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Henry Fayol

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Introduction

Henri Fayol Henri Fayol was a French management theorist, who was one of the most influential contributors to modern concepts of management. He emphasised the importance of taking a wider view, i.e. the organisation as a whole, but the analytical approach was similar. Having a Managing director role of a large coal mining company, he analysed his and other businesses for methods of achieving optimum performance. He devised a divide between the industry productions into six individual activities: * Technical (production) * Organisation (material and human structures) * Financial (optimum use of capital) * Security (protection of property and persons) * Accounting (including statistics) * Managerial He then divided managerial section into five other elements: * Foresight (forecasting and planning) * Organisation (material and human structures) * Command (maintenance of activity) * Co-ordination * Control Many years later he devised what he called "The 14 principles of management" They are as follows: 1. Division of work - opportunities for increased efficiency through specialisation. ...read more.

Middle

As they have authority of team members they must try to encourage them to carry out a good job 5. Unity of direction - each organisational unit should have a single objective. Ford, everyday give out individual daily tasks to each team at the plant, they must complete their task or Ford will not accomplish their team objective which is to 'produce as many engines as demanded' 6. Subordination of individual to general interest - 'goal congruence' essential. Goal congruence exits where the goals of management and the goals of the investors in the firm are aligned. This is true at Ford as both goals are the aligned, 'to produce as many ford engines as demanded' 7. Fair remuneration - from both the employer's and the employee's points of view. All employees at Ford agree with their wage, this is an important subject for Ford because if they didn't then it would be a huge de-motivator. The average wage in the plant is around �365 a week. ...read more.

Conclusion

There is also a 25% employees discount up to four Ford cars a year plus the chance of winning a car every month. Ford takes care of their employees and put no limits on them. They also pay and give them time off to enhance their qualifications and skills to become a better employee. 13. Initiative - to be encouraged from subordinates, by managers. Managers encourage the lower employees at Ford to use the 'suggestion box' as it shows the initiative of individual employees. 14. Esprit de corps - teamwork and sound communications vital, to maintain the motivation of the workforce and management. Communication is vital at Ford because employees need to be updated about new technology that is being used in the plant. The right information makes jobs easy. Ford use an Internal communication, which includes: * Telephone * Paging systems * FCN (televisions around the plant) * Newsletters * E-mail * Meetings * Send Messages to employees In conclusion, many of Fords s policies agree with the principles lay down by Fayol. Even though his language seems to be outdated, it can still be applied to modern day business activity at Ford Bridgend ...read more.

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