By: Stefan Ivetic

What is Administrative Principles of Management?

Administrate:
To direct; give or carry out instructions using relevant information

Management:
The person who handles, controls and directs the affairs of an organization

Administrative Principles of Management Definition

Definition:

One definition of administrative management theory is the effort 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 This information was acquired from the website Education-Portal.com

Henri Fayol
Henri Fayol (1841-1925)

Fayol was born in 1841 in a suburb of Istanbul, Ottoman Empire His family later returned to France in 1847, where Fayol graduated from the mining academy "cole Nationale Suprieure des Mines" in Saint-tienne in 1860 Fayol developed a general theory for business administration He is also considered to be one of the most influential contributors to modern concepts of management Fayol also discovered the 14 principles of management

Henri Fayol

5 Functions of Management
1. 2. 3. 4. 5. To Forecast and Plan To Organize To Command To Coordinate To Control

1. To Forecast and Plan

Creating a plan of action for the future Determining the stages of the plan Determining the technology necessary to implement it

2. To Organize

Once a plan is designed, managers need to provide everything necessary to carry it out Includes: raw materials, tools, capital and human resources

3. To Command

Managers need to implement the plan They must have an understanding of the strength and weaknesses of their personnel

4. To Coordinate

High level managers must work to harmonize all the activities to facilitate organizational success Communication is the key coordinating mechanism

5. To Control

The final element of management involves the comparison of the activities of personnel to the plan of action It is the evaluation stage of management

14 Principles of Management

1. 2. 3. 4. 5. 6. Specialisation/Division of Labour Authority with Corresponding Responsibility Discipline Unity of Command Unity of Direction Subordination of Individual Interest to the General Interest 7. Remuneration of Staff 8. Centralisation 9. Scalar Chain / Line of Authority

14 Principles of Management

10. Order 11. Equity 12. Stability of Tenure 13. Initiative 14. Esprit de Corps

1. Division of Labour

Division of Labour means specialization It allows individuals to build up experience and continuously improve his or her skills Thus the individual can be more productive

2. Authority with Corresponding Responsibility

Authority means right to give order and command while responsibility means to accomplish objective Managers must be able give orders Responsibility always arises whenever given authority

3. Discipline

Discipline is required at every level in every organization Fayol stated that discipline in terms of obedience, application, and respect to superiors Employees will obey orders if management shows good leadership

4. Unity of Command

Each worker should only have one boss with no other conflicting lines of command

5. Unity of Direction

This means that all the works of an organization must work together to accomplish a common objective under one plan and one manager

6. Subordination of Individual Interest to the General Interest

A worker follows the common interest of organization rather than individual 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

Remuneration should be fair and adequate It includes both types of incentives financial as well as non financial In other words workers must be paid a fair wage for their services

8. Centralization

Centralization refers to the degree of which the subordinates are involved in decision making Whether decision making is centralized(to management) or decentralized(to subordinates) is a question of proportion

9. Scalar Chain

Scalar chain is the chain or line of command from superior to subordinates The line of authority

10. Order

Only proper order can give an efficient management People and materials should be in the right place at the right time

11. Equity

Equity creates loyalty and devotion among the employees Managers should be fair and kind to their subordinates

12. Stability of Tenure of Personnel

Security of job for an employee in an organization is very important and pre-requisite condition Retaining productive employee should always a higher priority of management High employee turnover is not efficient

13. Initiative

Employees who are allowed to originate and carry out plans will exert high levels of effort

14. Esprit de corps

Management should encourage harmony and proper understandings between workers Fayol said that in union there is strength Promoting team spirit and harmony and unity within the organization

Mary Parker Follett

Mary Parker Follett (1868-1933)

Mary Parker Follett was born in Massachusetts She was a social worker and a writer Follett also coined some modern phrases like: Conflict Resolution, Authority of Power and The Task of Leadership

Key Concepts of Mary Parker Follett

Promoted group networking rather than hierarchy levels Emphasized methods such as ethics, power and leadership in employees The encouragement managers to allow employees to partake in decision making

Key Concepts of Mary Parker Follett

Strived for: "win-win" solutions, Community-based solutions, Strength in human diversity, Situational leadership Follett also believed in: Teaching is carried out by leading Leaders and followers are in a relationship and the role of leader flows to where he/she is needed