Henry Fayol's description about Administrative Management.

1. ADMINISTRATIVE
MANAGEMENT

2. INTRODUCTION
• HENRY FAYOL (Istanbul, 29 July
1841 – Paris, 19 November 1925) is
a French mining engineer, mining
executive, author and director of
mines who developed general
theory of business administration
that is often called FAYOLISM.
• Father of Modern Management
• Published a book and summarizing
his management experiences:
• 5 Management Functions
Planning
Organizing
Commanding
Coordinating
Controlling

3. 14 Principles of Management
• Division of Work- divide work into specialized tasks and assign responsibilities to
specific individuals.
• Authority- delegate authority along with responsibility.
• Discipline- make expectation clear and punish violations.
• Unity of Command- each employee should be assigned to only one supervisor.
• Unity of Direction- employee efforts should be focused on achieving organizational
objectives.
• Subordination of Individual- the interests of one person should not take priority over
the interests of the organization as a whole.

4. • Remuneration- systematically reward efforts that support the organization’s direction.
• Centralization- determines the relative importance of superior and subordinates roles.
• Scalar Chain- keep communication within the chain command.
• Order- order jobs and materials so they support the organization’s direction.
• Equity- fair discipline and order enhance employee commitment.
• Stability and Tenure of Personnel- promote employee loyalty and longevity.
• Initiative- encourage employees to act on their own in support of the organization’s direction.
• Espirit de Corps- promote a unity of interests between employees and management.

5. Maximilian Karl Emil "Max" Weber
• Is a German sociologist who introduces the idea
of a bureaucratic organization.
• The aim of this concept is to create an
organization that has the authority structures
with a clear procedure of rules and regulations.
• Bureaucracy can be defined as a and efficient
form of organization founded on logic, order,
and legitimate authority.

6. Characteristic of Bureaucracy based on Weber’s
6 Major Principles:
Hierarchy, based on authority Sample Model of Hierarchy
Highest Office
High OfficeHigh Office
Low Office Low Office Low Office
Lowest Office Lowest Office Lowest Office Lowest Office
Hierarchy
Each level controls the
level below and is
controlled by the level
above. A formal hierarchy
is the basis of central
planning and centralized
decision making.

7. • Management by Rules
 Controlling by rules allows decisions made at high levels to be executed
consistently by all lower levels.
• Organization by functional specialty
 Work is to be done by specialist, and people are organized into units based on
the type of work they do skills they have.
Executive
Operations
Policy &
Planning
Strategic
Planning
Policy
Development
Regional
Management
Special
Projects
Legislative
Relations
Office Staffing Maintenance

8. • An “Up-focused” or “In-focused” Mission
 If the mission is described as “up-focused”, then the organization’s purpose is
to serve the stockholders, the board, or whatever agency empowered it. If the
mission is to serve the organization itself, and those within it, e.g., to produce
high profits, to gain market share, or to produce a cash stream, then the
mission is described as “in-focused”.
• Purposely Impersonal
 The idea is to treat all employees equally and customers equally, and not be
influenced by individual differences.

9. • Employment Based on Technical Qualifications
 (There may also be protection from arbitrary dismissal.)
 The Bureaucrats. should be properly & scientifically selected.
 This enables efficiency of Bureaucracy.
PhD
Master’sMaster’s
Bachelor’s Bachelor’s Bachelor’s
Associate’s Associate’s Associate’s Associate’s

10. HUMAN RELATIONS
MANAGEMENT

11. Elton Mayo (1880-1994)
Behavioral Theory
• Is a researcher who conducted studies
in Hawthorne Works Plant of Western
Electric in Chicago.
• He led a team who developed a
research project known as Hawthorne
Studies.
• The researchers concluded that the
workers performed well when they
know they are part of the experiment
and when they are being observed by
the researchers.
• This effect is known as the Hawthorne
Effect.
• The team also concluded that
psychological and social factors are
more important than physical
condition of the workplace and
financial incentives in motivating
workers.

12. THE END…
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