Question

Consider the following statements about Fayol's elements and principles of administration:

1. Fayol's POSDCORB framework includes planning, organizing, staffing, directing, coordinating, reporting, and budgeting as core functions.

2. The principle of scalar chain refers to the hierarchical line of authority, ensuring order and clear communication pathways.

3. Fayol viewed principles as rigid, absolute rules without flexibility, insisting on identical application in all conditions.

• A. 1 and 3 only
• B. 2 and 3 only
• C. 1 and 2 only
• D. 1, 2 and 3

Answer 1

Answer:

C. 1 and 2 only

Henri Fayol's Contributions to Management Theory

• Henri Fayol, a French mining engineer, is considered one of the most influential figures in classical management theory.
• His work, General and Industrial Management (first published in French in 1916), introduced a framework for administrative principles.

Fayol's Functions of Management (POSDCORB vs. Fayol's Original)

• The statement mentions the POSDCORB framework. It is important to note that POSDCORB was actually developed by Luther Gulick and Lyndall Urwick, who were influenced by Fayol's work.
• Fayol's original five functions of management were:
  • Planning: Forecasting and looking ahead.
  • Organizing: Building the organization structure.
  • Commanding: Directing and motivating subordinates.
  • Coordinating: Harmonizing activities.
  • Controlling: Ensuring that activities conform to plans.
• The POSDCORB acronym stands for: Planning, Organizing, Staffing, Directing, Coordinating, Reporting, and Budgeting. While there's overlap, Fayol's original functions are slightly different, and POSDCORB includes 'Staffing', 'Reporting', and 'Budgeting' which were not explicitly listed as separate functions by Fayol.

Fayol's Principles of Management

• Fayol proposed 14 principles of management, which he considered flexible guidelines rather than rigid rules. These principles aim to improve administrative efficiency.
• Scalar Chain: This principle emphasizes the importance of a clear chain of command from the highest to the lowest level in the organization. It facilitates communication and ensures that instructions flow through the proper hierarchical channels. However, Fayol also acknowledged the need for 'gangplank' or 'bridge' communication (e.g., Bridge) between employees at the same level from different departments, allowing for faster communication when necessary, provided it respects the authority of superiors.
• Flexibility of Principles: Fayol explicitly stated that his principles were not absolute and could be adapted to suit the specific circumstances of an organization. He believed that managers must use their judgment and discretion in applying these principles. Therefore, the statement that Fayol viewed principles as rigid, absolute rules without flexibility is incorrect.
• Other Key Principles (for exam reference):
  • Division of Work: Specialization increases efficiency.
  • Authority and Responsibility: Managers should have the authority to give orders and the responsibility for their outcomes.
  • Unity of Command: Each employee should receive orders from only one superior.
  • Unity of Direction: One head and one plan for a group of activities having the same objective.
  • Subordination of Individual Interest to General Interest: The interests of the organization should take precedence over individual interests.
  • Remuneration: Fair wages and salaries are important for employee satisfaction and productivity.
  • Centralization: The degree to which decision-making is concentrated at higher levels.
  • Order: A place for everything and everything in its place (both material and human).
  • Equity: Fairness, kindness, and justice in the treatment of employees.
  • Stability of Tenure of Personnel: Low employee turnover is desirable.
  • Initiative: Allowing employees to make and carry out plans.
  • Esprit de Corps: Promoting team spirit and harmony.