[Music] Henry fail or honoree and the French is a big name in the classical management area of organizational studies the administrative science area in 1949 his book was published in English general and industrial management fail was a French engineer by training and he looked around at the tail end of the Industrial Revolution he saw a great need for a systematic approach to train managers he saw this large organization and they needed managers with high levels of managerial competence so he offered his perspective to get the conversation going he wrote in his book it is a case of setting it going starting general discussion that is what I am trying to do by publishing this survey and I hope May management theory will emanate from it and it certainly did and if at times by the way when you're reading this book and listening to this lesson you feel like these terms all start to sound the same and even overlap a little bit you probably wouldn't be the first person to say that so he's laying it down but his book is by no means meant to be the end of the discussion just the beginning so we're going to sort through the activities of Industry that explains in his book the managerial activities or functions and then the general principles of management fail saw six activities of Industry these are the general or overarching activities it takes to run an organization first is the technical that means the production and the manufacturing concerns second commercial let's the buying and the selling and exchanging of goods and services third financial that's where you search for and use capital or money optimally fourth security that's the protection of property and people five accounting that's the balance sheets that cost and keeping track of all that and six which was his real area of concern was the managerial activity that means the planning organizing command coordination and control when fail looked at the overall organization's hierarchy he saw that these activities played out in different proportions depending upon where you were for example at the very bottom of the organization you had what he called the workmen and they didn't need much me Egeria l-- knowledge because they didn't do that much but they need a lot of technical knowledge in addition do some security concerns and accounting knowledge to keep track of things somewhere in the middle of the organizational hierarchy you have the head of the shop today with this probably be like the head of a department or a middle level manager and this person obviously needed more managerial knowledge and competence than a frontline worker a little less technical but they also needed to be concerned with things like the financial side the security side and accounting side so you can see here that the managerial activity is expanding as we move up the hierarchy and some of the other areas are shrinking a little bit by the time you got up to the top dog he called it the manager nowadays we might say the president or CEO this person was doing a lot the lion's share was managerial activity they needed other knowledge as well though they needed to be involved in technical commercial financial security and accounting but in lower levels proportional to the managerial responsibilities and this is where fail saw the gap he saw very little training that was systemic they would train people up and how to become better managers and fail broke these management activities this managerial competence down into five main areas that we will look at this is a list you're going to see in a lot of textbooks the first is planning managers need to look ahead and chart a course for the organization they also needed organizational skills they need to select and arrange people in the best way possible they needed to be in command that meant they were overseeing things they need to lead and then stay out of the details they needed that big picture point of view coordination was another important responsibility they need to harmonize and facilitate the work between and among the different departments in their organization they also had to maintain control they were to ensure compliance on all those other areas like accounting finance technical and quality control these management activities get at the big picture ways that managers were going to be spending their time fail also outlined the principles of management and we would normally see this in a textbook and a list of 14 items and this had to do with a little bit more of the microscopic level like whatd management look like day-to-day and there were no hard and fast rules he considered these principles that were not meant to be rigid they were meant to be flexible depending upon the situation that the manager faced the first is division of work that's the task specialization this is meant to increase productivity where each person got a very small task and they got good at it the second is authority and responsibilities in other words the manager has the right to give orders and exact obedience that's part of being a manager the third is discipline that meant obedience application and energy on the part of the individual employee and then the manager would warn they would find and they would suspend people to enforce that discipline fourth managers should pursue unity of command in other words an employee should receive orders from one supervisor only I know that ice to be really confused in organizations and I worked in places where I felt like I had more than one boss in it was really stressful number five unity of direction that meant one head and one plan for a group of activities having the same direction so everybody is pushing in the same direction number six is subordination of individual interest to general interests that meant that you as an individual employee should put your personal interests aside and pursue the greater purpose number seven is the remuneration of personnel he thought people should be paid fairly and rewarded for what he called well directed effort in other words if people are good workers you should pay them fairly number eight is centralization fail believed that it was up to the manager to figure out the right balance of that centralized decision-making versus decentralized or delegated decision-making in power if an organization is really big they're going to have to decentralize a little bit more but if it's smaller than they can keep most of the decision-making power and it was up to the managers to figure that out in any given case number nine is the scalar chain we call it the chain of command he called it the chain of superiors where you would go up the chain and then cut across the organization somewhere and then down the chain of command to speak to somebody on the other side of course fail believed in many cases it would be much more efficient to let people talk directly and so as long as they're okay with the supervisors he said that they could do that number ten is order that meant the right man in the right place of course the hill used the word man instead of people to form an effective social order so he had to put people in the right place to get the best out of everybody number eleven is equity he had a desire for equity and the equality of treatment when dealing with people he saw this as the right combination of kind leanness and justice number twelve he believed in the stability of tenure and personnel he wanted people to stay in their jobs when they were good at their jobs he thought that was good for the organization number thirteen initiative managers should encourage and inspire the initiative of employees in other words if you have a lot of lazy people hanging around it partly is the managers responsibility to make sure they're inspired in our taking initiative and 14 Asprey decor he wanted to establish unity and harmony organizations and he saw that as the manager's job so like I mentioned fails book has a lot of lists in it a lot of categories and really that was his goal it doesn't read like a narrative like a well-developed story it reads like beginning he's laying a foundation for others to build on which they did we talked about the first activities of Industry that's the mixture of different activities it takes to run an overall organization we talked about second the managerial activities or the functions that's the list of five and finally the general principles of management or the 14 areas where the manager will approach people and try to move everybody in the right direction