Administrativ

Managemen
Theory
Administrative Management
Theory
• Classical management theory
• General Administrative Management
Theory
Administrative Management
Theory
• an attempt to rationalize the design of an
organization as a whole (Eiilim University,
2010)
• a theory that basically find a better or best
way in running or managing an
organization and explored the possibilities
of an ideal way to put all jobs together and
operate an organization (Sridhar, 2014).
Administrative Management
Theory
• This theory have generally emphasized
on the formalization of an organization’s
administrative structure with clear
division of labor and delegation of work,
power, and authority to the
administrators which are relevant to
their responsibilities in the organization.
Administrative Management
Theory
• The primary purpose of the administrative
management theory is to find a good balance
between the structure of the administration and
the mission of the organization
• It emphasizes the importance of organizational
effectiveness.
Administrative Management
Theory
• To obtain individual and organizational
objectives, a well-developed administrative
structure must be present (Tompkins, 2005)
Henry
Fayol
French mining engineer
a practitioner and
theoretician
chief architect and the
founding father of
administrative management
theory
Wrote General and Industrial
Management which was published in
French in 1916 and in English in 1949
 General Theme of
Fayol’s Theory
Theory incorporates four components which includes:
organizational activities
management functions
administrative principles
methods for putting principles into operation
 6 Activities in an
Organization
1. Technical Activities – production,
manufacture, adoption These activities may vary
2. Commercial Activities – buying, selling in how they are
and exchange
addressed according to
3. Financial Activities – search for an
optimum use of capital the specific type of
4. Security activities – protection of organization
property and persons
5. Accounting Activities – stock-taking, serves as the foundation which
balance sheets, costs, and statistics all of the other activities are
6. Managerial Activities – planning, implemented to achieve
organizing, coordinating, controlling, organizational objectives
and commanding (Tompkins, 2005)
 Functions of
Management
1. Planning
• predicting future events/trends that could influence the
organization and utilizing this information to impact the
organization’s action plan
BROAD FEATURES OF A GOOD PLAN:
UNITY
CONTINUITY
FLEXIBILITY
PRECISION
 Functions of
Management
2. Organizing – creation of an organizational structure
which brings human resources & non- human resources
together

MATERIAL HUMAN - includes personnel, leadership, and

organization structure
- the provision
of everything
necessary for
the
functioning of
an
organization
 Functions of
Management
3. Command – process of giving directions and orders
by the superior to emphasize organizational objectives

Managers who has to command should:

 have a thorough knowledge of his personnel;
 eliminate the incompetent;
 be well-versed in the arrangement binding the business and its employees;
 set a good example;
 conduct periodic audit of the organization and use summary charts;
 bring together his chief assistants by means of conferences, at which unit of
 direction and focusing of effort are provided for,;
 not become engrossed in detail; and
 aim at making unity, energy, initiative and loyalty prevail among the personnel
 Functions of
4.
Management
Coordinating - working together and
harmonizing all activities and efforts so as to
facilitate the functioning of the organization.
ensure that one department’s efforts are
OBJE coincidental with the efforts of other
CTIV departments and keeping all activities in
perspective with regard to the overall aims of
E organization
 Functions of
Management
5. Controlling – ensuring that conformity is present
in relation to established plans, rules, schedules, and
directives.
It must be done within a reasonable time and be
followed up by sanctions
 General Principles
of Administration
he value of the work depends on
e value of the man”

“One becomes an engineer bu

one is born an administrator
 14 Principles of
Administration
1. Division of work: Specialization of labor
produces more and better work with the same
effort.
2. Authority and responsibility: Authority should
be commensurate with responsibility. In other
words, the occupant of each position should be
given enough authority to carry out all the
responsibilities assigned to him.
3. Discipline: Obedience should be observed in
accordance with the standing agreements
 14 Principles of
Administration
4. Unity of command: For any action, an employee should
have only one boss.
5. Unity of direction: One head and one plan for each
activity.
6. Subordination of individual interest to general interest:
The interest of one employee or group should not prevail
over that of the total organization.
7. Remuneration of personnel: The remuneration paid for
services rendered should be fair and afford satisfaction to
both personnel and the firm.
 14 Principles of
Administration
8. Centralization: The degree of initiative left to
managers varies depending upon top managers,
subordinates and business conditions.
9. Scalar chain (Hierarchy): The line of authority of
superiors ranging from the ultimate authority to the
lowest ranks.
10. Order (Placement): Once the basic job structure has
been devised and the personnel to fill the various slots
have been selected, each employee occupies that job
wherein he or she can render the most effective service.
 14 Principles of
Administration
11. Equity: For the personnel to be encouraged to fulfill their
duties with devotion and loyalty there must be equity based
on kindness and justice in employer-employee relations.
12. Stability of tenure of personnel: Suitable conditions
should be created to minimize turnover of employees.
13. Initiative: The ability to think afresh would act as a
powerful motivator of human behavior.
14. Esprit de corps: Harmony, union among the personnel of
an organization is a source of great strength in the
organization.
• Fayol’s administrative methods emphasize managers creating an
administrative apparatus to develop administrative principles
• Its purpose is to keep the organization focused on its mission and
continuous improvements.
Luther
Gulick
Worked as an administrator
in New York City 1954-1956
well known American
administrative expert
Edited “Papers on Science of
Administration” with Lyndall
Urwick
known for applying administrative
principles to government
 Luther Gulick
• expand upon basic theoretical framework of Fayol, Mooney
and Reiley and added his own conceptual distinctions
• government agencies can be departmentalized based on the
process, individuals, place, or purpose
• emphasized the importance of chief executives
implementing closer supervision over administrative
departments than the heads of holding companies
• all organizations should divide labor no matter what their
size or level of complexity
 Luther Gulick
• Organization chart
• demonstrating the level of control each manager has and
describes reporting within the organizational hierarchy
(Tompkins, 2005).
 7 Principles of
Administration
1. Span of Control – “The number of individuals reporting
to a superior should be limited to the number he or she
can supervise effectively, given limited time and energy”
2. unity of command –when each worker takes orders from
one superior.
3. homogeneity - Work should be divided so that the work of
a single organizational unit is as homogeneous in character
as possible”.
4. line-staff - It means giving directions or order to
employee to do their work in a consistent
 7 Principles of
Administration
5. Coordinating - Interrelating of the various kinds
of work.
6. Reporting - Keeping employer updated of the
work done by employee in the organization
through regular reports and research.
7. Budgeting - Maintenance of funds required for
planning and coordinating tasks of organization.
Lyndall
Urwick
a distinguished executive
and management
consultant in United
Kingdom
Edited “Papers on Science
of Administration” with
Luther Gulick
 10 Principles of
Administration
1. Principle of the Objective: For any organisation
to function there has to be an objective that
needs to be fulfilled.
2. The Principle of Specialization: There is one
group that specializes in performance of
specific function.
3. The Principle of Coordination: This principle is
important for ensuring coordination in
organization.
 10 Principles of
4.
Administration
The Principle of Authority: In every
organisation, various groups have to follow
authority and command of the organisation.
5. The Principle of Responsibility: Since superior
claims authority in an organisation therefore he
become responsible for acts of his subordinates.
6. The Principle of Definition: In an organisation, it
is imperative that the nature of jobs and duties
attach to that specific job needs to be specified or
defined.
 10 Principles of
Administration
7. The Principle of Correspondence: The principle of
authority is associated with the principle of
responsibility.
8. The Span of Control: Manger should be responsible
for only few subordinates working in an organization.
9. The Principle of Balance: Balance is an important
principle to ensure equality in the work processes.
10. The Principle of Continuity: Within the structure of
organization, continuation of activities is imperative
condition.
 Similarities
All 3 theorists draw their theory and principles
based on their first hand experience as
administrators.
All of them gave importance to the structure of
organization.
All of them believe that these principles has
universal claim based on the experiences of
industrial organization.
 Similarities
Their ideas are not based about utopian notion
but are based on practical and real experience of
industrial organization.
All of them believe in the existence of a certain
universal administrative principles that the
application of which could make an organization
function more efficiently.
 Criticisms
This approach gives importance to formal
structure and negates the concept of
human needs in an organization
This theory is pro management and gives
more importance to efficiency and
productivity of organization without
considering the human psychological and
mental needs.
 Criticisms
Based on few case studies and they
are not empirically tested.
These principles are stated
unconditional statements and valid
under all circumstances, which is not
practicable
 Criticisms
Overlapping functions
Based on assumption that
organizations are closed system
The rigid structures created by these
principles do not work well under
unstable conditions.
Thank You!