MANAGEMENT
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
HENRI FAYOL (1841-1925)
• Fayol laid the first foundations for modern scientific management.
His principles of management and research were published in the
book General & Industrial Management (1916)
Discipline
• One man and one superior.
• It is often a part of the core values of a mission • It means that an individual employee
and vision in the form of good conduct and should receive orders from one
respectful interactions. manager and that the employee is
answerable to that manager.
• This management principle is essential and is
seen as the oil to make the engine of an • If tasks and related responsibilities
organization run smoothly. are given to the employee by more
than one manager, this may lead to
confusion which may lead to possible
conflicts for employees.
• By using this principle, the
responsibility for mistakes can be
established more easily.
Unity of Direction Subordination of Individual Interest
• One head and one plan for a group • There are always all kinds of interests in
of activities with the same an organization. In order to have an
objective. organization function well, Henri Fayol
indicated that personal interests are
• All activities must be carried out by
subordinate to the interests of the
one group that forms a team. These
organization (ethics).
activities must be described in a
plan of action. • The interests of one individual or one
group should not prevail over the general
• The manager is ultimately
interest.
responsible for this plan and he
monitors the progress of the
defined and planned activities.
Focus areas are the efforts made by
the employees and coordination.
Renumeration The Degree of Centralization
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MAX WEBER (1864 – 1920)
AND BUREAUCRACY
• German sociologist who influenced classical organization theory.
• Weber developed a model for a rational and efficient large
organization which he termed a bureaucracy.