Premium Essay

Is Henri Fayol's Management Theory Relevant Today

In: Business and Management

Submitted By joeychan
Words 14584
Pages 59


Ding Huiru Business Administration Bachelor’s thesis International Business

April 2011


Degree Programme, option

International Business Author(s) Ding Huiru
Title of study

The importance of strategic management, Case study of H&M Type of project Date Pages Thesis 27.4.2011 59+12 Supervisor(s) of study 1st Antti Iire 2nd Anneli Juutilainen

Executive organization H&M in Kuopio,Finland

Hennes & Mauritz (H&M) is a 100 billion Sweden company, engaged in designing and retailing of fashion apparel and accessories. The company offers a range of apparel, cosmetics, footwear and accessories for men, women, children and teenagers. H&M primarily operates in Europe, North America and Asia, and has a presence in over 38 countries. The company is headquartered in Stockholm, Sweden and employs approximately 87,000 people on a full-time basis. This thesis focused on the strategic management of H&M company. The main research problem was to make an in-depth analysis of its marketing strategy and how to implement it. The main research method was a qualitative research by analyzing their company data, annual reports and making interviews with the manager, staffs and customers in Kuopio shop. The thesis starts with a general introduction and some background information of this thesis work. In the theoretical part, it described the definition, process, benefit and challenge of strategic management .In the practical part, an exhaustive analysis on the company’s strengths, weakness, opportunities and threats was made by using the detailed figures. The result shows a clear image of the process of strategic management by H&M case. Some recommendations made...

Similar Documents

Premium Essay

Fayol’s Work from Two Different Points of View

...the author will compare and contrast two essays; article one considers, Fayol’s and Mintzberg’s theories, and article two which considers Fayol’s and Taylor’s theories. This essay will also explain the author’s view on Fayol’s, Mintzberg’s and Taylor’s theories. Classical management theory is a school of management thought in which theorists delved into how to find the best possible way for workers to perform their tasks. The purpose of the first article is to prove that Fayol’s function of theories is still relevant today but Mintzberg’s theory is better because there are more details for the managers in how to do the managers tasks. The purpose of the second article is to argued that management fashions are a consequence of Henri Fayol’s idea of general management and the general acceptance of this theory. It is suggested that different ideas of management proposed by Frederick Taylor, also work. In the second article the author also trying to prove that Fayol’s theory and Taylor’s theory are useful and can be used together. The key points of the first article are; that several studies that the author observed show that manager use PLOC in their real-life work. PLOC stands for Planning, Organising, Leading, and Controlling. Organisations are also successful when the managers are applying the PLOC in their work. In this article, it shows that Mintzberg criticizes Fayol’s theory, but then MIntzberg’s theory has been criticized by other authors because his roles overlap......

Words: 1123 - Pages: 5

Premium Essay

Henri Fayol, Practitioner and Theoretician – Revered and Reviled Henri Fayol, practitioner and theoretician – revered and reviled Mildred Golden Pryor and Sonia Taneja Department of Marketing and Management, Texas A&M University-Commerce, Commerce, Texas, USA Abstract Purpose – Fayol’s theories were the original foundation for management as a discipline and as a profession. Also Fayol was the first to advocate management education. Yet he has critics who revile him (or at least disparage his work) as well as followers who respect and revere him. This paper intends to enlighten today’s practitioners and academicians about the relevance and value of Fayol’s theories today. Design/methodology/approach – The paper addresses Fayol’s contributions as well as the disparagement and the reverence. It compares Fayol’s work with that of Follett, Mintzberg, Taylor, and Porter. In addition, it demonstrates the original and current interpretation and application of his theories. Finally, it indicates the alignment of Fayol’s theories with strategic leadership and management. Findings – Fayol’s theories are valuable and relevant for organizational leaders because Fayol was a practitioner who documented theories that worked best for him and his co-workers. While there are those who criticize Fayol’s theories, there are many others who respect them and find them useful as academicians and as practitioners. The theory of management functions aligns well with strategic leadership and management models and theories. Originality/value –......

Words: 7742 - Pages: 31

Premium Essay

Critically Examine the Functions of Management Proposed by Fayol. Explain Why These Functions Are Relevant to Today’s Managers.

...processes) of management proposed by Fayol. Explain why these functions are relevant (or otherwise) to today’s managers. The twentieth century has bought upon us a number of management theories which have helped to shape the overall view of management in the present environment of business. Many of those theories have stood the test of time and are still often referred to in the management world of today. One of the most famous theories referred to in management is that of Henri Fayol. Henri, a French engineer became somewhat of a hero for resurrecting a troubled mining company in which he worked, and turning it into one of France’s most successful businesses (Daft 2003). Born in 1841 and dying in 1925, Fayol spent most of his working life as a manager, where he drew upon personal experiences to facilitate in the creation of his theory of administration. In his most significant work, General and Industrial Management, Fayol discussed and identified five basic functions of management, which he believed every manager needed to perform. These were: planning, organising, commanding, coordinating, and controlling. These functions, although have been condescended down to four; planning, organising, leading and controlling, still underline much of the general approach to today’s management (Draft 2003). Although, the usefulness of Henri Fayol’s classical functions have come under question about their relevance in current managerial activities by a number of professionals, Fayol’s......

Words: 1269 - Pages: 6

Premium Essay


...1. Spatig, L 2009, ‘Rediscovering Fayol: Parallels to Behaviouralist Management and Transformational Leadership’, Northeast Business & Economics Association Proceedings, pp. 196-199. (CAMILA AMAYA , 1718053) The article was wrote by Lauren Spatig, Doctoral Student from Fielding Graduate University, she created the article to make a comparison between three big management theories: Fayol’s classical management theory, McGregor’s behavioralist management theory (1966,2006) and Kouzes and Posner’s transformational leadership research (2007). Spatig is always comparing McGregor’s and Kouzes and Posner’s with Fayol’s theory. It is for business management students and people that are interested in different theories related to the way of manage a company. Also to prove that other authors based their theories in Fayol findings. The article was written in an organized and sequence structure. Remembering the audience who was the people she was describing and which ones were their thoughts. Besides, she support all her opinions and conclusions by books and written made by those three authors. Spatig state (2209), that all authors of management theories support their ideas from Fayol theories. In addition, states, that management is base on structuralism, that hierarchical roles in all companies bringing uneven distribution of power. However if the task are well distribute the power will be even and employees will fill......

Words: 2594 - Pages: 11

Premium Essay

Henri Fayol

...Henri Fayol was a French mining engineer and director of mines who had developed a general theory of business administration.  He was one of the most influential contributors to modern theories of management. He also identified 5 functions and 14 general principles of management in the early 19th century. These functions and principles were based on his experience and observations and were made for general administration purposes. While today’s economy may be more service oriented, one would feel the management functions set down by Fayol are still very relevant. Many of these are considered to be common sense and constitutional to sound management. These functions are: * Planning * Organising * Directing * Controlling and * Coordinating Planning is basically deciding in advance what to do and how to do it. Planning bridges the gap between where one is and where he/she wants to be. It is the primary function and is present on all levels of management. Organising is a process that commences the implementation of the plans that are set down by clarifying working and reporting relationships and effectively deploying resources towards the attainment of organizational goals. Directing involves leading and motivating employees to perform tasks assigned to them. Motivation and leadership are essential to direction. Leadership is influencing others to do what is asked of them and motivating is getting people to want to do it. Controlling is the......

Words: 1482 - Pages: 6

Premium Essay

Fayol or Mintzberg?

...110369257 Version 1.0 The task: Henri Fayol presented his analysis of the management function in 1916 and it has largely been superseded by the more descriptive approaches of what managers actually do, such that favored by Henry Mintzberg. However, it could be argued that the image portrayed by Fayol is superior to that of Mintzberg, and the latter’s description is of rather ineffective management! Who do you think is right? Fayol or Mintzberg – Who is right? By Henry Amm Introduction With his work General and Industrial Management (1949, in French 1916) Henri Fayol was a pioneer on the field of management theory. (Pryor & Taneja, 2010) Many more were to follow, some supporting Fayol’s thoughts and some, i.e. Henry Mintzberg in The Nature of Managerial Work (1973) saying that Fayol’s views are not holding true today. This essay will take a closer look at strengths and weaknesses of both Fayol and Mintzberg and conclude that Fayol’s work still is not only relevant to our contemporary understanding of management but also superior to Mintzberg in terms of its conceptualization and applicability to modern organizations. Description of Fayol’s work According to Fayol (1949) all industrial organisations consist of six different groups of activities: technical, commercial, financial, security, accounting and management. As he was a manager himself, or in other words an administrator, he devoted his work to the latter activity, management. Fayol identified five key......

Words: 2109 - Pages: 9

Premium Essay

Fayol and Mintzberg

...extent to which Fayol’s classic analysis of the management function has largely been made redundant by the more recent empirical studies of what managers actually do, such as that favoured by Mintzberg Introduction The function of a manager is not a set in stoned role. It can be interpreted very widely and differently due to changes in time and also personal opinions. There is the classical approach to management which was concerned with the structure and activities of an organisation, and the modern approach to management which emphasized organisational effectiveness through focus on strategic issues. Fayol had the classical approach to management while Mintzberg had the modern approach. Mintzberg (2005) said the four words; planning, organizing, coordinating and controlling introduced by Fayol only indicate vague objectives that managers have when they work. Throughout this essay I am going to explore the claim that Fayol’s classic analysis of the management function has been made redundant by the more recent views of Mintzberg through comparing and contrasting both theorists’ conceptions of what a manager actually does. Henri Fayol Henri Fayol was a French industrialist who worked as a young mining engineer. He spent his life working his way up in the mine until he became the managing director. Under Fayol the business thrived and grew despite it nearly being bankrupt when he took over. Fayol, who undertook the classical approach to management meant he......

Words: 2036 - Pages: 9

Premium Essay

Management Functiond

...Five functions of management (Fayol) Theories and methodsManagementby Vincent van Vliet - Jun 23, 2014 1981 At the beginning of the last century (1916) the French engineer Henri Fayol created the first principles of the classical management theory. Fayol is classified as the founding father of for example the line and staff organization. Based on his experience as a successful director or a mining company, he developed several theories that are still relevant today. At the time, managers had no formal training. However, the increasing complexity of organizations created a need for professional management. Five functions of management Fayol gained world-wide fame for his 14 general principles of management. He distinguished six general activities for industrial enterprises: technical, commercial, financial, security, accounting and managerial. He defined five functions of management for the management component and these are still seen as relevant to organizations today. These five functions focus on the relationship between personnel and its management and they provide points of reference so that problems can be solved in a creative manner. 1. Planning Planning is looking ahead. According to Fayol, drawing up a good plan of action is the hardest of the five functions of management. This requires an active participation of the entire organization. With respect to time and implementation, planning must be linked to and coordinated on different levels. ......

Words: 797 - Pages: 4

Premium Essay

Henry Fayols 14 Principles of Management

...DEPARTMENT OF ACCOUNTING ADP/1/12/H/0460 HENRY FAYOLS PRINCIPLES OF MANAGEMENT BY: AJIBODU OLAYEMI INTRODUCTION: In this (presentation) I shall be discussing Henry Fayols 14 principles of Management. To this end, I will like to take a look at the general definitions of Management from various proponents as well as look at the meaning of principles; especially in the context of Management. Before going into the work proper, the analysis of Henry Fayols Principles of Management theory, I will render some criticism against the theory as well as some appraisals before drawing a conclusion of the significant of the theory in the modern day business environment. Definitions: the term Management is used to a large extent in the business. It describes to the fullest the “is” and “ought” of efficient and effective running business organization. Accordingly various schools have offered definitions to the concept of management such as George R. Teny; “Management is a distinct process consisting of planning, organising, actuating and controlling performed to determine and accomplish stated objectives by the use of Human beings and other resources” Peter Drucker; “Management is a multipurpose organ that manages business, manages managers, manages workers and work” Harold Koontz; “Management is the art of getting things done through and with people in formally organizes groups” The description of the varying definitions as quoted above presupposes a......

Words: 2655 - Pages: 11

Premium Essay

The Foundations of Henri Fayol's Administration

...The foundations of Henri Fayol’s administrative theory Daniel A. Wren David Ross Boyd Professor Emeritus and Curator, Harry W. Bass Business History Collection, University of Oklahoma, Norman, Oklahoma, USA Arthur G. Bedeian Boyd Professor, Louisiana State University, Baton Rouge, Louisiana, USA John D. Breeze Independent Scholar and Business Owner/Manager, Calgary, Alberta, Canada Keywords Management theory, History Abstract Among modern scholars and students there is an increasing distance between the fundamenta l thoughts of early management writers and contemporary , often secondary , accounts of how these pioneers develope d their ideas. This shortcomin g can be remedied by seeking original sources from when a pioneer’s ideas were being formulated and from the context within which this occurred. We examine examples of how others have furthered our understandin g of management history by the discovery and translation of pioneerin g writings and present a rare, out-of-prin t translation and a previousl y untranslate d and unpublishe d presentatio n from the French pioneer, Henri Fayol. These presentation s to his colleague s in the mineral industr y reveal Fayol’s early reflection s as they would later evolve into his classica l book, Administratio n Industriell e et Ge Ârale. Âne Management Decision 40/9 [2002 ] 906±918 # MCB UP Limited [ISSN 0025-1747] [DOI 10.1108/0025174021044110 8] As management historians, we are seldom able to trace the formative......

Words: 11033 - Pages: 45

Premium Essay

Management and Current Day Applicability

... ASSIGNMENT 1 – ESSAY THEORETICAL MANAGEMENT AND ITS MODERN DAY APPLICABILITY Question:  Newton is quoted as saying in 1676; “If I have seen further, it is by standing on the shoulders of giants”. Discuss the ways how a modern day manager benefit from a study of the historical development of management thought. In doing this you need to specifically show how aspects of management theories from the past can be applied to contemporary management practice. The ability and means by which an organisation is run, requires for strong managerial expertise and leadership. The ability to realistically plan, organise resources effectively and efficiently, co-ordinate and control resources in this every changing, complex, dynamic environment is at the forefront of quality managerial practices. Good management has demonstrated itself more important than ever, with the peak Global Financial crisis in 2008/2009 proving that the historical theory’s and innovations in managerial practices are absolutely paramount to thriving economic prosperity. It is through the functions, approaches included in the literature of Henri Fayol’s 1949 English translated General and Industrial Management, Henry Mintzberg’s studies into managerial roles and German sociologist and economist Max Weber’s concept of......

Words: 2507 - Pages: 11

Premium Essay

Contribution of Taylor and Frayol to Management Theory

...INTRODUCTION Although significant progress has been made over several years in the evolution of management theories, the discipline has suffered from a deluge of theories that may be more confusing in practice than directional (Koontz, 1980). Though the earlier work from classical theorists like Taylor and Fayol contributed significantly to developments in management practice (some still applicable today), it has become clearer that confidence in the universal validity of management theories developed in countries like the United Kingdom (UK) and the United States of America (USA) is questionable. Frederick Taylor and Henri Fayol are historical figures, well known within the field of business for their challenging views on business and administration policies and principles. In this regard, the convergence of Fayol’s principle and Taylor’s theory has made contribution to the applicability of management philosophies across cultures and has lent some form of sanity to the body of knowledge by tackling the differences in relevance across regions as being attributable to cultural differences. MANAGEMENT DEFINED If you walked into a company, how could you tell who the managers are? Management expert Peter Drucker says that management “. . . is the responsibility for contribution.” In other words, it is the manager who is responsible for making sure that the company achieves its goals. A manager is someone who is responsible for accomplishing an organizational unit’s goals and who...

Words: 3406 - Pages: 14

Premium Essay

Beximco Group Mis Application of Henri Fayol's 14 Principles of Management

...BRAC University Summer'2013 BEXIMCO Group MIS Application Of Henri Fayol's 14 Principles of Management BEXIMCO Group MIS- Application of Henri Fayol's 14 Principles of Management Submitted to: Afsana Akhtar Assistant Professor BRAC Business School BRAC University Date of Submission: 13th August, 2013 LETTER OF TRANSMITTAL 13th August, 2013 To, Afsana Akhtar Assistant Professor BRAC Business School BRAC University. Sub: Submission of term paper for completion of course. Dear Madam, With high reverence we want to state that we have finished our term paper on the application of Henri Fayol's 14 Principles of Management in Beximco Group MIS in Bangladesh. While working with the term paper we got the first hand experience to learn about the applied management techniques in an organization. It helped us in gaining a new point of view on the significance of management theory like Henri Fayol's 14 Principles plays a role in effective and efficient performance of organizations such as Beximco Group MIS. We did some elaborate research and interviews and came up with sufficient resources to compile our term paper in a comprehensive manner. This term paper is valuable and a necessity to complete our course MGT211. In this term paper, all the team members contributed equally with sheer hard work. We faced some challenges in working as a team but due to everyone's collective efforts we overcame them and tried to produce this paper for......

Words: 12245 - Pages: 49

Premium Essay

Henry Foyal’s Contribution to the Management

...HI 6005: Management and Organisations in a Global Environment Henry Foyal’s contribution to the management Presented by Archan Dhakal | FIR2632 | Surya Pokrel | POK2032 | Pariyar Binaya | TIA2125 | Fahad Iqbal | BCM2092 | Purvika Fofindiwala | PCC2292 | Executive Summary Henri Fayol, the father of the school of Systematic Management, was motivated to create a theoretical foundation for a managerial educational program based on his experience as a successful managing director of a mining company. In his day, managers had no formal training and he observed that the increasing complexity of organizations would require more professional management. Fayol's legacy is his generic Principles of Management. Of Fayol's six generic activities for industrial undertakings (technical, commercial, financial, security, accounting, managerial), the most important were The Five Functions of Management that focused on the key relationships between personnel and its management. Planning was referred as drawing up plans of actions that combine unity, continuity, flexibility and precision given the organization’s resources, type and significance of work and future trends. Creating a plan of action is the most difficult of the five tasks and requires the active participation of the entire organization. Planning must be coordinated on different levels and with different time horizons where as organizing was providing capital, personnel and raw materials for the day-to-day......

Words: 4818 - Pages: 20

Premium Essay


...Fayol stands the test of time Henley Management College, St Peter Port, Guernsey Keywords Management, Model, Planning, Organizing, Co-ordination Abstract Planning, organising, co-ordinating, commanding and controlling ± these are the elements of management according to Henri Fayol. Less known, but no less important, are Fayol's principles of management. Fayol was born in 1841 and died in 1925. His Administration Industrielle et Generale was published in French in 1916 but was not translated into English until   1929. Fayol's work is often quickly rejected either because of its age or because it is believed to have been superseded by observational findings. However, Fayol's work was based on observation. This paper considers some contemporary models of management (Hales, Kotter, Mintzberg) and argues that Fayol's elements of management are not refuted but are rather reinforced by more recent findings. The paper concludes that Fayol's work stands the test of time. The five elements of management and 14 principles of management are briefly presented. Michael J. Fells Fayol stands the test of time 345 Introduction Henri Fayol was born in 1841 and died in 1925. After 30 years of an eminently successful career as a practitioner, Fayol devoted the remainder of his life, from 1918 to 1925, to promoting his theory of administration (Fayol, 1949). Fayol was perhaps the first to note the need for management education (Brodie, 1967). His Administration Industrielle et......

Words: 5489 - Pages: 22