Administrative Theories of Management Essay

Henri Fayol a French industrialist has wrote a book title Administration Industrialle et Generalle in 1916 , according to his book theories about management he thought could be applied to the management of any organization with administrative responsibilities. Fayol identified five function which is still used today to all management activities , they were planning , organizing , commanding , coordinating and controlling . Fayol gives 14 principle of management :

1.Division of work According to Fayol , specialization increases output by making employees more efficient. Most of the employee may be able to deal with each item work that given to them if work is divided according to their skill and technical expertise .

2.Authority Fayol defined authority as ‘the right to give orders and the power to exact obedience.’ That means , managers must be able to give order to the employees . Along with it , the responsibility will goes on.

3.Discipline Discipline is an essential for the smooth running of business which is without it an enterprise or organization is unable to prosper. An employees must obey and respect the rules that are state by the organization .

4.Unity of Command An employee should receive orders from one superior only . Fayol regarded having ‘dual command’ is leading to uncertainty and hesitation on the part of subordinates and will make conflict between managers.

5.Unity of direction ‘One head and one plan for a group having the same objective.’ that mean the organization should have a single plan of action to guide managers and workers .

6.Subordination of individual interest to the general interest There should be no conflict of interest between individual ambition and the well-being of the organization as a whole. This principle requires a firm but fair hand from superiors who should set a good example.

7.Remuneration Workers must be paid a fair wage for their services . Fayol looked for some basic principles in the method of payment such is it shall assure fair remuneration , encourage keenness by rewarding well-directed effort and not lead to over-payment going beyond reasonable limits.

8.Centralization Fayol considered that an element of centralization must always be present which is each subordinate are involved in decision making.

9.Scalar Chain It is also known as line of authority . The unity of command can lead to excessively chains of authority which hinder communication. Hierarchic organizations regularly insisted that departments communicated with each other only through their heads.

10.Order For Fayol, people and materials should be in the right place at the right time . This presupposed the resolution of ‘the two most difficult managerial activities: good organization and good selection.’ He saw the basic problem as the balancing of an organization’s requirements with its resources.

11.Equity Managers should be kind and fair to their subordinate and treated them equally in order to obtain commitment from them .

12.Stability of tenure of personnel A management should provide orderly personnel planning and ensure that replacements are available to fill vacancies because employees need a period of stability in a job to deliver of their best.

13.Initiative Fayol cautions managers against the personal vanity which prevents their employees from allowing to think through a problem and implement a solution rewarding experience which increases motivation and high levels of effort. This meant , employees are allowed to originate and carry out their plans for the organization.

14.Esprit de corps. ‘Dividing enemy forces to weaken them is clever, but dividing one’s own team is a grave sin against the business.’ It is saying about promoting team spirit will build harmony and unity within the organization.

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