Henry Fayols Principles of Management - Assignment Example

Henry Fayol’s Principles of management Division of labor and specialization. This principle holds that the employees of an organization should divide the organizational tasks to specific individuals or groups. This will help the employees to be more specialized and efficient. In a hotel, there will be chefs, cashiers, cleaners and mangers to enhance the effectiveness. Scalar chain. The sequence of authority from top management to the lowest rank employees represents a scalar chain. Communication and commands should follow the chain unless where the chain is creating delay. Cross communication should be allowed if there is consensus amongst all the parties. Equity. There should be fair and equal treatment to all employees by the management. In an organization, the rules and regulations should apply equally to all personnel. There should not be any form of discrimination against any of the employee or to favor any of them. Authority. The managers of any organization should be in a position to give orders and ensure that all orders are adhered. For instance, the instructions and rules given by the management should be adhered and respected by all employees. Discipline. Employees of an organization must respect the rules, regulations, and the laws that govern the organization. This will ensure there is clear cooperation between the management and employees. The employees must follow all the instructions, and be responsible in all the activities allocated to them. Unity of command. There should be a defined source of orders and information in an organization. The source of the orders and information should come from the highest level of management to the employees at the lowest level. Unity of direction. Any organization should have clear objectives that are to be achieving by the collective activities of all the employees in the organization. These objectives should be achievable. All the organization’s activities should be tailored towards the achievement of the objectives. Subordination of individual interest to the general interest. The objectives of the organization must supersede the objectives of each individual. All the employees in an organization should have the same objectives of achieving the overall organizational goals. Their objectives should not prevent the achievement of the organization goals. Remuneration. All the employees in an organization must get adequate rewards for their service in the organization. The input of an employee should be equal to the outputs derived. There should be no exploitation of any employee. Centralization. This is the degree of subordinates’ involvement in decision making process. There should be thorough consultation amongst al the individuals so that the decisions do not affect the operation of any employees. Order. All employees and materials should be in the right place at the right time doing the right thing. The organization should set clear procedures and responsibilities to ensure that there is clear operation in different activities of the organization. Stability of tenure. There should be adequate personnel in an organization there should be no overstaffing or understaffing although there should reliable source of personnel in case there is a vacancy. Initiative. Employees who are allowed to coordinate and carry out plans will exert high levels of effort. Spirit de corps. Promotion of team work spirit will build harmony, unity and cooperation within the organization. The employees in an organization should be placed in groups so as to coordinate their activities and make their work easier. Process of decision making 1 Define the problem. This involves identifying the decision that will help in the attainment of the organizational objectives. The problem may be short term or long term. 2 Identification of limiting factors. The decision maker should analyze the ideal resources that are required to implement the decision that is to be made. The manager must have adequate information, personnel, time, supplies and equipment. The manager should also take into account the internal and external factors that will influence the decision. 3 Develop alternative courses of action. The management should brainstorm the various courses of actions that can be used to solve the prevailing problem. Each course of action should be evaluated with the resources available, and the results to be derived. 4 Analyze the alternatives. The manager should analyze the various alternatives to ascertain their merits and demerits after implementation. The alternatives should also be evaluated in terms of Feasibility, effectiveness and consequences. 5 select the best alternative. The management should choose the course of action that most suitably helps the organization in the attainment of its objectives. The alternative should be easy to implement and should yield the desired results. 6 implement the decision. This is putting into action the chosen course of action. The decision should be implemented at the right time. 7 control and evaluation. This involves comparing the planned results and the actual results. If there are any deviations from the planned results, the manager should make adjustments so as to cover for the deviation. 8 feedbacks. The manager should communicate the effects of the decision to all the interest groups. Steps used in planning. 1 Establishment of goals and objectives. The goal and the objectives provide a rationale of the organization existence. The objectives and the goals should be clearly stated and achievable. All the activities of the organization should be centered towards the attainment of the set goals and objectives. 2 Establishment of the planning premises. These are the assumptions that are likely to have an impact of future. It is concerned with the various events and circumstances that may lead to deviation of planned results. The management also sets up mechanism that will help to avoid the obstacles. 3 Choice of alternative courses of action. When there are objectives to be achieved, there are many courses of action that can yield the desired results. The alternatives courses of action are deeply analyzed to determine the best course of action that will enable achievement of the planned results. The planner should use various quantitative methods to help ascertain the stability of the alternative. 4 formulation of derivative plans Derivative plans are those that help in the achievement of the main plan. They are the short term plans that will determine the movement of the organization in realizing its set goals and objectives. The derivative plans indicate the time sequence and schedules for achieving various goals. 5 securing co-operation After objectives and the courses of actions have been determined, the manager should allocate all the activities to various employees. There should be proper training so as to instill confidence in the employees. 6 Appraisal of plans This helps the management to detect any deviation from the planned results. It is done based on the information and feedback from the involved personnel. Importance of planning It helps the organization to adapt to future eventualities. It helps to crystallize the goals and objectives. It helps create relationships in the various activities carried out in the organization It enables the company to remain competitive in its industry. Adequate planning helps in reducing the pressures experienced during an emergency situation. It ensures more productivity in the organization by use of the limited resources available. It helps in the efficient allocation and utilization of the scarce resources It increases the effectiveness and efficiency in the manager. It reduces mistakes and oversight. It helps determine the future probable mistake and make arrangements to contain them. Environment that affect the management Government. The government of UAE is concerned with the taxation of the organization and setting the rules and regulations that govern the organization. The management must ensure that the organization is compliant with the rules and regulation. It must also ensure that they pay the full taxes when they are due. Owners. The management should maximize the owners’ wealth and give them their best returns for their investments. The management must also involve the owners in decision making through consultation. Customers. The customer requires high quality goods and services at a fair price. The managements must always ensure that customers have an adequate supply of goods and services. Suppliers. The management must ensure that they pay the suppliers fair price for the goods they supply. They must also ensure that the payments are timely, and there is a good treatment in case there is change in supplier. Employees and employees’ union. The employees should get fair rewards for their services and the working conditions should be good. The management must ensure that all the employees’ needs are taken into consideration. Competitors. These are organizations that operate in the same industry producing similar services and goods in the same market. They are the main threats to the organization and therefore management must make decisions that minimize competition against the organization. This is the bench mark that the management uses to measure their strength and weakness in the market. WORK CITED Terry, G. R. (1977). Principles of management (7th ed.). Homewood, Ill.: R.D. Irwin. Read More