The emergence of management and organization theory had two forms: Fayol’s principles and elements of management, Weber’s rationalized organization structure for efficiency. Fayol stressed: planning and organizing , and education for management. Weber sought leadership based on rational-legal authority, not tradition or charisma.
THE EVOLUTION OF MANAGEMENT THOUGHT, 6TH EDITION Electronic Resource by: Regina Greenwood and Julia Teahen CHAPTER 10 Emergence of Management and Organization Theory Emergence of Management and Organization Theory Henri Fayol – Modern approach to general management theory through the management process Max Weber – Bureaucracy to provide a formal approach to organization theory Henri Fayol (1841-1925) Jules Henri Fayol was born to French parents in Constantinople His experiences as the Managing Director of Comambault formed his conception of management as the general activity of integrating functions of the firm in order to intelligently use resources to attain the objectives of the firm While Taylor was more production oriented, Fayol’s viewpoint was that Henri Fayol, circa 1872 of general management Source: La Societe de CommentryFourchambault et Decazeville, 18541954, Paris : Brodard et Taupin, Henry Fayol’s Conclusions Managerial abilities differed from technical ones, and the success of the firm depended to a greater degree on good managers than good technicians Fayol felt that every organization required management regardless of whether it was “commercial, industry, politics, religion, war, …” This statement suggests the universality of management in that this activity is necessary in all organizations It does not mean that managers are universal Fayol’s List of Managerial Qualities Physical qualities: health, vigor, address Mental qualities: ability to understand and learn, judgment, mental vigor, and adaptability Moral qualities: energy, firmness, willingness to accept responsibility, initiative, loyalty, tact dignity General education: general acquaintance with matters not belonging exclusively to the function performed Special knowledge: that peculiar to the function, be it technical, commercial, financial, managerial, etc Experience: knowledge arising from the work proper; the recollection of lessons a person has derived from things Henry Fayol’s Conclusions Managerial abilities become more important as a person moves up in the hierarchy Technical abilities are less essential for upper level managers Management could be taught in schools and universities but was not because of the absence of management theory Fayol defined management theory as “a collection of principles, rules, methods, and procedures tried and checked by general experience.” (Fayol, 1949, p 15) Fayol’s Principles of Management 10 11 12 13 14 Division of work Authority Discipline Unity of command Unity of direction Subordination of individual interests to the general interest Remuneration Centralization Scalar Chain Order Equity Stability of tenure of personnel Initiative Esprit de corp Fayol’s Principles of Management Henri Fayol Keep in mind Fayol’s disclaimer that there is nothing rigid in management Fayol’s principles were guides, not absolutes or universals We will not stress each principle…the following is a discussion of a few key ones Fayol’s Principles of Management Division of Labor – Fayol is rather traditional here regarding work design However, he also used job enlargement when appropriate Authority – Fayol distinguished between formal authority and personal authority He was aware of the need to combine and complement the authority of position with leadership qualities Authority must be commensurate with responsibility Scalar Chain and the “Gangplank” The “gangplank” is a means for providing lateral communications (Fayol used the French term passerelle) The Foreman (F) wishing to communicate with Foreman (P) without reporting upward through the President (A) can use a “gangplank to bypass Figure 10.1 - Scalar Chain and the “Gangplank” Fayol’s Elements of Management Planning (could also be translated as foresight) Plans depended on the firm’s resources, work in process, and future trends that could not be predetermined (resembled a strategic audit) Plans needed to have the characteristics of unity, continuity, flexibility, and precisions Long range planning was a unique idea for his time but a valuable contribution to the evolution of strategic management Fayol’s Elements of Management Organizing – Fayol included both the design of the organization and the staffing job of the manager in this element Structure of the organization had to be consistent with the objectives, resources, and requirements of the firm Functional (horizontal) and scalar (vertical) growth Span of control – narrow at the top but greater at lower levels Staff – advisory personnel are needed by line managers Staffing (separate issue from staff above) – involved selection, evaluation, and training Fayol’s Elements of Management Command – Fayol’s term for directing, leading, supervising, etc Coordination – harmonizing the activities of the organization Control – checking on performance to identify and make corrections if necessary Fayol’s Elements of Management Fayol spent relatively little time discussing command, coordination, and control Planning, organizing, and staffing set the stage for where we are going and when and how we intend to get there These plans, people, and resources are activated, led, motivated, and coordinated As our information system brings us performance data, the control element enables management to renew the elements by reorganizing or whatever is indicated by our control system Fayol’s Elements of Management Management is a continuous process, not a neat set of discrete elements and functions that are performed without coordination of other elements Fayol’s Henri Fayol What remnants of Fayol's ideas exist today in management theory and practice? How did Henri Fayol's approach to management compare with Taylor's? Max Weber (1864-1920) Bureaucracy Weber’s Germany was characterized by cartels which limited competition (antitrust laws limited this in the U.S.) To Weber, capitalism in the US encouraged innovation and Max Weber Max Weber and Bureaucracy His interest in the U.S Capitalistic spirit led him to ask: If a market oriented society could operate large organizations on some rational, systematic basis? Bureaucracy as a Theory It was management by the office not by a person It was an “ideal,” the “pure form” of organization but this did not mean that it was the most desirable Weber is suggested as the “Founder of Organization Theory.” Three “Pure” Types of Legitimate Authority Rational-legal – “right of those elevated to authority…to issue commands.” Traditional – rested on the belief “in the sanctity of immemorial traditions and the legitimacy of the status of those exercising authority under them.” Charismatic – based on “devotion to the specific and exceptional sanctity, heroism, or exemplary character of an individual person.” (Weber, 1947, p 328) Weber believed that rational type of authority must be the basis for a Elements of Bureaucracy The division of labor and authority and responsibility were clearly defined for each member and were legitimatized as official duties Offices or positions were organized in a hierarchy of authority resulting in a chain of command or the scalar principle All organizational members were selected on the basis of technical qualifications through formal examinations or by virtue of training or education Max Weber Weber’s Elements of a Bureaucracy Officials were appointed, not elected Administrative officials worked for fixed salaries and were career officials Administrative officials were not owners of the units they administered Administrators were subject to strict rules, discipline, and controls regarding the conduct of their official duties These rules and controls were impersonal and uniformly applied in all cases Summary The emergence of management and organization theory had two forms: Fayol’s principles and elements of management Weber’s rationalized organization structure for efficiency Fayol stressed: planning and organizing , and education for management Weber sought leadership based on rational-legal authority, not tradition or charisma .. .CHAPTER 10 Emergence of Management and Organization Theory Emergence of Management and Organization Theory Henri Fayol – Modern approach to general management theory through the management. .. discipline, and controls regarding the conduct of their official duties These rules and controls were impersonal and uniformly applied in all cases Summary The emergence of management and organization. .. included both the design of the organization and the staffing job of the manager in this element Structure of the organization had to be consistent with the objectives, resources, and requirements