Foundation of Administrative school of management

1. Cavendish University Armenia 2008 Contemporary Trends in Developing and Organizing Management Foundation of Administrative school of management Henri Fayol’s Contributions 10.10.2008 • Presented by • Suren Sarukhanyan • Nora Galstyan • Nune Simonyan • Gayane Ghazaryan MBA 1st

2. Life and career • Fayol’s administrative theory • Five managerial functions • 14 universal principles of management Agenda

3. J HENDO 84 J Was born in 1841 in Istanbul Mining engineer Died 1925 in Paris Henri FayolLife and career Chief Executive Officer (Big Boss)

4. Fayol first spoke about importance of administrative management; • Management can be taught and learned. ``One becomes an engineer but one is born an administrator.’’ This is not true. It is true that knowledge alone, even a deep knowledge, of the principles of Chemistry, of Physics, of Mechanics, of Geology, etc., is not sufficient to make a good manager of a blast furnace, a rolling mill, or a mine, and cannot be doubted at all that even perfect knowledge of the principles of administration does not confer a technical ability.” Fayol, H (1908a) , ``L’expose des principles geÂneÂraux d’ administration’’ (translated by Breeze, J.D.) Fayol, H. (1916), ``Administration industrielle et geÂneÂrale’’ Fundamental ideas and Contributions

5. Classical school of management Scientific School of management Administrative School of management Fayol’s administrative theory “We all know that, even if a firm has perfect machinery and manufacturing processes, it is doomed to failure if it is run by an inefficient staff.” If scientific management focused on the productivity of individuals, the classical administrative approach concentrates on the total organization.

6. Fayol defined management theory as “a collection of principles, rules, methods, and procedures tried and checked by general experience.” Fayol’s administrative theory

7. Five managerial functions Fayol developed 5 managerial functions, he noted that everyone was concerned with: Foresight Discipline Organization Order Selection and training of Employees

8. 14 universal principles of management 1. Division of work (labor)

9. 14 universal principles of management 2. Authority

10. 14 universal principles of management 3. Discipline

11. 14 universal principles of management 4. Unity of command

12. 14 universal principles of management 5. Unity of direction

13. 14 universal principles of management 6. Subordination of the general to the individual interest

14. 14 universal principles of management 7. Remuneration of personal

15. 14 universal principles of management 8. Centralization

16. 14 universal principles of management 9. Scalar chain

17. 14 universal principles of management 10. Order

18. 14 universal principles of management 11. Equity

19. 14 universal principles of management 12. Stability of tenure of personnel

20. 14 universal principles of management 13. Initiative

21. 14 universal principles of management 14. Esprit de corps

22. Thank you…! Hope, no questions  Sources: www.cliffsnotes.comwww.emeraldinsight.comhttp://en.wikipedia.org 22