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Introduction to Public Administration Class Lecture-4 (Administrative Management)
Introduction to Public
Administration
Class Lecture-4
(Administrative Management)
Administrative Management
Henry Fayol(1841-1925)
• Administrative management was developed in 1st half of the 20th century.
• Henry Fayol,Luther Gulick,Lyndall Urwick,James D. Mooney have contributed to establish administrative management.
• Henri Fayol, the French industrialist and management consultant of the early twentieth century.
• He has long been acknowledged as a founding father of the classical management school of thought.
Administrative Management
Henry Fayol
• One of his major work is "General and Industrial
Management(1916)"
• His paper on,"The Theory of Administration in
the State" is considered as major contribution to
the theory of public administration.
• By Fayol, Administrative Theory: Universal
• Without doubt, Fayol is the best remembered for
a three-fold contribution to management
thought.
Administrative Management
Henry Fayol
• Firstly, Fayol is credited with the belief that organizational and business life was an amalgam of six activities of an industrial undertakings.
• Secondly, Fayol identified five keyfunctions or elements that comprised managerial activity.
• Finally, Fayol advocated fourteen principles designed to guide the successful manager.
Henri Fayol: Six Managerial Activities
Technical ActivitiesProduction, manufacture,
adaptation
Commercial Activities Buying, selling exchange
Financial ActivitiesSearch for and optimum use of
capital
Security activities Protection of property and persons
Accounting ActivitiesStock-taking, balance sheet, costs,
statistics
Managerial ActivitiesPlanning, organizing, commanding,
coordinating and controlling
Henri Fayol: Elements of Management
Fayol classifies the key functions of management into five main elements:
a) Planning: Forethought to the operation of an organization. Experience, Unity, continuity, flexibility, precision are features of Good Planning.
b) Organizing:Material organization and human organization (leadership, organizational structure).
c) Commanding: Rests on certain personal qualities and knowledge of general management.
Henri Fayol: Elements of Management
d) Coordinating: Coordinating by
integrating subordinates and keeping
balance among material, social and
functional parts.
e) Controlling: Verifying whether activities
take place in conformity with the plan
adopted, instructions issued and principles
established.
Fayol’s Fourteen Principles of
Management
1. Division of work: Work must be divided. Specialization labour produces more and better work with the same effort.
2. Authority: The right to give orders. where authority is exercised responsibility arises.
3. Discipline: Member of an organization need to respect the rules, agreements that governed by the organization.
Fayol’s Fourteen Principles of
Management
4. Unity of command: One man and one superior.
5. Unity of direction: One head and one plan for
a group of activities with the same objective.
6. Subordination of individual interest to
general interest:
The interests of one individual or one group
should not prevail over the general interest.
Fayol’s Fourteen Principles of
Management
7. Remuneration: Pay should be fair to both the employee and the firm.Fayol suggested many modes of payment
(Time rates, Job rates, Price rates, Bonus rates, profit sheery, Non financial rewards)
8. Centralization: Managers should retain final authority but also need to give their subordinates enough authority to do their jobs properly.
Fayol’s Fourteen Principles of
Management
9. Scalar chain: The line of authority from top to
bottom of the organization. Fayol’s Bridge or
Gang Plank.
A
B G
C H
D I
E..........................J
F K
Fayol’s Fourteen Principles of
Management
10. Order: A place for everything and everything in its place; the right man in the right place.
11. Equity: A combination of kindness and justice towards employees.
Fayol’s Fourteen Principles of
Management
EQUALITY EQUITY or JUSTICE
Fayol’s Fourteen Principles of
Management
12. Stability of tenure: Suitable condition should be created to minimize employee turnover.
13. Initiative: Within the limits of authority and discipline, all levels of staff should be encouraged to show initiative.
14. Esprit de corps: Harmony is a great strength to an organization; teamwork should be encouraged.
Criticism of Administrative Management
• Gave more attention to functional aspect and neglected structural aspect.
• For Peter Drucker, Fourteen principles have a great deal of overlapping.
• His theory is more applicable for manufacturing company rather than big public organizations.
• Unity of command and coordination may conflict.
• For Barnard and Simon, the informal side of organization and social-psychological or emotion needs of the employees were ignored.
Administrative Management
Luther Gulick
• Gulick and Urwick wrote in 1937 “paper on the
science of administration”. In this paper they
stretched on the importance of structure of
organization in determining function.
• Based on which the structure of the organization
can be designed.
Administrative Management
Luther Gulick
Gulick specified 10 principles of organization:
1. Division of work
2. Departmentalization: He identified 4 basis of departmentalization
purpose(function of organization)
process(skills)
persons(clients)
place(area)
3. Coordination: It means interrelating and unified the various part of work in a whole.
4. unity of command
Administrative Management
Luther Gulick
5. Decentralization
6. Delegation
7. Span of control: It means the number of subordinates or the unit of work that a superior can effectively control. It depends on 4 factors:
a) Function(nature of work)
b) Stability of the organization.
c) Place of work.
d) Personality of the superior.
Administrative Management
Luther Gulick
8. Line and staff:
The line agencies directly work for the achievement of the organizational objective. They are given authority to make decision, issue, orders and directions.
The staff agencies includes specialist who perform secondary or supportive function. They assist the line agencies in the accomplishment of organizational purpose.
Administrative Management
Lyndal Urwick
Urwick’s principles are 8 types:
1. Principle of objective: an organization should have a definite purpose or objective.
2. Principle of correspondence: Authority and responsibility must go together at all levels.
3. Principle of responsibility: The supervisor must take the responsibility of his subordinate workers.
Administrative Management
Lyndal Urwick
4. scalar principle
5. principle of span of control
6. specialization / division of work
7. coordination
8. Principle of definition: Clear description of
duties, authority and responsibility of each
position and its relationship and other positions.
Administrative Management
James D. Mooney
In 1931Mooeny and Raily wrote “onward industry” which republished 1939 as “the principles of organization”. The principles form the basis for efficient functioning to the organization. The 4 major principles developed by Mooney and Raily is:
1. Coordination
2. Scalar process
3. Functional differentiation / division of work.
4. Line and staff.
Bureaucratic Management
Max Weber (1864-1920)
Class Lecture-5
Bureaucratic Management
Max Weber
• Bureaucratic Theory was developed by a
German Sociologist and political economist Max
Weber (1864-1920).
• According to him, bureaucracy is the most
efficient form of organization.
• He was the first to give a systematic theory of
bureaucracy.
Bureaucratic Management
Max Weber
• Power is the ability to force people to obey.
• On the other hand authority is the legal power to give order.(formal position)
Weber distinguishes three types of authority-
1.Traditional authority:
In traditional authority, the legitimacy of the authority comes from tradition or custom; people obey this because they are influenced by tradition.
Bureaucratic Management
Max Weber
2. Legal-Rational Authority:
Weber identified "rationally-created rules" as the central feature of this form of authority.Obedient under this system is owed to the legally established order which is rational in character.
3. Charismatic Authority:
Charismatic authority is found in a leader whose mission and vision inspire others. It is based upon the extraordinary characteristics of an individual. Examples-Lenin, Gandhi, Mao, Martin Luther king.
Bureaucratic Management
Max Weber
• Bureaucracy is an administrative body of officials.
• In his conception, bureaucracy is a particular type of administrative structure, developed in association with the rational-legal mode of authority
• Bureaucracy refers to a type of organizational structure characterized by division of labor, a well-defined authority hierarchy, high formalization, impersonal relations, employment decisions based on merit, career tracks for employees and distinct separation of members’ organizational and personal lives.(Max Weber)
Bureaucratic Management
Max Weber
The bureaucratic form has six major principles-
1. Division of Labor: Each person’s job is broken down into simple, routine and well-defined tasks.
2. Hierarchy: Each lower office is controlled and supervised by a higher one. vertical division of levels.
3. Rules/documentations: - To ensure uniformity and to regulate actions of employees, managers must depend heavily upon formal organizational rules and regulations.Decisions are recorded in personal files.
Bureaucratic Management
Max Weber
4. Professionalism: Officials are selected on the
basis of technical qualifications, appointed to
offices and compensated by salary. Performance
is measured by formal, impersonal rules.
5. Impersonality: Authority is impersonal and it
rests with ranks and positions of a office holder
rather than persons.
Bureaucratic Management
Max Weber
6. Careerism: An official is a full-time employee
and looks forward to a lifelong career in the
agency. Tenure and position is protected against
arbitrary dismissal.
Bureaucratic Management
Max Weber (Criticism)
• Too much emphasis on rules and regulations
causes displacement of goal.
• Crosier describes bureaucracy as a rigid
organization that cannot correct its behavior by
learning its errors.
• Thompson used the tearm "Bureau-pathology"
which means disease of bureaucracy.
• It does not consider the informal relationships
between individuals working in the organizations
Bureaucratic Management
Max Weber (Criticism)
• Its system of control and authority are outdated
which can’t work in such a changed
environment.
• Bureaucracy involves a lot of paper
work.(wastage of time, effort and money).
• Bureaucratic model may be suitable for
government organizations, not for business
organizations.
