Levels of Authority Through Which Decisions Are Passed in The Organization
Levels of Authority Through Which Decisions Are Passed in The Organization
Levels of Authority Through Which Decisions Are Passed in The Organization
• planning
• organizing
• commanding
• coordinating activities
• controlling performance
Notice that most of these activities are very task-oriented, rather than people-oriented.
This is very like.
Fayol laid down the following principles of organization (he called them principles of
management):
Out of the 14, the most important elements are specialization, unity of command, scalar
chain, and, coordination by managers (an amalgam of authority and unity of direction).
Fayol (1841-1925) Functions and Principles of Management
Henri Fayol, a French engineer and director of mines, was little unknown outside France
until the late 40s when Constance Storrs published her translation of Fayol's 1916
“Administration Industrielle et Generale ".
Fayol's career began as a mining engineer. He then moved into research geology and in
1888 joined, Comambault as Director. Comambault was in difficulty but Fayol turned the
operation round. On retirement he published his work - a comprehensive theory of
administration - described and classified administrative management roles and processes
then became recognized and referenced by others in the growing discourse about
management. He is frequently seen as a key, early contributor to a classical or
administrative management school of thought (even though he himself would never have
recognized such a "school").
His theorizing about administration was built on personal observation and experience of
what worked well in terms of organization. His aspiration for an "administrative science"
sought a consistent set of principles that all organizations must apply in order to run
properly.
Both Fayol and Taylor were arguing that principles existed which all organizations - in
order to operate and be administered efficiently - could implement. This type of assertion
typifies a "one best way" approach to management thinking. Fayol's five functions are
still relevant to discussion today about management roles and action.
• Specialization/division of labor
A principle of work allocation and specialization in order to
concentrate activities to enable specialization of skills and
understandings, more work focus and efficiency.
• Authority with corresponding responsibility
If responsibilities are allocated then the post holder needs the
requisite authority to carry these out including the right to require
others in the area of responsibility to undertake duties. Authority
stems from:
• that ascribed from the delegation process (the job holder
is assigned to act as the agent of the high authority to
whom they report - hierarchy)
• Allocation and permission to use the necessary resources
needed (budgets, assets, and staff) to carry out the
responsibilities.
• Selection - the person has the expertise to carry out the
responsibilities and the personal qualities to win the
support and confidence of others.
• Discipline
The generalization about discipline is that discipline is essential
for the smooth running of a business and without it - standards,
consistency of action, adherence to rules and values - no
enterprise could prosper.
• Unity of command
The idea is that an employee should receive instructions from one
superior only. This generalization still holds - even where we are
involved with team and matrix structures which involve reporting
to more than one boss - or being accountable to several clients.
The basic concern is that tensions and dilemmas arise where we
report to two or more bosses. One boss may want X, the other Y
and the subordinate is caught between the devil and the deep blue
sea.
• Unity of direction
The unity of command idea of having one head (chief executive,
cabinet consensus with agree purposes and objectives and one
plan for a group of activities) is clear.
• Subordination of individual interest to the general interest
Fayol's line was that one employee's interests or those of one
group should not prevail over the organization as a whole. This
would spark a lively debate about who decides that the interests
of the organization as a whole are. Ethical dilemmas and matters
of corporate risk and the behavior of individual "chancres" are
involved here. Fayol's work - assumes a shared set of values by
people in the organization - a unitary where the reasons for
organizational activities and decisions are in some way neutral
and reasonable.
• remuneration of staff
• Centralization
Centralization for HF is essential to the organization and a natural
consequence of organizing. This issue does not go away even
where flatter, devolved organizations occur. Decentralization - is
frequently centralized-decentralization!!! The modes of control
over the actions and results of devolved organizations are still
matters requiring considerable attention.
• Scalar chain/line of authority
the scalar chain of command of reporting relationships from top
executive to the ordinary shop operative or driver needs to be
sensible, clear and understood.
• Order
The level of generalization becomes difficult with this principle.
Basically an organization "should" provide an orderly place for
each individual member - who needs to see how their role fits
into the organization and be confident, able to predict the
organizations behavior towards them. Thus policies, rules,
instructions and actions should be understandable and
understood. Orderliness implies steady evolutionary movement
rather than wild, anxiety provoking, unpredictable movement.
• Equity
Equity, fairness and a sense of justice "should” pervade the
organization - in principle and practice.
• Stability of tenure
Time is needed for the employee to adapt to his/her work and
perform it effectively. Stability of tenure promotes loyalty to the
organization, its purposes and values.
• Initiative
At all levels of the organizational structure, zeal; enthusiasm and
energy are enabled by people having the scope for personal
initiative. (Note: Tom Peters recommendations in respect of
employee empowerment)
• Esprit de corps
Here Fayol emphasizes the need for building and maintaining of
harmony among the work force, team work and sound
interpersonal relationships.
In the same way that Alfred P Sloan, the executive head of General Motors reorganized
the company into semi-autonomous divisions in the 1920s, corporations undergoing
reorganization still apply "classical organization" principles - very much in line with
Fayol's recommendations.