Management Principles

PRINCIPLES OF MANAGEMENT:

Fayolism is one of the first comprehensive statement of a general theory of management, developed by the French management theorist Henri Fayol (1841–1925): one of the most influential contributors to modern concepts of management,

Fayol has proposed that there are five primary functions of management: (1) planning, (2) organizing, (3) commanding, (4) coordinating, and (5) controlling (Fayol, 1949, 1987). Controlling is described in the sense that a manager must receive feedback on a process in order to make necessary adjustments.

For Fayol any Organisation can be subdivided into six types of Operations. Each Operation being fulfilled by its corresponding Essential Function:

  1. Technical Operations (production, manufacturing, transformation)
  2. Commercial Operations (purchases, sales, exchanges)
  3. Financial Operations (seek for capital and finance management)
  4. Security Operations (protection of goods and people)
  5. Accounting Operations (balance, P&L, cost control, statistics, etc)
  6. Administrative' Operations

The 5 Elements of Administration:

Popularized by Fayol with the acronym of POCCC:

  1. Planning' (to foresee/anticipate and make plans)
  2. Organisation (to provide the Function with all is needed for its smooth running: Supplies, Tools, Funding, Employees)
  3. Commandment (to lead the people employed by the organisation)
  4. Coordination (to harmonise all actions of an Organisation in order to facilitate its smooth running and success)
  5. Control (to verify if everything happens in accordance with defined plans, orders given, and accepted principles)



The 14 Principles of Administration

  1. Division of work: Reduces the span of attention or effort for any one person or group. Develops practice or routine and familiarity.
  2. Authority: "The right to give orders. Should not be considered without reference to responsibility."
  3. Discipline: "Outward marks...