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Introduction to Public
Administration
Class Lecture-4
(Administrative Management)
Administrative Management
Henry Fayol(1841-1925)
• Administrative management was developed in
1st half of the 20th century.
• Henry Fayol,Luther Gulick,Lyndall Urwick,James
D. Mooney have contributed to establish
administrative management.
• Henri Fayol, the French industrialist and
management consultant of the early twentieth
century.
• He has long been acknowledged as a founding
father of the classical management school of
thought.
Administrative Management
Henry Fayol
• One of his major work is "General and Industrial
Management(1916)"
• His paper on,"The Theory of Administration in
the State" is considered as major contribution to
the theory of public administration.
• By Fayol, Administrative Theory: Universal
• Without doubt, Fayol is the best remembered for
a three-fold contribution to management
thought.
Administrative Management
Henry Fayol
• Firstly, Fayol is credited with the belief
that organizational and business life was
an amalgam of six activities of an
industrial undertakings.
• Secondly, Fayol identified five key
functions or elements that comprised
managerial activity.
• Finally, Fayol advocated fourteen
principles designed to guide the
successful manager.
Henri Fayol: Six Managerial Activities
Technical Activities
Production, manufacture,
adaptation
Commercial Activities Buying, selling exchange
Financial Activities
Search for and optimum use of
capital
Security activities Protection of property and persons
Accounting Activities
Stock-taking, balance sheet, costs,
statistics
Managerial Activities
Planning, organizing, commanding,
coordinating and controlling
Henri Fayol: Elements of Management
Fayol classifies the key functions of
management into five main elements:
a) Planning: Forethought to the operation
of an organization. Experience, Unity,
continuity, flexibility, precision are features
of Good Planning.
b) Organizing:Material organization and
human organization (leadership,
organizational structure).
c) Commanding: Rests on certain personal
qualities and knowledge of general
management.
Henri Fayol: Elements of Management
d) Coordinating: Coordinating by
integrating subordinates and keeping
balance among material, social and
functional parts.
e) Controlling: Verifying whether activities
take place in conformity with the plan
adopted, instructions issued and principles
established.
Fayol’s Fourteen Principles of
Management
1. Division of work: Work must be divided.
Specialization labour produces more and better
work with the same effort.
2. Authority: The right to give orders. where
authority is exercised responsibility arises.
3. Discipline: Member of an organization need
to respect the rules, agreements that governed
by the organization.
Fayol’s Fourteen Principles of
Management
4. Unity of command: One man and one superior.
5. Unity of direction: One head and one plan for
a group of activities with the same objective.
6. Subordination of individual interest to
general interest:
The interests of one individual or one group
should not prevail over the general interest.
Fayol’s Fourteen Principles of
Management
7. Remuneration: Pay should be fair to both the
employee and the firm.Fayol suggested many
modes of payment
(Time rates, Job rates, Price rates, Bonus rates,
profit sheery, Non financial rewards)
8. Centralization: Managers should retain final
authority but also need to give their subordinates
enough authority to do their jobs properly.
Fayol’s Fourteen Principles of
Management
9. Scalar chain: The line of authority from top to
bottom of the organization. Fayol’s Bridge or
Gang Plank.
A
B G
C H
D I
E..........................J
F K
Fayol’s Fourteen Principles of
Management
10. Order: A place for everything and everything in
its place; the right man in the right place.
11. Equity: A combination of kindness and justice
towards employees.
Fayol’s Fourteen Principles of
Management
EQUALITY EQUITY or JUSTICE
Fayol’s Fourteen Principles of
Management
12. Stability of tenure: Suitable condition should
be created to minimize employee turnover.
13. Initiative: Within the limits of authority and
discipline, all levels of staff should be
encouraged to show initiative.
14. Esprit de corps: Harmony is a great strength
to an organization; teamwork should be
encouraged.
Criticism of Administrative Management
• Gave more attention to functional aspect and
neglected structural aspect.
• For Peter Drucker, Fourteen principles have a
great deal of overlapping.
• His theory is more applicable for manufacturing
company rather than big public organizations.
• Unity of command and coordination may conflict.
• For Barnard and Simon, the informal side of
organization and social-psychological or emotion
needs of the employees were ignored.
Administrative Management
Luther Gulick
• Gulick and Urwick wrote in 1937 “paper on the
science of administration”. In this paper they
stretched on the importance of structure of
organization in determining function.
• Based on which the structure of the organization
can be designed.
Administrative Management
Luther Gulick
Gulick specified 10 principles of organization:
1. Division of work
2. Departmentalization: He identified 4 basis
of departmentalization
 purpose(function of organization)
 process(skills)
 persons(clients)
 place(area)
3. Coordination: It means interrelating and
unified the various part of work in a whole.
4. unity of command
Administrative Management
Luther Gulick
5. Decentralization
6. Delegation
7. Span of control: It means the number of
subordinates or the unit of work that a superior
can effectively control. It depends on 4 factors:
a) Function(nature of work)
b) Stability of the organization.
c) Place of work.
d) Personality of the superior.
Administrative Management
Luther Gulick
8. Line and staff:
The line agencies directly work for the
achievement of the organizational objective.
They are given authority to make decision,
issue, orders and directions.
The staff agencies includes specialist who
perform secondary or supportive function. They
assist the line agencies in the accomplishment
of organizational purpose.
Administrative Management
Lyndal Urwick
Urwick’s principles are 8 types:
1. Principle of objective: an organization
should have a definite purpose or objective.
2. Principle of correspondence: Authority and
responsibility must go together at all levels.
3. Principle of responsibility: The supervisor
must take the responsibility of his subordinate
workers.
Administrative Management
Lyndal Urwick
4. scalar principle
5. principle of span of control
6. specialization / division of work
7. coordination
8. Principle of definition: Clear description of
duties, authority and responsibility of each
position and its relationship and other positions.
Administrative Management
James D. Mooney
In 1931Mooeny and Raily wrote “onward
industry” which republished 1939 as “the
principles of organization”. The principles form
the basis for efficient functioning to the
organization. The 4 major principles developed
by Mooney and Raily is:
1. Coordination
2. Scalar process
3. Functional differentiation / division of
work.
4. Line and staff.
Bureaucratic Management
Max Weber (1864-1920)
Class Lecture-5
Bureaucratic Management
Max Weber
• Bureaucratic Theory was developed by a
German Sociologist and political economist Max
Weber (1864-1920).
• According to him, bureaucracy is the most
efficient form of organization.
• He was the first to give a systematic theory of
bureaucracy.
Bureaucratic Management
Max Weber
• Power is the ability to force people to obey.
• On the other hand authority is the legal power to
give order.(formal position)
Weber distinguishes three types of authority-
1.Traditional authority:
In traditional authority, the legitimacy of the
authority comes from tradition or custom; people
obey this because they are influenced by
tradition.
Bureaucratic Management
Max Weber
2. Legal-Rational Authority:
Weber identified "rationally-created rules" as the
central feature of this form of authority.Obedient
under this system is owed to the legally
established order which is rational in character.
3. Charismatic Authority:
Charismatic authority is found in a leader whose
mission and vision inspire others. It is based
upon the extraordinary characteristics of an
individual. Examples-Lenin, Gandhi, Mao, Martin
Luther king.
Bureaucratic Management
Max Weber
• Bureaucracy is an administrative body of
officials.
• In his conception, bureaucracy is a particular
type of administrative structure, developed in
association with the rational-legal mode of
authority
• Bureaucracy refers to a type of organizational
structure characterized by division of labor, a
well-defined authority hierarchy, high
formalization, impersonal relations, employment
decisions based on merit, career tracks for
employees and distinct separation of members’
organizational and personal lives.(Max Weber)
Bureaucratic Management
Max Weber
The bureaucratic form has six major principles-
1. Division of Labor: Each person’s job is broken
down into simple, routine and well-defined tasks.
2. Hierarchy: Each lower office is controlled and
supervised by a higher one. vertical division of
levels.
3. Rules/documentations: - To ensure uniformity
and to regulate actions of employees, managers
must depend heavily upon formal organizational
rules and regulations.Decisions are recorded in
personal files.
Bureaucratic Management
Max Weber
4. Professionalism: Officials are selected on the
basis of technical qualifications, appointed to
offices and compensated by salary. Performance
is measured by formal, impersonal rules.
5. Impersonality: Authority is impersonal and it
rests with ranks and positions of a office holder
rather than persons.
Bureaucratic Management
Max Weber
6. Careerism: An official is a full-time employee
and looks forward to a lifelong career in the
agency. Tenure and position is protected against
arbitrary dismissal.
Bureaucratic Management
Max Weber (Criticism)
• Too much emphasis on rules and regulations
causes displacement of goal.
• Crosier describes bureaucracy as a rigid
organization that cannot correct its behavior by
learning its errors.
• Thompson used the tearm "Bureau-pathology"
which means disease of bureaucracy.
• It does not consider the informal relationships
between individuals working in the organizations
Bureaucratic Management
Max Weber (Criticism)
• Its system of control and authority are outdated
which can’t work in such a changed
environment.
• Bureaucracy involves a lot of paper
work.(wastage of time, effort and money).
• Bureaucratic model may be suitable for
government organizations, not for business
organizations.

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Administrative management (lec 4)

  • 1. Introduction to Public Administration Class Lecture-4 (Administrative Management)
  • 2. Administrative Management Henry Fayol(1841-1925) • Administrative management was developed in 1st half of the 20th century. • Henry Fayol,Luther Gulick,Lyndall Urwick,James D. Mooney have contributed to establish administrative management. • Henri Fayol, the French industrialist and management consultant of the early twentieth century. • He has long been acknowledged as a founding father of the classical management school of thought.
  • 3. Administrative Management Henry Fayol • One of his major work is "General and Industrial Management(1916)" • His paper on,"The Theory of Administration in the State" is considered as major contribution to the theory of public administration. • By Fayol, Administrative Theory: Universal • Without doubt, Fayol is the best remembered for a three-fold contribution to management thought.
  • 4. Administrative Management Henry Fayol • Firstly, Fayol is credited with the belief that organizational and business life was an amalgam of six activities of an industrial undertakings. • Secondly, Fayol identified five key functions or elements that comprised managerial activity. • Finally, Fayol advocated fourteen principles designed to guide the successful manager.
  • 5. Henri Fayol: Six Managerial Activities Technical Activities Production, manufacture, adaptation Commercial Activities Buying, selling exchange Financial Activities Search for and optimum use of capital Security activities Protection of property and persons Accounting Activities Stock-taking, balance sheet, costs, statistics Managerial Activities Planning, organizing, commanding, coordinating and controlling
  • 6. Henri Fayol: Elements of Management Fayol classifies the key functions of management into five main elements: a) Planning: Forethought to the operation of an organization. Experience, Unity, continuity, flexibility, precision are features of Good Planning. b) Organizing:Material organization and human organization (leadership, organizational structure). c) Commanding: Rests on certain personal qualities and knowledge of general management.
  • 7. Henri Fayol: Elements of Management d) Coordinating: Coordinating by integrating subordinates and keeping balance among material, social and functional parts. e) Controlling: Verifying whether activities take place in conformity with the plan adopted, instructions issued and principles established.
  • 8. Fayol’s Fourteen Principles of Management 1. Division of work: Work must be divided. Specialization labour produces more and better work with the same effort. 2. Authority: The right to give orders. where authority is exercised responsibility arises. 3. Discipline: Member of an organization need to respect the rules, agreements that governed by the organization.
  • 9. Fayol’s Fourteen Principles of Management 4. Unity of command: One man and one superior. 5. Unity of direction: One head and one plan for a group of activities with the same objective. 6. Subordination of individual interest to general interest: The interests of one individual or one group should not prevail over the general interest.
  • 10. Fayol’s Fourteen Principles of Management 7. Remuneration: Pay should be fair to both the employee and the firm.Fayol suggested many modes of payment (Time rates, Job rates, Price rates, Bonus rates, profit sheery, Non financial rewards) 8. Centralization: Managers should retain final authority but also need to give their subordinates enough authority to do their jobs properly.
  • 11. Fayol’s Fourteen Principles of Management 9. Scalar chain: The line of authority from top to bottom of the organization. Fayol’s Bridge or Gang Plank. A B G C H D I E..........................J F K
  • 12. Fayol’s Fourteen Principles of Management 10. Order: A place for everything and everything in its place; the right man in the right place. 11. Equity: A combination of kindness and justice towards employees.
  • 13. Fayol’s Fourteen Principles of Management EQUALITY EQUITY or JUSTICE
  • 14. Fayol’s Fourteen Principles of Management 12. Stability of tenure: Suitable condition should be created to minimize employee turnover. 13. Initiative: Within the limits of authority and discipline, all levels of staff should be encouraged to show initiative. 14. Esprit de corps: Harmony is a great strength to an organization; teamwork should be encouraged.
  • 15. Criticism of Administrative Management • Gave more attention to functional aspect and neglected structural aspect. • For Peter Drucker, Fourteen principles have a great deal of overlapping. • His theory is more applicable for manufacturing company rather than big public organizations. • Unity of command and coordination may conflict. • For Barnard and Simon, the informal side of organization and social-psychological or emotion needs of the employees were ignored.
  • 16. Administrative Management Luther Gulick • Gulick and Urwick wrote in 1937 “paper on the science of administration”. In this paper they stretched on the importance of structure of organization in determining function. • Based on which the structure of the organization can be designed.
  • 17. Administrative Management Luther Gulick Gulick specified 10 principles of organization: 1. Division of work 2. Departmentalization: He identified 4 basis of departmentalization  purpose(function of organization)  process(skills)  persons(clients)  place(area) 3. Coordination: It means interrelating and unified the various part of work in a whole. 4. unity of command
  • 18. Administrative Management Luther Gulick 5. Decentralization 6. Delegation 7. Span of control: It means the number of subordinates or the unit of work that a superior can effectively control. It depends on 4 factors: a) Function(nature of work) b) Stability of the organization. c) Place of work. d) Personality of the superior.
  • 19. Administrative Management Luther Gulick 8. Line and staff: The line agencies directly work for the achievement of the organizational objective. They are given authority to make decision, issue, orders and directions. The staff agencies includes specialist who perform secondary or supportive function. They assist the line agencies in the accomplishment of organizational purpose.
  • 20. Administrative Management Lyndal Urwick Urwick’s principles are 8 types: 1. Principle of objective: an organization should have a definite purpose or objective. 2. Principle of correspondence: Authority and responsibility must go together at all levels. 3. Principle of responsibility: The supervisor must take the responsibility of his subordinate workers.
  • 21. Administrative Management Lyndal Urwick 4. scalar principle 5. principle of span of control 6. specialization / division of work 7. coordination 8. Principle of definition: Clear description of duties, authority and responsibility of each position and its relationship and other positions.
  • 22. Administrative Management James D. Mooney In 1931Mooeny and Raily wrote “onward industry” which republished 1939 as “the principles of organization”. The principles form the basis for efficient functioning to the organization. The 4 major principles developed by Mooney and Raily is: 1. Coordination 2. Scalar process 3. Functional differentiation / division of work. 4. Line and staff.
  • 23. Bureaucratic Management Max Weber (1864-1920) Class Lecture-5
  • 24. Bureaucratic Management Max Weber • Bureaucratic Theory was developed by a German Sociologist and political economist Max Weber (1864-1920). • According to him, bureaucracy is the most efficient form of organization. • He was the first to give a systematic theory of bureaucracy.
  • 25. Bureaucratic Management Max Weber • Power is the ability to force people to obey. • On the other hand authority is the legal power to give order.(formal position) Weber distinguishes three types of authority- 1.Traditional authority: In traditional authority, the legitimacy of the authority comes from tradition or custom; people obey this because they are influenced by tradition.
  • 26. Bureaucratic Management Max Weber 2. Legal-Rational Authority: Weber identified "rationally-created rules" as the central feature of this form of authority.Obedient under this system is owed to the legally established order which is rational in character. 3. Charismatic Authority: Charismatic authority is found in a leader whose mission and vision inspire others. It is based upon the extraordinary characteristics of an individual. Examples-Lenin, Gandhi, Mao, Martin Luther king.
  • 27. Bureaucratic Management Max Weber • Bureaucracy is an administrative body of officials. • In his conception, bureaucracy is a particular type of administrative structure, developed in association with the rational-legal mode of authority • Bureaucracy refers to a type of organizational structure characterized by division of labor, a well-defined authority hierarchy, high formalization, impersonal relations, employment decisions based on merit, career tracks for employees and distinct separation of members’ organizational and personal lives.(Max Weber)
  • 28. Bureaucratic Management Max Weber The bureaucratic form has six major principles- 1. Division of Labor: Each person’s job is broken down into simple, routine and well-defined tasks. 2. Hierarchy: Each lower office is controlled and supervised by a higher one. vertical division of levels. 3. Rules/documentations: - To ensure uniformity and to regulate actions of employees, managers must depend heavily upon formal organizational rules and regulations.Decisions are recorded in personal files.
  • 29. Bureaucratic Management Max Weber 4. Professionalism: Officials are selected on the basis of technical qualifications, appointed to offices and compensated by salary. Performance is measured by formal, impersonal rules. 5. Impersonality: Authority is impersonal and it rests with ranks and positions of a office holder rather than persons.
  • 30. Bureaucratic Management Max Weber 6. Careerism: An official is a full-time employee and looks forward to a lifelong career in the agency. Tenure and position is protected against arbitrary dismissal.
  • 31. Bureaucratic Management Max Weber (Criticism) • Too much emphasis on rules and regulations causes displacement of goal. • Crosier describes bureaucracy as a rigid organization that cannot correct its behavior by learning its errors. • Thompson used the tearm "Bureau-pathology" which means disease of bureaucracy. • It does not consider the informal relationships between individuals working in the organizations
  • 32. Bureaucratic Management Max Weber (Criticism) • Its system of control and authority are outdated which can’t work in such a changed environment. • Bureaucracy involves a lot of paper work.(wastage of time, effort and money). • Bureaucratic model may be suitable for government organizations, not for business organizations.