MBA I Semester

MANAGEMENT CONCEPTS AND ORGANISATIONAL BEHAVIOUR

Mr. Kartikeya Singh

Assistant Professor, School of Management Sciences, Varanasi

kartikeya@smsvaranasi.com

II. Management practices from past to present,

Classical Approach – Fayol’s Administrative Management.
 Syllabus Unit I
I. Fundamentals of Management

II. Management practices from past to present,

III. Different levels of management,

IV. Managerial skills and

V. Managerial Functions,

VI. Case Studies

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 Syllabus Unit I
VII. Planning- Objective of planning,

VIII. Planning process,

IX. Types of planning,

X. Types of plans,

XI. Management by Objective,

XII. Decision-making- types,

XIII. process & techniques,

XVI. Case Studies.

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 II. Management practices from past to present,
Classical Approach – Fayol’s Administrative Management.

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Fayol’s Administrative Management

Real Father of Modern Operational Management theory was French Industrialist Henry Fayol.

His contribution were first published in book form titled “Administrative Industrielle at Generale” in French
Language, in 1916.

Its English version was published in 1949 in the United States of America.

He has used the term ‘administration’ instead of ‘management’ emphasizing that there is unity of science of
administration.

For him, administration was a common activity and administrative doctrine was universally applicable.
 Fayol’s Administrative Management

Fayols found that activities of an industrial organization could be divided into six groups:

Technical – related to production

Commercial – buying, selling and exchange

Financial - search for capital and its optimum use.

Security – Protection of property and person

Accounting – including statistics

Managerial – Planning, organizing, command, coordination and control.

Fayol’s Administrative Management

Fayol has divided his approach of studying management into three parts

Managerial qualities and training

General principles of management

Elements of management
Fayol’s Administrative Management
I. Managerial qualities and training

Fayol was the first person to identify the qualities required in a manager. These are

Physical (health, vigor, and address)

Mental (ability to understand and learn, judgment, mental vigor, and capability)

Moral (energy, firmness, initiative, loyalty, tact, and dignity

Educational (general acquaintance with matters not belonging exclusively to the function performed)

Technical (peculiar to the function being performed)

Experience.
Fayol’s Administrative Management
II. General principles of management

1. Division of work 8. Centralization

2. Authority and responsibility 9. Scalar Chain

3. Discipline 10. Order

4. Unity of command 11. Equity

5. Unity of direction 12. Stability of tenure

6. Subordination of individual Interest to general

13. Initiative
Interest

7. Remuneration of Personnel 14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management

1. Division of work

2. Authority and responsibility

• Fayol advocated division of work to 3. Discipline

take the advantage of specialization. 4. Unity of command

• “Specialization belongs to natural 5. Unity of direction

6. Subordination of individual Interest to
order” general Interest
Division of • If worker will keep on doing the 7. Remuneration of Personnel
work 8. Centralization
same work their efficiency would
9. Scalar Chain
improve.
10. Order
• But division of labour should be
11. Equity
used at all levels of the organisation. 12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management

1. Division of work

2. Authority and responsibility

3. Discipline
• The authority and responsibility are
4. Unity of command
interrelated to each other, and responsibility
5. Unity of direction
is arising form the authority
2. Authority • Official authority – official position
6. Subordination of individual Interest to
general Interest
and • Personal authority – intelligence, experience, 7. Remuneration of Personnel
Responsibility:
moral worth, past service. 8. Centralization

• Responsibility arises in out of assignment of 9. Scalar Chain

authority. 10. Order

11. Equity

12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management
1. Division of work

2. Authority and responsibility

• All the personal serving any
3. Discipline
organisation should disciplined 4. Unity of command
• Self imposed discipline – from within 5. Unity of direction
• Command discipline - customs, rule 6. Subordination of individual Interest to
general Interest
3.Discipline: and regulation. – warning, 7. Remuneration of Personnel

remuneration control, warning, 8. Centralization

suspension, demotion, dismissal. 9. Scalar Chain

• Circumstances must be taken into 10. Order

consideration. 11. Equity

12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management
1. Division of work

2. Authority and responsibility

• Means that a person should get 3. Discipline

orders and instructions from only 4. Unity of command

one superior. 5. Unity of direction

• The more completely an 6. Subordination of individual Interest to

general Interest
4. Unity of
command: individual has a reporting 7. Remuneration of Personnel

8. Centralization
relationship to a single superior, 9. Scalar Chain
the less is the problem of conflict 10. Order
in instructions and the greater is 11. Equity
the feeling of personal 12. Stability of tenure
responsibility for results. 13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management
1. Division of work

• Each group of activities with the 2. Authority and responsibility

same objective must have one head 3. Discipline

and one plan. 4. Unity of command

• Unity of direction is different from 5. Unity of direction

6. Subordination of individual Interest to
unity of command in the sense that general Interest

5. Unity of the former is concerned with 7. Remuneration of Personnel

8. Centralization
Direction: functioning of the organisation in
9. Scalar Chain
respect of its grouping activities or
10. Order
planning while the latter is
11. Equity
concerned with personnel at all 12. Stability of tenure
levels in the organisation in terms of 13. Initiative
reporting relationship. 14. Espirit de corps.
 Fayol’s Administrative Management
II. General principles of management

1. Division of work

2. Authority and responsibility

3. Discipline

4. Unity of command
• Common interest is above the individual 5. Unity of direction
6. interest. 6. Subordination of individual Interest to
Subordination • Individual interest must subordinated to
general Interest

7. Remuneration of Personnel
of individual
general interest when there is a conflict
interest to 8. Centralization
between the two.
general 9. Scalar Chain
• Proper monitoring should prevail and fair
interest. 10. Order
judgment should be made for employee's. 11. Equity

12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management
1. Division of work

2. Authority and responsibility

3. Discipline

4. Unity of command

• Remuneration of employees should be fair 5. Unity of direction

7. and provide maximum possible satisfaction 6. Subordination of individual Interest to

general Interest
Remuneration to employees and employers. 7. Remuneration of Personnel
of Personnel: • Non financial benefit can also be provided 8. Centralization
if the organisation size is big. 9. Scalar Chain

10. Order

11. Equity

12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management
1. Division of work

2. Authority and responsibility

3. Discipline

4. Unity of command

• Everything which goes to increase the 5. Unity of direction

importance of subordinate’s role is 6. Subordination of individual Interest to

general Interest
decentralization; everything which goes to 7. Remuneration of Personnel
8. reduce it is centralization.
Centralization: • Without using the term ‘centralization of
8. Centralization

9. Scalar Chain
authority’ Foyol refers the extent to which
10. Order
authority is centralized or decentralized.
11. Equity

12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management
1. Division of work

• There should be a scalar chain of authority 2. Authority and responsibility

and of communication ranging from the 3. Discipline

9. Scalar highest to the lowest. 4. Unity of command

Chain: • It suggests that each communication going 5. Unity of direction

up or coming down must flow through 6. Subordination of individual Interest to

general Interest
each position in the line of authority. 7. Remuneration of Personnel

8. Centralization

9. Scalar Chain

10. Order

11. Equity

12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management
1. Division of work

2. Authority and responsibility

• This is a principle relating to
3. Discipline
the arrangement of things 4. Unity of command
and people. In material order, 5. Unity of direction

there should be a place for 6. Subordination of individual Interest to

general Interest

10. Order: everything and everything 7. Remuneration of Personnel

should be in place. 8. Centralization

• Similarly social order – there 9. Scalar Chain

10. Order
should be the right man in the 11. Equity
right place. 12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management
1. Division of work

• Equity is the combination of 2. Authority and responsibility

3. Discipline
justice and kindness. Equity in 4. Unity of command
treatment and behavior is liked 5. Unity of direction
by everyone and it brings loyalty 6. Subordination of individual Interest to
general Interest
11. Equity: in the organisation. 7. Remuneration of Personnel

• The application of equity requires 8. Centralization

good sense, experience, and 9. Scalar Chain

good nature for soliciting loyalty 10. Order

and devotion from subordinates. 11. Equity

12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management
1. Division of work

2. Authority and responsibility

• No employees should be 3. Discipline

removed within short time. 4. Unity of command

5. Unity of direction
12. There should be reasonable 6. Subordination of individual Interest to
general Interest
Stability security of jobs. 7. Remuneration of Personnel

of tenure: • Unnecessary turnover is 8. Centralization

9. Scalar Chain
both cause and effect of 10. Order

bad management. 11. Equity

12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management

1. Division of work

• Within the limits of 2. Authority and responsibility

authority and discipline, 3. Discipline

4. Unity of command
managers should 5. Unity of direction
encourage their 6. Subordination of individual Interest to
general Interest
13. Initiative: employees for taking 7. Remuneration of Personnel

initiative. Initiative is 8. Centralization

concerned with thinking 9. Scalar Chain

out and execution of the 10. Order

11. Equity
plan. 12. Stability of tenure

13. Initiative

14. Espirit de corps.

 Fayol’s Administrative Management
II. General principles of management

1. Division of work

• This is the principle of 2. Authority and responsibility

3. Discipline
“union of strength” and 4. Unity of command

extension of unity of 5. Unity of direction

14. Esprit de command for establishing 6. Subordination of individual Interest to

general Interest

Corps: team work. 7. Remuneration of Personnel

8. Centralization
• The manager should 9. Scalar Chain

encourage espirit de corps 10. Order

among his employees. 11. Equity

12. Stability of tenure

13. Initiative

14. Espirit de corps.

Fayol’s Administrative Management
III. Elements of Management

Planning

Organizing

Commanding

Coordination

Controlling
Critical analysis of Fayol’s Administrative
Management

Fayol’s principles are treated as classical while present-day management

adopts systems and contingency approach.

This approach suggests that while managing an organisation, it should

be treated as a system and management action should take into
account the contingent factors both within and outside an organisation.
Similarity between Taylor and Fayols Principles.

Overcome managerial problems in a systematic way.

Developed some principles which can be applied in solving managerial problems.

Management actions can be effective if these are based on sound principles.

Managerial qualities are acquirable and can be acquired through training.

Harmonious relationship between management and workers should be maintained to get maximum output.
 Difference between Taylor and Fayols Principles.

Basis of Taylor Fayol

difference
Perspective Shop-floor level Higher management level
Efficiency through work Overall efficiency by observing
Focus simplification and certain principles
standardization
Orientation Production and Engineering Managerial functions
Results Scientific observation and Personal Experiences
measurement translated into universal truths
Overall Basis for accomplishment on Systematic theory of
contributions the production line management