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2.15.4 Luther Gulick isolated the responsibilities of the chief executive and enumerated them using the acronym POSDCORB,
which stands for planning, organizing,
staffing, directing,
coordinating, reporting, and budgeting.
2.15.5 James D. Mooney and Alan C. Reilly James Mooney was a General Motors executive who teamed-up with historian Alan Reilly to expose the true principles of an organization in their books. They wrote a book Onward Industry in 1931 and later revised and renamed it as Principles of Organization which had greatly influenced the theory and practice of management in USA at that time. They contended that an efficient organization should be based on certain formal principles and premises. They contended that organizations should be studied from two viewpoints a. The employees who create and utilize the process of organization and b.
The objective of the process 2.15.6 Implications of Administrative school to modern management (i) The principles that Fayol set forth still provide a clear and appropriate set of guidelines that managers can use to create a work setting that makes efficient and effective use of organizational resources. ii) These principles remain the bedrock of modern management theory. For example,
Fayol’s concerns for equity and for establishing appropriate links between performance and reward are central themes in contemporary theories of motivation and leadership. iii) The practice of departmentalization into organization’s function is an offshoot of administrative thought iv) Chester Barnard theory of cooperative management sets the basis for group and teamwork
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