Influence of lifestyle on consumption of resource and energy PDF

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All energy sources have some impact on our environment.  Fossil fuels (nonrenewable energy)—coal, oil, and natural gas—do
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wind energy, biogas, geothermal) sources by most
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General Administrative Theory for Management System

HENRI FAYOL’S 14 PRINCIPLES OF MANAGEMENT General Administrative Theory for Management System

Department of Management A Group Report on Fayol’s 14 Principles of Management

Course Name: Organizational Management Course ID: MGT212 Section:25

Submitted to: Md. Mofassel Hossain (Mof) Lecturer, Department of Management, North South University.

Description of the Group Members Group-06 Name

ID

Rubiyeat Irfan Sabab

1912056630

Shafayat Asif Akbar

1911403630

Zawad Ammar

1821992027

Maliha Sharmin

1912636630

Mohammad Uddin

1831919630

Nasif Murad

1912695630

Mashiyat Borno

1911827630

TABLE OF CONTENTS

Who is Henry Fayol? Henri Fayol (1841-1925) was a French coal mine engineer and modern management theoretician. His scientific management theory creates the base for business administration and business management. In the academic world, his theories known as Fayolism. That’s why he is known as the father of general management. Fayol tried to build a theory of management which could be used as a basis for formal management education and training. Henri Fayol was the first person who identified the four functions of management (planning, organizing, leading/directing, controlling) and proposed the 14 principles of management. His principles of management and research were published in the book “General and Industrial Management.” (1916).

Picture 1- Henri Fayol

Picture 2- Book "General and Industrial Management"

History of the 14 principles of management In the last century, organizations already had to deal with management in practice. In the early 1900s, large organizations, such as production factories, had to be managed too. At the time there were only few (external) management tools, models and methods available. Then the scientist Henri Fayol came with the first foundations were set down for modern scientific management. These conceptions, also called principles of management are the fundamental factors for successful management. Henri Fayol pursued this comprehensively and, as a result, he adjusted the 14 principles of management. Henri Fayol’s principles of management and research were published in the book ‘General and Industrial Management’ (1916).

Henri Fayol's 14 Principles of Management

Fayol’s 14 Principles of Management 1. Division of Work The first principle of the Fayol’s principle management is “Division of Work”. It means specialization increases output by making employees more efficiently. Actually, what is division of work firstly? The division of work is the course of tasks assigned to and completed by a group of workers in order to increase more efficiently. It is also known as division of labor it reminds of that for every one job, there can be any number of processes that must occur for the job to be completed. According to Henri Fayol, specialization promotes efficiency of the workforce and increase productivity. This principle is applicable to both technical and managerial activities in the organization. It also creates less wastage of resources. If the principle is not implemented, there will be lack of specialization that means people will not work efficiently if they are not assigned in their designated department and working process is hampered with lots of wastage of resources.

Division of Work

Example: First of all, “Division of Work” brings specialization & improves efficiency. So,  Whole should not be assigned to 1 person.  Whole work small units.  1 person equals one unit of work (by his or her capability, qualification & experience)

Like, Furniture manufacturing company will be dividing their work like – a) Cutting wood will be in one section b) Joining is another section c) Polishing would be another section d) Finish touch is another one So, division of work will be divided and every expertise can work independently.

2. Authority and Responsibility “Authority” means power to take decisions. In order to get things done in an organization, the manager or the leader of the entire management of the organization has the authority to give orders to the employees. Being the part of the authority, the manager also has to adopt

responsibility. In this principle, Fayol considers authority as a combination of official authority deriving from a manager’s official position and personal authority, which is compounded of vast qualities like intelligence, experience, moral worth, past services, etc. According to Henri Fayol, the accompanying power or authority provides the right to the manager to give instructions and orders to the subordinates. On the other hand, the responsibility of the manager can be traced back from performance and therefore it is necessary to make agreements about this. In other words, authority and responsibility go together and they are two sides of the same coin. Authority without responsibility results in irresponsible behaviour. With such authority comes responsibility, imagine if you were in an company as a head of the production manager and you took a call with regards to how to increase the production of product, in the end if the production does not increase, you have to take ownership of the failure. You can not pass the buck. Thus, when the person takes responsibility, he also takes wise decisions.

Authority and Responsibility

Example: As an example, we can choose “Kentucky Fried Chicken”, more commonly known to us as “KFC”. It is an American fast food chain that specializes in fried chicken and it is famous by all over the world. Among all of the restaurants, it is the second-largest restaurant chain in the

world. Because of one of the largest franchisees in the world, the KFC has a top-level manager for their entire management system and the executive board gives him the right to control over the employees that means he or she can give orders to the employees as well as has a responsibility regarding the work entrusted upon them. It can be said that the principle of “Authority” is actually being followed by the company.

3. Discipline Discipline is third among the 14 principles. This is about sincerity and obedience towards rules and regulations. To run an organization or anything one must need a plan and a goal. To accomplish the plan and to gain the goal there is discipline which must be obeyed by all. All employees must obey the rules of an organization and an organization must need discipline. Discipline helps in smooth functioning and improves efficiency and bring orderliness between workers and managers. It is the principle which is very much essential and important for an organization. The success or failure of a company depends on it. If it is maintained, the system can run without facing any complex scenarios. But if it is not maintained as it should be, then it will create various problems among the workers which might result in failure. Moreover, there will be an unhealthy relationship between managers and employees and can lead to chaos. After all observations, we can say that, this management principle is seen as the oil to make the engine of an organization run smoothly.

Importance of Discipline in Management System

Example: My uncle used to run a small business. But he had to close it down in a couple of months. It was because he could not establish discipline among the workers. As a result, goals were tough to achieve which led to closing down the business. If they could establish discipline, the business could have been successful. But on the other hand, Daraz is an online shopping system and it succeeded because it had maintained discipline. The delivery, quality control of employees is maintained in a disciplined way. As a result, people liked the system as it helped them in saving time.

4. Unity of Command This is the fourth of 14 principles which states that an employee of the organization should receive orders from one superior only. Unity of command provides that an employee is responsible to only one superior, who in turn is responsible to only one superior, and so on up the organizational hierarchy. This is the true even if the top of the organization is led by a group of people. If tasks and related responsibilities are given to the employee by more than one manager, this may lead to confusion which may lead to possible conflicts for employees. That’s why this principle used to be avoid chaos and confusion. The principle of unity of command is applied throughout the world today in organizations ranging from the military, government bureaucracies and companies, from the small business all the way up to multinational corporations. Learning about unity of command will help you understand how a great many of private and public organization operate and many make you a better employee or manager. Moreover, by using this principle, the responsibility for mistakes can be established more easily and makes a clarity among relationships of superior and employee.

Unity of Command

Example: Imagine you are the CEO of a technology firm in Silicon Valley while the board of directors of your company governs the policy making and strategic planning, under the concept of unity of command, you do not answer to all members of the board, but only the chairman of the board. Let’s take a minute and climb a corporate ladder to demonstrate how unity of command works from the bottom up. Imagine that you are a new systems analyst for the technology company in Silicon Valley. For better or worse, you are at the bottom rung and you supervise no one. However, you do answer to our unit supervisor, who answer to her department manager. The department manager answers to the vice president of operations, who answer the CEO. The CEO answer to the chairman of the board of directors.

5. Unity of Direction This management principle basically means that one head and one plan for a group of activities with the same objective. In other word unity of direction refer to activities aimed at the same objective should be organised so that there are one plan and one person in charge. It is all about focus and unity. All activities must be carried out by one group that forms a team. There are some positive effects of this principle. First of all, it ensures unity of actions. Secondly, it helps in coordination to make any plan successful and use the employees more fruitful. Moreover, it also facilitates achievement of goals. If this principle is not implemented, then the organization may face some problems. The first one is there will be duplication of work & wastage of resources because there is a more functional head and if the manager will report to those functional head and too many directions will be received. Also, there will be a lack of coordination and failure in achievement of those goals.

Unity of Direction

Example: For an example, suppose there is a company “A” and the authority of the company from the CEO level to the executive level should be moving towards one direction. Then all of the employees of the company will work in any plan based on one and unique decision. It will be very helpful for them because if they face any problems in future, they can report only one superior and his/her guidance brings in the work or plan more efficiency. From this example, we can understand that if growth is the direction you are moving to, then a single executive to the CEO of the company should be performing in a manner which brings growth for the company

6. Subordination of Individual Interest Basically, it means that the interest of the organization is above the interests of the individual and the group. It can only be achieved when managers in high positions in the organization set an example of honesty, integrity, fairness and justice. It will involve an attitude and a spirit of sacrificing their own personal interests whenever it becomes apparent that such personal interests are in conflict with organizational interests. In short, the general interest of the organization must be served and not personal interest and it should be applied to all levels of the entire organization, including the managers.

Subordination of Individual Interest to General Interest Example: For an example, your aim is to earn money, your colleagues aim might be to become the highlighted employee to your superior. So, if you are made to understand the fact that if the organization as whole prosper than each individual working in an organization would grow if the organization is doing well than your aim which is to earn more money might also be fulfilled and your colleagues aim to become the highlighted employee to your superior would also get fulfilled.

7. Remuneration Motivation and productivity are close to one another as far as the smooth running of an organization is concerned. This seventh management principle of the 14 principles of management argues that the remuneration should be sufficient to keep employees motivated and productive. So, we can say that remuneration is another important principle. There are two types of remuneration. The first one is “non-monetary” (a compliment, more responsibilities, credits) and “monetary” (compensation, bonus or other financial compensation). Ultimately, it is about rewarding the efforts that have been made towards the organization. Sometimes discipline or the other principles cannot help the development of a company on its own. Remuneration must be there in order to properly develop a company. The staffs must be inspired and motivated. They should be paid properly for their hard works. They must not feel that they are being underpaid. The owner should create a friendly motivational environment so that the staffs do not face difficulties. Even if they do, they will be able to solve it easily. But if the staffs are not motivated and fairly paid, then they might lose interest and join rival companies. This can be prevented by remuneration. Employee

satisfaction depends on fair remuneration for everyone. So, every company should follow this principle.

Example:Remuneration (Fair wages should be given to all employees) This principle applies for Daraz online shopping system. The staffs of Daraz are motivated and inspired and also fair in employee’s payment. So, they do their jobs properly. If they were not motivated and fairly paid, then they would have shifted to another company causing Daraz to be out of business. So, it is a must to have this principle in any company.

8. The Degree of Centralization Centralization means captivating power within a specific authority. In case of management, when the power of authority, decision making is confined to top management. Seniors instruct their subordinates and the subordinates are bound to complete the work as per the instructions. This ensures quality of the work. Because in some organizations the quality remains at risk if it is not totally controlled by seniors. When the subordinates are less enlightened about the given activity, this can be needed. Centralization is thought to be essential in small- scale organizations which have lack of resources and finance. Also, when an organization is very huge it can be risky to give decision making power to low level managers, the higher authority gets less opportunities to evaluate their work so it is better if the decision is made by higher authorities themselves. So, this principle facilitates quick decision making and avoid delay in operations and optimal decision can be taken in core matters of the organization.

Centralization Example: For example, KFC is a centralized organization. All the decisions are taken by the upper level without involving their lower level. So, when they need any further modifications or improvements their superior authority gives the instructions to all the employees and it is implemented to the whole of the company. They can also solve the problems quickly regarding the product issue and bring efficiency to the whole company. All the workers and managers are obedient to the rules and regulations and that’s why there will be no chaos create to manage the whole company.

9. Scalar Chain Scalar chain means the chain of authority & communication- runs from top to bottom. In every organization, employees should be aware of where they stand in the organization’s hierarchy, or chain in command. The ‘hierarchy’ presents itself in any given organization. This varies from senior management (executive board) to the lowest level in the organization. Henri Fayol ’s “hierarchy” management principle states that there should be a clear line or chain in the area of authority (from top to bottom and all managers at all levels). So, the scalar chain used as a line of authority, a chain of superiors from the highest to the lowest ranks. The scalar chain theory provides a model in management system called “Gang Plank” that is for example if ‘3’ has to communicate ‘C’ who is at the same level of authority but in the opposite site then he/she has to transverse the route 3-4-5-Z-E-D-C. There are some reasons why every management system needs scalar chain. Because of scalar chain, there is a

smooth flow of communication running from top to bottom authority and unity of command followed. Again, it avoids confusion of dual subordination. If the scalar chain is not implemented in the management system then the entire organization will be affected by several problems like multiplicity of command, lack of clarity, and miscommunication can be happen among the authorities.

Example:

Scalar Chain & Gang Plank

We all know the “Apple” which is an American multinational technology company that designs, develops and sells consumer electronics, computer software. It is considered one of the biggest four technology companies alongside Amazon, Google, and Microsoft. Apple has a hierarchy organizational culture that is a top down organizational structure that demonstrates who reports to whom. That’s why there is a clear line made among the authorities. Moreover, the chain made by the higher officials can not be broken. Each and every employee has to report their immediate higher authority for getting any decision. The top authority gives the direction to all other employees whose are in the low chain. Even like if any authority who wants to communicate with the same level of authority, he/she has to report other top-level authority. Therefore, scalar chain is implemented in the company.

10. Order In management, the word ‘Order’ does not mean any command but is used in different context. Order means right arrangement of things and activities. In other words, order is a normal, correct, or fit condition. This principle states that there should be a proper order for everything. According to this tenth principle of the 14 principles of management, employees in an organization must have the right resources at their disposal so that they can function properly in an organization. In addition to social order (responsibility of the managers) the

work environment must be safe, organized, clean and tidy. In every organization there should be a fixed place for everything to facilitate smooth working and avoid wastage of resources. This principle is very important for any organization as an effective order decides the overall working, efficiency and effectiveness of the organization. If an order is maintained for each and every resource then there will be no confusion and delay in working and thus this also helps in eliminating the wastage of time, resource and efforts. Consequently, it also helps in controlling the use of financial resources. According to Fayol, every enterprise should have two different orders- Material Order for Physical Resources and Social Order for...