Question

Want company name using fayol principle what to make project

Answer 1

Fayol’s basic principles of management are still followed by virtually all organisations. What has changed in the past 100 years is simply that some layers have been added and some companies might have introduced new versions of 3 or 4 of those principles, while remaining true to the other 10.

Sure, it looks cool to say that Fayol is old-fashioned and out-dated, but when you look at companies today, they are all still following Fayol’s principles; they just don’t know it. It’s almost like saying that Newton’s law of gravity is outdated, because of development’s in theoretical Physics. In practice, gravity continues to work like it did before and after Newton, while we humans have theoretical arguments about it.

Regarding Fayol, problems happen when you interpret his principles in a very literal and restrictive way, rather than as broad guidelines that have plenty of room for flexibility in application.

Take principle #4, Unity of Command. “individual employee should receive orders from one manager and that the employee is answerable to that manager.

If tasks and related responsibilities are given to the employee by more than one manager, this may lead to confusion which may lead to possible conflicts for employees.” (Tools Hero cited above).

So, what about matrix organisational structures? Indeed, this is an additional layer that goes beyond Fayol: in a matrix, an employee might have two or three different bosses. And yet, it certainly leads to confusion and conflicts. Ask anybody working in a matrix structure… So you cannot say that Fayol’s principle was wrong. Plus, in practice, how many modern organisations actually use matrix structures, among all existing organisations? Less than 5%. You hear about these structures because they are used by large, visible companies that are often in the media; but more than 95% of organisations are small and medium-size enterprises, and they are still operating on the traditional “one team, one boss” principle.

When you start looking at every one of those 14 principles, they are all still valid and used by all organisations. It’s just that some of them have been evolved into a new version, but a version that does not deny the validity of the original principle.