of command from top to bottom.
10. Order – everything, people and resources, has a place that it belongs.
11. Equity – fairness is important in management-employee relations
12. Stability of tenure of personnel – turnover is disruptive; shared experience is important
13. Initiative – Workers are... [continues]
A. American early focus is worker productivity; in France, the focus is organization and its administration by engineer Henri Fayol, director of Comambault, the French mining company.
B. 1918, Industrial and General Administration - translated into English in 1930's to impact US management in organization theory
C. "Fourteen principles” of organization identified general rules that successful organizations ought to follow:
1. Division of work – work and tasks should be perform by people specialized in the work and similar tasks should be organized as a unit or department.
2. Authority – delegated persons ought to have the right to give orders and expect that they be followed.
3. Discipline – workers should be obedient and respectful of the organization
4. Unity of command – employees should receive orders from only one person with authority
5. Unity of direction – the organization and employees are dedicated to one plan of action or set of objectives.
6. Subordination of individual interests to the general interest – organizational conflict should be limited by the dominance of one objective.
7. Remuneration – although Fayol provides no guidance on pay, the organization must recognize the economic value of employees and that their economic interests are important.
8. Centralization – whether an organization should be centralized or decentralized depends upon such factors as communications and the importance of who should make the decision.
9. Scalar chain – authority in an organization moves in a continuous chain of command from top to bottom.
10. Order – everything, people and resources, has a place that it belongs.
11. Equity – fairness is important in management-employee relations
12. Stability of tenure of personnel – turnover is disruptive; shared experience is important
13. Initiative – Workers are... [continues]
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