Administrative
Management
Scientific management developed
principles that could help workers perform their tasks more efficiently. But
the theories that are focused on principles that could be used by managers to
coordinate the internal activities of organizations are known as administrative
management theory. Henry Fayol, a French industrialist, has been regarded as
the real father of modern management theory. He introduced his ideas based on
practical experiences in his book, ‘Administration industrialle at Generali’,
published in 1916 in French language.
Henri
Fayol’s Administrative Management is based on six admin activities. They are-
Technical:
Production and manufacture
Managerial: Planning, controlling, co-ordination
Commercial:
Purchasing and selling
Financial:
Use of capital
Accounting:
Asset, Liabilities, cost, profits
Security:
Protection of goods and Person
Fayol’s functions of management
Planning:
Defining goals, establishing strategy and developing sub plans to coordinate
activities.
Organizing:
Determining what needs to be done, how it will be done and who is to do it.
Commanding:
Directing and motivating all involved parties and resolving conflicts.
Controlling:
Monitoring activities to ensure that they are accomplished as planned.
Coordinating:
Harmonizing all activities to ensure the work activities are functioning better.
Fayol’s 14 principles of management
Division
of work - Employees should be provided activities according to their skills.
Authority
and Responsibility - Authority is the right to give orders and obtain
obedience, and responsibility is the corollary of authority.
Discipline
- Doing the right things at the right time must be followed by the employees.
Unity
of command - Every employee should receive orders from only one superior.
Unity
of direction - The whole organization should move to a common objective in a
common direction.
Subordination
- The individual interest must be sacrificed for the interest of the whole
organization.
Remuneration
- All Workers must be paid a fair wage for their services.
Centralization
- Decision will be made by top management, hence subordinates can’t make any
decision.
Scalar
chain - The line of authority from top management to the lowest ranks
represents the scalar chain. Communications should follow this chain.
Order
- Systematic arrangement of men, machine, material etc. there should be a
specific place for every employee in an organization
Equity
- Managers should be kind and fair to their subordinates.
Stability
of tenure of personnel - Organization must ensure the stability of employees in
order to reduce its costs.
Initiative-
The initiative take by the employees must be encouraged by the management
Esprit
de corps- Management should promote harmony and general good feelings among
employees
(2)
L. Uriwick
Uriwick stated 21 universal principles of
management in his book ‘Elements of Administration’. They are:-
Investigation
Forecasting
Planning
Command
Control
Coordination
Authority
Scalar
Process
Assignment
of Functions
Leadership
Delegation
Functional
Definition
Centralization
Initiative
The
General Interest
Functions of management
Beside the principles of management, the
functions of management were also been stated by various pioneers. They are:-
Henry
Fayol: Planning, Organizing,
Coordinating, Controlling, Staffing
George
Terry: Planning, Organizing,
Actuating, Controlling
Koontz
& O’Donnell: Planning,
Organizing, Directing, Controlling, Staffing