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Administrative Management Theory



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2.15
Administrative Management Theory
Developed at the time as scientific management, the administrative theory emphasizes management functions and attempts to generate broad administrative principles that would serve as guidelines for the rationalization of activities. The principal contributors to this management theory were Henri Fayol (1949), Mooney and Reiley (1939) and Gulick and Urwick (1937). Administrative theorists looked at productivity improvements from the top down as distinct from the Scientific Approach of Taylor, which was organized bottom up Administrative theorists developed general guidelines on how to formalize organizational structures and relationships. They laid emphasis on the job in preference to the worker. The administrative management emphasized the manager and the functions of management.
2.15.1 Henri Fayol (1841-1920)

Henri Fayol was a contemporary of Fredrick Winslow Taylor. Fayol believed that techniques of effective management could be defined and taught. His work included defining a body of principles which would enable a manager buildup a formal structure of the organization and administer it in a rational way. He was a staunch advocate of the universality of management concepts and principles.

Fayol divided the activities of industrial undertakings into
(i) Technical (Production) ii) Commercial (Buying, selling and exchange) iii) Financial (Optimum use of capital resources) iv) Accounting (protection of property and person) v) Accounting (recording and taking stock of costs, profits and liabilities, keeping balance sheet and compiling statistics) vi) Managerial (planning, organizing, commanding, coordinating and controlling.
Fayol emphasized that the process of management is the same at any level of an organization and is common to all types of organizations. In presenting his principles of management, Fayol was probably the first to outline what today are called the functions


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