If scientific management was characterized by emphasizing the tasks performed by the worker, classical theory was distinguished by the emphasis on the structure and functions that an organization must have to achieve efficiency. Both theories pursued the same objective: Search for the efficiency of organizations The classical theory was born in France in 1916 and its main exponent is the mining engineer Henry Fayol, who presented his theory in his famous book Administration industrielle et générale published in Paris in 1916. It starts from a synthetic, global and universal approach to the company, which initiates the anatomical and structural conception of the organization, which quickly displaced Taylor's analytical and concrete vision, which had a normative and prescriptive approach.
The time
- The second decade of the twentieth century was tumultuous. World War I (1914-1917) involved Europe and the United States in joint military operations. During this time, the boom in transportation, as well as the automobile industry and the railways, grew. Commercial, civil and military aviation was born. Radio (medium and short waves) and the press experienced great expansion. In Europe the classical theory of administration emerged.
Fayol's work
- Henri Fayol (1841-1925), creator of Classical Theory, born in Constantinople and died in Paris, lived through the First World War, graduated in mining engineering and entered a metallurgical and coal mining company, where he developed his entire career. He presented his theory of administration in his famous book Administration Industrielle et Générale, published in 1916. Before being translated into English, his work was quite rambled by Urwick and Gulick, two classic Authors.
Fayol defines the act of administering as
- Plan: Visualize the future and draw up the action program Organize: Build the material and social structures of the company Lead: guide and orient the staff Coordinate: link, unite and harmonize all collective acts Control: verify that everything happens in accordance with the established rules and the orders given.
Administrative functions encompass the elements of administration, that is, administrator functions.
DIFFERENCE BETWEEN ADMINISTRATION AND ORGANIZATION
For Fayol, administration is a whole and a set of processes of which the organization is one of the parts, which is static and limited, since it refers to the structure and form.
From this differentiation, the word organization will have two meanings:
- Organization as a social entity Organization as an administrative function.
GENERAL PRINCIPLES OF THE ADMINISTRATION ACCORDING TO FAYOL
According to Fayol, the 14 general principles of administration are:
- Division of laborAuthority and responsibilityDisciplineUnit of commandUnit of managementSubordination of individual interests to general onesCompensation of staffCentralizationScale chainOrderEquityStaff stabilityInitiativeTeam spirit
GENERAL PRINCIPLES OF THE ADMINISTRATION, ACCORDING TO FAYOL
- DIVISION OF LABOUR
Specialization of tasks and people to increase efficiency.
2. AUTHORITY AND RESPONSIBILITY
Authority: right to give orders and expect obedience
Responsibility: accountability
3. DISCIPLINE
Bosses: energy and justice in sanctions orders, clear and fair rules.
Subordinates: obedience and respect for rules.
4. CONTROL UNIT
Each employee must receive orders from a single boss.
5. UNIT OF DIRECTION
There should be a boss and a plan for each group of activities that have the same goal.
6. SUBORDINATION OF INDIVIDUAL INTERESTS TO GENERAL INTERESTS
General interests must be above individual interests.
7. STAFF REMUNERATION
There must be a fair and guaranteed satisfaction for the employees and for the organization.
8. CENTRALIZATION
Concentration of authority at the top of the organization
9. SCALAR CHAIN
Line of authority that goes from the highest to the lowest rung. It can be skipped if it is essential and there is authorization.
10. ORDER
There must be a place for everything and everything to be in its place. Material and human order.
11. EQUITY
Kindness and fairness to gain staff loyalty.
12. STABILITY OF STAFF
There must be a reasonable tenure for a person in office.
13. INITIATIVE
Ability to visualize a plan and ensure its success.
14. TEAM SPIRIT
Harmony and unity of people is vital for the organization.
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