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ADMINISTRATIVE MANAGEMENT THEORY
Presented By
TARUN KASHNI
INDEX
1. BRIEF TO ADMINISTRATIVE MANAGEMENT THEORY
2. HISTROY OF ADMINISTRATIVE MANAGEMENT THEORY
3. INTRODUCTION TO ADMINISTRATIVE MANAGEMENT THEORY
4. DEFINISTION OF ADMINISTRATIVE MANAGEMENT THEORY
5. WORKS OF HENRY FAYOL
6. PRINICIPLES OF ADMINISTRATIVE MANAGEMENT THEORY
7. COMPARISION OF ADMNISTRATIVE VS SCIENTIFIC MANAGEMENT
THEORY
WHAT IS ADMINISTRATIVE MANAGEMENT THEORY
 Administrative management theory attempts to find a rational way to
design an organization as a whole. 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.
HISTORY
 Theory of administrative management was first introduced by Henri Fayol
whose theory is also known as fayolism.
Fayolism was a theory of management that analyzed and synthesized the
role of management in organizations, developed around 1900 by
the French management theorist Henri Fayol (1841–1925). It was through
Fayol's work as a philosopher of administration that he contributed most
widely to the theory and practice of organizational management.
Other Administrative Management
Theorists
 James D. Mooney (1884-1957): Mooney studied mechanical engineering
and eventually became a key member of General Motors' top management
team. In 1931, he wrote Onward Industry! The book is considered by many
scholars to be a significant contribution to administrative management
theory.
 Luther H. Gulick (1892-1993): Gulick is often considered the 'Dean of
Public Administration.' He applied administrative management theory
principles to government.
Other Administrative Management
Theorists
INTRODUCTION
Administrative management is one of the functions, departments or sections existing
in any organization. The aim of the administrative function is to manage the
information needs of the organization so that timely, relevant and accurate information
can be given to managers at all the different levels, so enabling them to take
meaningful decisions. Without such information it is not possible to manage any
organization, function or process.
Administrative management also can be seen as managing information through
people. The administrative function is that section in an organization that is
responsible for the orderly collection, processing, storing, and distributing of
information to decision makers and managers within the organization to enable them
to execute their tasks as well as other role players outside the organization.
DEFINITION OF ADMINISTRATIVE
MANGEMENT THEORY
 HENRI Fayol, renowned as ‘father of modern management theory’, as he introduced
comprehensive thinking on management philosophy. He put forward general management
theory that applies to every organization equally and in every field. The principles of
management laid down by Fayol are used by managers to coordinate the internal activities
of the company.
WORKS OF HENRI FAYOL
Fayol's work became more generally known with the 1949 publication of "General and industrial
administration", the English translation of the 1916 article "Administration industrielle et
générale". In this work Fayol presented his theory of management, known as Fayolism. Before
that Fayol had written several articles on mining engineering, starting in the 1870s, and some
preliminary papers on administration.
Mining engineering
Henri Fayol, ca. 1870-80 (age 30-40)
Starting in the 1870s, Fayol wrote a series of articles on mining subjects, such as on the
spontaneous heating of coal (1879), the formation of coal beds (1887), the sedimentation of
the Commentry, and on plant fossils (1890).
His first articles were published in a French Bulletin de la Société de l'Industrie minérale, and
beginning in the early 1880s in the Comptes rendus de l'Académie des sciences, the
proceedings of the French Academy of Sciences.
WORKS OF HENRI FAYOL
 Fayolism
Fayol's work was one of the first comprehensive statements of a general theory of
management. He proposed that there were five primary functions of management and fourteen
principles of management.
 Functions of management
In his original work, Administration industrielle et générale; prévoyance, organisation,
commandement, coordination, controle, five primary functions were identified:[9]
 Planning
 Organizing
 Staffing
 Directing
 Controlling
The control function, from the French contrôler, is used in the sense that a manager must
receive feedback about a process in order to make necessary adjustments and must analyze
the deviations. Lately scholars of management combined the commanding and coordinating
function into one leading function.
Principles of Admnistrative
management
1. Division of work - In practice, employees are specialized in different areas and
they have different skills. Different levels of expertise can be distinguished within the
knowledge areas (from generalist to specialist). Personal and professional
developments support this. According to Henri Fayol specialization promotes
efficiency of the workforce and increases productivity. In addition, the specialization of
the workforce increases their accuracy and speed.
2. Authority & Responsibility - According to Henri Fayol, the accompanying power or
authority gives the management the right to give orders to the subordinates.
3. Discipline - This principle is about obedience. It is often a part of the core values of
a mission and vision in the form of good conduct and respectful interactions.
4. Unity of command - Every employee should receive orders from only one superior
or behalf of the superior.
Principles of management
5. Unity of direction - Each group of organisational activities that have the same
objective should be directed by one manager using one plan for achievement of one
common goal.
6. Subordination of Individual Interest to General Interest - The interests of any one
employee or group of employees should not take precedence over the interests of the
organization as a whole.
7. Remuneration - All Workers must be paid a fair wage for their services. The wages
paid must be as per a certain standard of living to the employee at the same time it is
within the paying capacity of the company.
Principles of management
8. Centralization and Decentralization - This refers to the degree to which
subordinates are involved in decision making.
9. Scalar chain - The line of authority from top management to the lowest ranks
represents the scalar chain. Communications should follow this chain. However if
someone needs to communicate some other person in emergency he/she might use
"Gang Plank".
10. Order - this principle is concerned with systematic arrangement of men, machine,
material etc. There should be a specific place for every employee in an organization.
That is 'a place for everything (people) and everything has a place'.
Principles of management
11. Equity - All the employees in the organization must be treated equally with
respect to the justice and kindliness.
12. Stability of tenure of personnel - High employee turnover is inefficient.
Management should provide orderly personnel planning and ensure that replacements
are available to fill vacancies.
13. Initiative - Employees who are allowed to originate and carry out plans will exert
high levels of effort.
14. Esprit de corps - Promoting team spirit will build harmony and unity within the
organization.
ADMINISTRATIVE VS SCIENTIFIC
MANAGEMENT
BASIS FOR COMPARISON HENRI FAYOL F.W. TAYLOR
Meaning HENRI Fayol, is a father of
modern management who laid
down fourteen principles of
management, for improving
overall administration.
F.W. Taylor, is a father of
scientific management who
introduced four principles of
management, for increasing
overall productivity.
Concept General theory of administration Scientific Management
Emphasis Top level management Low level management
Applicability Universally applicable Applies to specialized
organizations only.
Basis of formation Personal Experience Observation and
Experimentation
Orientation Managerial function Production and Engineering
System of Wage Payment Sharing of profit with managers. Differential Payment System
Approach Manager's approach Engineer's approach
THANK YOU

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Administrative management theory and comparison of administrative vs scientific management

  • 2. INDEX 1. BRIEF TO ADMINISTRATIVE MANAGEMENT THEORY 2. HISTROY OF ADMINISTRATIVE MANAGEMENT THEORY 3. INTRODUCTION TO ADMINISTRATIVE MANAGEMENT THEORY 4. DEFINISTION OF ADMINISTRATIVE MANAGEMENT THEORY 5. WORKS OF HENRY FAYOL 6. PRINICIPLES OF ADMINISTRATIVE MANAGEMENT THEORY 7. COMPARISION OF ADMNISTRATIVE VS SCIENTIFIC MANAGEMENT THEORY
  • 3. WHAT IS ADMINISTRATIVE MANAGEMENT THEORY  Administrative management theory attempts to find a rational way to design an organization as a whole. 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.
  • 4. HISTORY  Theory of administrative management was first introduced by Henri Fayol whose theory is also known as fayolism. Fayolism was a theory of management that analyzed and synthesized the role of management in organizations, developed around 1900 by the French management theorist Henri Fayol (1841–1925). It was through Fayol's work as a philosopher of administration that he contributed most widely to the theory and practice of organizational management.
  • 5. Other Administrative Management Theorists  James D. Mooney (1884-1957): Mooney studied mechanical engineering and eventually became a key member of General Motors' top management team. In 1931, he wrote Onward Industry! The book is considered by many scholars to be a significant contribution to administrative management theory.
  • 6.  Luther H. Gulick (1892-1993): Gulick is often considered the 'Dean of Public Administration.' He applied administrative management theory principles to government. Other Administrative Management Theorists
  • 7. INTRODUCTION Administrative management is one of the functions, departments or sections existing in any organization. The aim of the administrative function is to manage the information needs of the organization so that timely, relevant and accurate information can be given to managers at all the different levels, so enabling them to take meaningful decisions. Without such information it is not possible to manage any organization, function or process. Administrative management also can be seen as managing information through people. The administrative function is that section in an organization that is responsible for the orderly collection, processing, storing, and distributing of information to decision makers and managers within the organization to enable them to execute their tasks as well as other role players outside the organization.
  • 8. DEFINITION OF ADMINISTRATIVE MANGEMENT THEORY  HENRI Fayol, renowned as ‘father of modern management theory’, as he introduced comprehensive thinking on management philosophy. He put forward general management theory that applies to every organization equally and in every field. The principles of management laid down by Fayol are used by managers to coordinate the internal activities of the company.
  • 9. WORKS OF HENRI FAYOL Fayol's work became more generally known with the 1949 publication of "General and industrial administration", the English translation of the 1916 article "Administration industrielle et générale". In this work Fayol presented his theory of management, known as Fayolism. Before that Fayol had written several articles on mining engineering, starting in the 1870s, and some preliminary papers on administration. Mining engineering Henri Fayol, ca. 1870-80 (age 30-40) Starting in the 1870s, Fayol wrote a series of articles on mining subjects, such as on the spontaneous heating of coal (1879), the formation of coal beds (1887), the sedimentation of the Commentry, and on plant fossils (1890). His first articles were published in a French Bulletin de la Société de l'Industrie minérale, and beginning in the early 1880s in the Comptes rendus de l'Académie des sciences, the proceedings of the French Academy of Sciences.
  • 10. WORKS OF HENRI FAYOL  Fayolism Fayol's work was one of the first comprehensive statements of a general theory of management. He proposed that there were five primary functions of management and fourteen principles of management.  Functions of management In his original work, Administration industrielle et générale; prévoyance, organisation, commandement, coordination, controle, five primary functions were identified:[9]  Planning  Organizing  Staffing  Directing  Controlling The control function, from the French contrôler, is used in the sense that a manager must receive feedback about a process in order to make necessary adjustments and must analyze the deviations. Lately scholars of management combined the commanding and coordinating function into one leading function.
  • 11. Principles of Admnistrative management 1. Division of work - In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas (from generalist to specialist). Personal and professional developments support this. According to Henri Fayol specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed. 2. Authority & Responsibility - According to Henri Fayol, the accompanying power or authority gives the management the right to give orders to the subordinates. 3. Discipline - This principle is about obedience. It is often a part of the core values of a mission and vision in the form of good conduct and respectful interactions. 4. Unity of command - Every employee should receive orders from only one superior or behalf of the superior.
  • 12. Principles of management 5. Unity of direction - Each group of organisational activities that have the same objective should be directed by one manager using one plan for achievement of one common goal. 6. Subordination of Individual Interest to General Interest - The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole. 7. Remuneration - All Workers must be paid a fair wage for their services. The wages paid must be as per a certain standard of living to the employee at the same time it is within the paying capacity of the company.
  • 13. Principles of management 8. Centralization and Decentralization - This refers to the degree to which subordinates are involved in decision making. 9. Scalar chain - The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However if someone needs to communicate some other person in emergency he/she might use "Gang Plank". 10. Order - this principle is concerned with systematic arrangement of men, machine, material etc. There should be a specific place for every employee in an organization. That is 'a place for everything (people) and everything has a place'.
  • 14. Principles of management 11. Equity - All the employees in the organization must be treated equally with respect to the justice and kindliness. 12. Stability of tenure of personnel - High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. 13. Initiative - Employees who are allowed to originate and carry out plans will exert high levels of effort. 14. Esprit de corps - Promoting team spirit will build harmony and unity within the organization.
  • 15. ADMINISTRATIVE VS SCIENTIFIC MANAGEMENT BASIS FOR COMPARISON HENRI FAYOL F.W. TAYLOR Meaning HENRI Fayol, is a father of modern management who laid down fourteen principles of management, for improving overall administration. F.W. Taylor, is a father of scientific management who introduced four principles of management, for increasing overall productivity. Concept General theory of administration Scientific Management Emphasis Top level management Low level management Applicability Universally applicable Applies to specialized organizations only. Basis of formation Personal Experience Observation and Experimentation Orientation Managerial function Production and Engineering System of Wage Payment Sharing of profit with managers. Differential Payment System Approach Manager's approach Engineer's approach