Fayol's 14 Principles of Management within the TOMS company

By Karen Bohez

The Article

Most of the articles researched came straight from the TOMS website.

The articles gives a company overview and how they share their profits and provide for other countries, how they respect, care for and provide for their employees, how they manage their organization

What is TOMS?

Founded in 2006 by Blake Mycoskie, TOMS is an apparel and fashion industry that is mainly a shoe retailer but do much more.

-For every pair of shoes sold, another pair is given to a child in need over 70 different countries. This is what they call their slogan, “One for One”

-The company also provides safe water, safe births, and eye wear in those 70 countries.

Fayol’s 14 Principles of Management-Henry Fayol developed the 14 Principles of Management to serve as guidelines for decision making and management actions. (ch.2) The 14 Principles:

1.) Division of Work 10.) Order2.) Authority 11.) Equity3.) Discipline 12.) Stability of Tenure of Personnel4.) Unity of Command 13.) Initiative 5.) Unity of Direction 14.) Esprit de Corps6.) Subordination of Individual Interests to the General Interests7.) Remuneration8.) Centralization9.) Scalar Chain

TOMS and Division of Work

1. Division of Work: Productivity increases with increased skill, specialization allows the individual to build experience

This principle applies to TOMS because TOMS provides training for their employees on business and leadership and training for supply chain employees. Everyone at TOMS is very qualified to do their specific job. The company didn’t start with lot of money to hire “super-experienced” people so most hires were college graduates who got trained and specialized in an area.

TOMS also offers a “Pathway Program” that helps Americans ages 16-24 who are out of school and not working to realize their potential, build skills, gain credentials, and find a job in one of their 5 locations across the country.

Authority and Responsibility

2. Managers must have the right to give commands but understand that they have plenty of responsibility.

- There is a hierarchical management structure at TOMS although they claim one of their advantages is building an emotional bond with employees because they are “working for a movement bigger than themselves”.

Discipline

3. Employees must listen to management but managers must provide good leadership.

- TOMS website states that they clearly define appropriate business practices for their employees and hold them accountable for complying with their policies, including prevention of slavery and human trafficking within their supply chain.

- TOMS company sticks to the standard code of Ethics in terms of discipline and disciplinary action.

Unity of Command & Direction

4.) Employees should have only one direct supervisor

- Every area of work at TOMS has a manager that overlooks the work done in that department. This keeps the organization structured and oriented. Managers often times sit with their employees at lunch, creating a better bond.

Direction

5.) Managers determining which way an organization should move

- TOMS is a rapidly changing organization. Originally, TOMS had manufacturing facilities in China, Argentina, Kenya and Ethiopia, then exported to impoverished countries. More recently, a facility in Haiti has started producing shoes and Mycoskie plans on hiring 100 locals and building a sustainable shoe industry. Mycoskie wants to expand his business all over the world so no one has to go without proper footwear.

Subordination of Individual Interest

6.) The interest of an employee or manager should not be able to become more important than those of the group

- Everyone at TOMS share the same values and goals. Improving the organization which in turn, helps the world.

- Blake Mycoskie says that one of the company’s biggest assets is that the employees all know that they are “working for something bigger and better than themselves”

Remuneration

7.) Employees are rewarded on the efforts they’ve made

- TOMS doesn’t fall short when it comes to showing their employees how much they value them. They are provided with great benefits such as medical, vision, dental, long term disability, life insurance, paid family leave, PTO, and fitness and wellness classes.

- Does a company retreat every year that encourages team building- Offers promotions, and ability to move up the ladder

Centralization

8.) Reliance on one individual to make decisions and provide direction for a company

- TOMS does not work this way. Employees are motivated and encouraged to give their opinion to help improve the company. Their ideas are taken into account.

- Blake Mycoskie mentions that after the coffee business got going, employees started to think bigger, challenge the status quo, and reconnect with the mission of the business.

Scalar Chain

9.) Hierarchical chain of supervisors ranging from ultimate authority to lowest rain. Employees are encouraged to contact their supervisor through the scalar chain.

- Since TOMS has a manager for each area of expertise within the company, employees are encouraged to contact the manager directly instead of going from one position of power to the next.

Order

11.) Workplace should be orderly and clean and a safe environment for employees

- Employees are promised a safe, hygienic and healthy workplace in compliance with the law, according to TOMS code of conduct.

- TOMS provides policies, systems, and trainings to promote health and safety and prevent injury.

Equity

11.) All materials and people related to a specific job should be treated as equally and fairly as possible

- Employees at TOMS feel like they are more than just employees - they feel like they are part of a larger social movement.

- TOMS code of conduct has a non-discrimination rule, and employees shall be treated with respect and dignity, and not subjected to harassment, sexual, verbal, psychological or physical abuse.

Stability of Tenure of Personnel

12.) In order for an organization to run smoothly, personnel must not frequently enter and exit the organization.

- To ensure the right people are hired so employees aren’t constantly being hired and quitting, TOMS hires based on a psychological test. The test includes simple questions about hypothetical situations. This test gives insight to how the potential employee may handle stressful situations, make decisions, how they’re going to treat their co workers and employees, and overall how well they’re going to fit in the environment.

Initiative

13.) Employees should be given the opportunity to express new ideas and have their voices heard

- TOMS employees are invited on Giving Trips, where they travel to different countries and provide shoe distributions and get to interact with children and their families in these countries. The employees learn about and interact with employees from Save the Children which is an organization that TOMS works with, and they get to see how TOMS shoes are integrated into larger development programs.

Esprit de Corps

14.) Organizations should strive to promote team spirit and unity, mutual trust and understanding

- Founder Blake Mycoskie said during an interview about TOMS intern program, “With our intern program, it’s a way to see how much great ideas and efforts come out of that program. It’s really about empowering people and making people believe they can make a difference and contribution no matter what their age or experience is and when given the tools and abilities to do so, amazing things can happen.” This is an example of the culture at TOMS and how employees are valued and motivated to help a great company and cause.

Questions/Thoughts

1. Are more businesses becoming successful by combining a for-profit business and charity, and is this the future of businesses?

2. How does TOMS go about choosing what areas of the world to help?

References

"TOMS." Save the Children. Save the Children, n.d. Web. 28 Jan. 2017.

Toms. "TOMS Corporate Responsibility." TOMS. TOMS, n.d. Web. 28 Jan. 2017.

"The Founder of TOMS on Reimagining the Company's Mission." Harvard Business Review. Blake Mycoskie, 04 Apr. 2016. Web. 28 Jan. 2017.

"TOMS Shoes Listens to Its Critics." Tiny Spark RSS. N.p., n.d. Web. 28 Jan. 2017.