Vocabulary:

to enable	надавати можливість, право
impact	вплив, діяння
to prosper	процвітати, квітнути, досягати успіхів
to take over	стати власником
entrepreneurial	підприємницький
fame	слава, популярність, репутація
appropriateness	відповідність
property	власність
at the out set	спочатку
the some extent	деякою мірою, певною мірою
to maintain	підтримувати
maintaining activity	захисна, підтримувальна діяльність
part and parcel	невід’ємна частина
merit	заслуга
comprehensive	охватний, вичерпний, всебічний

Practical Tasks:

Exercise 1. Say in short the origin of the word ‘management’ in its modern sense.

Exercise 2. Form other parts of speech from the following words, translate them and make up sentences: able, prosper, entrepreneurial, fame, merit, manage, lead, success, industry, act.

Exercise 3. Answer the questions:

1. What period did in Fayol’s ideas influence to?

2. What was Henry Fayol?

3. What was his way to the position of Managing Director?

4. Were his books sophisticated theories or the result of his own experience?

5. Why do you think so?

6. Prove you point of view?

7. In what way did L.F.Urwick translate the French word ‘administration’?

8. What do you think was L.F.Urwick right or wrong?

9. What is Fayol definition of management?

10. What activities did he give the name ‘managerial’?

11. What is ‘to manage’ according to Fayol?

12. What is ‘commanding’ according to Fayol?

13. What is ‘controlling’ according to Fayol?

14. What activities is part and parcel of an undertaking?

Exercise 4. Discussion:

1. Can we say that Fayol’s ideas are still alive and modern?

2. What changed since those times?

Text 7. Fayol's Principles of Management.

In his book Fayol lists fourteen so-called “principles of management”. These are the precepts which he applied the most frequently during his working life. He emphasised that these principles were not absolutes but capable of adaptation, according to need. He did not claim that his list was exhaustive, but only that it served him well in the past. The fourteen “principles” listed below in Figure 3.1 are given in the order set out by Fayol, but the comments are a summary of his thinking on each point.

1.	Division of work	Reduces the span of attention or effort for any one person or group. Develops practice and familiarity.
2.	Authority	The right to give orders. Should not be considered without reference to responsibility.
3.	Discipline	Outward marks of respect in accordance with formal or informal agreements between firm and its employees.
4.	Unity of command	One man one superior!
5.	Unity of direction	One head and one plan for a group of activities with the same objective.
6.	Subordination of individual interests to the general interest	The interest of one individual or one group should not prevail over the general good. This is a difficult area of management.
7.	Remuneration	Pay should be fair to both the employee and the firm.
8.	Centralisation	Is always present to a greater or lesser extent, depending on the size of company and quality of its managers.
9.	Scalar chain	The line of authority from top to bottom of the organisation.
10.	Order	A place for everything and everything in its place; the right man in the right place.
11.	Equity	A combination of kindliness and justice towards employees.
12.	Stability of tenure of personnel	Employees need to be given time to settle into their jobs, even though this may be a lengthy period in the case of managers
13.	Initiative	Within the limits of authority and discipline, all levels of staff should be encouraged to show initiative.
14.	Esprit de corps	Harmony is a great strength to an organisation; teamwork should be encouraged.

Fayol's General Principles have been adopted by later followers of the classical school, such as Urwick and Brech. Present day theorists, however, would not find much of substance in these precepts. From our present day viewpoint, the following general comments may be made.

1. The references to division of work, scalar chain, unity of command and centralisation, for example, are descriptive of the kind of formal organisation that has come to be known as bureaucracy. Fayol, in true classical fashion, was emphasising the structural nature of organisations.

2. Issues such as individual versus general interests, remuneration and equity were considered very much from the point of view of a paternalistic management. Today, questions concerning fairness, or the bona fide conflict of interests between groups, have to be worked out jointly between management and organised labour, often with third party involvement by the State.

3. Although emphasising the hierarchical aspects of the business enterprise, Fayol was well aware of the need to avoid an excessively mechanistic approach towards employees. Thus references to initiative and esprit de corps indicated his sensitivity to people's needs as individuals and as groups. Such issues are of major interest to theorists today, the key difference being that whereas Fayol saw these issues in the context of a rational organisation structure, the modern organisation development specialist sees them in terms of adapting structures and changing people's behaviour to achieve the best fit between the organisation and its customers.

4. Fayol was the first to achieve a genuine theory of management based on a number of principles which could be passed on to others. Many of these principles have been absorbed into modern organisations. Their effect on organisational effectiveness has been subject to increasing criticism over the last twenty years, however, mainly because such principles were not designed to cope with modern conditions of rapid change, flatter structures, and increased employee participation in the decision-making processes of the organisation.