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By: Stefan Ivetic

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Administrate:

To direct; give or carry out instructions usingrelevant information

Management:

The person who handles, controls and directs the

affairs of an organization

What is Administrative

Principles of Management?

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Definition:One definition of administrative management theory

is the effort to find a rational way to design anorganization 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 ofresponsibilities This information was acquired from the website

Education-Portal.com

Administrative Principles of

Management Definition

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Henri Fayol (1841-1925) Fayol was born in 1841 in a suburb of Istanbul,

Ottoman EmpireHis family later returned to France in 1847, where

Fayol graduated from the mining academy "coleNationale Suprieure des Mines" in Saint-tienne in1860

Fayol developed a general theory for businessadministrationHe is also considered to be one of the most influential

contributors to modern concepts of management Fayol also discovered the 14 principles of

management

Henri Fayol

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5 Functions of Management

1. To Forecast and Plan2. To Organize3. To Command4. To Coordinate

5. To Control

Henri Fayol

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Creating a plan of action for the futureDetermining the stages of the planDetermining the technology necessary to implement

it

1. To Forecast and Plan

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Once a plan is designed, managers need to provideeverything necessary to carry it out

Includes: raw materials, tools, capital and humanresources

2. To Organize

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Managers need to implement the plan They must have an understanding of the strength

and weaknesses of their personnel

3. To Command

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High level managers must work to harmonize allthe activities to facilitate organizational success

Communication is the key coordinating mechanism

4. To Coordinate

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The final element of management involves thecomparison of the activities of personnel to the plan

of action It is the evaluation stage of management

5. To Control

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1. Specialisation/Division of Labour2. Authority with Corresponding Responsibility

3. Discipline4. Unity of Command5. Unity of Direction

6. Subordination of Individual Interest to the GeneralInterest7. Remuneration of Staff8. Centralisation

9. Scalar Chain / Line of Authority

14 Principles of Management

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10. Order11. Equity

12. Stability of Tenure13. Initiative14. Esprit de Corps

14 Principles of Management

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Division of Labour means specialization It allows individuals to build up experience and

continuously improve his or her skills Thus the individual can be more productive

1. Division of Labour

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Authority means right to give order and commandwhile responsibility means to accomplish objective

Managers must be able give ordersResponsibility always arises whenever given

authority

2. Authority with

Corresponding Responsibility

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Discipline is required at every level in everyorganization

Fayol stated that discipline in terms of obedience,application, and respect to superiors

Employees will obey orders if management showsgood leadership

3. Discipline

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Each worker should only have one boss with noother conflicting lines of command

4. Unity of Command

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This means that all the works of an organizationmust work together to accomplish a common

objective under one plan and one manager

5. Unity of Direction

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A worker follows the common interest oforganization rather than individual

The interests of any one employee or group ofemployees should not take precedence over theinterests of the organization as a whole

6. Subordination of IndividualInterest to the General Interest

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Remuneration should be fair and adequate It includes both types of incentives financial as well

as non financial In other words workers must be paid a fair wage for

their services

7. Remuneration

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Centralization refers to the degree of which thesubordinates are involved in decision making

Whether decision making is centralized(tomanagement) or decentralized(to subordinates) is aquestion of proportion

8. Centralization

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Scalar chain is the chain or line of command fromsuperior to subordinates

The line of authority

9. Scalar Chain

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Only proper order can give an efficient management People and materials should be in the right place at

the right time

10. Order

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Equity creates loyalty and devotion among theemployees

Managers should be fair and kind to theirsubordinates

11. Equity

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Security of job for an employee in an organization isvery important and pre-requisite condition

Retaining productive employee should always ahigher priority of management

High employee turnover is not efficient

12. Stability of Tenure of

Personnel

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Employees who are allowed to originate and carryout plans will exert high levels of effort

13. Initiative

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Management should encourage harmony and properunderstandings between workers

Fayol said that in union there is strength Promoting team spirit and harmony and unity

within the organization

14. Esprit de corps

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Mary Parker Follett (1868-1933)

Mary Parker Follett was born in Massachusetts She was a social worker and a writer Follett also coined some modern phrases like:

Conflict Resolution, Authority of Power and TheTask of Leadership

Mary Parker Follett

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Promoted group networking rather than hierarchylevels

Emphasized methods such as ethics, power andleadership in employees

The encouragement managers to allow employees topartake in decision making

Key Concepts of Mary Parker

Follett

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Strived for:

"win-win" solutions,

Community-based solutions, Strength in human diversity, Situational leadershipFollett also believed in:

Teaching is carried out by leading Leaders and followers are in a relationship and the

role of leader flows to where he/she is needed

Key Concepts of Mary Parker

Follett