General Administrative Theory

General administrative theorists

Writers who developed general theories of what
managers do and what constitutes good
management practice
Henri Fayol (France)
Fourteen Principles of Management: Fundamental or
universal principles of management practice
Max Weber (Germany)
Bureaucracy: Ideal type of organization characterized
by division of labor, a clearly defined hierarchy, detailed
rules and regulations, and impersonal relationships

Fayols Administrative Theory
Five Elements of Management -- Managerial Objectives
Planning
Organizing
Command
Coordination
Control
Keep machine functioning effectively and efficiently
Replace quickly and efficiently any part or process that did not
contribute to the objectives


The Theory of Bureaucracy
Developed by Max Weber (1864-1920), a German
professor of sociology.
Principle 1:
In a bureaucracy, a managers formal authority derives from the position he or she holds in the
organization.
Authority - the power to hold people accountable for their actions and to make decisions in reference
to the use of organizational resources. (Textbook / Contemporary Management - 6th Edition)

In todays business models, this type of theory is not very common. Nowadays, we see more of an
informal authority approach in which there is personal expertise, technical knowledge, moral worth,
and the ability to lead and to generate commitment from subordinates, without the use of this absolute
power from one individual.


Principle 2:
In a bureaucracy, people should occupy positions because of their performance, not because of their social standing.
Some organizations and industries are still affected by social networks in which personal contacts and relations, not
job-related skills, influence hiring and promotional decisions. (Textbook / Contemporary Management - 6th Edition)


The old ways, of not what you know, but who you know, are still around in todays society, but it can only get you so
far. In todays business world, what you know and educational knowledge, play a very important part in moving up the
corporate latter and being able to maintain a managerial position requires the utilization of staying current on up to
date techniques and information.



Principle 3:
The extent of each positions formal authority and task responsibilities, and its relationship to other positions in the
organization should be clearly specified.
When the task and authority associated with various positions in the organization are clearly specified, managers and
workers know what is expected of them and what to expect from each other. (Textbook / Contemporary Management -
6th Edition)

Most organizations should and are clearly defining task and position responsibilities. Job descriptions should include all
facets of an employee held position. Clarification of ones job expectations is essential for all five business functions in
order to manage and maintain a high level, and measurable level of success for all organizations.


Principle 4:
Authority can be exercised effectively in an organization when positions are arranged hierarchically, so employees
know whom to report to and who reports to them.
Managers must create an organizational hierarchy of authority that makes it clear who reports to whom and to whom
managers and workers should go if conflicts or problems arise. (Textbook / Contemporary Management - 6th Edition)

Todays business models utilize the initiative factor in which employees are given the ability to act on their own,
without direction from a superior. This empowerment of employees relieves the stress of constant supervision and
allows supervisors and managers to concentrate more on other administrative duties. The balance between a vertical
and horizontal organizational structure is more widely used in todays business models.


Principle 5:
Managers must create a well defined system of rules, standard operating procedures, and norms so that they can
effectively control behavior within an organization.
Standard Operating Procedures (SOPs) are specific sets of written instructions about how to perform a certain aspect
of a task. (Textbook / Contemporary Management - 6th Edition)

Most companies have SOPs and require employees to learn and follow them. We have seen how in addition to
following rules and regulations, many organizations have allowed for creativity and innovation to supersede the
common way of conducting business where it was once said, rules are rules and they could never be broken.
Guidelines are needed and common sense is always important, but have an open line of communication to new ideas
and thoughts is essential in todays business society.