The document discusses administrative management theory, which focuses on the principles, functions, and skills necessary for effective organizational management. It outlines key principles of management, categorizes business activities, and specifies management functions such as planning, organizing, and controlling. Additionally, it highlights both the contributions and limitations of the theory in modern management practices.

1. By:-
Mandeep Neupane

2. Introduction 1
Principles 2
 Business Activities 3
 Principles of Management 4,5
 Management Functions 6
 Managerial Skills 7
Contributions 8
Limitations 9
References 10

3.  Administrative management theory is concerned with management
principles and functions for the overall management of the organization.
 Administrative management theory focuses on the functions, principls and
skills for the efficient and effectiveness of the organization.
Administrative
Management
Business
Activities
Management
skills
Management
Principles
Management
Functions
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4. The four main principles on the basis of which Administrative
management theory helps to make the organization more effective
and efficient can be listed as:
1. Business Activities
2. Principles of management
3. Management Functions
4. Managerial Skills
2

5. The theory of business activities classifies all business activities into
six catagories.
i. Technical : Manufacturing Products
ii. Commercial : Marketing Products (Buying, Selling,
Exchange)
iii. Financial : Acquiring and controlling capital
iv. Security : Protecting property and people
v. Accounting : Recording Financial transaction
vi. Managerial : Planning, Organizing, Commanding,
Coordinating and Controlling function
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6. This theory consists of 14 principles of Management and can
be listed as:
1. Division of Work : Specialization of work results in efficiency.
2. Authority and Responsibility : Authority flows from
responsibility.
3. Descipline : Obedience and respect for rules.
4. Unity of Command : One employee one boss.
5. Unity of Direction : One plan and one head for a group.
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7. 6. Subordination of Individual Interest : Interest of organization
should be above the interest of individual.
7. Remuneration : Fair and equitable wages to employees.
8. Centralization : Centralized power structure.
9. Scalar Chain : Chain of authority from top to bottom.
10. Order : A place for everything and everything in a place.
11. Equity : Sense of kindness and justice to all levels while dealing.
12. Stability of Tenure : Job security to avoid employee turnover.
13. Initiative : Give employee freedom to take initiative.
14. Espirit de Corps : Union Is strength.
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8. This Theory states that management should perform the
following functions.
 Forecast and plan : Setting goals and actions to achieve.
Organize : Grouping of activities and resources.
Command : Providing leadership.
Coordinate : Achieving harmony of effort.
Control : Monitoring and correcting performance.
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9. This theory states that management is a skill that can be
learned. Hence, managers are made not born.
A good manager should have following skills:
 Physical skill
 Mental skill
 Moral skill
 Educational skill
 Technical skill and
Experience.
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10. Contribution of the Administrative Management Theory can be
listed as :
 It identified management functions for the first time.
 Universal Principles of Management laid out by this theory
serve as guide for management behavior.
 It identified skills needed fro management.
 It introduced management as a profession.
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11.  It ignores the importance of behavior in organization
 It is mechanistic in nature and is not applicable n all
situations.
It has limited application in complex and dynamic
environment.
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12. Following materials were the sources for the presentation.
Principles of Management in Nepal – Dr. Govind Ram
Agrawal.
https://study.com
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13. Thank You !!!