A French engineer, Henri Fayol (1841-1925) is known as the Father of Modern Management because of his theory called Fayolism. Henri describes the management principles and their functions that form the basis of modern management in the company.
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Definition of management according to Henri Fayol
Henri Fayol defined management as a process consisting of activities to plan, organize, mobilize human resources (HR), and carry out control to achieve goals.
It can be said that management is all management processes, from planning to supervision, to achieve certain goals.
Management functions according to Henri Fayol
Henri Fayol divides the management function into several process points, which are as follows.
1. Planning (Planning)
Planning is a basic function of management because to carry out other functions, a plan must be prepared first. This process tends to be very dynamic in nature, where plans can change at any time depending on the conditions and situations at that time.
According to Henri Fayol, planning is the determination of the initial steps that allow an organization to achieve its goals. This is also related to the efforts made to anticipate trends and all possibilities that may occur in the future.
In addition, planning is also defined as a process of determining the right strategy or idea.
Henri Fayol put forward a theory about line organization related to the centralization of authority at the organizational leadership level. Thus, various functions will be centralized and centered under the authority of certain leaders.
This is done to separate the field of leadership activity (managerial as the center of authority) and the field of technical activity (non-managerial). This organization is based on the principles put forward by Henri Fayol regarding the division of work tasks, unity of direction, centralization, and organizational level links.
3. Directing (Commanding)
This function is related to the process of cultivating the motivation of employees so that they can work more diligently and painstakingly towards achieving goals. In addition, directives are also intended to provide direction and guidance to employees so that they can do their jobs well.
The directive function is also related to efforts to create a healthy and dynamic work environment. In this way, productivity, effectiveness, and work efficiency are expected to increase further.
4. Coordination (coordinating)
According to Henri Fayol, coordination is carried out to keep the activities of the organization or company continuing and synergizing so that all of them can work well together.
Therefore, communication is very important in this process. The communication in question is both formal and informal.
According to Henri Fayol, control is an activity to monitor, prove, and ensure that all work goes according to its purpose. In addition, this function can also be used in evaluating employee performance based on the rules and standards that have been determined by the company. The activities carried out in the control process are as follows:
- Setting performance standards
- Measuring the achievements that have been
- Comparing the achievements that have been achieved with the standard of achievement
- Make improvements if there are deviations in performance standards.
Management principles according to Henri Fayol
Henri Fayol also put forward some management principles. This includes the following:
1. Division of work
is a specialization in work to increase efficiency. It aims to be able to complete more and better work, but with the same effort.
2. Authority and responsibility
This principle relates to authority and responsibility at work. According to Fayol, authority is the right to give orders and power to be obeyed. Authority is divided into two types, namely personal authority and official authority.
Personal authority comes from intelligence, experience of moral values, and the ability to lead. While official authority is the authority received from someone who is at a higher level or position,
Responsibilities are functions and duties that must be carried out. In this case, the authority of the party above is needed. In its implementation, both authority and responsibility need to be accompanied by sanctions or consequences so that there is no abuse or deviation.
Carrying out what has been agreed upon in accordance with applicable rules and standards is part of the principle of discipline. This principle of discipline is very important for the achievement of common goals.
4. Unity of command
Each employee or subordinate only receives orders from one superior. This applies to reducing ambiguity and the occurrence of mutual responsibilities.
5. Unity of direction
A concept in team management where all members must have the same goals and interests. Thus, the goal can be achieved through a predetermined plan.
6. Subordination of individual interests to the general interest.
Common interests, especially corporate interests, must be prioritized over personal or individual interests.
A principle where the provision of wages or salaries of employees must be handled by and within the company. Compensation and fees provided must be fair and in accordance with applicable regulations within the company or organization.
Standardization and centralization relate to the division of power. Centralization can be enforced in organizations or small companies. While decentralization usually applies to larger companies or organizations,
9. Scalar chain (authority chain)
It is a path that must be followed by all communication processes. A communication chain that starts from the highest power to the lowest position in a company. A clear flow of communication is very important for every company to achieve its goals.
Henri Fayol believes that everything must be in order. A person should be placed in the right job position based on their abilities and qualifications.
This principle relates to the treatment and attitude in an organization or company in order to motivate employees to do their jobs. This is necessary to increase employee productivity.
12. Stability in the tenure of personnel
In order for the company to run smoothly, employees or members should not move or leave the company. Changes in members that are too frequent can also damage the stability of the company.
Giving freedom to employees to express opinions, carry out tasks, and solve work problems. This is also related to the spirit of doing the given task without waiting for orders from superiors.
14. Esprit de corps
The company must make every effort to maintain the harmony of the team within it. Uniting members is important for the sustainability and success of the company.