St.

Vincent’s College Incorporated Graduate School

Master in Business Administration Program

A Written Report

submitted to the faculty of Master in Business Administration

In partial fulfillment of the requirements for

MANAGEMENT THEORIES AND LEGAL ISSUES (MBA 302)

Of

Prof. Raymond Chris P. Maribojoc, DMC, MPM, MBA, PHF, CTP, FRIM, AFBE

Junime U. Gumela

STUDENT
 Nowadays a lot has changed about management. Emphasis on structure and authority is

no longer as strong as it used to be in the past. Now the focus is on employees. However, there

are theories on the factors that motivate employees, but understand that knowing how these

theories came about can give you the needed knowledge to manage your employees

appropriately. Knowing the story behind the evolution of management thought and the evolution

of theories is essential. If you are familiar with them, including the development that brought

about the current practices in business, then you will have a better understanding of management

principles that can help you to manage people more effectively. Management theories are

concepts surrounding recommended management strategies, which may include tools such as

frameworks and guidelines that can be implemented in modern organizations. Generally,

professionals will not rely solely on one management theory alone, but instead, introduce several

concepts from different management theories that best suit their workforce and company culture.

Until the day that machines are able to think, talk, and experience emotions, humans will remain

the most complicated beings to manage. Humans can never achieve the kind of error-free

performance that machines provide. On the upside, there are tons of things that machines aren’t

capable of doing, making humans indispensable assets. For such reason, proper management is

one of the most crucial things for an organization.

For a long time, theorists have been researching the most suitable forms of management

for different work settings. This is where management theories come into play. Although some

of these theories were developed centuries ago, they still provide stable frameworks for running

businesses. The evolution of management thought is a process that started in the early days of

man. It began since the period man saw the need to live in groups. Mighty men were able to

organize the masses, share them into various groups. The sharing was done accord to the masses’
strength, mental capacities, and intelligence. The point is that management has been practiced in

one way or the other since civilization began. If you want a good example where advanced

management principles were applied, consider the organization of the olden days Roman

Catholic Church, military forces as well as ancient Greece. These are all excellent examples. But

the industrial revolution brought drastic change. And suddenly, the need to develop a more

holistic and formal management theory became a necessity. One of the reasons why managers

should be interested in learning management theories is because it helps in maximizing their

productivity. Ideally, the theories teach leaders how to make the most of the human assets at their

disposal. So, rather than purchase new equipment or invest in a new marketing strategy, business

owners need to invest in their employees through training. Another area where management

theories have proven to be useful is in the decision-making process. Management theories

developed in the 1900s, aimed at encouraging interpersonal relationships in the workplace.

Business owners needed to give their employees more power in making decisions. Throughout

history, companies have been putting different management theories into practice. Not only have

they helped to increase productivity but they have also improved the quality of services.

Although these management theories were developed ages ago, they help in creating

interconnected work environments where employees and employers work hand-in-hand.

The evolution of management thought is broad , and it also requires careful explanation and

thought process. One cannot understand what it entails or appreciates how it happened without

looking at the various areas where the said evolution occurred. The evolution of

management started from civilization. So, what we have now is refined and improved

management thoughts and theories. But knowing how this evolution came about is vital. It will
help to improve one’s knowledge of the process and effectively utilize management principles

for the betterment of the organization.

My Topic will focus on Scientific Management Theory of Frederick Taylor and

Administrative theory by Henry Fayol. Taylor’s Motivation Theory, or Scientific Management,

was one of the first theories of motivation in the workplace.Have you ever tried to boost the

productivity of your team, but failed? Perhaps you’ve given a rousing speech or explained how

important it is that the company hits its targets for the year?Boosting your team’s motivation and

productivity can sometimes feel like a black art. And it can be frustrating when you try and fail

to boost your team’s motivation. But it need not be this way. Taylor’s Scientific Management

attempts to find the most efficient way of performing any job. He believed that there were

universal laws which governed efficiency and that these laws were independent of human

judgment. The goal of Scientific Management was to find this “one best way” of doing things as

efficiently as possible.

Just over one hundred years ago Frederick Taylor published Principles of Scientific

Management, a work that forever changed the way organizations view their workers and their

organization. At the time of Taylor’s publication, managers believed that workers were lazy and

worked slowly and inefficiently in order to protect their jobs. Taylor identified a revolutionary

solution:

The remedy for this inefficiency lies in systematic management, rather than in searching for

some unusual or extraordinary man.

You might think that a century-old theory wouldn’t have any application in today’s fast-paced,

technology-driven world. You’d be wrong though. In fact much of what you’ve already learned

in this course is based on Taylor’s work, and plenty of what you’ll experience in the workplace

will be indebted to him, too. If you recognize any of the following, you have already seen his

principles of scientific management in action: organizational charts, performance evaluations,

quality measurements and metrics, and sales and/or production goals.

Scientific management is a management theory that analyzes work flows to improve economic

efficiency, especially labor productivity. This management theory, developed by Frederick

Winslow Taylor, was popular in the 1880s and 1890s in U.S. manufacturing industries.

While the terms “scientific management” and “Taylorism” are often treated as synonymous, a

more accurate view is that Taylorism is the first form of scientific management. Taylorism is

sometimes called the “classical perspective,” meaning that it is still observed for its influence but

no longer practiced exclusively. Scientific management was best known from 1910 to 1920, but

in the 1920s, competing management theories and methods emerged, rendering scientific

management largely obsolete by the 1930s. However, many of the themes of scientific

management are still seen in industrial engineering and management today.

Taylor was a mechanical engineer who was primarily interested in the type of work done in

factories and mechanical shops. He observed that the owners and managers of the factories knew

little about what actually took place in the workshops. Taylor believed that the system could be

improved, and he looked around for an incentive. He settled on money. He believed a worker

should get “a fair day’s pay for a fair day’s work”—no more, no less. If the worker couldn’t

work to the target, then the person shouldn’t be working at all. Taylor also believed that
management and labor should cooperate and work together to meet goals. He was the first to

suggest that the primary functions of managers should be planning and training.

A significant part of Taylorism was time studies. Taylor was concerned with reducing process

time and worked with factory managers on scientific time studies. At its most basic level, time

studies involve breaking down each job into component parts, timing each element, and

rearranging the parts into the most efficient method of working. By counting and calculating,

Taylor sought to transform management into a set of calculated and written techniques. 

Taylor proposed a “neat, understandable world in the factory, an organization of men whose acts

would be planned, coordinated, and controlled under continuous expert direction. Factory

production was to become a matter of efficient and scientific management the planning and

administration of workers and machines alike as components of one big machine.

One of Taylor’s most famous studies was from his time at the Bethlehem Steel Company in the

early 1900s. He noticed that workers used the same shovel for all materials, even though the

various materials differed in weight. By observing the movements of the workers and breaking

the movements down into their component elements, Taylor determined that the most efficient

shovel load was 21½ lb.  Accordingly, he set about finding or designing different shovels to be

used for each material that would scoop up that amount. Inherent in Taylor's style of

management was the setting up of planning departments of clerks who ensured that:

every labourer's work was planned out well in advance, and the workmen were moved from

place to place by the clerks with elaborate diagrams or maps of the yard before them, very much

as chessmen are moved on a chess-board, a telephone and messenger system having been

installed for this purpose. In this way a large amount of the time lost through having too many
men in one place and too few in another, and through waiting between jobs, was entirely

eliminated.

This, as Taylor recognised, required the setting up of a more 'elaborate organisation and system',

which sowed the seeds for Max Weber's bureaucratic organisation structure. Taylor's approach

constituted one of the first formal divisions between those who do the work (workers) and those

who supervise and plan it (managers).

Taylor’s work was popularised in the US by the American Society of Mechanical Engineers

(ASME), and by a spin-off association, the Society to Promote the Science of Management,

which was later re-named the Taylor Society to recognise his contribution. The development of

university-based business schools which taught aspiring managers was also crucial to making the

link between the principles of scientific management and their application in real work scenarios,

and the importance of these schools increased rapidly after 1920. As public interest in Taylor’s

methods was amplified, it attracted consultancy firms to promote Taylorite methods.

Taylor’s writings were soon published worldwide. In the UK, Taylor’s methods were slow to be

implemented by leading industrialists who followed a more paternalistic tradition. Scientific

management attracted criticism from the likes of Edward Cadbury, who argued in a 1914 article

for the Sociological Review that since unskilled labour was already monotonous, 'any further

sub-division of labour in the direction of eliminating any little judgement initiative as to the

methods of work, valuable as it might be in its immediate impact on production, would almost

certainly in the long run produce effects which would lower the whole capacity of the worker.'
At the time of his death in 1915 Taylor's work was the subject of much debate, both for and

against it. By 1930, a new generation of social scientists were producing strong critiques of his

ideas.

Taylor was a man of his times and sought solutions to the problems of his times. However, many

of his ideas remain relevant to the modern day and have inspired further innovations. Three in

particular, taken from The principles of scientific management, stand out:

Rewards: 'A reward, if it is to be most effective in stimulating men to do their best work, must

come soon after the work has been done. The average workman must be able to measure what he

has accomplished and clearly see his reward at the end of each day if he is to do his best.' In

Taylor's view, it was pointless to involve the shopfloor workers in end-of-year profit sharing

schemes.

Quality standards: The use of written documentation for each part of a worker's job, inherent in

scientific management, is strikingly prescient of the procedural documentation in use in the ISO

9000 series of quality standards:

In the case of a machine-shop which is managed under the modern system, detailed written

instructions as to the best way of doing each piece of work are prepared in advance, by men in

the planning department. These instructions represent the combined work of several men in the

planning room, each of who has his own specialty, or function. The direction of all of these men,

however, are written on a single instruction card, or sheet.

The main difference is that today's best practice means involving staff in drawing up their own

procedures.
Suggestion schemes: Taylor proposed a form of incentive for employees to make suggestions if

they felt an improvement could be made to either the method or the implement used to undertake

a task. After analysis of the suggestion, and if it was introduced into the workplace, 'The

workman should be given the full credit for the improvement, and should be paid a cash

premium as a reward for his ingenuity. In this way the true initiative of the workmen is better

attained under scientific management than under the old individual plan.'

Taylor was one of the first true pioneers of management through his scientific examination of the

way work was done. His led directly to the achievements of other management gurus like Max

Weber and Henry Ford. Along with Lillian and Frank Gilbreth (see Related Thinkers), Taylor is

also recognised as a major contributor to time and motion study. This involved examining

workers’ movements in detail and using the results to streamline work and conserve effort, but

the approach has now fallen out of fashion.

In many ways Taylor’s philosophy lies in direct opposition to today’s best practice. The most

common criticism of Taylor is that his approach is too mechanistic - treating people like

machines rather than human beings , with the result being a one-size-fits-all approach to people

management and training that fails to recognise the complexity of human motivations.

Scientific management has at its heart four core principles that also apply to organizations today.

They include the following:

1.) Each part of an individual's work is analysed 'scientifically', and the most efficient

method for undertaking the job is devised; the 'one best way' of working. This consists of

examining the implements needed to carry out the work, and measuring the maximum
 amount a 'first-class' worker could do in a day; workers are then expected to do this much

work every day.

2.) The most suitable person to undertake the job is chosen, again 'scientifically'. The

individual is taught to do the job in the exact way devised. Everyone, according to

Taylor, had the ability to be 'first-class' at some job. It was management's role to find out

which job suited each employee and train them until they were first-class.

3.) Managers must cooperate with workers to ensure the job is done in the scientific way.

4.) There is a clear 'division' of work and responsibility between management and workers.

Managers concern themselves with the planning and supervision of the work, and

workers carry it out.

Rather than doing things how they’ve always been done, Taylor wanted each job to be

studied scientifically to identify the most efficient way to do that job.Taylor advocated using

time and motion studies as the way to do this. This often involved looking at the most efficient

workers to identify why they were so efficient.The ultimate aim is to describe in a repeatable

way how to do the job in the most efficient manner. That way, everyone in the organization

doing this job can be trained to do it in the most efficient way.

Don’t allow employees to train themselves. Instead, each employee should be taught exactly how

each task should be performed.

Taylor didn’t want employees thinking for themselves, he simply wanted a simple task

performed as quickly (as efficiently) as possible. In a nutshell, workers should be paid for doing,

not thinking.
 There are two parts to ensuring that the most efficient ways of working are being used:

 Monitor: Monitor worker production to ensure that they are efficient.

 Cooperate: Work with employees to retrain and recalibrate them, so that they are exactly

following the most efficient way to perform their job.

One consequence of this was that organizational structures had to change. Rather than a factory

having one single foreman, Taylor advocated several, each one specifically focused on efficiency

for a particular area of the factory.The aim of this step is to maximize production, unlike in

situations where ‘soldiering’ occurs. That is situations where workers naturally slack off because

they are not being monitored.

Managers should be responsible for developing the processes, ways of working and

monitoring employees.Employees should be responsible for executing a task as quickly as

possible.

Lastly, workers should be paid based on how much they produce. This is done using

piece-rate pay.The use of piece-rate pay focuses workers minds on their productivity. If they

don’t produce, then they don’t earn. For example in my workplace, every year we have a target

portfolio on Deposit and Loans. If we hit our target quarterly, we will have our performanced

based bonus, but if we fail to hit the target our performanced based bonus will be based on

percentage of our performance of the year.

While Taylor was conducting his time studies, Frank and Lillian Gilbreth were

completing their own work in motion studies to further scientific management. The Gilbreth
name may be familiar to anyone who has read the book Cheaper By The Dozen (or seen the

movie the book inspired). The book is a biographical novel about the Gilbreth family, their

twelve children, and the often humorous attempts of the Gilbreths to apply their efficiency

methods in their own household.

The Gilbreths made use of scientific insights to develop a study method based on the analysis of

work motions, consisting in part of filming the details of a worker’s activities while recording the

time it took to complete those activities. The films helped to create a visual record of how work

was completed, and emphasized areas for improvement. Secondly, the films also served the

purpose of training workers about the best way to perform their work.

This method allowed the Gilbreths to build on the best elements of the work flows and create a

standardized best practice. Time and motion studies are used together to achieve rational and

reasonable results and find the best practice for implementing new work methods. While

Taylor’s work is often associated with that of the Gilbreths, there is a clear philosophical divide

between the two scientific-management theories. Taylor was focused on reducing process time,

while the Gilbreths tried to make the overall process more efficient by reducing the motions

involved. They saw their approach as more concerned with workers’ welfare than Taylorism, in

which workers were less relevant than profit. This difference led to a personal rift between

Taylor and the Gilbreths, which, after Taylor’s death, turned into a feud between the Gilbreths

and Taylor’s followers.

Even though scientific management was pioneered in the early 1900s, it continued to

make significant contributions to management theory throughout the rest of the twentieth

century. With the advancement of statistical methods used in scientific management, quality
assurance and quality control began in the 1920s and 1930s. During the 1940s and 1950s,

scientific management evolved into operations management, operations research, and

management cybernetics. In the 1980s, total quality management became widely popular, and in

the 1990s “re-engineering” became increasingly popular. One could validly argue that Taylorism

laid the groundwork for these large and influential fields that we still practice today.

Taylor summed up the differences between his principles of management and the traditional

method thus: Under the management of 'initiative and incentive' practically the whole problem is

'up to the workman' while under the scientific management fully one-half of the problem is 'up to

the management'. The principle object of management should be to secure the maximum

prosperity for the employer, coupled with the maximum prosperity for each employee.

His main reason for developing scientific management was that he wished to do away

with 'soldiering' or 'natural laziness', as he believed that all workers spent little of their time

putting in full efforts. To do this he aimed to analyse every job in a scientific way so that no one

could be in any doubt about how much work could and should be done in a day.

Though Taylor originally developed the scientific management theory for manufacturing jobs,

you can use these principles in many industries to help you streamline complicated processes and

increase productivity. Here are two examples of scientific management in the workplace:

Example 1:

Lee has taken over the role of operations manager at a small clothing company with

growing online sales. The company has recently rented space in a warehouse to store

merchandise and mail out orders. The office manager, Sarah, is currently responsible for all
aspects of customer service and order fulfillment but is no longer able to handle the high volume

of orders by herself.

Lee recognizes Sarah’s skills in customer service and assigns her the role of head of client care,

responding to customer inquiries about orders and returns. He hires two part-time employees to

assist in customer service and has Sarah train them.

Lee searches for an employee to take over the responsibilities of order fulfillment. He notices

that a sales associate named Tyrone demonstrates strong attention to detail and promotes him to

inventory and order fulfillment supervisor. Lee and Tyrone test whether it is best to process

orders as they come in or let them accumulate to process them in batches. They conclude that

processing one large batch of orders received the previous day to ship out the following day is

the most efficient way of fulfilling orders. Lee announces to the company that he will give a $25

bonus to each team member in customer care and shipping for every 1,000 orders they process

and ship.

When some employees continue to go to Sarah with questions about order fulfillment, Lee sends

out an email to remind staff of Sarah and Tyrone’s separate roles. Lee also meets with Sarah to

encourage her to stop answering employee questions about inventory and direct those questions

to Tyrone. The company can respond to customers more quickly and fulfill twice as many orders

per day.

Lee has used the principles of scientific management to analyze the best way of handling orders,

break up tasks, give incentives to employees and establish the hierarchy within the company.

Example 2:
Joanna is the manager of a museum’s marketing team that is primarily responsible for promoting

exhibitions and events. In the previous event season, Joanna assigned each team member the full

responsibility of managing the promotion of one event. Despite holding regular team meetings to

share progress, Joanna found inconsistencies throughout the event season in the brand’s voice in

the event copy, quality of graphic design, external partner support and answers the marketing

team provided in response to registration inquiries.

For the upcoming event season, Joanna decides to break up these responsibilities so that each

marketing team member has one essential task for each event. She observed where individual

team members excelled during last year’s event season and assigns roles based on their skills and

competence.

She appoints one team member the responsibility of writing copy, one the task of graphic design,

one the task of networking with external partners to promote the event and one the task of

managing event registrations. She creates detailed guides for each team member to define how to

adhere to brand standards in each role.

She continues to hold meetings with the group to communicate and provide support. She also

conducts individual meetings with employees who need extra guidance. By the second event of

the year, it is clear that the new division of responsibilities is more productive, the process is

more streamlined and each team member is more skilled and confident in their role.

At the end of the event season, she meets with individual team members to do performance

reviews. She gives all team members a bonus for the work they have done and a pay raise to

team members who excelled in their work.

Joanna is using the principles of scientific management by finding the best way to divide a

complicated process, clearly defining what is expected of each employee, providing incentives

for completing good work and overseeing the process as manager.

Advantages of Scientific management

The following are the principal advantages of scientific management.

1. It provides trained minds for achieving higher degree of excellence in all branches of shop

management.

2. It completely revolutionizes and improves layout, routing, scheduling, purchasing, stores

keeping and accounting.

3. It aims to standardize the materials, tools, equipment and methods of work.

4. It offers facilities for specialization and division of labour.

5. It replaces the old system of management rule of thumb method and introduces new and

scientific methods.
 6. Careful time and motion studies eradicate delays, avoid bodily strains of the workers,

eliminate wastage and thereby contribute to the efficiency of the workers and ensures waste less

utilization of the resources.

7. It seeks to introduce a mental revolution in the ideas of both the employer and employee and

assures co-operation of the labour force.

8. It seeks a reduction in the cost of production through increased output. This would help the

organization to complete on a better footing and thereby enlarge the market.

9. The workers are in a position to get higher wages. This removes most of the causes for

industrial disputes and unrest. Further, enhanced earnings also lead to higher standard of living

of the workers Thus, scientific management does justice to various sections of the society such as

producers, workers and the consumers.

The following criticisms have been leveled at Scientific Management:

 Although production is increased it creates very monotonous jobs containing no autonomy.

 It was conceived to benefit both worker and company, but the reality is that it benefits the

company far more than the worker. This has resulted in much industrial action and strikes in the

last 100 years.

 Scientific Management is often seen as dehumanizing. This is because workers do not think for

themselves, they simply have to follow a few simple instructions as quickly as possible.
Disadvantages of Scientific management from Employers point of view

Most of the employers are highly reluctant to adopt the principles of Scientific Management.

They object the introduction of the principles of Scientific Management on the following

grounds.

1. High Costs

It is a costly affair. A thorough overhauling of the existing plant and organizational structure is

highly expensive. Time and motion studies as well as other improvements involve a heavy initial

outlay of capital.

2. Unsuitable for Small Firms

Since the introduction of Scientific Management involves huge expenditure, small firms cannot

afford to adopt it.

3. Response from the workers

The system can be successfully implemented only with the heart felt co-operation of the workers.

If they fail to respond favorably, the system shall fail to bring the desired results.

4.)Loss of Individual’s Initiative

The leading objection to Scientific Management that comes from workers is that it leads to

excessive job standardization. Under Scientific Management, methods of work are all

standardized and instructions are given to the workers by the foreman. The workers are supposed

to perform the work in the same style and carry out the instructions given by the foreman. This
tends to destroy the individual worker’s initiative, renders their skill useless, makes their work

monotonous and converts them into automatic machines.

5.)Speeding up of Workers

Scientific Management aims to speed up the workers, not consideration of their health and well

being. Mere speeding up of the workers without corresponding structural changes in the

organization and working conditions shall not lead to higher output but create only harmful

mental conditions in the workers.

6.)Autocratic Control of Functional Bosses

Another severe objection raised against the Scientific Management is that it is undemocratic in

nature as it gives absolute control to the functional bosses and lessens the interest and

responsibility of the workers. The workers ought to obey the orders and the instructions given by

the superior or the foreman.

7. Creation of Unemployment

The critics of scientific management also argue that scientific management creates

unemployment and hits the workers hard as a consequence of the adoption of labour saving

devices both in the machinery and in the arrangement of work.

8. Unfairness

Another objection is that it tends to be unfair to the workers. A lion’s share of the additional

profit arising out of increased efficiency does not go to the workers but goes to the coffers of the

employer. It is also stated that the introduction of Scientific Management, has the effect of

lowering the wages of the workers. But it is not true because Taylor himself has proved with
statistical data that workmen in the scientifically managed companies received wages 35%

higher than those doing the same job in other companies.

9. Monotony

Separation of planing function from that of doing, and excessive specialization, reduces the work

to a mere routine. It would create monotony. Monotony refers to a mental state of slackness,

inefficiency and a loss of interest in the job.

As your career progresses, you may find you do fewer technical tasks and spend more

time guiding a team or planning strategy.

While that's often a given today, in the 19th century most companies promoted the best

technicians. But Henri Fayol recognized that the skills that made them good at their jobs didn't

necessarily make them good managers.

Henri Fayol (1849-1925), was a French industrialist and a prominent European management

theorist. Henri Fayol is known as the Father of Management and he developed a general theory

of management and also, laid down the 14 principles of Management. Fayol was unknown to

American managers and scholars until his most important work, "General and industrial

management", was translated into English in 1949. These 14 principles of management are used

to manage an organization and are beneficial for prediction, planning, decision-making,

organization and process management, control, and coordination.

Fayol was an engineer who worked his way up to become manager of the Compagnie de

Commentry-Fourchambault-Decazeville mining company in France, at the tail end of the

industrial revolution. Under his watch, the struggling firm prospered.

He wrote, "When I assumed the responsibility for the restoration of Decazeville, I did not rely on

my technical superiority,I relied on my ability as an organizer and my skill in handling men."

Fayol's 14 Principles of Management identified the skills that were needed to manage well. As

well as inspiring much of today's management theory, they offer tips that you can still implement

in your organization. Fayol also created a list of the five primary Functions of Management,

which go hand in hand with the Principles.

Fayol called managerial skills "administrative functions." In his 1916 book, "Administration

Industrielle et Générale," he shared his experiences of managing a workforce.

Fayol’s book – and his 14 Principles of Management – helped to form what became known

as Administrative Theory. It looks at the organization from the top down, and sets out steps for

managers to get the best from employees and to run a business efficiently. Administrative

Theory is characterized by people "on the ground" who share personal experiences, improve

practices, and help others to run an organization. This contrasts with the Scientific

Management school led by Frederick Taylor , which experimented with how individuals work to

boost productivity.The administrative theory of management is focused on principles that could

be used by managers to coordinate the internal activities of organizations. The most prominent of

the administrative theorists was Henri Fayol. Fayol observed a work stoppage and judged it to be

a management failure. He believed that organizational managerial practices are important for

driving predictability and efficiency in organizations.

While the proponents of scientific management developed principles that could help the

individual workers perform their tasks more efficiently, the administrative theory focused on

principles that could be used by managers to coordinate the internal activities of organizations.

The most prominent of the administrative theorists was Henri Fayol.

It was the reality of Fayol's day-to-day managing, seeing what worked and what didn't, that

informed his 14 Principles of Management. By focusing on administrative over technical skills,

the Principles are some of the earliest examples of treating management as a profession. They

are:

1. Division of Work – Assign each employee a task that they can become proficient at.

Productivity increases as employees become more skilled, assured and efficient. Today,

experts still warn against multi-tasking .

2. Authority – Managers must possess the authority to give orders, and recognize that with

authority comes responsibility. As well as rank, Fayol argues that a manager's

intelligence, experience and values should command respect.

3. Discipline – Everyone should follow the rules . To help, you can make agreements

between the organization and employees clear for all to see. [2]

4. Unity of Command – Fayol wrote that "an employee should receive orders from one

supervisor only." Otherwise, authority, discipline, order, and stability are threatened.
5. Unity of Direction – Teams with the same objective should be working under the

direction of one manager, using one plan. That, Fayol wrote, "is the condition essential to

unity of action, coordination of strength and focusing of effort."

6. Collective Interest Over Individual Interest – Individuals should pursue team interests

over personal ones – including managers.

7. Remuneration – Employee satisfaction depends on fair remuneration for everyone –

financial and non-financial. Fayol said pay should be fair and reward "well-directed

effort."

8. Centralization – Balancing centralized decision making (from the top) with letting

employees make decisions. Or as Fayol wrote, "A place for everyone and everyone in his

place."

9. Scalar Chain – Employees should know where they stand in the organization's hierarchy

and who to speak to within a chain of command. Fayol suggested the now-familiar

organization chart as a way for employees to see this structure clearly. [3]

10. Order – Fayol wrote that, "The right man in the right place" forms an effective social

order. He applied the same maxim to materials: right one, right place. Academics note

that this principle pre-empted the Just in Time  (JIT) strategy for efficient production. [4]

11. Equity – Managers should be fair to all employees through a "combination of kindliness

and justice." Only then will the team "carry out its duties with... devotion and loyalty."

12. Stability of Tenure of Personnel – Organizations should minimize staff turnover  and role

changes to maximize efficiency. If people are secure and good at their jobs, they are

happier and more productive.

 13. Initiative – Employees should be encouraged to develop and carry out plans for

improvement. As Fayol wrote, "At all levels of the organizational ladder, zeal and energy

on the part of employees are augmented by initiative."

14. Esprit de Corps – Organizations should strive to promote team spirit, unity, and morale.

Everyone needs some concepts of management; in the home, in affairs of state, the need for

managerial ability is in keeping with the importance of the undertaking, and for individual

people, the need is everywhere in greater accordance with the position occupied.

Fayol believed that with scientific forecasting and proper methods of management, satisfactory

predictable results were sure to follow. According to Fayol, the business operations of an

organization could be divided into six broad activities.

1. Technical: Producing and manufacturing products

2. Commercial: Buying, selling and exchange

3. Financial: Search for optimal use of capital

4. Security: Protecting employees and property

5. Accounting: Recording and taking stock of costs, profits, liabilities, maintaining balance

sheets and compiling statistics

6. Managerial: Planning, organizing, commanding, coordinating and controlling

Fayol studies primarily focused on the last activity which is “Managerial Activity”. He

identified five major elements of management that depict the expected behaviors that managers

should engage in to achieve the business objectives of the organization effectively. The five

elements of management are:Planning,Organizing,Commanding,Coordinating and Controlling.

Let us briefly discuss these five elements of management as described by Fayol and relevant for

modern enterprises and managers even today.

1. Planning:

Planning is the most important managerial function. It is a future-oriented exercise to creating a

business plan, determining the different stages to execute and track the plan and define the

technology and resources necessary to implement the plan. Planning is all about identifying in

advance what needs to be done, how it will be done, and what are the timelines and

responsibilities for execution. It lays down the roadmap of the current organizational state to

where the organization wants to be. The outcome of the planning function is logical goals and

their timelines. Managers should engage in both short-range and long-range planning.

2. Organizing:
Once a plan of action is designed, managers have the visibility of what is expected and by when.

To achieve these milestones, they need to solve for resources and assign them appropriate tasks.

They need to focus on providing everything necessary to carry out the plan; including raw

materials, machinery and tools, capital, funds, and human resources. They must identify and

establish responsibilities for each of the departments or divisions, and specifying organizational

relationships.

3. Command:

Managers need to implement the plan by efficiently utilizing the allocated resources. They must

understand the strengths/weaknesses of their workforce and the limitations of the resources at

hand. Managers must lead and motivate employees to achieve the goals of the organization.

Employees may require the proper allocation of resources and an effective support system and

supervision. Directing requires exceptional interpersonal skills and the ability to motivate and

inspire people while balancing the staff and production needs.

4. Coordination:

Organizations are interdependent systems and need coordination among different departments to

stay in sync and targeted on the plan. Manager’s biggest responsibility is to "harmonize" all

required activities across different functions to facilitate and ensure organizational success as per

the agreed plan. Managers need good Communication Skills to ensure that the coordinating

mechanism is working effectively. Managers are needed to synchronize the elements of the

organization and must take into account the delegation of authority and responsibility and span

of control within units.

5. Control:
The final element of management as described by Fayol involves the comparison of the activities

of the personnel to the plan of action. It is the control and evaluation component of management.

Control function ensures that tasks have been completed with required quality in all areas and

helps to detect deviations if any from the organization's plan. This ensures quality performance

with regard to business objectives and satisfactory results while maintaining an orderly and

problem-free environment. Controlling includes information management, measurement of

performance, and the institution of corrective actions.

Fayol believed that managerial practices were the key component to predictability and

efficiency in organizations. Fayol’s five management functions are clearly similar to modern

management functions - planning, organizing, staffing, and controlling. Fayol's concept of

management forms the cornerstone of contemporary management theory. Many of Fayol's

practices are still alive in today's workplace. These elements can be found in modern

organizations in several ways: as for accepted practices in some industries, as revamped versions

of the original principles or elements, or as remnants of the organization's history to which

alternative practices and philosophies are being offered. The new manager in the digital age must

acquire the latest leadership skills and management skills to succeed in today’s competitive

world.