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Administrative Management Theory
(Notes by Apole, Noella Joy S
...
The
theory generally calls for a formalized administrative structure, a clear division of
labor, and delegation of power and authority to administrators relevant to their
areas of responsibilities
...
D
...
D
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His theory is based on how the management should interact with
the employees
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Fayol’s Administrative management can
be understood by the following four section:
Function/Elements Of Management
According to Administrative theory of Management, the five basic elements of
management are:


Planning: Planning is forecasting the future and making a structural plan of
action and determining the goals and objectives of the action
...




Organizing: Organizing is the creation of an organizational structure which
brings human resources and non-human resources together to work together
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

Coordinating: There are various divisions in an organization
...




Controlling: Controlling means comparing the actual performance of the
organization with the desired performance level and checking if there is the
need for improvement and when a deviation is found implementing the
necessary changes to improve the performance
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related to the production or



Commercial activities: This activity is concerned with the marketing dealing
with sales, purchase, and distribution of goods and services
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

Accounting activities: This activity is related to the recording of
transactions and then preparing the financial statements
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

Security activities: This activity is related to the protection of people and
property in an organization by providing safe working condition, insurance
policies etc
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He believes that anyone cannot
be a manager
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The six managerial skills are:


Physical qualities: This quality is concerned with the good health, wellmaintained dress and outlook and high energy level of the manager
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

Educational qualities: To become a sound manager, one needs to have a
general understanding of the subject matter of the basic functioning of the
organization
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

Technical qualities: One needs to have technical knowledge regarding what
are the procedures to carry out the action in an organization
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So a good
manager needs years of experience to work smoothly and efficiently
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Fayol are particularly focused on the
five-management function of an organization
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Even though the principles were not created on a basis of experiments, they were
created by the experience of Henri Fayol
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The 14 guiding principles by H
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This principle helps in
specialization and helps to make the workers more effective and efficient
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

Authority and Responsibility: Authority is the right to give the command
and make decisions
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There should be a balance between authority and responsibility
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Authority without responsibility will lead to waste of position

and lack of utilization of power and responsibility without power will lead to
poor utilization of human and another resource
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Clarity of Rules,
Reward-Punishment system, good supervision etc
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But it depends on the need and policies of the organization on how
to maintain discipline
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And the employee should be accountable to the immediate
supervisor only
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This will help to clear the confusion and will make the employee
loyal to the activity
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This principle suggests that one
department, section, the division should only get instruction from one head
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

Subordination of individual interest to general interest: There are two
types of interests
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So, this principle suggests that there must be
harmony between these two interests
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

Remuneration of Personnel: There must be monetary as well as nonmonetary remuneration to the employees based on their performance level
...
So, the
remuneration must be fair, reasonable and satisfactory
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There should be
delegation of power to the subordinate but the power to make the important
decisions in the organization should remain with the top-level management
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The head of an organization is in the top of the chain
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However, there is no hard and fast rule regarding the
process of communication through scalar chain
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The right man for the right job is
essential in the smooth running of an organization
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

Equity: This principle implies that all the members of the organization
should be treated equally
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

Stability of tenure: Any employee can work to the fullest if they have
secured job
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This will also benefit the organization as it lowers
the labor turnover and reduces cost of recruiting and training new
employees
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This is related to creation of interest and willingness in the
employees by motivating and satisfying the employees
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So, the organization must integrate all its actions towards a single
goal and objective
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So, there must be unified team contribution in
harmony and cooperation which is always greater than the aggregate of
individual performances

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