Vocabulary:

to involve	включати в собі, розуміти, мати на увазі
aim, objective	мета, завдання
means	кошти; засоби
conduct	проведення; вести
background	фон
strengths	сильні сторони
weaknesses	слабкі сторони
intent	намір, мета
to execute	виконати, здійснити
commitment	зобов’язання
deviation	відхилення
performance	виконання, здійснення
feedback	зворотний зв’язок
latter	останній

Practical Tasks:

Exercise 1. Give the definition of planning.

Exercise 2. Answer the questions:

1. What do you understand by the terms 'management' and 'organisation'? Explain, using your own words.

2. How would you describe the relationship between ‘management’ and ‘organization’ when the latter refers to a social entity?

3. In what ways does a classical approach to organisations differ from a human relations approach?

4. What are the key organisational variables that might confront a manager in a typical organisation? Which are more likely to need frequent revision, and why?

5. What is the advantage to the student of management of considering managerial roles rather than managerial functions in analysing the process of management?

Exercise 3. What do you know about SWOT analysis? Ask you teacher in management.

Exercise 4. Discussion:

Organisations employ various resources (eg finance, raw materials, people, plant and equipment) in order to achieve goals. Discuss the role of management in an organisation and assess the relative importance of management as a resource.

Text 6. Classical Theories.

The search for universally applicable principles of management began in the industrial heartlands of Europe and America in the last years of the nineteenth century. This text firstly describes the most important ideas on management propounded by the Frenchman, Henri Fayol, at the beginning of the twentieth century. Particular attention is paid to his definition of management, and to his general principles of management, which may then be compared with similar principles proposed by other classical writers.

Henri Fayol, (1841-1925) the celebrated French industrialist and theorist, began his working life as a young mining engineer at the age of nineteen. He spent his entire working life with the same company, rising to Managing Director at the age of forty-seven, and only retiring after his seventy-seventh birthday! Under his leadership the company grew and prospered despite its near-bankrupt state when he took over. His entrepreneurial successes won him considerable fame and popularity, and when, in 1916, he published his major work on management, he ensured himself a place in the annals of industrial history.

The publication of “Administration industrielle et générale” in 1916 brought to light the distillation of a lifetime's experience of managerial work. The best-known English translation is the one by Constance Storrs, published by Pitmans under the title of “General and Industrial Management” in 1949. The foreword to this translation was provided by none other than L.F.Urwick (see below). Urwick questioned the appropriateness of the title, in which the French administration had been translated as “management”. His fear was that with such a title Fayol's work would be seen as relevant only to industry, whereas, in Urwick's view, it was just as applicable to central and local government as well. History has shown that he need not have worried, since Fayol's ideas have had a major influence on the world of organisations.

Fayol's Definition of Management. Fayol prefaced his famous definition of management by stating what he considered to be the key activities of any industrial undertaking. He outlined six such key activities, as follows:

1. Technical activities, eg production.

2. Commercial activities, eg buying and selling.

3. Financial activities, eg securing capital.

4. Security activities, eg safeguarding property.

5. Accounting activities, eg providing financial information.

6. Managerial activities, eg planning and organising.

Fayol accepted that the first five were already sufficiently well known, but recognised at the outset that the sixth group of activities would require further explanation for his readers. Whilst the other activities were all interdependent to some extent, there was no single one, which was concerned with broad planning and resourcing. It was vitally necessary to isolate these last mentioned activities, said Fayol, and it is these to which he gave the name “managerial”.

To manage, said Fayol, is to “forecast and plan, to organise, to command, to coordinate and to control”. He saw forecasting and planning as looking to the future and drawing up a plan of action. Organising was seen in structural terms, and commanding was described as “maintaining activity among the personnel”. Coordinating was seen as essentially a unifying activity. Controlling meant ensuring that things happen in accordance with established policies and practice. It is important to note that Fayol did not see managerial activities as exclusively belonging to the management. Such activities are part and parcel of the total activities of an undertaking. Having said this, it is equally important to point out that Fayol's general principles of management take a perspective, which essentially looks at organisations from the top downwards. Nevertheless, they do have the merit of taking a comprehensive view of the role of management in organisa­tions. Thus, Fayol's analysis has more far-reaching implications than F.W.Taylor's ideas on scientific management, which were centred on the shop floor.