Background Of Henri Fayol Commerce Essay Example

saved it from demise. From that point onwards, the company flourished. This anecdote serves to illustrate how administrative practices greatly influence the rise and fall of a company. The same mines, factories, financial resources, commercial situation, board of directors, and staff all played roles in both the decline and resurgence of the company. Thus indicating that specific administrative methods can lead to ruin or prosperity. Regrettably though, certain dysfunctional administrative practices squandered the hard work, expertise knowledge,and goodwill of thousands of employees. Conversely,some administrative procedures highlighted the strengths of the company.Fayol himself helmed a large organization with over 10k employees which is comparable to today's multinational corporations.He remained as CEO until retirement at WWI's conclusion in 1918Prior to his retirement in 1916, Fayol published his main book, Administration Industrielle et Generale, in the professional publication called Bulletin de la Societe de l'industrie minerale. In 1917, he established the Centre for Administrative Studies (CAS) in Paris and later published his thoughts as a book in 1925. The CAS played a vital role in spreading his ideas through seminars and discussions with various professionals. From 1921 to 1925, Fayol collaborated on studies for the French public sector including ones on the Post and Telecom Department as well as the French Tobacco and Match monopoly.

Fayol's influence on management is often overshadowed by Taylor who lived during the same era of significant industrial development. Charles de la Poix de Freminville encountered Taylor in 1912 and began distributing Taylorian principles of administration of work. While Taylor focused on workshop fabrication, Fayol concentrated on the excavation industry and overall direction.

The relatively slow dissemination of Fayol's ideas can partly be attributed to

timing since France was involved in World War I from 1916 to 1918.Despite the potential application of Fayol's rules to improve management in French government agencies and enterprises, they were not adopted due to institutional changes in France during that period. These changes included the separation of church and state in education, the growth of the public sector, labor unions, and large corporations. This coincided with the rise of professional managers and an interest in technological advancements. From my perspective, ideological reasons played a role as the French government sought to strengthen itself through establishing a national education system and nationalizing companies like the train system and telecommunications while also facing threats from Germany. As a result, Fayol's criticism and suggestions for modifying state management methods were not always welcomed. Support for state-owned industries and market regulation by government agencies continued until 1986. The main reason why Henri Fayol's work was not considered convenient for managing French state agencies and industries is its extensive scope. However, US business schools recognized the value in teaching Fayol's works to undergraduate students. It wasn't until around the end of the 1990s that French scholars began studying their own managerial roots again.Despite the origins of Fayol's ideas, their importance as foundational to management thought is worth questioning. Like other classical management thinkers, Fayol proposed the necessity of management in relation to industry. Many practitioners view management as a means to coordinate technical aspects for optimal economic efficiency. In this regard, Henri Fayol, Frederick Taylor, and Alfred Sloan share a common purpose. In his 1900 lecture at the Congres International des Mines et de la Metallurgie, Fayol explained the role

of management in industry and highlighted its administrative services' lack of clear structure, responsibilities, and operations compared to technical and commercial services. Despite not being visibly involved in building or selling products, effective functioning is crucial for company success. Regarding recruitment, combining theory and practice is vital in engineering education; however, opinions differ on the ideal ratio between them.In engineering schools, there is a debate about the importance of both theoretical lessons and practical projects. Some argue that we have reached the limit of theoretical instruction and that hands-on experience would benefit young people more. In his book General and Industrial Management, Fayol emphasizes the different skills required for engineering work compared to management work. He also highlights the need for schools to educate students on administration alongside engineering as a separate discipline. Fayol's reflection aims to develop qualities necessary for effective management rather than solely relying on formal engineering regulations, which may be seen as prestigious among the middle class seeking employment opportunities for their children. The qualities needed to be an effective manager are different from those required to be an engineer, including physical, mental, and moral qualities such as health, energy, demeanor, understanding, judgment, adaptability, integrity, responsibility acceptance willingness initiative tact loyalty self-respect general education specific knowledge contextual work experience ability learn from past experiencesFayol argues that education is crucial for managers and identifies three main sources of problems that can hinder proper education. These issues include the problem of industrial concentration, the role of higher technical education and its misuse of mathematics, and intellectual curiosity.

Managing a large business has always been challenging and understanding this requires considering various responsibilities that CEOs

have to handle. These difficulties are inherent to the job and have always existed. However, recent industrial development and concentration have significantly increased the number of large trades, which has highlighted a shortage of skilled CEOs. This shortage can be attributed to the misuse of mathematics as there is a false belief that having more knowledge in this subject leads to better management skills. Additionally, there is a misconception that studying mathematics is more important than anything else as it enhances thinking abilities. It is crucial to address these misconceptions as they lead to serious issues within our country.

From personal experience, I have found higher mathematics to be useless in business management. Professionals such as engineers or steelworkers rarely use it in their field. Basic mathematics plays an essential role in shaping our thinking, just like other aspects of general education. However, forcing an intense focus on higher mathematics on future engineers without necessity has negative consequences.Exaggerated emphasis on scientific fields has negative effects on both one's soul and mind. Mathematics is no exception to this notion. When extensively studied with great intensity, it only benefits individuals who possess a well-rounded mindset. Exceptional mathematicians often lack common sense, unlike many non-mathematicians who do have it. Intellectual curiosity is vital regardless of one's chosen career path, even if it involves working in a small company.

Relying solely on education cannot equip someone with the necessary skills and knowledge in administration, commerce, and accounting to become a CEO. Even if these subjects were offered in school, practical experience and hands-on learning can only be acquired through real-world interactions. However, bringing your diploma along with reflection, logical thinking, and

an observant and dedicated mindset are important for successfully completing tasks.

While focusing on enhancing professional expertise, it is crucial not to neglect general management principles. Successful directors continuously seek knowledge and earn respect through ongoing effort. As part of the intellectual elite group, staying engaged with current affairs and being aware of broader ideas that shape modern society across all disciplines is essential.

Fayol acknowledged that his engineering education primarily focused on mathematics but did not adequately prepare him for the challenges associated with management and human interactions.It is believed that management requires a combination of practical application and contemplation, which engineering lacks in addressing the human aspects. Management is seen as essential for the rationalization of an organization, whether it is private or public, rather than being viewed as a form of humanitarianism. Therefore, focusing on human administration is crucial for effective functioning of any industry.

Fayol's Administrative Theory emphasizes the importance of establishing an administrative "theory" that considers various factors. These factors include the need for both annual and monthly projections to align with global planning and assess individual progress within the company. To combat bureaucracy, Fayol suggests promoting face-to-face interactions and minimizing excessive hierarchies that can lead to managerial irresponsibility. It is also important to maintain stability in hierarchy and have the ability to reward or punish power usage. Pragmatic approach should be taken towards division of labor by considering the circumstances at hand while making decisions.Control managers should be utilized by organizations to make timely decisions before they become detrimental. While Fayol is often depicted in management literature as a hierarchical director who developed principles of administration for task allocation, his main focus

was not simply formalizing decision-making tools on a chart. Instead, he believed that managing an organization requires viewing it as an integration of various key functions such as production, sales, finance, security, accounting, and administration. By considering these different functions together, Fayol emphasized the complexity of running a business.

According to Donald Reid's paper titled "Fayol: From Experience to Theory," Fayol gained practical industry and management experience before documenting his ideas. He meticulously recorded his observations, particularly focusing on organizational failure and the nature of duty and authority among key decision makers. In 1861, Fayol documented an example of management failure in his notebook when work had to be halted at a mine due to an injured working horse. The mine manager was absent and the stable manager lacked the authority to replace the horse.The company's structure's inability to address technical issues revealed an inefficiency. Fayol recognized the need for authority to overcome narrow decision making and achieve tasks in the absence of a stable manager. This case demonstrated that authority is ineffective without flexibility in specific circumstances, such as coal production. In his book "General and Industrial Management," Fayol thoroughly examined all aspects of management, including principles like integrity of command, hierarchical chain of command, separation of powers (authority, subordination, responsibility, and control), centralization, and order. However, his focus extended beyond authority as he was interested in overall industrial business operations. While most encountered issues were managerial rather than technical, Fayol concluded that managerial practices needed creativity to adapt to industrial realities. For instance, he suggested empowering experienced workers as supervisors for work groups. This approach improved motivation and efficiency by allowing working teams in

mines to make decisions and take action while being accountable for their work quality and timeliness.Fayol's observation in his book "General and Industrial Management" is that all employees have some involvement in business management. His intention is to generalize the collective experiences he witnessed while managing Comambault, compiling ideas that can be applied across industries and organizations. Fayol identified several principles of effective direction: division of work, authority, discipline, unity of command, unity of direction, subordination of individual interests to the general interest, remuneration, centralization, scalar chain, order, and equity. These principles aim to optimize resources and achieve coordination and focus in achieving goals.Equity, stability of tenure of personnel, initiative, and esprit de corps are all essential factors in creating a positive work environment. Equity promotes fair employee relations by emphasizing respect and helpfulness. Stability of tenure of personnel aids in resource planning. Initiative encourages energy and enthusiasm throughout the organization. Esprit de corps focuses on building a sense of belonging and teamwork among employees.