Presentation of a group work at the Birmingham City University in People in Organisations. The group splitted up the task "Challenges of Management" into the 5 focues from Fayol, and worked out some definitions, examples and group findings. The group also tried to match the 5 focuses with the 14 principles of management.

1. The
CHALLENGES
of
MANAGEMENT
MSC Management
People in Organisations
Group-Presentation
18/10/2013
Noora Al-Abdulla
Joachim Kranzler
Panchapha Laochoo
Navin Mahaveer
Okwuchukwu Nnajiofor
Solar Perera

2. Structure:
topic
fayol’s focus
and definition
findings
link to the
management
principles
example

3. PLANNING
The function of management of systematically making decisions about the goals to
be achieved and activities or actions needed to achieve those goals that an individual,
a group, a work unit, or he overall organization will pursue in the future (Abdul Karim, 2010).
14 M-PRINCIPLES:
 Strategy, targets and objectives
 Information and data (historical, actual, forecast)
 Understanding the rules (orgs, competitors, etc.)
 Commitment (employees, customers, suppliers, etc.)
 Resources (capital, labour, materials, etc.)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Division of work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of
Individual interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of Tenure
of Personnel
Initiative
Esprit de Corps.
EXAMPLE:
Shell booked “premature” or “aggressive” oil reserves over a long period => the firm got
problems over time based on historical planning and had to miscategorise 3.9 billion barrels of
it’s “proved” reserves => an enormous elimination of value!!!

4. ORGANISING
The management function of assembling and coordinating human,
financial, physical, information and other resources needed to
achieve organizational goals (Abdul Karim, 2010).
14 M-PRINCIPLES:
 Resources (capital, labour, materials, etc.)
 Core-Competencies
 Stability vs. Re-Organisation
 Routine vs. Change Management
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Division of work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of
Individual interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of Tenure
of Personnel
Initiative
Esprit de Corps.
EXAMPLE:
Out of the case study “Hole in the wall” there was some difficulty with organizing a clear
structure of hierarchy which resulted in poor communication and coordination.

5. (leadership)
COMMAND
Management is doing things right; leadership is doing the right things.
Effective leadership is not about making speeches or being liked;
leadership is defined by results not attributes. (Drucker, 1977)
14 M-PRINCIPLES:
 Setting a good example
 Ethical behaviour
 Social competence
 Inter-personnel skills
 Conviction and Spirit
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Division of work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of
Individual interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of Tenure
of Personnel
Initiative
Esprit de Corps.
EXAMPLE:
Starbucks is known for its exceptional treatment of employees, offering things like insurance to
even part-time workers. The CEO, Howard Schultz’s compassion and incredible leadership
helped many employees as the firm was stricken by a robbery with three employees killed.

6. CO-ORDINATION
To coordinate is to harmonize all the activities of a concern so as to facilitate its successful function involving
determining the sequencing and timing of activities so that they properly mesh; allocating to things and
actions their rightful proportions of resources, time and priority; adapting means to ends (Fayol, 1984)
14 M-PRINCIPLES:
 Existing role allocation
 Effective Communication (meetings, reports, etc.)
 Organisation within the organisation
 Reporting systems
 Supply chains
 Customer relationship
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Division of work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of
Individual interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of Tenure
of Personnel
Initiative
Esprit de Corps.
EXAMPLE:
PIO Case Study: The manager in the case study who emailed her staff regarding a new
department strategy, but hardly got any feedback since she did not communicate well with her
staff.

7. CONTROL
The function of management of monitoring progress and
making needed changes to make sure that the organizational
goals are achieved (Abdul Karim, 2010).
14 M-PRINCIPLES:
 Demand of reports
 Chain of command
 Shared value
 Style of leadership
 Consequences, penalty, etc.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Division of work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of
Individual interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of Tenure
of Personnel
Initiative
Esprit de Corps.
EXAMPLE:
The Shell’s Committee of Managing Directors (CMD) didn’t get reliable information about the
booked reserves. The organisation allowed an solo attempt by the former CEO Sir Philipp Watts
=> in future the company faces problems to meet their target and keep credibility.

8. Reference list:
Abdul Karim, M.S. (2010) Management Funktions, Levels and Skills. [pdf]
Available at:http://alumni.uniten.edu.my/Lecture%20Notes/CEPB%20323%
20Project%20Management%20and%20Construction/1)%20Module%201%2
0Management%20Functions,%20Levels%20and%20Skills%20(1st%20Sem%2
02010-11).pdf [Accessed 16 October 2013].
Drucker, P. (1977) People and performance: the best of Peter Drucker on
management. London: Heinemann.
Fayol, H. (1984) General and industrial management. London: Pitman.

9. Thank you!
Any questions?