Classic management theory. Practical and straight to the point summary on this subject that is widely used by all types of business. Regardless of size.
By working on this subject, it will be possible to understand very well the work and role of managers in a company. Which helps a lot in the management and, mainly, success of your business. Therefore, now understand the classical theory of administration in a summarized and very practical way!
You want to receive tips and information to set up your own business. So subscribe to this channel and stay on top of everything you need to know to open your own company. The classical theory of administration was conceived in the beginning of the 20th century by Henri Fayol, one of the main names for the development of the knowledge of business administration.
In this way, Fayol defended through this theory that companies would be able to have more efficiency and productivity, reduce waste and enable managers to make more assertive and coherent decisions. Always pointing out that company managers need to anticipate, decide and act in a well-planned and organized way. In addition, Fayol argued that administrative knowledge surpasses technical knowledge to determine the paths to be followed by companies.
This is important to point out because at that time, managers relied more on production techniques than administration. And with the productivity growth of companies at that time, the need to better manage resources was perceived. Be financial, material, time and human too.
Thus, the need to optimize processes and increase efficiency grew more and more. Soon, classical management theory emerged to address exactly this issue. In a very practical and summarized way, this theory is based on 14 basic principles.
Which are: 1. DIVISION OF LABOR 2. AUTHORITY AND RESPONSIBILITY 3.
DISCIPLINE 4. UNITY OF COMMAND 5. UNITY OF MANAGEMENT 6.
SUBORDINATION OF INDIVIDUAL INTERESTS TO GENERAL INTERESTS 7. PERSONNEL REMUNERATION 8. CENTRALIZATION 9.
HIERARCHY 10. ORDER 11 EQUITY 12. STABILITY OF STAFF 13.
INITIATIVE 14. TEAM SPIRIT That said, let's explain each of these principles in a summarized way. 1.
DIVISION OF WORK This is about dividing tasks and responsibilities among team members. And that goes for all job levels. That is, having only one person performing different types of functions will make productivity lower.
Therefore, the division of labor causes the activities to be delegated in a balanced way between each individual of the departments and company. The more knowledge and expertise each employee has, the greater their ability and agility and competence to perform their duties. As a result, greater gains will be made for the company, which will have highly productive employees at its disposal .
This also increases the quality of work. 2. AUTHORITY AND RESPONSIBILITY Knowing how to differentiate authority and responsibility is a very important point in this theory.
Briefly, authority is the right of superiors to give orders that must be obeyed. Responsibility is what every professional needs to fulfill. Therefore, it is essential to seek a balance between these two points.
So, it is up to managers to understand how to exercise their authority in a way that guides their team in an assertive and clear way. And for that, it is very important to understand and master each subject. Thus, managers must also dedicate themselves to guiding their subordinates, applying management notions to take advantage of the talents of each one.
As long as it's in favor of the company. 3. DISCIPLINE The absence of discipline creates chaos in companies.
Thus, it is very important to work on discipline to maintain organization and hierarchy as well. Therefore, there is a need to establish rules of conduct and work valid for all. However, it is important to keep in mind that there are different levels of discipline.
For example: there is the level of total obedience and also the one that is much more flexible. Therefore, it is up to each company to define the best model that fits their way of working. 4.
UNITY OF COMMAND This theory argues that an employee should receive orders from only one boss. Thus, confusion and internal conflicts are avoided, avoiding counter orders. 5.
UNITY OF DIRECTION Here, it defends the idea that tasks and achievements with the same purpose should be headed by a single person. In other words, having a single control. In this way, an area or process with several activities will have only one manager or responsible for its conduction.
6. SUBORDINATION OF INDIVIDUAL INTERESTS TO GENERAL INTERESTS The company's general interests must prevail over individual interests. This will ensure the health of the business and maintain a good organizational climate.
7. STAFF REMUNERATION This pillar is not just about salaries. But the whole, including bonuses, profit sharing, benefits, prizes and rewards, among other points linked to remuneration.
Therefore, the remuneration of each professional must be sufficient to ensure the satisfaction of employees. And even the organization itself. This will maintain the level of commitment expected from each one.
Including, even motivating them to dedicate themselves a lot in their activities and responsibilities. 8. CENTRALIZATION Here, the theory defends that the vital activities of the company and its authority must be centralized That is, the higher the position, the greater authority and responsibility the person will have.
Always according to the measure defined by the company. The goal here is to maintain organization and quality in the work carried out. In other words, leaving more complex activities to more qualified professionals.
9. HIERARCHY As the name implies, this is the organizational structure. Ranging from the most authoritative boss to the most modest positions.
According to the theory, the hierarchy ensures that the integrity of the transmitted orders is respected. As well as your command units. 10.
ORDER To have a correct management of resources, people and time, the order needs to be worked and respected. Literally, keeping everything organized so that the processes move in the right and planned direction. 11.
EQUITY The combination of goodwill and justice contributes to good performance among professionals and teams. In other words, justice must prevail in every organization. What would justify the loyalty and commitment of employees to the company.
12. PERSONNEL STABILITY The high turnover of employees in a company is a negative thing. Because in addition to generating expenses and investment of time for replacements, it greatly affects business performance and even team morale.
In this way, all employees need time to learn, train, exercise their knowledge and perform their activities with the desired quality. 13. INITIATIVE This pillar should be interpreted as the ability to establish a plan, execute it and stick to it.
Thus, Fayol did not idealize the hierarchy of management as a closed and fixed structure. But yes, as a mechanism that can be adapted according to needs. 14.
TEAM SPIRIT Finally, teamwork must always prevail. This will be the basis for the company to achieve cohesion and structure to maintain a high level of productivity and quality. Thus, this theory points out that this work demands good and clear internal communication between the teams.
Which greatly increases the integration between teams and professionals as well. This is the classic management theory, developed by Henri Fayol. It has helped many companies manage their business well in an efficient and organized way.
Thus, increase your results and profits every day. However, it's up to you or your business to understand how to work each pillar according to your company's style and purpose. Have a lot of coherence, agreed?
And just to recap the pillars we talked about here: 1. DIVISION OF LABOR 2. AUTHORITY AND RESPONSIBILITY 3.
DISCIPLINE 4. UNITY OF COMMAND 5. UNITY OF DIRECTION 6.
SUBORDINATION OF INDIVIDUAL INTERESTS TO GENERAL INTERESTS 7. PERSONNEL REMUNERATION 8. CENTRALIZATION 9.
HIERARCHY 10. ORDER 11. EQUITY 12.
PERSONNEL STABILITY 13. INITIATIVE 14. TEAM SPIRIT What's up?
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