Theories Of Management And The Performance Of A Business Essay

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Henri Fayol (1841-1925) was a theorist who believed in a theory which was based on how management interacts with the performance of a business. Management theory is defined as ‘bringing change in actual behaviour’ (chapter 2 article). In this modern day, many businesses rely on Fayol’s Classic theory to manage staff effectively. Fayol introduced the idea of splitting crucial activities that firms carry out on a day to day basis into 6 separate groups (technical, commercial, financial, security, accounting and management). However, out of those activities, Fayol believed that managerial activities within organisations, whether they are big or small, where senior jobs are present, most important. (Henri Fayol article 1949) He came to the conclusion that within the managerial sector, there are five elements. This included, planning, organisation, command, coordination and control. These were listed in his book General and Industrial Administration (1916) (Henri Fayol article 1949). This essay is going to explore different interpretations of management and specifically comparing classical theorists such as Fayol and Taylor as well as humanist theorists such as McGregor and finally, empirical theorists such as Luthen. This essay will also analyse Fayol’s theory and how it has been criticised over the years.


Fayol came up with this theory because he had had a more holistic outlook of the organisation and seeing the principles of management as a framework rather than a
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