By
David
Iornem
PhD,
MSc, MCIM, FIMC, FCIM, FIPFM,
FNIMN,
DipM, DMS, CMC, MBIM, M.CAM, FCMA,FAICL MSPMC, MMS, rpa, D.Litt.
Objectives
At
the end of this presentation, participants should be able to:
- List
the functions of management as espoused by Henri Fayol.
- Discuss
the inadequacy of Fayol’s theory.
- Relate
the reformations suggested by other management scholars.
- Define
ethics.
- Relate
ethics to the manager’s role.
- List
ethical issues inherent in a manager’s role.
- Suggest
ways of handling ethical dilemmas in a management function.
Fayol’s
Functions Of Management
Henri Fayol (1841–1925) a French
geologist and mining engineer, who became a great teacher of administration was
the first scholar to break down management into definable functions. He
believed that management consisted of a set of principles, which were capable
of definition and universal application. (Rees and Porter, 2003:47) He listed
those functions as:
1.
Planning
2.
Organising
3.
Commanding
(or Directing)
4.
Co-ordinating
5.
Controlling
What did Henri Fayol mean by these
functions? According to Peretomode (2003:23) and Iornem (2000:83) the various
functions could be explained as follows:
- Planning: This is the function of
management concerned with analysis and forecast of the future, using the
insight and information obtained to make decisions on what is to be done,
by who and when to do it, determining and preparing all the resources
required to achieve management goals. The planning function is also
concerned with the process involved in directing the organisation.
Commonly, the planning process ends up with a document specifying
standards of performance which then serve as benchmarks to measure success
or otherwise of the organisation.
- Organising: This function involves
establishing the organisation’s structure of authority breaking down
duties and tasks into related and definable areas, assigning
responsibility and building up both human and material resources of the
organisation to accomplish its goals.
- Commanding: This function involves
directing of subordinates and making them to do their assigned work. The
manager has to make decisions on “who, when and how employees carry out
the tasks.
- Co-ordinating:
This involves
uniting, harmonising and correlating all activities of the organisation in
order to achieve a common goal.
- Controlling: The organisation’s planning
process leads to the establishment of goals and objectives which serve as
measures of performance against previously agreed yard-sticks and taking
corrective measures in order to maintain organisational focus. At the
level of day-to-day operations, controlling involves ensuring that
everything is done in accordance with laid down rules and expressed
instructions.
Henri
Fayol went on to espouse some basic principles that can make the functional
approach to function more successfully. It may not be necessary to go into
details but suffice it to mention that Fayol theorized fourteen of such basic
principles, which he listed as:
- Division
of work
- Parity
of authority
- Discipline
- Unity
of Command
- Unity
of Direction
- Subordination
of individual interest to the common goal
- Remuneration
- Centralisation
- Scalar
chain organisation
- Order
- Equity
- Stability
of Personnel
- Initiative
- Esprit
de corps
Improvements on Fayol’s Functions of
Management
The major
criticism of Fayol’s Functions of Mangement approach, as other scholars later
addressed, was that the classification of functions either ignored, did not
emphasize enough or took important concepts such as staffing, motivation and
communication for granted. Other than that, Henri Fayol’s theory has stood the
test of time. According to Buchele (1977:7) even Fayol later himself added
communication as one of the basic functions, just as scholars and public
administration experts soon amended Fayol’s classification to the POSDCORD
approach (Planning, Organising, Staffing, Directing, Co-ordinating, Reporting
and Budgeting)
Ethics
Ethics
can be regarded as rules of behaviour or moral principles that guide our
actions in given situations. (Baran, 2002:390). Everard and Shilt (1979:32)
also see ethics as the concern of people for establishing fair rules of
conduct.
Ethics are generally a reflection of
the ideas of a given culture about what is right or wrong. They exist at three
main levels.
The first level is the Metaethics,
which, according to Baran are fundamental cultural values concerning issues and
questions such as: What is justice? What does it mean to be good? Is fairness
possible? It is important for us to philosophically examine these questions to
know ourselves. However, as valuable as they may seem to be for our
self-knowledge, metaethics provide only the broadest foundation for the kinds
of ethical decisions which people are called upon to make on a daily basis. At
best, metaethics can, therefore, be only a starting point for moral or ethical
reasoning.
The second level is Normative
Ethics. These are, by and large, generalized theories, rules, and
principles of ethical or moral behaviour. Good examples of normative ethics are
the various management codes of ethics or standards of good practice. The
Nigerian Institute of Management (NIM) has one. The Institute of Management
Consultants (IMC) also has one. Chartered accountants and other specialized
professional bodies equally have theirs. These are more specific than
metaethics to the extent that they relate to real world frameworks within which
practitioners can begin to weigh competing alternative courses of behaviour.
Even at that there is still a problem because:
“Fairness
is a metaethic, but journalists’ codes of practice, for example, define what is
meant by fairness in the world of reporting, how far a reporter must go to ensure
fairness, and how fairness must be applied when being fair to one person means
being unfair to another” (Baran,
2002:450).
The third level is the Applied
Ethics. This came about as a combination of the metaethics with
the normative ethics. This is where the manager applies both the meta (big) rules and the specific (general
industry) guidelines to his or her specific situation.
The Need for Ethical Codes
Ethics
have attracted the attention of mankind since the days of Greek philosophers –
Plato and Aristotle. Aristotle who was Plato’s student was later to disagree
with his mentor on the issue of ethics. Whereas Plato held the view that
philosopher kings should be allowed to set the rules as they deemed fit in
their wisdom, since they were assumed to have special insights into the truth,
his student felt that human frailties were too overwhelming for us to give even
philosopher kings such freedom.
He, therefore, advocated ethical
rules to guide rulers. Plato believed that if one knew the good, then he would
do it. But Aristotle took the notion of weakness of the will seriously.
This, by and large, is the position
held in the marketing communication and media industry. If freewill is allowed,
the urge to outwit competitors, the urge to make more profit, and the urge to
cut corners is likely to lead even good marketing communication and media
practitioners to engage in practices that can debase the profession and harm
society. Ethical Codes at this level concentrate on legality, truthfulness and
fairness. At a higher level, we can see this factor being the major rationale
for constitutions of nation states.
Advantages of Ethical Codes
Bowie (1982:90-93) has outlined five key
advantages for the institutionalization of Ethical Codes of Conducts in the
business.
·
Ethical
Codes provide more permanent and stable guides. Decisions are not left to the
idiosyncrasies of the person on seat at the time. Personalities do not count.
The rules as already
stated are the reference point.
·
Ethical
Codes are guidance in ethically ambiguous situations.
·
Ethical
Codes serve as a control and check against the autocratic power of employers.
If an employer wants a professional to do something that is unethical, it is
easy to point to the rules that forbid it.
·
Ethical
Codes help to specify the Social Responsibilities of a business, thus
contributing to bringing about order out of chaos.
·
The
development of Ethical Codes, which are essentially voluntary self-regulation,
is in the best overall interest of the profession.
Unethical business activities
normally lead to increased government regulation of business activities
normally lead to increased government regulation of business activities, thus
taking the initiative out of the business community.
To these
one can add:
- Ethical
Codes enhances the confidence of the public at large in advertising and
marketing (International Chamber of Commerce, 1998).
- Ethical
Codes safeguard an optimum of freedom of expression for advertisers and
marketers.
Inherent
Ethical Issues in Henri Fayol’s Functions of Management
In
the performance of the functions of management as espoused by Henri Fayol, it
can be said that ethical issues cannot be avoided since choices are involved
and since values are self-evident in most management decisions. The following
areas of management decision have been selected to highlight the ethical issues
that are the concern of this theme:
- Division
of Work: Managers
have a duty to divide up the work, assign duties and to delegate to
others. Managers who decide to show favoritism in carrying out this
function are in breach of the ethical rules.
- Discipline: In disciplining employees,
managers must be just and fair in their dealings. Disciplinary actions
that are taken out of hate or victimization also breach ethical rules.
- Staffing: In the employment of personnel,
there is the need to be transparent, fair and just. Employment on the
basis of favoritism is unethical. Equally, promotions based on
considerations other than clearly laid down merit requirements are
unethical. Sexual harassment in the work place (i.e. sex for promotion,
sex for pay rise, sex for interesting work) should be avoided by managers.
- Subordination
of Individual Interests to the Communal Goal: Managers who pursue selfish
agenda in the performance of their duties are in gross breach of ethical
rules. Taking bribe to award contracts to companies in which a manager has
private fiduciary interest, using company time and other resources to do
private work or private practice are all clearly against the common goal
of the organisation.
- Remuneration: Managers should be fair and
just in remunerating their staff.
- Esprit
de Corps:
Managers should support colleagues, the staff and the organisations they
work for. The question often arises as to the limit of this esprit de
corps. Is it right for a manager to collude or condone the actions of his
peers, or actions of his employer even if such actions offend decency?
What is the limit of esprit de corps?
Ethical Issues are Unlimited
These
ethical issues as discussed above are not exhaustive. There are many other
ethical issues such as money laundering, cooking of company trading records,
false claims in advertising, deceptive packaging, immoral presentation in
advertising copies and so on, and so forth. The list is endless. The intention
here is to demonstrate the presence of ethical issues in the content of a
manager’s job. Socrates once said that people do bad because they are ignorant
of what is good. Even though that proposition is debatable, the truth remains
that managers whose attention are drawn to the need to beware of their ethical
responsibilities in the performance of their job can no longer plead ignorance.
That is the purpose of this submission.
REFERENCES
- Buchele,
Robert B. (1977)
The Management of Business and Public Organisations, McGraw-Hill, Tokyo.
- Baran,
Stanley (2002) Introduction to Mass Communications,
Media Literacy and culture, Mayfield Publishing Company, London.
- Bowie, Norman (1982) Business Ethics, Prentice
– Hall, England
Cliffs, New Jersey.
- Fayol,
Henri (1949) General
and Industrial Management, Trans. Constance Storrs. Sir Isaac Pitman & Sons, London.
- Iornem,
David (2000) How
to Start and Manage Your Own Business, JVC Press, Kaduna.
- Peretomode,
V. F. (2001) Educational
Administration: Applied Concepts and Theoretical Perspectives, Joja
Educational Research and Publishers Ltd, Lagos.