Theory of Fayol

1. Pick a company of your choice and critically discuss how the 14 principles of Henry Fayol impact directly and indirectly to their day to day activity.        (50m)

• A brief introduction on the theory of Fayol (8m)
• 14 principles

Fayol’s principles are listed below:

1. Division of Work– When employees are specialized, output can increase because they become increasingly skilled and efficient.
2. Authority– Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility.

• Discipline– Discipline must be upheld in organizations, but methods for doing so can vary.

1. Unity of Command– Employees should have only one direct supervisor.
2. Unity of Direction– Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.
3. Subordination of Individual Interests to the General Interest– The interests of one employee should not be allowed to become more important than those of the group. This includes managers.

• Remuneration– Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.
• Centralization– This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance.

1. Scalar Chain– Employees should be aware of where they stand in the organization’s hierarchy, or chain of command.
2. Order– The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.
3. Equity– Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate.

• Stability of Tenure of Personnel– Managers should strive to minimize employee turnover. Personnel planning should be a priority.
• Initiative– Employees should be given the necessary level of freedom to create and carry out plans.
• Esprit de Corps– Organizations should strive to promote team spirit and unity.

( 14 points X 3 marks for explanation = 42marks)

2. If you were selected a manager for the chosen company, how would you apply the concepts below in your organisation;
3. Reward system (10m)

• Use at least two to three rewards system that you want to use

1. Motivation (10m)

• At least one motivation theory and explain from the theory perspective on how you would motivate your staff
• Leadership style (10m)
• At least one leadership theory and explain from the theory perspective on how your style be applicable to the organisation.

1. Power (10m)

• Among the five source of power, and explain how you will use power in the organisation.

1. Controlling (10m)

• By referring to one controlling strategy explain how you will use it to control your organisation.