THE EVOLUTION
OF MANAGEMENT
THOUGHT, 6TH
EDITION
Electronic Resource by:
Regina Greenwood and Julia Teahen
CHAPTER 10
Emergence of Management and Organization
Theory
Emergence of Management and
Organization Theory
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
Henri Fayol – Modern approach to general
management theory through the management
process
Max Weber – Bureaucracy to provide a formal
approach to organization theory
Henri Fayol (1841-1925)
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Jules Henri Fayol was born to
French parents in Constantinople.
His experiences as the Managing
Director of Comambault formed
his conception of management as
the general activity of
integrating functions of the firm
in order to intelligently use
resources to attain the objectives
of the firm.
While Taylor was more
production oriented, Fayol’s
viewpoint was that of general
management.
Henri Fayol, circa 1872
Source: La Societe de Commentry-Fourchambault et Decazeville, 1854-1954, Paris : Brodard et Taupin, 1954, p. 160.
Henry Fayol’s Conclusions
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Managerial abilities differed from technical ones, and the
success of the firm depended to a greater degree on good
managers than good technicians.
Fayol felt that every organization required management
regardless of whether it was “commercial, industry, politics,
religion, war, …”
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This statement suggests the universality of management in that this
activity is necessary in all organizations.
It does not mean that managers are universal.
Fayol’s List of Managerial Qualities
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Physical qualities: health, vigor, address
Mental qualities: ability to understand and learn, judgment,
mental vigor, and adaptability
Moral qualities: energy, firmness, willingness to accept
responsibility, initiative, loyalty, tact dignity
General education: general acquaintance with matters not
belonging exclusively to the function performed
Special knowledge: that peculiar to the function, be it technical,
commercial, financial, managerial, etc.
Experience: knowledge arising from the work proper; the
recollection of lessons a person has derived from things
Henry Fayol’s Conclusions

Managerial abilities become more important as a person
moves up in the hierarchy.

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Technical abilities are less essential for upper level managers.
Management could be taught in schools and universities but
was not because of the absence of management theory.
Fayol defined management theory as “a collection of
principles, rules, methods,
and procedures tried and checked
by general experience.”
(Fayol, 1949, p. 15)
Fayol’s Principles of Management
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination of individual interests to the general interest
Remuneration
Centralization
Scalar Chain
Order
Equity
Stability of tenure of personnel
Initiative
Esprit de corp
Fayol’s Principles of Management
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
Henri Fayol
Keep in mind Fayol’s
disclaimer that there is
nothing rigid in
management. Fayol’s
principles were guides, not
absolutes or universals.
We will not stress each
principle…the following is
a discussion of a few key
ones.
Fayol’s Principles of Management
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Division of Labor – Fayol is rather traditional here
regarding work design. However, he also used job
enlargement when appropriate.
Authority – Fayol distinguished between formal
authority and personal authority. He was aware of
the need to combine and complement the authority
of position with leadership qualities.
Authority must be commensurate with responsibility.
Fayol’s Principles of Management
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Unity of command – Fayol felt that employees should receive
supervision from only one person.
Unity of direction – “one head and one plan for a group of
activities having the same objective” (Fayol, 1949, p. 32). This
is still good advice for many organizations today.
Centralization – This is not centralized decision making. Instead
it is finding where decisions should be made depending on the
factors Fayol mentioned. (See Wren text for Fayol’s excellent
discussion.)
Scalar Chain and the “Gangplank”
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The “gangplank” is a
means for providing lateral
communications. (Fayol used
the French term passerelle)
The Foreman (F) wishing to
communicate with Foreman
(P) without reporting
upward through the
President (A) can use a
“gangplank to bypass
organizational red tape.
Figure 10.1 - Scalar Chain and the
“Gangplank”
Fayol’s Elements of Management

Planning (could also be translated as foresight)
 Plans
depended on the firm’s resources, work in
process, and future trends that could not be
predetermined (resembled a strategic audit).
 Plans needed to have the characteristics of unity,
continuity, flexibility, and precisions.
 Long range planning was a unique idea for his time
but a valuable contribution to the evolution of
strategic management.
Fayol’s Elements of Management

Organizing – Fayol included both the design of the
organization and the staffing job of the manager in this
element.
Structure of the organization had to be consistent with
the objectives, resources, and requirements of the firm
 Functional (horizontal) and scalar (vertical) growth
 Span of control – narrow at the top but greater at lower
levels
 Staff – advisory personnel are needed by line managers
 Staffing (separate issue from staff above) – involved
selection, evaluation, and training of personnel.

Fayol’s Elements of Management
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Command – Fayol’s term for directing, leading,
supervising, etc.
Coordination – harmonizing the activities of the
organization
Control – checking on performance to identify and
make corrections if necessary
Fayol’s Elements of Management
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Fayol spent relatively little time discussing command,
coordination, and control.
Planning, organizing, and staffing set the stage for
where we are going and when and how we intend to get
there.
These plans, people, and resources are activated, led,
motivated, and coordinated.
As our information system brings us performance data,
the control element enables management to renew the
elements by reorganizing or whatever is indicated by
our control system.
Fayol’s Elements of Management
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Management is a
continuous process, not
a neat set of discrete
elements and functions
that are performed
without coordination
of other elements.
Fayol’s perspective
was that of a
strategist.
Henri Fayol
What remnants of Fayol's ideas exist today in management
theory and practice? How did Henri Fayol's approach to
management compare with Taylor's?
Max Weber (1864-1920) Bureaucracy

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Weber’s Germany
was characterized by
cartels which limited
competition (anti-trust
laws limited this in the
U.S.).
To Weber, capitalism
in the US encouraged
innovation and
competition.
Max Weber
Max Weber and Bureaucracy

His interest in the U.S.
Capitalistic spirit led
him to ask:
 If
a market oriented
society could operate
large organizations on
some rational,
systematic basis?
Bureaucracy as a Theory
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It was management by
the office not by a
person.
It was an “ideal,” the
“pure form” of
organization but this did
not mean that it was the
most desirable.
Weber is suggested as
the “Founder of
Organization Theory.”
Three “Pure” Types of Legitimate
Authority
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Rational-legal – “right of those elevated to
authority…to issue commands.”
Traditional – rested on the belief “in the sanctity of
immemorial traditions and the legitimacy of the status of
those exercising authority under them.”
Charismatic – based on “devotion to the specific and
exceptional sanctity, heroism, or exemplary character of
an individual person.” (Weber, 1947, p. 328)

Weber believed that rational type of authority must be
the basis for a bureaucracy.
Elements of Bureaucracy
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The division of labor and
authority and responsibility were
clearly defined for each member
and were legitimatized as
official duties.
Offices or positions were
organized in a hierarchy of
authority resulting in a chain of
command or the scalar principle.
All organizational members were
selected on the basis of technical
qualifications through formal
examinations or by virtue of
training or education.
Max Weber
Weber’s Elements of a Bureaucracy
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Officials were appointed, not elected.
Administrative officials worked for fixed salaries and were
career officials.
Administrative officials were not owners of the units they
administered.
Administrators were subject to strict rules, discipline, and
controls regarding the conduct of their official duties. These
rules and controls were impersonal and uniformly applied in
all cases.
Summary

The emergence of management and organization
theory had two forms:
 Fayol’s
principles and elements of management
 Weber’s rationalized organization structure for
efficiency

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Fayol stressed: planning and organizing , and
education for management.
Weber sought leadership based on rational-legal
authority, not tradition or charisma.